GENESCO INC. REPORTS FISCAL 2023 FOURTH QUARTER AND FULL YEAR RESULTS
Genesco Inc. (NYSE: GCO) reported its fourth quarter and fiscal year results for January 28, 2023, noting a 5% increase in comparable sales and a 15% rise in e-commerce sales. Net sales were $725 million, flat year-over-year, while full-year sales decreased 2% to $2.4 billion. GAAP EPS from continuing operations was $3.23 for Q4, down from $4.41 last year. Fiscal 2024 guidance suggests adjusted EPS between $5.10 and $5.90, reflecting macroeconomic uncertainties. The company plans to reshape its cost structure to adapt to changing consumer behavior and expects a cautious outlook for the upcoming fiscal year.
- Fourth quarter comparable sales rose 5%.
- E-commerce sales increased 15% year-over-year.
- Record sales achieved by Johnston & Murphy and Schuh.
- Cash balances enabled $73 million in share repurchases.
- Net sales decreased 2% for the full year compared to FY22.
- GAAP EPS decreased from $7.92 to $5.69 year-over-year.
- Gross margin decreased by 120 basis points for FY23.
- Increased inventories by 65% year-over-year.
--Fourth Quarter Comps Increased
-- Fourth Quarter E-Commerce Sales Increased
--Johnston & Murphy and Schuh Achieve Record Sales in FY23—
Fourth Quarter Fiscal 2023 Financial Summary
- Net sales of
were essentially flat with last year and increased$725 million 7% over Q4FY20 - Excluding the impact of lower exchange rates, net sales increased
2% for Q4FY23 compared to Q4FY22 - Comps up
5% , with stores up1% and direct up21% - E-commerce sales up
15% compared to Q4FY22 and up57% compared to Q4FY20 - E-commerce sales represented
25% of retail sales compared to22% last year and increased from17% of retail sales in Q4FY20 - GAAP EPS from continuing operations was
vs.$3.23 last year and$4.41 in Q4FY20$2.49 - Non-GAAP EPS from continuing operations was
1 vs.$3.06 last year and$3.48 in Q4FY20$3.09
Fiscal 2023 Financial Summary
- Net sales of
decreased$2.4 billion 2% compared to last year but increased9% over FY20 - Excluding the impact of lower exchange rates, net sales increased
1% for FY23 compared to FY22 - E-commerce sales down
5% compared to FY22 but up67% compared to FY20 - E-commerce sales represented
20% of retail sales, down from21% compared to last year but an increase from13% of retail sales in FY20 - GAAP EPS from continuing operations was
vs.$5.69 last year and$7.92 in FY20$3.94 - Non-GAAP EPS from continuing operations was
1 vs.$5.59 last year and$7.62 in FY20$4.58 - Repurchased
of stock during FY23, with$72.7 million remaining on the current authorization$34.1 million
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1Excludes a charge for asset impairments and expenses related to the Company's new headquarters building, net of tax effect in the fourth quarter and year of Fiscal 2023, and, additionally, a gain on the termination of the pension plan, net of tax effect for the year of Fiscal 2023 ("Excluded Items"). A reconciliation of earnings and earnings per share from continuing operations in accordance with |
For Fiscal 2024, we have a number of initiatives planned to drive growth as well as more immediate actions to reshape our cost structure to better align with consumer behavior. Given the macroeconomic uncertainty, we believe it is prudent to adopt a cautious view for the current year. That said, we believe that the strong, strategic positioning of our businesses and our experienced teams' proven ability to successfully execute in both favorable and challenging markets, has the Company on course for delivering increased profitability and greater shareholder value over the longer term."
Fourth Quarter Review
Net sales for the fourth quarter of Fiscal 2023 of
Comparable Sales | ||
4QFY23 | 4QFY22 | |
(1) % | 1 % | |
20 % | (2) % | |
23 % | 38 % | |
Total Genesco Comparable Sales | 5 % | 3 % |
Same Store Sales | 1 % | 10 % |
Comparable Direct Sales | 21 % | (12) % |
Overall sales for the fourth quarter of Fiscal 2023 compared to the fourth quarter of Fiscal 2022 increased
Fourth quarter gross margin this year was
Selling and administrative expense for the fourth quarter this year decreased 50 basis points as a percentage of sales compared with last year and increased 90 basis points compared with the fourth quarter of Fiscal 2020. Adjusted selling and administrative expense for the fourth quarter this year decreased 40 basis points as a percentage of sales compared with last year and increased 130 basis points compared with the fourth quarter of Fiscal 2020. The fourth quarter of Fiscal 2022 included one-time benefits for rent credits and government relief of approximately 70 basis points. Excluding these one-time benefits last year, leverage in performance-based compensation and occupancy expenses more than offset the deleverage from compensation and marketing expenses.
Genesco's GAAP operating income for the fourth quarter was
The effective tax rate for the quarter was
GAAP earnings from continuing operations were
Full Year Review
Net sales for Fiscal 2023 decreased
Overall sales for Fiscal 2023 compared to Fiscal 2022 increased
Gross margin for Fiscal 2023 was
Selling and administrative expense for Fiscal 2023 increased 100 basis points as a percentage of sales compared with last year and decreased 30 basis points compared with Fiscal 2020. Adjusted selling and administrative expense as a percentage of sales for Fiscal 2023 was
Genesco's GAAP operating income for Fiscal 2023 was
The effective tax rate was
GAAP earnings from continuing operations were
Cash, Borrowings and Inventory
Cash as of
Capital Expenditures and Store Activity
For the fourth quarter, capital expenditures were
Share Repurchases
The Company did not repurchase any shares during the fourth quarter of Fiscal 2023. The Company repurchased 1,380,272 shares, or
Fiscal 2024 Outlook
For Fiscal 2024, the Company expects:
- Sales to be flat to up
2% , or down1% to up1% , excluding the 53rd week this year, compared to FY23 - Adjusted diluted earnings per share from continuing operations in the range of
to$5.10 , with an expectation that earnings per share for the year will be near the mid-point of the range.2$5.90 - Guidance assumes no further share repurchases and a tax rate of
26%
Please refer to the Q4FY23 conference call and Q4FY23 Summary Results presentation for details regarding guidance assumptions.
Conference Call, Management Commentary and Investor Presentation
The Company has posted detailed financial commentary and a supplemental financial presentation of fourth quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on
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2A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to GAAP is included in Schedule B to this press release. |
Safe Harbor Statement
This release contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, stores openings and closures, ESG progress and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as "intend," "expect," "feel," "believe," "anticipate," "optimistic" and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company's ability to adequately staff and operate stores. Differences from expectations could also result from stores closures and effects on the business as a result of civil disturbances; the level and timing of promotional activity necessary to maintain inventories at appropriate levels; our ability to pass on price increases to our customers; the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the Company's ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; the effects of the British decision to exit the
About
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Quarter 4 | Quarter 4 | ||||||||
% of | % of | ||||||||
2023 | 2022 | ||||||||
Net sales | 100.0 % | 100.0 % | |||||||
Cost of sales | 388,395 | 53.6 % | 371,909 | 51.1 % | |||||
Gross margin | 336,625 | 46.4 % | 355,751 | 48.9 % | |||||
Selling and administrative expenses | 285,776 | 39.4 % | 290,478 | 39.9 % | |||||
Asset impairments and other, net | 1,009 | 0.1 % | (18,110) | -2.5 % | |||||
Operating income | 49,840 | 6.9 % | 83,383 | 11.5 % | |||||
Other components of net periodic benefit cost | 50 | 0.0 % | 56 | 0.0 % | |||||
Interest expense, net | 1,312 | 0.2 % | 517 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 48,478 | 6.7 % | 82,810 | 11.4 % | |||||
Income tax expense | 9,280 | 1.3 % | 20,612 | 2.8 % | |||||
Earnings from continuing operations | 39,198 | 5.4 % | 62,198 | 8.5 % | |||||
Loss from discontinued operations, net of tax | (249) | 0.0 % | (58) | 0.0 % | |||||
Net Earnings | $ 38,949 | 5.4 % | $ 62,140 | 8.5 % | |||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 3.29 | $ 4.53 | |||||||
Net earnings | $ 3.27 | $ 4.52 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 3.23 | $ 4.41 | |||||||
Net earnings | $ 3.21 | $ 4.41 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 11,914 | 13,738 | |||||||
Diluted | 12,124 | 14,106 | |||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||
% of | % of | ||||||||
2023 | 2022 | ||||||||
Net sales | 100.0 % | 100.0 % | |||||||
Cost of sales | 1,248,698 | 52.4 % | 1,240,948 | 51.2 % | |||||
Gross margin | 1,136,190 | 47.6 % | 1,181,136 | 48.8 % | |||||
Selling and administrative expenses | 1,042,094 | 43.7 % | 1,033,625 | 42.7 % | |||||
Asset impairments and other, net | 855 | 0.0 % | (8,056) | -0.3 % | |||||
Operating income | 93,241 | 3.9 % | 155,567 | 6.4 % | |||||
Other components of net periodic benefit cost | 248 | 0.0 % | 128 | 0.0 % | |||||
Interest expense, net | 2,920 | 0.1 % | 2,448 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 90,073 | 3.8 % | 152,991 | 6.3 % | |||||
Income tax expense | 17,831 | 0.7 % | 38,044 | 1.6 % | |||||
Earnings from continuing operations | 72,242 | 3.0 % | 114,947 | 4.7 % | |||||
Loss from discontinued operations, net of tax | (327) | 0.0 % | (97) | 0.0 % | |||||
Net Earnings | $ 71,915 | 3.0 % | $ 114,850 | 4.7 % | |||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 5.80 | $ 8.11 | |||||||
Net earnings | $ 5.77 | $ 8.11 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 5.69 | $ 7.92 | |||||||
Net earnings | $ 5.66 | $ 7.92 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 12,457 | 14,170 | |||||||
Diluted | 12,707 | 14,509 | |||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter 4 | Quarter 4 | ||||||||
% of | % of | ||||||||
2023 | 2022 | ||||||||
Sales: | |||||||||
| 64.2 % | 65.1 % | |||||||
| 137,516 | 19.0 % | 128,979 | 17.7 % | |||||
| 89,311 | 12.3 % | 76,099 | 10.5 % | |||||
| 32,386 | 4.5 % | 48,857 | 6.7 % | |||||
| 100.0 % | 100.0 % | |||||||
Operating Income (Loss): | |||||||||
| $ 43,169 | 9.3 % | $ 58,441 | 12.3 % | |||||
| 12,341 | 9.0 % | 9,780 | 7.6 % | |||||
| 7,108 | 8.0 % | 4,617 | 6.1 % | |||||
| (3,229) | -10.0 % | 3,163 | 6.5 % | |||||
Corporate and Other(1) | (9,549) | -1.3 % | 7,382 | 1.0 % | |||||
Operating income | 49,840 | 6.9 % | 83,383 | 11.5 % | |||||
Other components of net periodic benefit cost | 50 | 0.0 % | 56 | 0.0 % | |||||
Interest, net | 1,312 | 0.2 % | 517 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 48,478 | 6.7 % | 82,810 | 11.4 % | |||||
Income tax expense | 9,280 | 1.3 % | 20,612 | 2.8 % | |||||
Earnings from continuing operations | 39,198 | 5.4 % | 62,198 | 8.5 % | |||||
Loss from discontinued operations, net of tax | (249) | 0.0 % | (58) | 0.0 % | |||||
Net Earnings | $ 38,949 | 5.4 % | $ 62,140 | 8.5 % | |||||
(1) Includes a | |||||||||
quarter of Fiscal 2022 for the sale of a distribution warehouse. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||
% of | % of | ||||||||
2023 | 2022 | ||||||||
Sales: | |||||||||
| 62.1 % | 65.1 % | |||||||
| 432,002 | 18.1 % | 423,560 | 17.5 % | |||||
| 314,759 | 13.2 % | 252,855 | 10.4 % | |||||
| 155,924 | 6.5 % | 169,194 | 7.0 % | |||||
| 100.0 % | 100.0 % | |||||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 94,404 | 6.4 % | $ 165,336 | 10.5 % | |||||
| 17,601 | 4.1 % | 19,257 | 4.5 % | |||||
| 14,364 | 4.6 % | 7,029 | 2.8 % | |||||
| (678) | -0.4 % | 6,583 | 3.9 % | |||||
Corporate and Other(1) | (32,450) | -1.4 % | (42,638) | -1.8 % | |||||
Operating income | 93,241 | 3.9 % | 155,567 | 6.4 % | |||||
Other components of net periodic benefit cost | 248 | 0.0 % | 128 | 0.0 % | |||||
Interest, net | 2,920 | 0.1 % | 2,448 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 90,073 | 3.8 % | 152,991 | 6.3 % | |||||
Income tax expense | 17,831 | 0.7 % | 38,044 | 1.6 % | |||||
Earnings from continuing operations | 72,242 | 3.0 % | 114,947 | 4.7 % | |||||
Loss from discontinued operations, net of tax | (327) | 0.0 % | (97) | 0.0 % | |||||
Net Earnings | $ 71,915 | 3.0 % | $ 114,850 | 4.7 % | |||||
(1) Includes a | |||||||||
termination of the pension plan. | |||||||||
Includes an | |||||||||
insurance gain, partially offset by | |||||||||
impairments. | |||||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Cash | $ 47,990 | $ 320,525 | |||||
Accounts receivable | 40,818 | 39,509 | |||||
Inventories | 458,017 | 278,200 | |||||
Other current assets(1) | 25,844 | 71,564 | |||||
Total current assets | 572,669 | 709,798 | |||||
Property and equipment | 233,733 | 216,308 | |||||
Operating lease right of use assets | 470,991 | 543,789 | |||||
65,553 | 68,411 | ||||||
Non-current prepaid income taxes | 54,111 | - | |||||
Other non-current assets | 59,369 | 23,793 | |||||
Total Assets | $ 1,456,426 | $ 1,562,099 | |||||
Liabilities and Equity | |||||||
Accounts payable | $ 144,998 | $ 152,484 | |||||
Current portion operating lease liabilities | 134,458 | 145,088 | |||||
Other current liabilities | 81,327 | 134,156 | |||||
Total current liabilities | 360,783 | 431,728 | |||||
Long-term debt | 44,858 | 15,679 | |||||
Long-term operating lease liabilities | 401,113 | 471,878 | |||||
Other long-term liabilities | 42,706 | 40,346 | |||||
Equity | 606,966 | 602,468 | |||||
Total Liabilities and Equity | $ 1,456,426 | $ 1,562,099 | |||||
(1) Includes prepaid income taxes of | |||||||
Store Count Activity | ||||||||||
Balance | Balance | Balance | ||||||||
Open | Close | Open | Close | |||||||
1,159 | 5 | 29 | 1,135 | 22 | 27 | 1,130 | ||||
123 | 0 | 0 | 123 | 4 | 5 | 122 | ||||
178 | 1 | 12 | 167 | 2 | 11 | 158 | ||||
Total Retail Stores | 1,460 | 6 | 41 | 1,425 | 28 | 43 | 1,410 | |||
Store Count Activity | ||||||
Balance | Balance | |||||
Open | Close | |||||
1,123 | 14 | 7 | 1,130 | |||
122 | 2 | 2 | 122 | |||
159 | 1 | 2 | 158 | |||
Total Retail Stores | 1,404 | 17 | 11 | 1,410 | ||
Comparable Sales(1) | ||||||||||
Quarter 4 | Fiscal Year Ended | |||||||||
2023 | 2022 | 2023 | 2022 | |||||||
-1 % | 1 % | NA | NA | |||||||
20 % | -2 % | NA | NA | |||||||
23 % | 38 % | NA | NA | |||||||
Total Comparable Sales | 5 % | 3 % | NA | NA | ||||||
Same Store Sales | 1 % | 10 % | NA | NA | ||||||
Comparable Direct Sales | 21 % | -12 % | 0 % | -2 % | ||||||
(1) As a result of store closures during Fiscal 2021 and the first quarter of Fiscal 2022 in response to the COVID-19 | ||||||||||
pandemic and the Company's policy of removing any store closed for seven consecutive days from comparable sales, | ||||||||||
the Company has not included comparable sales for Fiscal 2023 and Fiscal 2022, except for comparable direct sales, | ||||||||||
as it felt that overall sales was a more meaningful metric during those periods. | ||||||||||
Schedule B | |||||||||||||
Adjustments to Reported Earnings from Continuing Operations | |||||||||||||
Three Months Ended | |||||||||||||
The Company believes that disclosure of earnings and earnings per share from continuing operations and operating income adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. | |||||||||||||
Quarter 4 | Quarter 4 | Quarter 4 | |||||||||||
January 28, 2023 | January 29, 2022 | February 1, 2020 | |||||||||||
Net of | Per Share | Net of | Per Share | Net of | Per Share | ||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||
Earnings from continuing operations, as reported | $ 39,198 | ||||||||||||
Asset impairments and other adjustments: | |||||||||||||
Asset impairment charges | $ 1,009 | 729 | 0.06 | $ - | 6 | 0.00 | $ 1,258 | 965 | 0.07 | ||||
Fees related to shareholder activist | - | (5) | 0.00 | (25) | 23 | 0.00 | - | - | 0.00 | ||||
Expenses related to new HQ building | 112 | 100 | 0.01 | 1,093 | 794 | 0.05 | - | - | 0.00 | ||||
Gain on sale of warehouse | - | - | 0.00 | (18,085) | (12,893) | (0.91) | - | - | 0.00 | ||||
Insurance gain | - | - | 0.00 | - | (3) | 0.00 | - | - | 0.00 | ||||
Pension settlement | - | - | 0.00 | - | - | 0.00 | 11,510 | 8,409 | 0.59 | ||||
Gain on lease terminations | - | - | 0.00 | - | - | 0.00 | (502) | (366) | (0.03) | ||||
Acquisition expenses | - | - | 0.00 | - | - | 0.00 | 2,474 | 1,808 | 0.13 | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (149) | (110) | (0.01) | ||||
Gain on sale of Lids building | - | - | 0.00 | - | - | 0.00 | (586) | (428) | (0.03) | ||||
Total asset impairments and other adjustments | $ 1,121 | 824 | 0.07 | (12,073) | (0.86) | 10,278 | 0.72 | ||||||
Income tax expense adjustments: | |||||||||||||
Other tax items | (2,939) | (0.24) | (998) | (0.07) | (1,719) | (0.12) | |||||||
Total income tax expense adjustments | (2,939) | (0.24) | (998) | (0.07) | (1,719) | (0.12) | |||||||
Adjusted earnings from continuing operations (1) and (2) | $ 37,083 | ||||||||||||
(1) The adjusted tax rate for the fourth quarter of Fiscal 2023, 2022 and 2020 is | |||||||||||||
(2) EPS reflects 12.1 million, 14.1 million and 14.3 million share count for the fourth quarter of Fiscal 2023, 2022 and 2020, respectively, which includes common stock equivalents in all periods. |
Adjustments to Reported Operating Income and Selling and Administrative Expenses | ||||
Three Months Ended | ||||
Quarter 4 - January 28, 2023 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 43,169 | $ - | $ 43,169 | ||
12,341 | - | 12,341 | ||
7,108 | - | 7,108 | ||
(3,229) | - | (3,229) | ||
Corporate and Other | (9,549) | 1,121 | (8,428) | |
Total Operating Income | $ 49,840 | $ 1,121 | $ 50,961 | |
% of sales | 6.9 % | 7.0 % | ||
Quarter 4 - January 29, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 58,441 | $ - | $ 58,441 | ||
9,780 | - | 9,780 | ||
4,617 | - | 4,617 | ||
3,163 | - | 3,163 | ||
Corporate and Other | 7,382 | (17,017) | (9,635) | |
Total Operating Income | $ 83,383 | $ (17,017) | $ 66,366 | |
% of sales | 11.5 % | 9.1 % | ||
Quarter 4 - February 1, 2020 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 55,685 | $ - | $ 55,685 | ||
5,679 | - | 5,679 | ||
7,363 | - | 7,363 | ||
(849) | - | (849) | ||
Corporate and Other | (22,549) | 14,005 | (8,544) | |
Total Operating Income | $ 45,329 | $ 14,005 | $ 59,334 | |
% of sales | 6.7 % | 8.8 % | ||
Quarter 4 | ||||
In Thousands | Jan. 28, 2023 | Jan. 29, 2022 | Feb. 1, 2020 | |
Selling and administrative expenses, as reported | $ 285,776 | $ 290,478 | $ 260,612 | |
Expenses related to new HQ building | (112) | (1,093) | - | |
Acquisition expenses | (2,474) | |||
Total adjustments | (112) | (1,093) | (2,474) | |
Adjusted selling and administrative expenses | $ 285,664 | $ 289,385 | $ 258,138 | |
% of sales | 39.4 % | 39.8 % | 38.1 % |
Adjustments to Reported Earnings from Continuing Operations | |||||||||||||
Fiscal Year Ended | |||||||||||||
The Company believes that disclosure of earnings and earnings per share from continuing operations and operating income adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. | |||||||||||||
Fiscal Year Ended | Fiscal Year Ended | Fiscal Year Ended | |||||||||||
January 28, 2023 | January 29, 2022 | February 1, 2020 | |||||||||||
Net of | Per Share | Net of | Per Share | Net of | Per Share | ||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||
Earnings from continuing operations, as reported | $ 72,242 | ||||||||||||
Asset impairments and other adjustments: | |||||||||||||
Asset impairment charges | $ 1,550 | 1,183 | 0.09 | 1,694 | 0.12 | $ 3,095 | 2,261 | 0.14 | |||||
Gain on pension termination | (695) | (525) | (0.04) | - | - | 0.00 | - | - | 0.00 | ||||
Fees related to shareholder activist | - | - | 0.00 | 8,558 | 6,101 | 0.42 | - | - | 0.00 | ||||
Expenses related to new HQ building | 2,657 | 2,005 | 0.16 | 4,004 | 2,855 | 0.20 | - | - | 0.00 | ||||
Insurance gain | - | - | 0.00 | (578) | (412) | (0.03) | - | - | 0.00 | ||||
Gain on sale of warehouse | - | - | 0.00 | (18,085) | (12,893) | (0.89) | - | - | 0.00 | ||||
Pension settlement | - | - | 0.00 | - | - | 0.00 | 11,510 | 8,409 | 0.54 | ||||
Acquisition expenses | - | - | 0.00 | - | - | 0.00 | 2,474 | 1,808 | 0.12 | ||||
Gain on sale of Lids building | - | - | 0.00 | - | - | 0.00 | (586) | (428) | (0.03) | ||||
Gain on lease terminations | - | - | 0.00 | - | - | 0.00 | (458) | (335) | (0.02) | ||||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (187) | (137) | (0.01) | ||||
Total asset impairments and other adjustments | $ 3,512 | 2,663 | 0.21 | (2,655) | (0.18) | 11,578 | 0.74 | ||||||
Income tax expense adjustments: | |||||||||||||
Tax impact share based awards | (635) | (0.05) | (1,747) | (0.12) | (54) | 0.00 | |||||||
Other tax items | (3,188) | (0.26) | 17 | 0.00 | (1,475) | (0.10) | |||||||
Total income tax expense adjustments | (3,823) | (0.31) | (1,730) | (0.12) | (1,529) | (0.10) | |||||||
Adjusted earnings from continuing operations (1) and (2) | $ 71,082 | ||||||||||||
(1) The adjusted tax rate for Fiscal 2023, 2022 and 2020 is | |||||||||||||
(2) EPS reflects 12.7 million, 14.5 million and 15.7 million share count for Fiscal 2023, 2022 and 2020, respectively, which includes common stock equivalents in all periods. |
Adjustments to Reported Operating Income and Selling and Administrative Expenses | ||||
Fiscal Year Ended | ||||
Fiscal Year Ended January 28, 2023 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 94,404 | $ - | $ 94,404 | ||
17,601 | - | 17,601 | ||
14,364 | - | 14,364 | ||
(678) | - | (678) | ||
Corporate and Other | (32,450) | 3,512 | (28,938) | |
Total Operating Income | $ 93,241 | $ 3,512 | $ 96,753 | |
% of sales | 3.9 % | 4.1 % | ||
Fiscal Year Ended January 29, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 165,336 | $ - | $ 165,336 | ||
19,257 | - | 19,257 | ||
7,029 | - | 7,029 | ||
6,583 | - | 6,583 | ||
Corporate and Other | (42,638) | (4,052) | (46,690) | |
Total Operating Income | $ 155,567 | $ (4,052) | $ 151,515 | |
% of sales | 6.4 % | 6.3 % | ||
Fiscal Year Ended February 1, 2020 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
$ 114,945 | $ - | $ 114,945 | ||
4,659 | - | 4,659 | ||
17,702 | - | 17,702 | ||
(698) | - | (698) | ||
Corporate and Other | (53,290) | 15,848 | (37,442) | |
Total Operating Income | $ 83,318 | $ 15,848 | $ 99,166 | |
% of sales | 3.8 % | 4.5 % | ||
Fiscal Year Ended | ||||
In Thousands | Jan. 28, 2023 | Jan. 29, 2022 | Feb. 1, 2020 | |
Selling and administrative expenses, as reported | $ 1,042,094 | $ 1,033,625 | $ 966,423 | |
Expenses related to new HQ building | (2,657) | (4,004) | - | |
Acquisition expenses | - | - | (2,474) | |
Total adjustments | (2,657) | (4,004) | (2,474) | |
Adjusted selling and administrative expenses | $ 1,039,437 | $ 1,029,621 | $ 963,949 | |
% of sales | 43.6 % | 42.5 % | 43.9 % |
Schedule B | |||||
Adjustments to Forecasted Earnings from Continuing Operations | |||||
Fiscal Year Ending | |||||
In millions (except per share amounts) | High Guidance | Low Guidance | |||
Fiscal 2024 | Fiscal 2024 | ||||
Net of Tax | Per Share | Net of Tax | Per Share | ||
Forecasted earnings from continuing operations | $ 70.9 | $ 5.82 | $ 60.7 | $ 4.99 | |
Asset impairments and other adjustments: | |||||
Asset impairments and other matters | 1.0 | 0.08 | 1.4 | 0.11 | |
Total asset impairments and other adjustments (1) | 1.0 | 0.08 | 1.4 | 0.11 | |
Adjusted forecasted earnings from continuing operations (2) | $ 71.9 | $ 5.90 | $ 62.1 | $ 5.10 | |
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2024 is approximately | |||||
(2) EPS reflects 12.2 million share count for Fiscal 2024 which includes common stock equivalents. | |||||
This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these | |||||
expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in | |||||
this release. The Company disclaims any obligation to update such expectations and estimates. |
View original content:https://www.prnewswire.com/news-releases/genesco-inc-reports-fiscal-2023-fourth-quarter-and-full-year-results-301767491.html
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