GENESCO INC. REPORTS FISCAL 2023 SECOND QUARTER RESULTS
In the second quarter of Fiscal 2023, Genesco Inc. (GCO) reported net sales of $535 million, down 4% from last year but up 10% compared to pre-pandemic levels. GAAP EPS from continuing operations was $0.59, down from $0.74 last year. E-commerce sales accounted for 18% of retail sales. The company has revised its full-year guidance, expecting adjusted EPS between $6.25 and $7.00, reflecting more cautious outlook amidst inflationary pressures. Strong performance from Schuh and Johnston & Murphy partially offset declines in the Journeys segment.
- Net sales increased 10% compared to pre-pandemic levels.
- Strong growth in Schuh (9%) and Johnston & Murphy (17%) segments.
- Repurchased $45.4 million in stock, enhancing shareholder value.
- Operating income more than doubled compared to Q2FY20.
- Net sales decreased 4% from last year.
- GAAP EPS decreased from $0.74 last year to $0.59.
- Comparable sales were down 2% overall, with Journeys down 8%.
- Adjusted EPS guidance revised down to $6.25 - $7.00, down from previous $7.00 - $7.75.
--Revenue and Operating Income Well Exceed Pre-Pandemic Levels--
--EPS Surpasses Expectations--
Second Quarter Fiscal 2023 Financial Summary
- Net sales of
$535 million , a decrease of4% from last year and an increase of10% over Q2FY20 - Excluding the impact of lower exchange rates, net sales decreased
1% for Q2FY23 compared to Q2FY22 - Gross margin meets expectations
- E-commerce sales represented
18% of retail sales this year versus19% of retail sales last year and10% of retail sales in Q2FY20 - GAAP EPS from continuing operations was
$0.59 vs.$0.74 last year and$0.05 in Q2FY20 - Non-GAAP EPS from continuing operations was
$0.59 1 vs.$1.05 last year and$0.15 in Q2FY20 - Repurchased
$45.4 million of stock during Q2FY23, with$54.9 million remaining on the current authorization - Sequential retail sales improvement compared to FY22 throughout the quarter and into August
- Taking a more conservative approach to back half with revised expectations for adjusted EPS of
$6.25 to$7.00
NASHVILLE, Tenn., Sept. 1, 2022 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) today reported GAAP earnings from continuing operations per diluted share of
Mimi E. Vaughn, Genesco board chair, president and chief executive officer, said, "We are pleased with our second quarter performance, which combined with our first quarter results, represent a strong start to Fiscal 2023 on top of last year's stimulus-induced spending environment. Strength from our Schuh and Johnston & Murphy businesses and careful expense control helped offset softness late in the quarter versus expectations at Journeys to deliver earnings ahead of projections. While we've seen nicely improved trends through August and we saw a good start to the back-to-school season, sales didn't achieve levels contemplated in our previous guidance. With these current trends and in light of the current impact inflation is having on consumer discretionary spending we believe it's prudent to take a more conservative approach to our back half outlook. We remain confident that our footwear focused strategy has created a much more resilient and fundamentally stronger business that we believe is better positioned to successfully navigate more difficult market conditions and outperform in favorable economic backdrops."
_____________________ |
1Excludes asset impairments and expenses related to the new headquarters building, net of tax effect in the second quarter of Fiscal 2023 ("Excluded Items"). A reconciliation of earnings and earnings per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the adjusted earnings and earnings per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of earnings and earnings per share from continuing operations 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. |
Thomas A. George, Genesco chief financial officer, commented, "Our second quarter results were highlighted by solid revenue growth when compared to pre-pandemic levels as top line grew
Second Quarter Review
Net sales for the second quarter of Fiscal 2023 decreased
Comparable Sales | ||
Comparable Same Store and Direct Sales: | Q2FY23 | Q2FY22 |
Journeys Group | -8 % | NA |
Schuh Group | 9 % | NA |
Johnston & Murphy Group | 17 % | NA |
Total Genesco Comparable Sales | -2 % | NA |
Same Store Sales | -2 % | NA |
Comparable Direct Sales | -3 % | -23 % |
Overall sales for the second quarter this year compared to the second quarter of Fiscal 2022 were down
Second quarter gross margin this year was
Selling and administrative expense for the second quarter this year increased 30 basis points as a percentage of sales compared with last year but decreased 180 basis points compared with Fiscal 2020. Adjusted selling and administrative expense for the second quarter this year increased 30 basis points as a percentage of sales compared with last year but decreased 200 basis points compared with Fiscal 2020. The increase as compared to Fiscal 2022 is due in large part to one-time benefits for rent credits and government relief in the second quarter of Fiscal 2022. Excluding these one-time benefits last year, decreased performance-based compensation expense more than offset the deleverage in selling salaries and marketing expenses.
Genesco's GAAP operating income for the second quarter was
The effective tax rate for the quarter was
GAAP earnings from continuing operations were
Adjusted for the Excluded Items in all periods, second quarter earnings from continuing operations were
Cash, Borrowings and Inventory
Cash and cash equivalents at July 30, 2022, were
Capital Expenditures and Store Activity
For the second quarter, capital expenditures excluding the new corporate headquarters building were
Share Repurchases
The Company repurchased 826,034 shares during the second quarter of Fiscal 2023 at a cost of
Fiscal 2023 Outlook
The Company revises its Fiscal 2023 full year guidance:
- Sales are now expected to be down
3% to flat, compared to FY22, versus prior guidance of up1% to3% . - Adjusted diluted earnings per share from continuing operations in the range of
$6.25 to$7.00 2, with an expectation that adjusted diluted earnings per share for the year will be near the mid-point of the range, versus the prior expectation for adjusted diluted earnings per share to be near the mid-point of$7.00 to$7.75 .
Please refer to the Q2FY23 conference call and Q2FY23 Summary Results presentation for details regarding guidance assumptions.
ESG Report
Genesco recently published its inaugural ESG Report on www.genesco.com outlining the Company's most recent ESG work, policies and metrics. "We are proud of the progress we've made on ESG," said Vaughn. "Our business continues to incorporate ESG as a factor in key operating decisions such as redesigning and reducing shoe box sizes and participating in energy reduction programs at the store level. We're committed to do more and look forward to updating you on our future progress."
Conference Call, Management Commentary and Investor Presentation
The Company has posted detailed financial commentary and a supplemental financial presentation of second quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on September 1, 2022, at 7:30 a.m. (Central time), may be accessed through the Company's website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.
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," "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 the effects of COVID-19 on the Company's business, including COVID-19 case spikes in locations in which the Company operates, additional stores closures due to COVID-19, 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 COVID-19 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 European Union, impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to renew leases in existing stores and control or lower occupancy costs, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company's ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company's ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; our ability to meet our sustainability, stewardship, emission and diversity, equity and inclusion related ESG projections, goals and commitments; costs and reputational harm as a result of disruptions in the Company's business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company's ability to realize any anticipated tax benefits; and the cost and outcome of litigation, investigations and environmental matters involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company's SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via the Company's website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.
About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer and branded company, sells footwear and accessories in more than 1,410 retail stores throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Little Burgundy, Schuh, Schuh Kids, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.journeys.ca, www.littleburgundyshoes.com, www.schuh.co.uk, www.schuh.ie, www.schuh.eu, www.johnstonmurphy.com, www.johnstonmurphy.ca, www.nashvilleshoewarehouse.com, and www.dockersshoes.com. In addition, Genesco sells footwear at wholesale under its Johnston & Murphy brand, the licensed Levi's brand, the licensed Dockers brand, the licensed Bass brand, and other brands. Genesco is committed to progress in its diversity, equity and inclusion efforts, and the Company's environmental, social and governance stewardship. For more information on Genesco and its operating divisions, please visit www.genesco.com.
GENESCO INC. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Quarter 2 | Quarter 2 | ||||||||
July 30, | % of | July 31, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Net sales | $ 535,332 | 100.0 % | $ 555,183 | 100.0 % | |||||
Cost of sales | 281,018 | 52.5 % | 282,661 | 50.9 % | |||||
Gross margin | 254,314 | 47.5 % | 272,522 | 49.1 % | |||||
Selling and administrative expenses | 245,103 | 45.8 % | 252,551 | 45.5 % | |||||
Asset impairments and other, net | 129 | 0.0 % | 7,070 | 1.3 % | |||||
Operating income | 9,082 | 1.7 % | 12,901 | 2.3 % | |||||
Other components of net periodic benefit cost | 50 | 0.0 % | 56 | 0.0 % | |||||
Interest expense, net | 405 | 0.1 % | 617 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 8,627 | 1.6 % | 12,228 | 2.2 % | |||||
Income tax expense | 976 | 0.2 % | 1,354 | 0.2 % | |||||
Earnings from continuing operations | 7,651 | 1.4 % | 10,874 | 2.0 % | |||||
Gain (loss) from discontinued operations, net of tax | (8) | 0.0 % | 63 | 0.0 % | |||||
Net Earnings | $ 7,643 | 1.4 % | $ 10,937 | 2.0 % | |||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 0.60 | $ 0.76 | |||||||
Net earnings | $ 0.60 | $ 0.76 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 0.59 | $ 0.74 | |||||||
Net earnings | $ 0.59 | $ 0.75 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 12,813 | 14,339 | |||||||
Diluted | 13,009 | 14,611 | |||||||
GENESCO INC. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Six Months Ended | Six Months Ended | ||||||||
July 30, | % of | July 31, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Net sales | $ 1,056,080 | 100.0 % | $ 1,093,878 | 100.0 % | |||||
Cost of sales | 550,322 | 52.1 % | 563,694 | 51.5 % | |||||
Gross margin | 505,758 | 47.9 % | 530,184 | 48.5 % | |||||
Selling and administrative expenses | 488,584 | 46.3 % | 492,016 | 45.0 % | |||||
Asset impairments and other, net | (154) | 0.0 % | 9,740 | 0.9 % | |||||
Operating income | 17,328 | 1.6 % | 28,428 | 2.6 % | |||||
Other components of net periodic benefit cost | 148 | 0.0 % | 17 | 0.0 % | |||||
Interest expense, net | 702 | 0.1 % | 1,346 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 16,478 | 1.6 % | 27,065 | 2.5 % | |||||
Income tax expense | 3,858 | 0.4 % | 7,297 | 0.7 % | |||||
Earnings (loss) from continuing operations | 12,620 | 1.2 % | 19,768 | 1.8 % | |||||
Gain (loss) from discontinued operations, net of tax | (30) | 0.0 % | 47 | 0.0 % | |||||
Net Earnings | $ 12,590 | 1.2 % | $ 19,815 | 1.8 % | |||||
Basic earnings per share: | |||||||||
Before discontinued operations | $ 0.98 | $ 1.38 | |||||||
Net earnings | $ 0.98 | $ 1.38 | |||||||
Diluted earnings per share: | |||||||||
Before discontinued operations | $ 0.96 | $ 1.35 | |||||||
Net earnings | $ 0.95 | $ 1.35 | |||||||
Weighted-average shares outstanding: | |||||||||
Basic | 12,887 | 14,313 | |||||||
Diluted | 13,189 | 14,657 | |||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter 2 | Quarter 2 | ||||||||
July 30, | % of | July 31, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | $ 321,332 | 60.0 % | $ 346,275 | 62.4 % | |||||
Schuh Group | 101,518 | 19.0 % | 106,079 | 19.1 % | |||||
Johnston & Murphy Group | 74,818 | 14.0 % | 61,159 | 11.0 % | |||||
Licensed Brands | 37,664 | 7.0 % | 41,670 | 7.5 % | |||||
Net Sales | $ 535,332 | 100.0 % | $ 555,183 | 100.0 % | |||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 9,222 | 2.9 % | $ 30,368 | 8.8 % | |||||
Schuh Group | 2,094 | 2.1 % | 3,623 | 3.4 % | |||||
Johnston & Murphy Group | 3,212 | 4.3 % | 3,951 | 6.5 % | |||||
Licensed Brands | 685 | 1.8 % | 991 | 2.4 % | |||||
Corporate and Other(1) | (6,131) | -1.1 % | (26,032) | -4.7 % | |||||
Operating income | 9,082 | 1.7 % | 12,901 | 2.3 % | |||||
Other components of net periodic benefit cost | 50 | 0.0 % | 56 | 0.0 % | |||||
Interest, net | 405 | 0.1 % | 617 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 8,627 | 1.6 % | 12,228 | 2.2 % | |||||
Income tax expense | 976 | 0.2 % | 1,354 | 0.2 % | |||||
Earnings from continuing operations | 7,651 | 1.4 % | 10,874 | 2.0 % | |||||
Gain (loss) from discontinued operations, net of tax | (8) | 0.0 % | 63 | 0.0 % | |||||
Net Earnings | $ 7,643 | 1.4 % | $ 10,937 | 2.0 % | |||||
(1) Includes a | |||||||||
Includes a | |||||||||
of a shareholder activist and | |||||||||
GENESCO INC. | |||||||||
Sales/Earnings Summary by Segment | |||||||||
(in thousands) | |||||||||
(Unaudited) | |||||||||
Six Months Ended | Six Months Ended | ||||||||
July 30, | % of | July 31, | % of | ||||||
2022 | Net Sales | 2021 | Net Sales | ||||||
Sales: | |||||||||
Journeys Group | $ 635,777 | 60.2 % | $ 722,823 | 66.1 % | |||||
Schuh Group | 189,677 | 18.0 % | 174,790 | 16.0 % | |||||
Johnston & Murphy Group | 145,834 | 13.8 % | 109,921 | 10.0 % | |||||
Licensed Brands | 84,792 | 8.0 % | 86,344 | 7.9 % | |||||
Net Sales | $ 1,056,080 | 100.0 % | $ 1,093,878 | 100.0 % | |||||
Operating Income (Loss): | |||||||||
Journeys Group | $ 24,152 | 3.8 % | $ 63,492 | 8.8 % | |||||
Schuh Group | (652) | -0.3 % | (224) | -0.1 % | |||||
Johnston & Murphy Group | 3,762 | 2.6 % | 771 | 0.7 % | |||||
Licensed Brands | 4,478 | 5.3 % | 3,552 | 4.1 % | |||||
Corporate and Other(1) | (14,412) | -1.4 % | (39,163) | -3.6 % | |||||
Operating income | 17,328 | 1.6 % | 28,428 | 2.6 % | |||||
Other components of net periodic benefit cost | 148 | 0.0 % | 17 | 0.0 % | |||||
Interest, net | 702 | 0.1 % | 1,346 | 0.1 % | |||||
Earnings from continuing operations before | |||||||||
income taxes | 16,478 | 1.6 % | 27,065 | 2.5 % | |||||
Income tax expense | 3,858 | 0.4 % | 7,297 | 0.7 % | |||||
Earnings from continuing operations | 12,620 | 1.2 % | 19,768 | 1.8 % | |||||
Gain (loss) from discontinued operations, net of tax | (30) | 0.0 % | 47 | 0.0 % | |||||
Net Earnings | $ 12,590 | 1.2 % | $ 19,815 | 1.8 % | |||||
(1) Includes a | |||||||||
partially offset by | |||||||||
Includes a | |||||||||
of a shareholder activist and | |||||||||
GENESCO INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
July 30, 2022 | July 31, 2021 | ||||||
Assets | |||||||
Cash | $ 44,939 | $ 304,039 | |||||
Accounts receivable | 42,782 | 31,872 | |||||
Inventories | 507,236 | 326,477 | |||||
Other current assets(1) | 99,455 | 91,554 | |||||
Total current assets | 694,412 | 753,942 | |||||
Property and equipment | 220,742 | 202,711 | |||||
Operating lease right of use assets | 491,412 | 610,188 | |||||
Goodwill and other intangibles | 66,029 | 69,850 | |||||
Other non-current assets | 27,125 | 21,929 | |||||
Total Assets | $ 1,499,720 | $ 1,658,620 | |||||
Liabilities and Equity | |||||||
Accounts payable | $ 226,779 | $ 186,593 | |||||
Current portion operating lease liabilities | 135,571 | 156,562 | |||||
Other current liabilities | 80,266 | 134,407 | |||||
Total current liabilities | 442,616 | 477,562 | |||||
Long-term debt | 48,872 | 20,022 | |||||
Long-term operating lease liabilities | 413,416 | 524,857 | |||||
Other long-term liabilities | 34,283 | 48,082 | |||||
Equity | 560,533 | 588,097 | |||||
Total Liabilities and Equity | $ 1,499,720 | $ 1,658,620 | |||||
(1) Includes prepaid income taxes of | |||||||
and July 31, 2021, respectively. | |||||||
GENESCO INC. | ||||||||||
Store Count Activity | ||||||||||
Balance | Balance | Balance | ||||||||
01/30/21 | Open | Close | 01/29/22 | Open | Close | 07/30/22 | ||||
Journeys Group | 1,159 | 5 | 29 | 1,135 | 6 | 10 | 1,131 | |||
Schuh Group | 123 | 0 | 0 | 123 | 1 | 2 | 122 | |||
Johnston & Murphy Group | 178 | 1 | 12 | 167 | 1 | 9 | 159 | |||
Total Retail Stores | 1,460 | 6 | 41 | 1,425 | 8 | 21 | 1,412 | |||
GENESCO INC. | ||||||
Store Count Activity | ||||||
Balance | Balance | |||||
04/30/22 | Open | Close | 07/30/22 | |||
Journeys Group | 1,130 | 3 | 2 | 1,131 | ||
Schuh Group | 122 | 0 | 0 | 122 | ||
Johnston & Murphy Group | 162 | 1 | 4 | 159 | ||
Total Retail Stores | 1,414 | 4 | 6 | 1,412 | ||
GENESCO INC. | ||||||||||
Comparable Sales(1) | ||||||||||
Quarter 2 | Six Months | |||||||||
July 30, | July 31, | July 30, | July 31, | |||||||
2022 | 2021 | 2022 | 2021 | |||||||
Journeys Group | -8 % | NA | NA | NA | ||||||
Schuh Group | 9 % | NA | NA | NA | ||||||
Johnston & Murphy Group | 17 % | NA | NA | NA | ||||||
Total Comparable Sales | -2 % | NA | NA | NA | ||||||
Same Store Sales | -2 % | NA | NA | NA | ||||||
Comparable Direct Sales | -3 % | -23 % | -16 % | 3 % | ||||||
(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 the second quarter of Fiscal 2022 and the six months of 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 | ||||||||||||
Genesco Inc. | ||||||||||||
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 | ||||||||||||
Quarter 2 | Quarter 2 | Quarter 2 | ||||||||||
July 30, 2022 | July 31, 2021 | August 3, 2019 | ||||||||||
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 | $ 7,651 | $ 10,874 | $ 793 | |||||||||
Asset impairments and other adjustments: | ||||||||||||
Asset impairment charges | $ 129 | 98 | 0.01 | $ 1,410 | 1,200 | 0.08 | $ 731 | 451 | 0.03 | |||
Gain on pension termination | - | (7) | 0.00 | - | - | 0.00 | - | - | 0.00 | |||
Fees related to shareholder activist | - | - | 0.00 | 6,238 | 4,393 | 0.30 | - | - | 0.00 | |||
Expenses related to new HQ building | 762 | 583 | 0.04 | 1,157 | 813 | 0.06 | - | - | 0.00 | |||
Insurance gain | - | - | 0.00 | (578) | (408) | (0.03) | - | - | 0.00 | |||
Loss on lease terminations | - | - | 0.00 | - | - | 0.00 | 1,044 | 717 | 0.04 | |||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | - | 2 | 0.00 | |||
Total asset impairments and other adjustments | $ 891 | 674 | 0.05 | $ 8,227 | 5,998 | 0.41 | $ 1,775 | 1,170 | 0.07 | |||
Income tax expense adjustments: | ||||||||||||
Tax impact share based awards | (663) | (0.05) | (1,747) | (0.12) | (54) | 0.00 | ||||||
Other tax items | 4 | 0.00 | 196 | 0.02 | 547 | 0.03 | ||||||
Total income tax expense adjustments | (659) | (0.05) | (1,551) | (0.10) | 493 | 0.03 | ||||||
Adjusted earnings from continuing operations (1) and (2) | $ 7,666 | $ 15,321 | $ 2,456 | |||||||||
(1) The adjusted tax rate for the second quarter of Fiscal 2023, 2022 and 2020 is | ||||||||||||
(2) EPS reflects 13.0 million, 14.6 million and 16.0 million share count for the second quarter of Fiscal 2023, 2022 and 2020, respectively, which includes common stock equivalents in all periods. | ||||||||||||
Genesco Inc. | ||||
Adjustments to Reported Operating Income and Selling and Administrative Expenses | ||||
Three Months Ended July 30, 2022, July 31, 2021 and August 3, 2019 | ||||
Quarter 2 - July 30, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 9,222 | $ - | $ 9,222 | |
Schuh Group | 2,094 | - | 2,094 | |
Johnston & Murphy Group | 3,212 | - | 3,212 | |
Licensed Brands | 685 | - | 685 | |
Corporate and Other | (6,131) | 891 | (5,240) | |
Total Operating Income | $ 9,082 | $ 891 | $ 9,973 | |
% of sales | 1.7 % | 1.9 % | ||
Quarter 2 - July 31, 2021 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 30,368 | $ - | $ 30,368 | |
Schuh Group | 3,623 | - | 3,623 | |
Johnston & Murphy Group | 3,951 | - | 3,951 | |
Licensed Brands | 991 | - | 991 | |
Corporate and Other | (26,032) | 8,227 | (17,805) | |
Total Operating Income | $ 12,901 | $ 8,227 | $ 21,128 | |
% of sales | 2.3 % | 3.8 % | ||
Quarter 2 - August 3, 2019 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 11,329 | $ - | $ 11,329 | |
Schuh Group | 39 | - | 39 | |
Johnston & Murphy Group | 1,518 | - | 1,518 | |
Licensed Brands | (251) | - | (251) | |
Corporate and Other | (9,673) | 1,775 | (7,898) | |
Total Operating Income | $ 2,962 | $ 1,775 | $ 4,737 | |
% of sales | 0.6 % | 1.0 % | ||
Quarter 2 | ||||
In Thousands | July 30, 2022 | July 31, 2021 | August 3, 2019 | |
Selling and administrative expenses, as reported | $ 245,103 | $ 252,551 | $ 231,796 | |
Expenses related to new HQ building | (762) | (1,157) | - | |
Total adjustments | (762) | (1,157) | - | |
Adjusted selling and administrative expenses | $ 244,341 | $ 251,394 | $ 231,796 | |
% of sales | 45.6 % | 45.3 % | 47.6 % | |
Schedule B | ||||||||||||
Genesco Inc. | ||||||||||||
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 | ||||||||||||
Six Months | Six Months | Six Months | ||||||||||
July 30, 2022 | July 31, 2021 | August 3, 2019 | ||||||||||
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 | $ 12,620 | $ 19,768 | $ 7,263 | |||||||||
Asset impairments and other adjustments: | ||||||||||||
Asset impairment charges | $ 541 | 457 | 0.03 | $ 1,824 | 1,526 | 0.10 | $ 1,038 | 663 | 0.04 | |||
Gain on pension termination | (695) | (518) | (0.04) | - | - | 0.00 | - | - | 0.00 | |||
Fees related to shareholder activist | - | - | 0.00 | 8,494 | 5,993 | 0.41 | - | - | 0.00 | |||
Expenses related to new HQ building | 2,288 | 1,705 | 0.13 | 1,754 | 1,237 | 0.09 | - | - | 0.00 | |||
Insurance gain | - | - | 0.00 | (578) | (408) | (0.03) | - | - | 0.00 | |||
Loss on lease terminations | - | - | 0.00 | - | - | 0.00 | 44 | 28 | 0.00 | |||
Gain on Hurricane Maria | - | - | 0.00 | - | - | 0.00 | (38) | (24) | 0.00 | |||
Total asset impairments and other adjustments | $ 2,134 | 1,644 | 0.12 | $ 11,494 | 8,348 | 0.57 | $ 1,044 | 667 | 0.04 | |||
Income tax expense adjustments: | ||||||||||||
Tax impact share based awards | (663) | (0.05) | (1,747) | (0.12) | (54) | 0.00 | ||||||
Other tax items | 1 | 0.00 | 596 | 0.04 | 489 | 0.02 | ||||||
Total income tax expense adjustments | (662) | (0.05) | (1,151) | (0.08) | 435 | 0.02 | ||||||
Adjusted earnings from continuing operations (1) and (2) | $ 13,602 | $ 26,965 | $ 8,365 | |||||||||
(1) The adjusted tax rate for the first six months of Fiscal 2023, 2022 and 2020 is | ||||||||||||
(2) EPS reflects 13.2 million, 14.7 million and 16.9 million share count for the first six months of Fiscal 2023, 2022 and 2020, respectively, which includes common stock equivalents in all periods. | ||||||||||||
Genesco Inc. | ||||
Adjustments to Reported Operating Income and Selling and Administrative Expenses | ||||
Six Months Ended July 30, 2022, July 31, 2021 and August 3, 2019 | ||||
Six Months July 30, 2022 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 24,152 | $ - | $ 24,152 | |
Schuh Group | (652) | - | (652) | |
Johnston & Murphy Group | 3,762 | - | 3,762 | |
Licensed Brands | 4,478 | - | 4,478 | |
Corporate and Other | (14,412) | 2,134 | (12,278) | |
Total Operating Income | $ 17,328 | $ 2,134 | $ 19,462 | |
% of sales | 1.6 % | 1.8 % | ||
Six Months July 31, 2021 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 63,492 | $ - | $ 63,492 | |
Schuh Group | (224) | - | (224) | |
Johnston & Murphy Group | 771 | - | 771 | |
Licensed Brands | 3,552 | - | 3,552 | |
Corporate and Other | (39,163) | 11,494 | (27,669) | |
Total Operating Income | $ 28,428 | $ 11,494 | $ 39,922 | |
% of sales | 2.6 % | 3.6 % | ||
Six Months August 3, 2019 | ||||
Operating | Asset Impair | Adj Operating | ||
In Thousands | Income (Loss) | & Other Adj | Income (Loss) | |
Journeys Group | $ 30,305 | $ - | $ 30,305 | |
Schuh Group | (5,389) | - | (5,389) | |
Johnston & Murphy Group | 6,624 | - | 6,624 | |
Licensed Brands | 178 | - | 178 | |
Corporate and Other | (19,672) | 1,044 | (18,628) | |
Total Operating Income | $ 12,046 | $ 1,044 | $ 13,090 | |
% of sales | 1.2 % | 1.3 % | ||
Six Months | ||||
In Thousands | July 30, 2022 | July 31, 2021 | August 3, 2019 | |
Selling and administrative expenses, as reported | $ 488,584 | $ 492,016 | $ 468,351 | |
Expenses related to new HQ building | (2,288) | (1,754) | - | |
Total adjustments | (2,288) | (1,754) | - | |
Adjusted selling and administrative expenses | $ 486,296 | $ 490,262 | $ 468,351 | |
% of sales | 46.0 % | 44.8 % | 47.7 % | |
Schedule B | |||||
Genesco Inc. | |||||
Adjustments to Forecasted Earnings from Continuing Operations | |||||
Fiscal Year Ending January 28, 2023 | |||||
In millions (except per share amounts) | High Guidance | Low Guidance | |||
Fiscal 2023 | Fiscal 2023 | ||||
Net of Tax | Per Share | Net of Tax | Per Share | ||
Forecasted earnings from continuing operations | $ 87.2 | $ 6.76 | $ 77.2 | $ 5.98 | |
Asset impairments and other adjustments: | |||||
Asset impairments and other matters | 1.4 | 0.11 | 1.7 | 0.14 | |
New building costs | 1.7 | 0.13 | 1.7 | 0.13 | |
Total asset impairments and other adjustments (1) | 3.1 | 0.24 | 3.4 | 0.27 | |
Adjusted forecasted earnings from continuing operations (2) | $ 90.3 | $ 7.00 | $ 80.6 | $ 6.25 | |
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2023 is approximately | |||||
(2) EPS reflects 12.9 million share count for Fiscal 2023 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-second-quarter-results-301615976.html
SOURCE Genesco Inc.
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