Genesco Inc. Reports Fiscal 2024 Second Quarter Results
- E-commerce sales represented 21% of retail sales compared to 18% last year
- Gross margin improved 20 basis points
- Net sales decreased 2% compared to Q2 2023
- GAAP EPS was ($2.79) vs. $0.59 last year
Second Quarter Fiscal 2024 Financial Summary
-
Net sales of
$523 million 2% compared to Q2FY23 -
Comps down
2% , with stores down6% and direct up14% -
E-commerce sales represented
21% of retail sales compared to18% last year - Gross margin improved 20 basis points
-
GAAP EPS from continuing operations was (
$2.79 $0.59 -
Non-GAAP EPS from continuing operations was (
$0.85 $0.59 -
Repurchased
$22.9 million 8% of outstanding shares during Q2FY24, with$52.1 million
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, said, “As we expected, the operating environment remained challenging in the second quarter. However, relative to earlier this year, we were encouraged to see some improvement in the trend within our Journeys business as the quarter progressed, leading us to deliver results ahead of our prior expectations. In the meantime, Schuh and Johnston & Murphy continue to outperform, each delivering another quarter of record sales despite the challenging backdrop, and we continued to make progress on our plans to close roughly 100 Journeys stores and reduce costs by
Vaughn continued, “Thus far in the third quarter, sales trends for the Back-to-School season improved a little further with consumers shopping when there is a reason and much closer to need. Given the ongoing lack of visibility into consumer demand patterns in the near-term and other pressures, we are maintaining our cautious view and reiterating our outlook for Fiscal 2024.”
__________________________ |
1 Excludes a charge for asset impairments, net of tax effect in the second quarter of Fiscal 2024 (“Excluded Items”). A reconciliation of earnings (loss) and earnings (loss) per share from continuing operations in accordance with |
Second Quarter Review
Net sales for the second quarter of Fiscal 2024 of
Comparable Sales |
|||||||||
|
|
|
|||||||
Comparable Same Store and Direct Sales: |
2QFY24 |
2QFY23 |
|||||||
Journeys Group |
(11 |
)% |
(8 |
)% |
|||||
Schuh Group |
17 |
% |
9 |
% |
|||||
Johnston & Murphy Group |
12 |
% |
17 |
% |
|||||
Total Genesco Comparable Sales |
(2 |
)% |
(2 |
)% |
|||||
Same Store Sales |
(6 |
)% |
(2 |
)% |
|||||
Comparable Direct Sales |
14 |
% |
(3 |
)% |
|||||
The overall sales decrease of
Second quarter gross margin this year was
Selling and administrative expense for the second quarter this year increased 380 basis points as a percentage of sales compared with last year. Adjusted selling and administrative expense for the second quarter this year increased 400 basis points as a percentage of sales compared with last year. The increase as a percentage of sales compared to Fiscal 2023 reflects the deleverage of expenses as a result of decreased revenue in the second quarter of Fiscal 2024. The increase in expense was primarily related to a prior year reversal of performance-based compensation expense, along with increased compensation expense, and higher IT expenses to drive technology initiatives in the second quarter this year.
Genesco’s GAAP operating loss for the second quarter was
The effective tax rate for the quarter was
GAAP loss from continuing operations was
Impairment Charges
Due to a dispute with a Genesco Brands Group licensor regarding renewal of their current license in the normal course and based on the requirements of ASC 350, “Intangibles - Goodwill and Other,” the Company identified possible indicators of impairment in the second quarter of Fiscal 2024. As a result, the Company recognized the full impairment of goodwill in its Genesco Brands Group and recorded a non-cash impairment charge of
Cash, Borrowings and Inventory
Cash as of July 29, 2023 was
Capital Expenditures and Store Activity
For the second quarter this year, capital expenditures were
Share Repurchases
The Company repurchased 1,006,295 shares during the second quarter of Fiscal 2024 at a cost of
Store Closing and Cost Savings Update
- The Company expects to close approximately 100 Journeys stores in Fiscal 2024
-
The Company anticipates up to
$40 million $20 million
Reaffirms Fiscal 2024 EPS Outlook
For Fiscal 2024, the Company:
-
Now expects sales to be down
2% to4% , or down3% to5% excluding the 53rd week this year, compared to Fiscal 2023 -
Continues to expect adjusted diluted earnings per share from continuing operations in the range of
$2.00 $2.50 -
Guidance assumes no further share repurchases and a tax rate of
24%
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 August 31, 2023, 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.
__________________________ |
2 A 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, store 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,” “confident” 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 store 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; our ability to renew our license agreements; the effects of the British decision to exit the European Union, impacts of the
About Genesco Inc.
Genesco Inc. (NYSE: GCO) is a footwear focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities offering customers the footwear they desire in engaging shopping environments, including approximately 1,400 retail stores and branded e-commerce websites. Its Journeys, Little Burgundy and Schuh brands serve teens, kids and young adults with on-trend fashion footwear that inspires youth culture in the
GENESCO INC. |
|||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||
(in thousands, except per share data) |
|||||||||||||
(Unaudited) |
|||||||||||||
Quarter 2 |
|
Quarter 2 |
|||||||||||
July 29, |
% of |
|
July 30, |
% of |
|||||||||
|
2023 |
|
Net Sales |
|
|
2022 |
|
Net Sales |
|||||
| Net sales | $ |
523,027 |
|
100.0 |
% |
$ |
535,332 |
|
100.0 |
% |
|||
| Cost of sales |
|
273,507 |
|
52.3 |
% |
|
281,018 |
|
52.5 |
% |
|||
| Gross margin |
|
249,520 |
|
47.7 |
% |
|
254,314 |
|
47.5 |
% |
|||
| Selling and administrative expenses |
|
259,520 |
|
49.6 |
% |
|
245,103 |
|
45.8 |
% |
|||
| Goodwill impairment |
|
28,453 |
|
5.4 |
% |
|
- |
|
0.0 |
% |
|||
| Asset impairments and other, net |
|
174 |
|
0.0 |
% |
|
129 |
|
0.0 |
% |
|||
| Operating income (loss) |
|
(38,627 |
) |
-7.4 |
% |
|
9,082 |
|
1.7 |
% |
|||
| Other components of net periodic benefit cost |
|
148 |
|
0.0 |
% |
|
50 |
|
0.0 |
% |
|||
| Interest expense, net |
|
2,383 |
|
0.5 |
% |
|
405 |
|
0.1 |
% |
|||
| Earnings (loss) from continuing operations before income taxes | (41,158 |
) | -7.9 |
% | 8,627 |
1.6 |
% | ||||||
| Income tax expense (benefit) |
|
(9,526 |
) |
-1.8 |
% |
|
976 |
|
0.2 |
% |
|||
| Earnings (loss) from continuing operations |
|
(31,632 |
) |
-6.0 |
% |
|
7,651 |
|
1.4 |
% |
|||
| Loss from discontinued operations, net of tax |
|
(33 |
) |
0.0 |
% |
|
(8 |
) |
0.0 |
% |
|||
| Net Earnings (Loss) | $ |
(31,665 |
) |
-6.1 |
% |
$ |
7,643 |
|
1.4 |
% |
|||
| Basic earnings (loss) per share: | |||||||||||||
| Before discontinued operations | $ |
(2.79 |
) |
$ |
0.60 |
|
|||||||
| Net earnings (loss) | $ |
(2.79 |
) |
$ |
0.60 |
|
|||||||
| Diluted earnings (loss) per share: | |||||||||||||
| Before discontinued operations | $ |
(2.79 |
) |
$ |
0.59 |
|
|||||||
| Net earnings (loss) | $ |
(2.79 |
) |
$ |
0.59 |
|
|||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic |
|
11,344 |
|
|
12,813 |
|
|||||||
| Diluted |
|
11,344 |
|
|
13,009 |
|
|||||||
GENESCO INC. |
|||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||
(in thousands, except per share data) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
Six Months Ended |
|
Six Months Ended |
|||||||||
|
|
July 29, |
% of |
|
July 30, |
% of |
|||||||
|
|
|
2023 |
|
Net Sales |
|
|
2022 |
|
Net Sales |
|||
| Net sales | $ |
1,006,359 |
|
100.0 |
% |
$ |
1,056,080 |
|
100.0 |
% |
|||
| Cost of sales |
|
528,031 |
|
52.5 |
% |
|
550,322 |
|
52.1 |
% |
|||
| Gross margin |
|
478,328 |
|
47.5 |
% |
|
505,758 |
|
47.9 |
% |
|||
| Selling and administrative expenses |
|
511,017 |
|
50.8 |
% |
|
488,584 |
|
46.3 |
% |
|||
| Goodwill impairment |
|
28,453 |
|
2.8 |
% |
|
- |
|
0.0 |
% |
|||
| Asset impairments and other, net |
|
482 |
|
0.0 |
% |
|
(154 |
) |
0.0 |
% |
|||
| Operating income (loss) |
|
(61,624 |
) |
-6.1 |
% |
|
17,328 |
|
1.6 |
% |
|||
| Other components of net periodic benefit cost |
|
240 |
|
0.0 |
% |
|
148 |
|
0.0 |
% |
|||
| Interest expense, net |
|
4,034 |
|
0.4 |
% |
|
702 |
|
0.1 |
% |
|||
| Earnings (loss) from continuing operations before income taxes |
|
(65,898 |
) |
-6.5 |
% |
|
16,478 |
|
1.6 |
% |
|||
| Income tax expense (benefit) |
|
(15,391 |
) |
-1.5 |
% |
|
3,858 |
|
0.4 |
% |
|||
| Earnings (loss) from continuing operations |
|
(50,507 |
) |
-5.0 |
% |
|
12,620 |
|
1.2 |
% |
|||
| Loss from discontinued operations, net of tax |
|
(48 |
) |
0.0 |
% |
|
(30 |
) |
0.0 |
% |
|||
| Net Earnings (Loss) | $ |
(50,555 |
) |
-5.0 |
% |
$ |
12,590 |
|
1.2 |
% |
|||
| Basic earnings (loss) per share: | |||||||||||||
| Before discontinued operations | $ |
(4.36 |
) |
$ |
0.98 |
|
|||||||
| Net earnings (loss) | $ |
(4.37 |
) |
$ |
0.98 |
|
|||||||
| Diluted earnings (loss) per share: | |||||||||||||
| Before discontinued operations | $ |
(4.36 |
) |
$ |
0.96 |
|
|||||||
| Net earnings (loss) | $ |
(4.37 |
) |
$ |
0.95 |
|
|||||||
| Weighted-average shares outstanding: | |||||||||||||
| Basic |
|
11,581 |
|
|
12,887 |
|
|||||||
| Diluted |
|
11,581 |
|
|
13,189 |
|
|||||||
GENESCO INC. |
|||||||||||||
Sales/Earnings Summary by Segment |
|||||||||||||
(in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
Quarter 2 |
|
Quarter 2 |
|||||||||
|
|
July 29, |
% of |
|
July 30, |
% of |
|||||||
|
|
|
2023 |
|
Net Sales |
|
|
2022 |
|
Net Sales |
|||
| Sales: | |||||||||||||
| Journeys Group | $ |
287,275 |
|
54.9 |
% |
$ |
321,332 |
|
60.0 |
% |
|||
| Schuh Group |
|
122,799 |
|
23.5 |
% |
|
101,518 |
|
19.0 |
% |
|||
| Johnston & Murphy Group |
|
77,785 |
|
14.9 |
% |
|
74,818 |
|
14.0 |
% |
|||
| Genesco Brands Group |
|
35,168 |
|
6.7 |
% |
|
37,664 |
|
7.0 |
% |
|||
| Net Sales | $ |
523,027 |
|
100.0 |
% |
$ |
535,332 |
|
100.0 |
% |
|||
| Operating Income (Loss): | |||||||||||||
| Journeys Group | $ |
(14,878 |
) |
-5.2 |
% |
$ |
9,222 |
|
2.9 |
% |
|||
| Schuh Group |
|
8,416 |
|
6.9 |
% |
|
2,094 |
|
2.1 |
% |
|||
| Johnston & Murphy Group |
|
2,666 |
|
3.4 |
% |
|
3,212 |
|
4.3 |
% |
|||
| Genesco Brands Group |
|
1,851 |
|
5.3 |
% |
|
685 |
|
1.8 |
% |
|||
| Corporate and Other(1) |
|
(8,229 |
) |
-1.6 |
% |
|
(6,131 |
) |
-1.1 |
% |
|||
| Goodwill Impairment |
|
(28,453 |
) |
-5.4 |
% |
|
- |
|
0.0 |
% |
|||
| Operating income (loss) |
|
(38,627 |
) |
-7.4 |
% |
|
9,082 |
|
1.7 |
% |
|||
| Other components of net periodic benefit cost |
|
148 |
|
0.0 |
% |
|
50 |
|
0.0 |
% |
|||
| Interest, net |
|
2,383 |
|
0.5 |
% |
|
405 |
|
0.1 |
% |
|||
| Earnings (loss) from continuing operations before income taxes |
|
(41,158 |
) |
-7.9 |
% |
|
8,627 |
|
1.6 |
% |
|||
| Income tax expense (benefit) |
|
(9,526 |
) |
-1.8 |
% |
|
976 |
|
0.2 |
% |
|||
| Earnings (loss) from continuing operations |
|
(31,632 |
) |
-6.0 |
% |
|
7,651 |
|
1.4 |
% |
|||
| Loss from discontinued operations, net of tax |
|
(33 |
) |
0.0 |
% |
|
(8 |
) |
0.0 |
% |
|||
| Net Earnings (Loss) | $ |
(31,665 |
) |
-6.1 |
% |
$ |
7,643 |
|
1.4 |
% |
|||
| (1) Includes a |
|||||||||||||
GENESCO INC. |
|||||||||||||
Sales/Earnings Summary by Segment |
|||||||||||||
(in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
Six Months Ended |
|
Six Months Ended |
|||||||||
|
|
July 29, |
% of |
|
July 30, |
% of |
|||||||
|
|
|
2023 |
|
Net Sales |
|
|
2022 |
|
Net Sales |
|||
| Sales: | |||||||||||||
| Journeys Group | $ |
559,465 |
|
55.6 |
% |
$ |
635,777 |
|
60.2 |
% |
|||
| Schuh Group |
|
215,904 |
|
21.5 |
% |
|
189,677 |
|
18.0 |
% |
|||
| Johnston & Murphy Group |
|
160,412 |
|
15.9 |
% |
|
145,834 |
|
13.8 |
% |
|||
| Genesco Brands Group |
|
70,578 |
|
7.0 |
% |
|
84,792 |
|
8.0 |
% |
|||
| Net Sales | $ |
1,006,359 |
|
100.0 |
% |
$ |
1,056,080 |
|
100.0 |
% |
|||
| Operating Income (Loss): | |||||||||||||
| Journeys Group | $ |
(33,240 |
) |
-5.9 |
% |
$ |
24,152 |
|
3.8 |
% |
|||
| Schuh Group |
|
6,626 |
|
3.1 |
% |
|
(652 |
) |
-0.3 |
% |
|||
| Johnston & Murphy Group |
|
7,472 |
|
4.7 |
% |
|
3,762 |
|
2.6 |
% |
|||
| Genesco Brands Group |
|
1,819 |
|
2.6 |
% |
|
4,478 |
|
5.3 |
% |
|||
| Corporate and Other(1) |
|
(15,848 |
) |
-1.6 |
% |
|
(14,412 |
) |
-1.4 |
% |
|||
| Goodwill Impairment |
|
(28,453 |
) |
-2.8 |
% |
|
- |
|
0.0 |
% |
|||
| Operating income (loss) |
|
(61,624 |
) |
-6.1 |
% |
|
17,328 |
|
1.6 |
% |
|||
| Other components of net periodic benefit cost |
|
240 |
|
0.0 |
% |
|
148 |
|
0.0 |
% |
|||
| Interest, net |
|
4,034 |
|
0.4 |
% |
|
702 |
|
0.1 |
% |
|||
| Earnings (loss) from continuing operations before income taxes |
|
(65,898 |
) |
-6.5 |
% |
|
16,478 |
|
1.6 |
% |
|||
| Income tax expense (benefit) |
|
(15,391 |
) |
-1.5 |
% |
|
3,858 |
|
0.4 |
% |
|||
| Earnings (loss) from continuing operations |
|
(50,507 |
) |
-5.0 |
% |
|
12,620 |
|
1.2 |
% |
|||
| Loss from discontinued operations, net of tax |
|
(48 |
) |
0.0 |
% |
|
(30 |
) |
0.0 |
% |
|||
| Net Earnings (Loss) | $ |
(50,555 |
) |
-5.0 |
% |
$ |
12,590 |
|
1.2 |
% |
|||
| (1) Includes a |
|||||||||||||
| Includes a |
|||||||||||||
| GENESCO INC. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| (Unaudited) | |||||||
| July 29, 2023 | July 30, 2022 | ||||||
| Assets | |||||||
| Cash | $ |
37,416 |
$ |
44,939 |
|||
| Accounts receivable |
|
50,351 |
|
42,782 |
|||
| Inventories |
|
491,118 |
|
507,236 |
|||
| Other current assets(1) |
|
45,983 |
|
99,455 |
|||
| Total current assets |
|
624,868 |
|
694,412 |
|||
| Property and equipment |
|
244,090 |
|
220,742 |
|||
| Operating lease right of use assets |
|
476,715 |
|
491,412 |
|||
| Goodwill and other intangibles |
|
37,669 |
|
66,029 |
|||
| Non-current prepaid income taxes |
|
55,028 |
|
- |
|||
| Other non-current assets |
|
56,389 |
|
27,125 |
|||
| Total Assets | $ |
1,494,759 |
$ |
1,499,720 |
|||
| Liabilities and Equity | |||||||
| Accounts payable | $ |
166,504 |
$ |
226,779 |
|||
| Current portion operating lease liabilities |
|
137,369 |
|
135,571 |
|||
| Other current liabilities |
|
78,707 |
|
80,266 |
|||
| Total current liabilities |
|
382,580 |
|
442,616 |
|||
| Long-term debt |
|
131,544 |
|
48,872 |
|||
| Long-term operating lease liabilities |
|
403,413 |
|
413,416 |
|||
| Other long-term liabilities |
|
44,203 |
|
34,283 |
|||
| Equity |
|
533,019 |
|
560,533 |
|||
| Total Liabilities and Equity | $ |
1,494,759 |
$ |
1,499,720 |
|||
| (1) Includes prepaid income taxes of |
|||||||
GENESCO INC. |
|||||||||||
Store Count Activity |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance |
|
|
|
Balance |
|
|
|
|
Balance |
|
|
01/29/22 |
Open |
Close |
|
01/28/23 |
|
Open |
Close |
|
07/29/23 |
|
| Journeys Group | 1,135 |
22 |
27 |
1,130 |
19 |
54 |
1,095 |
||||
| Schuh Group | 123 |
4 |
5 |
122 |
2 |
0 |
124 |
||||
| Johnston & Murphy Group | 167 |
2 |
11 |
158 |
1 |
3 |
156 |
||||
| Total Retail Stores | 1,425 |
28 |
43 |
1,410 |
22 |
57 |
1,375 |
||||
| GENESCO INC. | ||||||
| Store Count Activity | ||||||
Balance |
|
|
|
Balance |
||
04/29/23 |
Open |
Close |
|
07/29/23 |
||
| Journeys Group | 1,115 |
9 |
29 |
1,095 |
||
| Schuh Group | 123 |
1 |
0 |
124 |
||
| Johnston & Murphy Group | 158 |
0 |
2 |
156 |
||
| Total Retail Stores | 1,396 |
10 |
31 |
1,375 |
||
| GENESCO INC. | ||||||||
| Comparable Sales(1) | ||||||||
| Quarter 2 | Six Months | |||||||
| July 29, | July 30, | July 29, | July 30, | |||||
2023 |
2022 |
2023 |
2022 |
|||||
| Journeys Group |
- |
- |
- |
NA | ||||
| Schuh Group |
|
|
|
NA | ||||
| Johnston & Murphy Group |
|
|
|
NA | ||||
| Total Comparable Sales |
- |
- |
- |
NA | ||||
| Same Store Sales |
- |
- |
- |
NA | ||||
| Comparable Direct Sales |
|
- |
|
- |
||||
| (1) As a result of store closures in response to the COVID-19 pandemic during the first quarter of Fiscal 2022, and the Company's policy of removing any store closed for seven consecutive days from comparable sales, the Company did not include comparable sales for the first six months of Fiscal 2023, except for comparable direct sales, as it felt that overall sales was a more meaningful metric last year. | ||||||||
| Schedule B | |||||||||||||||||||
| Genesco Inc. | |||||||||||||||||||
| Adjustments to Reported Earnings (Loss) from Continuing Operations | |||||||||||||||||||
| Three Months Ended July 29, 2023 and July 30, 2022 | |||||||||||||||||||
| The Company believes that disclosure of earnings (loss) and earnings (loss)per share from continuing operations and operating income (loss) 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 2 |
|
Quarter 2 |
|||||||||||||||||
July 29, 2023 |
|
July 30, 2022 |
|||||||||||||||||
|
Net of |
Per Share |
|
|
Net of |
Per Share |
|||||||||||||
| In Thousands (except per share amounts) | Pretax |
Tax |
Amounts |
|
Pretax |
Tax |
Amounts |
||||||||||||
| Earnings (loss) from continuing operations, as reported | $ |
(31,632 |
) |
($ |
2.79 |
) |
$ |
7,651 |
|
$ |
0.59 |
|
|||||||
| Asset impairments and other adjustments: | |||||||||||||||||||
| Asset impairment charges | $ |
174 |
|
134 |
|
|
0.01 |
|
$ |
129 |
|
98 |
|
|
0.01 |
|
|||
| Goodwill impairment charge |
|
28,453 |
|
21,858 |
|
|
1.93 |
|
|
- |
|
- |
|
|
0.00 |
|
|||
| Gain on pension termination |
|
- |
|
- |
|
|
0.00 |
|
|
- |
|
(7 |
) |
|
0.00 |
|
|||
| Expenses related to new HQ building |
|
- |
|
- |
|
|
0.00 |
|
|
762 |
|
583 |
|
|
0.04 |
|
|||
| Total asset impairments and other adjustments | $ |
28,627 |
|
21,992 |
|
|
1.94 |
|
$ |
891 |
|
674 |
|
|
0.05 |
|
|||
| Income tax expense adjustments: | |||||||||||||||||||
| Tax impact share based awards |
|
1,058 |
|
|
0.09 |
|
|
(663 |
) |
|
(0.05 |
) |
|||||||
| Other tax items |
|
(1,014 |
) |
|
(0.09 |
) |
|
4 |
|
|
0.00 |
|
|||||||
| Total income tax expense adjustments |
|
44 |
|
|
0.00 |
|
|
(659 |
) |
|
(0.05 |
) |
|||||||
| Adjusted earnings (loss) from continuing operations (1) and (2) | $ |
(9,596 |
) |
($ |
0.85 |
) |
$ |
7,666 |
|
$ |
0.59 |
|
|||||||
| (1) The adjusted tax rate for the second quarter of Fiscal 2024 and 2023 is |
|||||||||||||||||||
| (2) EPS reflects 11.3 million and 13.0 million share count for the second quarter of Fiscal 2024 and 2023, respectively, which includes common stock equivalents in the second quarter last year but not in this year due to the loss from continuing operations. | |||||||||||||||||||
Genesco Inc. |
||||||||||
Adjustments to Reported Operating Income (Loss) and Selling and Administrative Expenses |
||||||||||
Three Months Ended July 29, 2023 and July 30, 2022 |
||||||||||
Quarter 2 - July 29, 2023 |
||||||||||
Operating |
Asset Impair |
Adj Operating |
||||||||
| In Thousands | Income (Loss) |
& Other Adj |
Income (Loss) |
|||||||
| Journeys Group | $ |
(14,878 |
) |
$ |
- |
|
$ |
(14,878 |
) |
|
| Schuh Group |
|
8,416 |
|
|
- |
|
|
8,416 |
|
|
| Johnston & Murphy Group |
|
2,666 |
|
|
- |
|
|
2,666 |
|
|
| Genesco Brands Group |
|
1,851 |
|
|
- |
|
|
1,851 |
|
|
| Goodwill Impairment |
|
(28,453 |
) |
|
28,453 |
|
|
- |
|
|
| Corporate and Other |
|
(8,229 |
) |
|
174 |
|
|
(8,055 |
) |
|
| Total Operating Loss | $ |
(38,627 |
) |
$ |
28,627 |
|
$ |
(10,000 |
) |
|
| % of sales |
|
-7.4 |
% |
|
-1.9 |
% |
||||
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 |
|
|
| Genesco Brands Group |
|
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 |
||||||||||
| In Thousands | July 29, 2023 |
July 30, 2022 |
||||||||
| Selling and administrative expenses, as reported | $ |
259,520 |
|
$ |
245,103 |
|
||||
| Expenses related to new HQ building |
|
- |
|
|
(762 |
) |
||||
| Total adjustments |
|
- |
|
|
(762 |
) |
||||
| Adjusted selling and administrative expenses | $ |
259,520 |
|
$ |
244,341 |
|
||||
| % of sales |
|
49.6 |
% |
|
45.6 |
% |
||||
| Schedule B | ||||||||||||||||||||
| Genesco Inc. | ||||||||||||||||||||
| Adjustments to Reported Earnings (Loss) from Continuing Operations | ||||||||||||||||||||
| Six Months Ended July 29, 2023 and July 30, 2022 | ||||||||||||||||||||
| The Company believes that disclosure of earnings (loss) and earnings (loss)per share from continuing operations and operating income (loss) 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. | ||||||||||||||||||||
Six Months |
|
Six Months |
||||||||||||||||||
July 29, 2023 |
|
July 30, 2022 |
||||||||||||||||||
|
Net of |
Per Share |
|
|
Net of |
Per Share |
||||||||||||||
| In Thousands (except per share amounts) | Pretax |
Tax |
Amounts |
|
Pretax |
Tax |
Amounts |
|||||||||||||
| Earnings (loss) from continuing operations, as reported | $ |
(50,507 |
) |
($ |
4.36 |
) |
$ |
12,620 |
|
$ |
0.96 |
|
||||||||
| Asset impairments and other adjustments: | ||||||||||||||||||||
| Asset impairment charges | $ |
482 |
|
367 |
|
|
0.03 |
|
$ |
541 |
|
|
457 |
|
|
0.03 |
|
|||
| Goodwill impairment charge |
|
28,453 |
|
21,858 |
|
|
1.89 |
|
|
- |
|
|
- |
|
|
0.00 |
|
|||
| Gain on pension termination |
|
- |
|
- |
|
|
0.00 |
|
|
(695 |
) |
|
(518 |
) |
|
(0.04 |
) |
|||
| Expenses related to new HQ building |
|
- |
|
- |
|
|
0.00 |
|
|
2,288 |
|
|
1,705 |
|
|
0.13 |
|
|||
| Total asset impairments and other adjustments | $ |
28,935 |
|
22,225 |
|
|
1.92 |
|
$ |
2,134 |
|
|
1,644 |
|
|
0.12 |
|
|||
| Income tax expense adjustments: | ||||||||||||||||||||
| Tax impact share based awards |
|
1,011 |
|
|
0.09 |
|
|
(663 |
) |
|
(0.05 |
) |
||||||||
| Other tax items |
|
(1,069 |
) |
|
(0.10 |
) |
|
1 |
|
|
0.00 |
|
||||||||
| Total income tax expense adjustments |
|
(58 |
) |
|
(0.01 |
) |
|
(662 |
) |
|
(0.05 |
) |
||||||||
| Adjusted earnings (loss) from continuing operations (1) and (2) | $ |
(28,340 |
) |
($ |
2.45 |
) |
$ |
13,602 |
|
$ |
1.03 |
|
||||||||
| (1) The adjusted tax rate for the first six months of Fiscal 2024 and 2023 is |
||||||||||||||||||||
| (2) EPS reflects 11.6 million and 13.2 million share count for the first six months of Fiscal 2024 and 2023, respectively, which includes common stock equivalents in the first six months last year but not in this year due to the loss from continuing operations. | ||||||||||||||||||||
Genesco Inc. |
||||||||||
Adjustments to Reported Operating Income (Loss) and Selling and Administrative Expenses |
||||||||||
Six Months Ended July 29, 2023 and July 30, 2022 |
||||||||||
|
|
|
|
|
||||||
|
|
Six Months July 29, 2023 |
||||||||
|
|
Operating |
Asset Impair |
Adj Operating |
||||||
| In Thousands |
|
Income (Loss) |
& Other Adj |
Income (Loss) |
||||||
| Journeys Group | $ |
(33,240 |
) |
$ |
- |
|
$ |
(33,240 |
) |
|
| Schuh Group |
|
6,626 |
|
|
- |
|
|
6,626 |
|
|
| Johnston & Murphy Group |
|
7,472 |
|
|
- |
|
|
7,472 |
|
|
| Genesco Brands Group |
|
1,819 |
|
|
- |
|
|
1,819 |
|
|
| Goodwill Impairment |
|
(28,453 |
) |
|
28,453 |
|
|
- |
|
|
| Corporate and Other |
|
(15,848 |
) |
|
482 |
|
|
(15,366 |
) |
|
| Total Operating Loss | $ |
(61,624 |
) |
$ |
28,935 |
|
$ |
(32,689 |
) |
|
| % of sales |
|
-6.1 |
% |
|
-3.2 |
% |
||||
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 |
|
|
| Genesco Brands Group |
|
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 |
||||||||||
| In Thousands | July 29, 2023 |
July 30, 2022 |
||||||||
| Selling and administrative expenses, as reported | $ |
511,017 |
|
$ |
488,584 |
|
||||
| Expenses related to new HQ building |
|
- |
|
|
(2,288 |
) |
||||
| Total adjustments |
|
- |
|
|
(2,288 |
) |
||||
| Adjusted selling and administrative expenses | $ |
511,017 |
|
$ |
486,296 |
|
||||
| % of sales |
|
50.8 |
% |
|
46.0 |
% |
||||
| Schedule B | ||||||||||
Genesco Inc. |
||||||||||
Adjustments to Forecasted Earnings (Loss) from Continuing Operations |
||||||||||
Fiscal Year Ending February 3, 2024 |
||||||||||
|
|
|
|
|
||||||
| 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 (loss) from continuing operations | $ |
5.6 |
$ |
0.49 |
$ |
(0.4 |
) |
$ |
(0.04 |
) |
| Asset impairments and other adjustments: | ||||||||||
| Asset impairments and other matters |
|
0.9 |
|
0.08 |
|
1.3 |
|
|
0.11 |
|
| Goodwill impairment |
|
21.9 |
|
1.93 |
|
21.9 |
|
|
1.93 |
|
| Total asset impairments and other adjustments (1) |
|
22.8 |
|
2.01 |
|
23.2 |
|
|
2.04 |
|
| Adjusted forecasted earnings from continuing operations (2) | $ |
28.4 |
$ |
2.50 |
$ |
22.8 |
|
$ |
2.00 |
|
| (1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2024 is approximately |
||||||||||
| (2) EPS reflects 11.4 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 source version on businesswire.com: https://www.businesswire.com/news/home/20230830890576/en/
Genesco Financial Contacts
Thomas A. George
(615) 367-7465
tgeorge@genesco.com
Darryl MacQuarrie
(615) 367-7672
dmacquarrie@genesco.com
Genesco Media Contact
Claire S. McCall
(615) 367-8283
cmccall@genesco.com
Source: Genesco Inc.
