Johnston & Murphy and Schuh Achieved
Record Sales in FY24
Journeys Delivered Another Quarter of
Sequential Comp Improvement
Fourth Quarter E-Commerce Sales Increased
5%
Genesco Inc. (NYSE: GCO) today reported fourth quarter and full
fiscal year results for the three and twelve months ended February
3, 2024.
Fourth Quarter Fiscal 2024 Financial Summary
- Net sales of $739 million this year (14 weeks) increased 2%
compared to Q4FY23 (13 weeks)
- Comps down 4%, with stores down 7% and direct up 5%
- E-commerce sales represented 27% of retail sales compared to
25% last year
- GAAP EPS from continuing operations was $1.84 vs. $3.23 last
year
- Non-GAAP EPS from continuing operations was $2.591 vs. $3.06
last year
Fiscal 2024 Financial Summary
- Net sales of $2.3 billion this year (53 weeks) decreased 2.5%
compared to FY23 (52 weeks)
- Comps down 4%, with stores down 7% and direct up 8%
- E-commerce sales represented 23% of retail sales compared to
20% last year
- GAAP EPS from continuing operations was ($2.10) vs. $5.69 last
year
- Non-GAAP EPS from continuing operations was $0.561 vs. $5.59
last year
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief
Executive Officer, said, “Our Fiscal 2024 results reflect the
significant shift we’ve seen in our Journeys consumer’s shopping
behavior. The year began with a very challenging start, and we
reacted quickly to implement strategies that drove sequential
improvement in Journeys comp every quarter of the year. Although
the Holiday season started off positively, consumers subsequently
shopped almost exclusively for key footwear items with a notable
shift away from boots, putting more pressure on our core product
assortment than we anticipated at the beginning of Q4. At the same
time, we delivered another year of record sales for Schuh and
Johnston & Murphy.”
__________________________
1Excludes a charge for severance and asset impairments,
partially offset by an insurance gain, net of tax effect in the
fourth quarter and year of Fiscal 2024 (“Excluded Items”). A
reconciliation of earnings (loss) and earnings (loss) per share
from continuing operations in accordance with U.S. Generally
Accepted Accounting Principles (“GAAP”) with the adjusted earnings
(loss) and earnings (loss) per share numbers is set forth on
Schedule B to this press release. The Company believes that
disclosure of earnings (loss) and earnings (loss) 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.
Vaughn continued, “As we move into Fiscal 2025, we have more
work to do to meet the needs of our changing consumer. We have an
outstanding team in place at Journeys with both an experienced new
leader and new chief merchant, a unique proposition as the
destination for teen fashion footwear and the tremendous support of
our brand partners to accomplish this. Given our strong track
record of turning businesses around in challenging times, an even
greater call to action to accelerate the pace of Journeys
improvement and initiatives already underway, we are well
positioned to unlock Journeys’ considerable earnings potential and
value.”
Thomas A. George, Genesco’s Chief Financial Officer, commented,
"Although we faced a difficult operating environment in the fourth
quarter, we delivered sales largely in line with our most recent
guidance and better-than-expected gross margin. However, the
earnings impact from unusually disruptive winter storms, along with
higher than anticipated expenses at Journeys drove bottom line
results below our most recent expectations. Looking ahead, while we
are taking urgent actions to improve our core product assortment,
we expect the current sales dynamic to remain a significant
headwind in the first half of Fiscal 2025 and have factored that
into our outlook.”
Fourth Quarter Review
Net sales for the fourth quarter (14 weeks) increased 2% to $739
million in Fiscal 2024 compared to $725 million in the fourth
quarter (13 weeks) of Fiscal 2023. Excluding the 14th week, sales
would have decreased 2% for the fourth quarter of Fiscal 2024. The
sales decrease compared to last year was driven by decreased store
sales, primarily in Journeys Group, partially offset by a 5%
increase in e-commerce comparable sales, increased wholesale sales
and a favorable foreign exchange impact.
Comparable Sales
Comparable Same Store and Direct
Sales:
4QFY24
4QFY23
Journeys Group
(5)%
(1)%
Schuh Group
(5)%
20%
Johnston & Murphy Group
8%
23%
Total Genesco Comparable Sales
(4)%
5%
Same Store Sales
(7)%
1%
Comparable Direct Sales
5%
21%
The overall sales increase of 2% for the fourth quarter of
Fiscal 2024 compared to the fourth quarter of Fiscal 2023 was
driven by an increase of 6% at Schuh, 9% at Johnston & Murphy
and a 24% increase at Genesco Brands, partially offset by a
decrease of 2% at Journeys. On a constant currency basis, Schuh
sales were up 2% for the fourth quarter.
Fourth quarter gross margin this year was 46.3%, down 10 basis
points compared with 46.4% last year. The decrease as a percentage
of sales compared to Fiscal 2023 is due primarily to a change in
product mix at Journeys, partially offset by lower freight and
logistics costs at both Johnston & Murphy and Genesco
Brands.
Selling and administrative expense for the fourth quarter this
year increased 170 basis points as a percentage of sales compared
with last year. Adjusted selling and administrative expense for the
fourth quarter this year also increased 170 basis points as a
percentage of sales compared with last year. Approximately 60 basis
points of the increase were attributable to the 53rd week.
Adjusting for the 53rd week, expenses were relatively flat in
absolute dollars when compared to last year, despite additional
variable expenses associated with our direct sales growth,
demonstrating the impact and benefit of our cost savings
initiatives.
Genesco’s GAAP operating income for the fourth quarter was $37.3
million, or 5.0% of sales this year, compared with $49.8 million,
or 6.9% of sales in the fourth quarter last year. Adjusted for the
Excluded Items in both periods, operating income for the fourth
quarter was $38.5 million this year compared to $51.0 million last
year. Adjusted operating margin was 5.2% of sales in the fourth
quarter of Fiscal 2024 and 7.0% in the fourth quarter last year.
For the 53rd week, operating income was an estimated loss of $2.6
million, or approximately $0.18 per share.
The effective tax rate for the quarter was 43.0% in Fiscal 2024
compared to 19.1% in the fourth quarter last year. The adjusted tax
rate, reflecting Excluded Items, was 22.6% in Fiscal 2024 compared
to 25.2% in the fourth quarter last year. The lower adjusted tax
rate for the fourth quarter this year compared to the fourth
quarter last year primarily reflects a reduction in the effective
tax rate for jurisdictions in which the Company is profitable.
GAAP earnings from continuing operations were $20.3 million in
the fourth quarter of Fiscal 2024 compared to $39.2 million in the
fourth quarter last year. Adjusted for the Excluded Items in both
periods, fourth quarter earnings from continuing operations were
$28.5 million, or $2.59 per share, in Fiscal 2024, compared to
$37.1 million, or $3.06 per share, in the fourth quarter last
year.
Full Year Review
Net sales for Fiscal 2024 (53 weeks) decreased 2.5% to $2.32
billion from $2.38 billion in Fiscal 2023 (52 weeks). Excluding the
53rd week, sales would have decreased 4% for Fiscal 2024. The sales
decrease compared to last year was driven by decreased store sales,
primarily in Journeys Group, and decreased wholesale sales,
partially offset by an 8% increase in e-commerce comparable sales
and a favorable foreign exchange impact. Total comparable sales for
Fiscal 2024 decreased 4% including a same store sales decrease of
7% and a comparable direct sales increase of 8%.
Overall sales for Fiscal 2024 compared to Fiscal 2023 decreased
8% at Journeys and 9% at Genesco Brands, partially offset by an
increase of 11% at Schuh and 8% at Johnston & Murphy. On a
constant currency basis, Schuh sales were up 8% for Fiscal
2024.
Gross margin for Fiscal 2024 was 47.3%, down 30 basis points
compared with 47.6% last year. The decrease as a percentage of
sales compared to Fiscal 2023 is due primarily to increased
promotional activity and product mix shift in the Journeys
business, partially offset by improved margin at Schuh along with
improved margins at Johnston & Murphy and Genesco Brands
reflecting decreased freight and logistics costs in Fiscal
2024.
Selling and administrative expense for Fiscal 2024 increased 280
basis points as a percentage of sales compared with last year.
Adjusted selling and administrative expense as a percentage of
sales for Fiscal 2024 was 46.5%, up 290 basis points, compared to
43.6% last year. The increase as a percentage of sales reflects
deleverage in expenses, especially compensation expense, selling
salaries, occupancy and marketing expenses, largely as a result of
lower store comps in Fiscal 2024.
Genesco’s GAAP operating loss for Fiscal 2024 was $13.5 million,
or 0.6% of sales, compared to operating income of $93.2 million, or
3.9% of sales last year. Adjusted for the Excluded Items in both
periods and goodwill impairment in Fiscal 2024, operating income
was $16.8 million this year compared to $96.8 million last year.
Adjusted operating margin was 0.7% of sales in Fiscal 2024 and 4.1%
of sales last year.
The effective tax rate was -8.5% in Fiscal 2024 compared to
19.8% last year. The adjusted tax rate, reflecting Excluded Items
and goodwill impairment, was 24.6% in Fiscal 2024 compared to 24.0%
last year.
GAAP loss from continuing operations was $23.6 million in Fiscal
2024, compared to earnings from continuing operations of $72.2
million last year. Adjusted for the Excluded Items in both periods
and goodwill impairment in Fiscal 2024, earnings from continuing
operations were $6.4 million, or $0.56 per share, in Fiscal 2024,
compared to $71.1 million, or $5.59 per share, last year.
Cash, Borrowings and Inventory
Cash as of February 3, 2024 was $35.2 million, compared with
$48.0 million as of January 28, 2023. Total debt at the end of the
fourth quarter of Fiscal 2024 was $34.7 million compared with $44.9
million at the end of last year’s fourth quarter. Inventories
decreased 17% on a year over year basis reflecting decreased
inventory for Journeys and Johnston & Murphy, partially offset
by an increase at Schuh.
Capital Expenditures and Store Activity
For the fourth quarter this year, capital expenditures were $10
million, related primarily to retail stores and digital and
omnichannel initiatives. Depreciation and amortization was $14
million. During the quarter, the Company opened five stores and
closed 24 stores. The Company ended the quarter with 1,341 stores
compared with 1,410 stores at the end of the fourth quarter last
year, or a decrease of 5%. Square footage was down 3% on a
year-over-year basis.
Share Repurchases
The Company did not repurchase any shares during the fourth
quarter of Fiscal 2024. The Company repurchased 1,261,295 shares,
10% of its outstanding shares, for $32.0 million, or $25.39 per
share during Fiscal 2024. The Company currently has $52.1 million
remaining on its expanded share repurchase authorization announced
in June 2023.
Store Closing and Cost Savings Update
- The Company closed 94 Journeys stores in Fiscal 2024 and is
targeting up to 50 more closures in Fiscal 2025
- The Company is now targeting an increased run rate of $45-$50
million in annualized cost reductions by the end of Fiscal
2025.
Fiscal 2025 Outlook
For Fiscal 2025, the Company:
- Expects total sales to decrease 2% to 3% compared to Fiscal
2024, or down 1% to 2% excluding the 53rd week in Fiscal 2024
- Expects adjusted diluted earnings per share from continuing
operations in the range of $0.60 to $1.00 2
- Guidance assumes no further share repurchases and a tax rate of
26%
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 March 8, 2024, 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, store openings and closures, cost
reductions, 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, including shipping disruptions in the Red Sea;
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; 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 secure allocations to refine product assortments to address
consumer demand; the ability to renew leases in existing stores and
control or lower occupancy costs, to open or close stores in the
number and on the planned schedule, 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 in both the amount and
timeframe anticipated; and the cost and outcome of litigation,
investigations, environmental matters and other disputes 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. (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
1,340 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
U.S., Canada and the U.K. Johnston & Murphy serves the
successful, affluent man and woman with premium footwear, apparel
and accessories in the U.S. and Canada, and Genesco Brands Group
sells branded lifestyle footwear to leading retailers under
licensed brands including Levi’s, Dockers and G.H. Bass. Founded in
1924, Genesco is based in Nashville, Tennessee. 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 4(1) Quarter 4(1)
Feb.
3, % of Jan. 28, % of
2024
Net Sales
2023
Net Sales Net sales
$
738,950
100.0
%
$
725,020
100.0
%
Cost of sales
396,883
53.7
%
388,395
53.6
%
Gross margin
342,067
46.3
%
336,625
46.4
%
Selling and administrative expenses
303,549
41.1
%
285,776
39.4
%
Asset impairments and other, net
1,206
0.2
%
1,009
0.1
%
Operating income
37,312
5.0
%
49,840
6.9
%
Other components of net periodic benefit cost
149
0.0
%
50
0.0
%
Interest expense, net
1,536
0.2
%
1,312
0.2
%
Earnings from continuing operations before income
taxes
35,627
4.8
%
48,478
6.7
%
Income tax expense
15,337
2.1
%
9,280
1.3
%
Earnings from continuing operations
20,290
2.7
%
39,198
5.4
%
Gain (loss) from discontinued operations, net of tax(2)
6,899
0.9
%
(249
)
0.0
%
Net Earnings
$
27,189
3.7
%
$
38,949
5.4
%
Basic earnings per share: Before discontinued operations
$
1.86
$
3.29
Net earnings
$
2.49
$
3.27
Diluted earnings per share: Before discontinued operations
$
1.84
$
3.23
Net earnings
$
2.47
$
3.21
Weighted-average shares outstanding: Basic
10,911
11,914
Diluted
11,025
12,124
(1) Quarter 4 for the 14-week period ended February 3, 2024
and the 13-week period ended January 28, 2023. (2) The gain from
discontinued operations for the fourth quarter of Fiscal 2024
includes a $9.4 million pretax gain from insurance proceeds related
to legacy environmental matters.
GENESCO INC.
Condensed Consolidated Statements of Operations (in
thousands, except per share data) (Unaudited)
Fiscal Year Ended(1) Fiscal Year Ended(1)
Feb. 3,
% of Jan. 28, % of
2024
Net Sales
2023
Net Sales Net sales
$
2,324,624
100.0
%
$
2,384,888
100.0
%
Cost of sales
1,225,804
52.7
%
1,248,698
52.4
%
Gross margin
1,098,820
47.3
%
1,136,190
47.6
%
Selling and administrative expenses
1,082,040
46.5
%
1,042,094
43.7
%
Goodwill impairment
28,453
1.2
%
-
0.0
%
Asset impairments and other, net
1,787
0.1
%
855
0.0
%
Operating income (loss)
(13,460
)
-0.6
%
93,241
3.9
%
Other components of net periodic benefit cost
537
0.0
%
248
0.0
%
Interest expense, net
7,777
0.3
%
2,920
0.1
%
Earnings (loss) from continuing operations before income
taxes
(21,774
)
-0.9
%
90,073
3.8
%
Income tax expense
1,854
0.1
%
17,831
0.7
%
Earnings (loss) from continuing operations
(23,628
)
-1.0
%
72,242
3.0
%
Gain (loss) from discontinued operations, net of tax
6,801
0.3
%
(327
)
0.0
%
Net Earnings (Loss)
$
(16,827
)
-0.7
%
$
71,915
3.0
%
Basic earnings (loss) per share: Before discontinued
operations
$
(2.10
)
$
5.80
Net earnings (loss)
$
(1.50
)
$
5.77
Diluted earnings (loss) per share: Before discontinued
operations
$
(2.10
)
$
5.69
Net earnings (loss)
$
(1.50
)
$
5.66
Weighted-average shares outstanding: Basic
11,243
12,457
Diluted
11,243
12,707
(1) Fiscal 2024 for the 53-week period ended February 3,
2024 and Fiscal 2023 for the 52-week period ended January 28, 2023.
GENESCO INC. Sales/Earnings Summary by Segment
(in thousands) (Unaudited) Quarter 4(1)
Quarter 4(1)
Feb. 3, % of Jan. 28, % of
2024
Net Sales
2023
Net Sales Sales: Journeys Group
$
455,003
61.6
%
$
465,807
64.2
%
Schuh Group
146,131
19.8
%
137,516
19.0
%
Johnston & Murphy Group
97,623
13.2
%
89,311
12.3
%
Genesco Brands Group
40,193
5.4
%
32,386
4.5
%
Net Sales
$
738,950
100.0
%
$
725,020
100.0
%
Operating Income (Loss): Journeys Group
$
32,337
7.1
%
$
43,169
9.3
%
Schuh Group
9,325
6.4
%
12,341
9.0
%
Johnston & Murphy Group
6,136
6.3
%
7,108
8.0
%
Genesco Brands Group
(267
)
-0.7
%
(3,229
)
-10.0
%
Corporate and Other(2)
(10,219
)
-1.4
%
(9,549
)
-1.3
%
Operating income
37,312
5.0
%
49,840
6.9
%
Other components of net periodic benefit cost
149
0.0
%
50
0.0
%
Interest, net
1,536
0.2
%
1,312
0.2
%
Earnings from continuing operations before income
taxes
35,627
4.8
%
48,478
6.7
%
Income tax expense
15,337
2.1
%
9,280
1.3
%
Earnings from continuing operations
20,290
2.7
%
39,198
5.4
%
Gain (loss) from discontinued operations, net of tax
6,899
0.9
%
(249
)
0.0
%
Net Earnings
$
27,189
3.7
%
$
38,949
5.4
%
(1) Quarter 4 for the 14-week period ended February 3, 2024
and the 13-week period ended January 28, 2023. (2) Includes a $1.2
million charge in the fourth quarter of Fiscal 2024 which includes
$1.1 million for severance and $0.4 million for asset impairments,
partially offset by a $0.3 million insurance gain. Includes a $1.0
million charge in the fourth quarter of Fiscal 2023 for asset
impairments.
GENESCO INC. Sales/Earnings Summary by
Segment (in thousands) (Unaudited)
Fiscal Year Ended(1) Fiscal Year Ended(1)
Feb. 3,
% of Jan. 28, % of
2024
Net Sales
2023
Net Sales Sales: Journeys Group
$
1,363,835
58.7
%
$
1,482,203
62.1
%
Schuh Group
480,164
20.7
%
432,002
18.1
%
Johnston & Murphy Group
339,446
14.6
%
314,759
13.2
%
Genesco Brands Group
141,179
6.1
%
155,924
6.5
%
Net Sales
$
2,324,624
100.0
%
$
2,384,888
100.0
%
Operating Income (Loss): Journeys Group
$
11,072
0.8
%
$
94,404
6.4
%
Schuh Group
21,435
4.5
%
17,601
4.1
%
Johnston & Murphy Group
16,314
4.8
%
14,364
4.6
%
Genesco Brands Group
(8
)
0.0
%
(678
)
-0.4
%
Corporate and Other(2)
(33,820
)
-1.5
%
(32,450
)
-1.4
%
Goodwill Impairment
(28,453
)
-1.2
%
-
0.0
%
Operating income (loss)
(13,460
)
-0.6
%
93,241
3.9
%
Other components of net periodic benefit cost
537
0.0
%
248
0.0
%
Interest, net
7,777
0.3
%
2,920
0.1
%
Earnings (loss) from continuing operations before
income taxes
(21,774
)
-0.9
%
90,073
3.8
%
Income tax expense
1,854
0.1
%
17,831
0.7
%
Earnings (loss) from continuing operations
(23,628
)
-1.0
%
72,242
3.0
%
Gain (loss) from discontinued operations, net of tax
6,801
0.3
%
(327
)
0.0
%
Net Earnings (Loss)
$
(16,827
)
-0.7
%
$
71,915
3.0
%
(1) Fiscal 2024 for the 53-week period ended February 3,
2024 and Fiscal 2023 for the 52-week period ended January 28, 2023.
(2) Includes a $1.8 million charge in the fourth quarter of Fiscal
2024 which includes $1.1 million for severance and $1.0 million for
asset impairments, partially offset by a $0.3 million insurance
gain. Includes a $0.9 million charge in Fiscal 2023 which includes
$1.6 million for asset impairments, partially offset by a $0.7
million gain on the termination of the pension plan.
GENESCO INC. Condensed Consolidated Balance Sheets
(in thousands) (Unaudited)
February 3, 2024
January 28, 2023
Assets Cash
$
35,155
$
47,990
Accounts receivable
53,618
40,818
Inventories
378,967
458,017
Other current assets
39,611
25,844
Total current assets
507,351
572,669
Property and equipment
240,266
233,733
Operating lease right of use assets
436,896
470,991
Goodwill and other intangibles
36,815
65,553
Non-current prepaid income taxes
56,839
54,111
Other non-current assets
51,723
59,369
Total Assets
$
1,329,890
$
1,456,426
Liabilities and Equity Accounts payable
$
114,621
$
144,998
Current portion operating lease liabilities
129,189
134,458
Other current liabilities
75,727
81,327
Total current liabilities
319,537
360,783
Long-term debt
34,682
44,858
Long-term operating lease liabilities
359,073
401,113
Other long-term liabilities
45,396
42,706
Equity
571,202
606,966
Total Liabilities and Equity
$
1,329,890
$
1,456,426
GENESCO INC. Store Count Activity
Balance Balance Balance
01/29/22 Open Close 01/28/23
Open Close 02/03/24 Journeys Group
1,135
22
27
1,130
27
94
1,063
Schuh Group
123
4
5
122
3
3
122
Johnston & Murphy Group
167
2
11
158
2
4
156
Total Retail Stores
1,425
28
43
1,410
32
101
1,341
GENESCO INC. Store Count Activity
Balance Balance 10/28/23
Open Close 02/03/24 Journeys Group
1,080
3
20
1,063
Schuh Group
124
1
3
122
Johnston & Murphy Group
156
1
1
156
Total Retail Stores
1,360
5
24
1,341
GENESCO INC. Comparable Sales(1)
Quarter 4 Fiscal Year Ended Feb. 3, Jan. 28,
Feb. 3, Jan. 28,
2024
2023
2024
2023
Journeys Group
-5%
-1%
-9%
NA Schuh Group
-5%
20%
6%
NA Johnston & Murphy Group
8%
23%
9%
NA Total Comparable Sales
-4%
5%
-4%
NA Same Store Sales
-7%
1%
-7%
NA Comparable Direct Sales
5%
21%
8%
0%
(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 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
from Continuing Operations Three Months Ended February 3, 2024 and
January 28, 2023 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(1) Quarter 4(1)
February 3,
2024 January 28, 2023
Net of Per Share Net of Per
Share In Thousands (except per share amounts)
Pretax
Tax Amounts Pretax Tax Amounts Earnings from
continuing operations, as reported
$
20,290
$
1.84
$
39,198
$
3.23
Asset impairments and other adjustments: Asset impairment
charges
$
378
272
0.03
$
1,009
729
0.06
Goodwill impairment
-
24
0.00
-
-
0.00
Severance
1,095
820
0.08
-
-
0.00
Insurance gain
(267
)
(200
)
(0.02
)
-
-
0.00
Fees related to shareholder activist
-
-
0.00
-
(5
)
0.00
Expenses related to new HQ building
-
-
0.00
112
100
0.01
Total asset impairments and other adjustments
$
1,206
916
0.09
$
1,121
824
0.07
Income tax expense adjustments: Other tax items
7,313
0.66
(2,939
)
(0.24
)
Total income tax expense adjustments
7,313
0.66
(2,939
)
(0.24
)
Adjusted earnings from continuing operations (2) and (3)
$
28,519
$
2.59
$
37,083
$
3.06
(1) Quarter 4 for the 14-weeks ended February 3, 2024 and
the 13-weeks ended January 28, 2023. (2) The adjusted tax
rate for the fourth quarter of Fiscal 2024 and 2023 is 22.6% and
25.2%, respectively. (3) EPS reflects 11.0 million and 12.1
million share count for the fourth quarter of Fiscal 2024 and 2023,
respectively, which includes common stock equivalents in both
periods. Genesco Inc. Adjustments to Reported Operating
Income and Selling and Administrative Expenses Three Months Ended
February 3, 2024 and January 28, 2023
Quarter 4 -
February 3, 2024 Operating Asset Impair Adj
Operating In Thousands
Income (Loss) & Other
Adj Income (Loss) Journeys Group
$
32,337
$
-
$
32,337
Schuh Group
9,325
-
9,325
Johnston & Murphy Group
6,136
-
6,136
Genesco Brands Group
(267
)
-
(267
)
Corporate and Other
(10,219
)
1,206
(9,013
)
Total Operating Income
$
37,312
$
1,206
$
38,518
% of sales
5.0
%
5.2
%
Quarter 4 - January 28, 2023 Operating Asset Impair Adj
Operating In Thousands Income (Loss) & Other Adj Income (Loss)
Journeys Group
$
43,169
$
-
$
43,169
Schuh Group
12,341
-
12,341
Johnston & Murphy Group
7,108
-
7,108
Genesco Brands Group
(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 In Thousands
Feb. 3, 2024 Jan. 28,
2023 Selling and administrative expenses, as reported
$
303,549
$
285,776
Expenses related to new HQ building
-
(112
)
Total adjustments
-
(112
)
Adjusted selling and administrative expenses
$
303,549
$
285,664
% of sales
41.1
%
39.4
%
Schedule B Genesco Inc. Adjustments to Reported Earnings (Loss)
from Continuing Operations Fiscal Year Ended February 3, 2024 and
January 28, 2023 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.
Fiscal Year Ended(1)
Fiscal Year Ended(1)
February 3, 2024 January 28, 2023
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
$
(23,628
)
($
2.10
)
$
72,242
$
5.69
Asset impairments and other adjustments: Asset impairment
charges
$
959
718
0.07
$
1,550
1,183
0.09
Goodwill impairment
28,453
21,882
1.93
-
-
0.00
Severance
1,095
820
0.07
-
-
0.00
Insurance gain
(267
)
(200
)
(0.02
)
-
-
0.00
Impact of additional dilutive shares
-
-
0.02
-
-
0.00
Gain on pension termination
-
-
0.00
(695
)
(525
)
(0.04
)
Expenses related to new HQ building
-
-
0.00
2,657
2,005
0.16
Total asset impairments and other adjustments
$
30,240
23,220
2.07
$
3,512
2,663
0.21
Income tax expense adjustments: Tax impact share based
awards
1,059
0.09
(635
)
(0.05
)
Other tax items
5,735
0.50
(3,188
)
(0.26
)
Total income tax expense adjustments
6,794
0.59
(3,823
)
(0.31
)
Adjusted earnings from continuing operations (2) and (3)
$
6,386
$
0.56
$
71,082
$
5.59
(1) Fiscal 2024 for the 53-weeks ended February 3, 2024 and
Fiscal 2023 for the 52-weeks ended January 28, 2023. (2) The
adjusted tax rate for Fiscal 2024 and 2023 is 24.6% and 24.0%,
respectively. (3) EPS reflects 11.4 million and 12.7 million
share count for Fiscal 2024 and 2023, respectively, which includes
common stock equivalents in both periods for adjusted earnings from
continuing operations. The loss from continuing operations, as
reported for Fiscal 2024, excludes common stock equivalents.
Genesco Inc. Adjustments to Reported Operating Income (Loss) and
Selling and Administrative Expenses Fiscal Year Ended February 3,
2024 and January 28, 2023
Fiscal Year Ended February 3,
2024 Operating Asset Impair Adj Operating
In Thousands
Income (Loss) & Other Adj Income
(Loss) Journeys Group
$
11,072
$
-
$
11,072
Schuh Group
21,435
-
21,435
Johnston & Murphy Group
16,314
-
16,314
Genesco Brands Group
(8
)
-
(8
)
Goodwill Impairment
(28,453
)
28,453
-
Corporate and Other
(33,820
)
1,787
(32,033
)
Total Operating Income (Loss)
$
(13,460
)
$
30,240
$
16,780
% of sales
-0.6
%
0.7
%
Fiscal Year Ended January 28, 2023 Operating Asset Impair
Adj Operating In Thousands Income (Loss) & Other Adj Income
(Loss) Journeys Group
$
94,404
$
-
$
94,404
Schuh Group
17,601
-
17,601
Johnston & Murphy Group
14,364
-
14,364
Genesco Brands Group
(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 In Thousands
Feb. 3, 2024
Jan. 28, 2023 Selling and administrative expenses, as reported
$
1,082,040
$
1,042,094
Expenses related to new HQ building
-
(2,657
)
Total adjustments
-
(2,657
)
Adjusted selling and administrative expenses
$
1,082,040
$
1,039,437
% of sales
46.5
%
43.6
%
Schedule B Genesco Inc.
Adjustments to Forecasted Earnings from Continuing
Operations Fiscal Year Ending February 1, 2025
In millions (except per share amounts)
High Guidance Low Guidance Fiscal 2025 Fiscal
2025 Net of Tax Per Share Net of Tax
Per Share Forecasted earnings from continuing operations
$
10.4
$
0.92
$
5.4
$
0.48
Asset impairments and
other adjustments: Asset impairments
and other matters
0.9
0.08
1.3
0.12
Total asset impairments and other adjustments (1)
0.9
0.08
1.3
0.12
Adjusted forecasted
earnings from continuing operations (2)
$
11.3
$
1.00
$
6.7
$
0.60
(1) All adjustments are net of tax where applicable.
The forecasted tax rate for Fiscal 2025 is approximately 26%.
(2) EPS reflects 11.3
million share count for Fiscal 2025 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/20240307614608/en/
Genesco Financial Contact
Thomas A. George (615) 367-7465 tgeorge@genesco.com
Genesco Media Contact Claire
S. McCall (615) 367-8283 cmccall@genesco.com
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