--Results Exceed Expectations, Driven by
Journeys--
--Total Comparable Sales Increased 6%;
Journeys Comparable Sales Increased 11%--
--Raises Fiscal 2025 Guidance—
Genesco Inc. (NYSE: GCO) today reported third quarter results
for the three months ended November 2, 2024.
Third Quarter Fiscal 2025 Financial Summary
- Total net sales increased 3% to $596 million; comparable sales
increased 6%
- Comparable e-commerce sales increased 15%; comparable store
sales increased 4%
- E-commerce sales represented 24% of retail sales compared to
21% last year
- GAAP EPS was ($1.76) and Non-GAAP EPS was $0.611
- Raises sales guidance to down 1% to flat compared to Fiscal
2024, or flat to up 1% excluding the 53rd week in Fiscal 2024
- Raises Fiscal 2025 adjusted EPS guidance to $0.80 to
$1.002
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief
Executive Officer, said, “Our quarterly performance once again
exceeded expectations and marked a return to positive overall
comparable sales. Following a strong start to the third quarter
including the heart of back-to-school, sales trends at Journeys
remained robust in September and October, fueling a double-digit
comp gain for the business. This result was driven by the initial
phase of Journeys’ strategic growth plan which has focused on
elevating the consumer experience including improving the product
assortment and visually resetting our stores. EPS would have been
stronger without the shift of an important back-to-school week into
the second quarter this year.”
__________________________
1Excludes charges for asset impairments,
net of tax effect in the third quarter of Fiscal 2025 (“Excluded
Items”). Also excludes income tax expense of $26.3 million related
to a U.S. valuation allowance in the third quarter of Fiscal 2025
and other items as detailed on Schedule B included with this press
release. 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.
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.
Vaughn continued, “We are pleased with Journeys’ start to the
fourth quarter including the important Black Friday/Cyber Monday
period, especially as demand for several discretionary categories
including footwear continues to be very selective and event driven.
Based on the current variability of consumer demand and shopping
trends, we have adopted a more cautious view for Schuh and Johnston
& Murphy over the remainder of this year.
“We are in the very early innings of returning Journeys and the
overall company to historical rates of sales and profitability.
With the progress we’ve recently made, and our track record of
successfully evolving our businesses in response to changing
consumer preferences and purchasing behavior, I feel confident we
have the experience and strategies to drive profitable growth
across the Company and create greater value for our shareholders
over the near- and long-term.”
Third Quarter Review
Net sales for the third quarter of Fiscal 2025 of $596 million
were up 3% compared to $579 million in the third quarter of Fiscal
2024. The sales increase reflects a 6% increase in comparable
sales, including a 15% increase in e-commerce comparable sales and
a 4% increase in same store sales, and a favorable foreign exchange
impact, partially offset by the negative impact of moving a strong
week of back-to-school sales of approximately $17 million from the
third quarter to the second quarter this year related to the
53-week calendar shift and the impact of net store closings.
Comparable Sales
Comparable Same Store and E-commerce
Sales:
3QFY25
3QFY24
Journeys Group
11%
(8)%
Schuh Group
(1)%
5%
Johnston & Murphy Group
(1)%
1%
Total Genesco Comparable Sales
6%
(4)%
Same Store Sales
4%
(7)%
Comparable E-commerce Sales
15%
8%
The overall sales increase for the third quarter of Fiscal 2025
compared to the third quarter of Fiscal 2024 was driven by an
increase of 4% at Journeys, an increase of 3% at Schuh and a 10%
increase at Genesco Brands, partially offset by a decrease of 4% at
Johnston & Murphy. On a constant currency basis, Schuh sales
were down 2% for the third quarter this year.
Third quarter gross margin this year decreased 30 basis points
as a percentage of sales to 47.8% compared with 48.1% last year.
The decrease as a percentage of sales compared to Fiscal 2024 is
due primarily to changes in product mix at Journeys.
Selling and administrative expense for the third quarter this
year decreased 10 basis points as a percentage of sales to 46.1%
compared to 46.2% last year. The decrease as a percentage of sales
compared to Fiscal 2024 reflects the combination of our cost
savings initiatives, the closure of unproductive stores and some
improvement in other expenses, partially offset by additional
selling salaries and marketing expenses.
Genesco’s GAAP operating income for the third quarter was $10.2
million, or 1.7% of sales this year, compared with $10.9 million,
or 1.9% of sales in the third quarter last year. Adjusted for the
Excluded Items in the third quarters of both Fiscal 2025 and 2024,
operating income for the third quarter was $10.3 million this year
compared to $11.0 million last year. Adjusted operating margin was
1.7% of sales in the third quarter of Fiscal 2025 compared to 1.9%
in the third quarter last year.
The effective tax rate for the quarter was 311.5% in Fiscal 2025
compared to 22.5% in the third quarter last year. The adjusted tax
rate, reflecting Excluded Items, was 27.1% in Fiscal 2025 compared
to 27.8% in the third quarter last year. The lower adjusted tax
rate for the third quarter this year compared to the third quarter
last year reflects a reduction in the tax benefit recorded year to
date due to lower projected earnings and taxes from our foreign
jurisdictions. The divergence between the effective tax rate and
the adjusted tax rate is due to recording a $26.3 million U.S.
valuation allowance in the third quarter this year that is excluded
from the adjusted tax rate.
The GAAP loss from continuing operations was $18.8 million in
the third quarter of Fiscal 2025 compared to earnings from
continuing operations of $6.6 million in the third quarter last
year. Adjusted for the Excluded Items in the third quarters of both
Fiscal 2025 and 2024 and the U.S. valuation allowance in the third
quarter of Fiscal 2025, third quarter earnings from continuing
operations were $6.6 million, or $0.61 per share, in Fiscal 2025,
compared to $6.2 million, or $0.57 per share, in the third quarter
last year.
Cash, Borrowings and Inventory
Cash as of November 2, 2024, was $33.6 million, compared with
$21.7 million as of October 28, 2023. Total debt at the end of the
third quarter of Fiscal 2025 was $100.1 million compared with
$128.2 million at the end of last year’s third quarter. Inventories
increased 1% on a year-over-year basis, reflecting increased
inventory for Genesco Brands, partially offset by a decrease at
Schuh and Johnston & Murphy, while Journeys remained flat.
Capital Expenditures and Store Activity
For the third quarter this year, capital expenditures were $13
million, related primarily to retail stores and digital and
omnichannel initiatives. Depreciation and amortization was $13
million. During the quarter, the Company opened two stores and
closed 14 stores. The Company ended the quarter with 1,302 stores
compared with 1,360 stores at the end of the third quarter last
year, or a decrease of 4%. Square footage was down 4% on a
year-over-year basis.
Share Repurchases
The Company repurchased 17,922 shares during the third quarter
of Fiscal 2025 for $0.4 million, or $24.50 per share. The Company
currently has $42.3 million remaining on its expanded share
repurchase authorization announced in June 2023.
Store Closing and Cost Savings Update
- The Company closed 12 Journeys stores in the third quarter of
Fiscal 2025 (for a total of 41 Journeys stores closed to date in
Fiscal 2025) and expects to close up to another 10 Journeys stores
in Fiscal 2025
- The Company's cost savings program remains on track to achieve
a reduction in the annualized run rate of $45 to $50 million by the
end of Fiscal 2025
Fiscal 2025 Outlook
For Fiscal 2025, the Company:
- Now expects total sales to be down 1% to flat compared to
Fiscal 2024, or flat to up 1% excluding the 53rd week in Fiscal
2024 versus prior expectations for a total sales decrease of 1% to
2%, or flat to down 1% excluding the 53rd week in Fiscal 2024
- Now expects adjusted diluted earnings per share from continuing
operations in the range of $0.80 to $1.00 versus prior guidance of
$0.60 to $1.002
- Guidance assumes no further share repurchases and a tax rate of
27%
Conference Call, Management Commentary and Investor
Presentation
The Company has posted detailed financial commentary and a
supplemental financial presentation of third quarter results on its
website, www.genesco.com, in the investor relations section. The
Company's live conference call on December 6, 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,” “should,” “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 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;
civil disturbances; 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 1,302 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 inspired by 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
3 Quarter 3
Nov. 2,
% of
Oct. 28,
% of
2024
Net Sales
2023
Net Sales
Net sales
$
596,328
100.0
%
$
579,315
100.0
%
Cost of sales
311,072
52.2
%
300,890
51.9
%
Gross margin
285,256
47.8
%
278,425
48.1
%
Selling and administrative expenses
274,912
46.1
%
267,474
46.2
%
Asset impairments and other, net(1)
134
0.0
%
99
0.0
%
Operating income
10,210
1.7
%
10,852
1.9
%
Other components of net periodic benefit cost
86
0.0
%
148
0.0
%
Interest expense, net
1,213
0.2
%
2,207
0.4
%
Earnings from continuing operations before income taxes
8,911
1.5
%
8,497
1.5
%
Income tax expense(2)
27,759
4.7
%
1,908
0.3
%
Earnings (loss) from continuing operations
(18,848
)
-3.2
%
6,589
1.1
%
Loss from discontinued operations, net of tax
(84
)
0.0
%
(50
)
0.0
%
Net Earnings (Loss)
$
(18,932
)
-3.2
%
$
6,539
1.1
%
Basic earnings (loss) per share:
Before discontinued operations
$
(1.76
)
$
0.60
Net earnings (loss)
$
(1.76
)
$
0.60
Diluted earnings (loss) per
share: Before discontinued operations
$
(1.76
)
$
0.60
Net earnings (loss)
$
(1.76
)
$
0.60
Weighted-average shares
outstanding: Basic
10,737
10,898
Diluted
10,737
10,972
(1) Includes a $0.1 million
charge in each of the third quarters of Fiscal 2025 and Fiscal 2024
for asset impairments. (2) Includes a $26.3 million U.S. valuation
allowance in the third quarter of Fiscal 2025.
Condensed
Consolidated Statements of Operations (in thousands, except
per share data) (Unaudited)
Nine Months Ended Nine Months Ended
Nov. 2,
% of
Oct. 28,
% of
2024
Net Sales
2023
Net Sales
Net sales
$
1,579,113
100.0
%
$
1,585,674
100.0
%
Cost of sales
831,937
52.7
%
828,921
52.3
%
Gross margin(1)
747,176
47.3
%
756,753
47.7
%
Selling and administrative expenses
777,878
49.3
%
778,491
49.1
%
Goodwill impairment
-
0.0
%
28,453
1.8
%
Asset impairments and other, net(2)
1,490
0.1
%
581
0.0
%
Operating loss
(32,192
)
-2.0
%
(50,772
)
-3.2
%
Other components of net periodic benefit cost
281
0.0
%
388
0.0
%
Interest expense, net
3,448
0.2
%
6,241
0.4
%
Loss from continuing operations before income taxes
(35,921
)
-2.3
%
(57,401
)
-3.6
%
Income tax expense (benefit)(3)
17,144
1.1
%
(13,483
)
-0.9
%
Loss from continuing operations
(53,065
)
-3.4
%
(43,918
)
-2.8
%
Loss from discontinued operations, net of tax
(206
)
0.0
%
(98
)
0.0
%
Net Loss
$
(53,271
)
-3.4
%
$
(44,016
)
-2.8
%
Basic loss per share:
Before discontinued operations
$
(4.88
)
$
(3.87
)
Net loss
$
(4.90
)
$
(3.88
)
Diluted loss per share:
Before discontinued operations
$
(4.88
)
$
(3.87
)
Net loss
$
(4.90
)
$
(3.88
)
Weighted-average shares
outstanding: Basic
10,870
11,353
Diluted
10,870
11,353
(1) Includes a $1.8 million
gross margin charge in the first nine months of Fiscal 2025 related
to a distribution model transition in Genesco Brands Group. (2)
Includes a $1.5 million charge in the first nine months of Fiscal
2025 which includes $1.0 million for severance and $0.5 million for
asset impairments. Includes a $0.6 million charge in the first nine
months of Fiscal 2024 for asset impairments. (3) Includes a $26.3
million U.S. valuation allowance in Fiscal 2025.
Sales/Earnings
Summary by Segment (in thousands) (Unaudited)
Quarter 3 Quarter 3
Nov. 2,
% of
Oct. 28,
% of
2024
Net Sales
2023
Net Sales
Sales: Journeys Group
$
362,517
60.8
%
$
349,367
60.3
%
Schuh Group
121,826
20.4
%
118,129
20.4
%
Johnston & Murphy Group
78,463
13.2
%
81,411
14.1
%
Genesco Brands Group
33,522
5.6
%
30,408
5.2
%
Net Sales
$
596,328
100.0
%
$
579,315
100.0
%
Operating Income (Loss): Journeys Group
$
13,166
3.6
%
$
11,975
3.4
%
Schuh Group
3,119
2.6
%
5,484
4.6
%
Johnston & Murphy Group
(91
)
-0.1
%
2,706
3.3
%
Genesco Brands Group
3,729
11.1
%
(1,560
)
-5.1
%
Corporate and Other(1)
(9,713
)
-1.6
%
(7,753
)
-1.3
%
Operating income
10,210
1.7
%
10,852
1.9
%
Other components of net periodic benefit cost
86
0.0
%
148
0.0
%
Interest, net
1,213
0.2
%
2,207
0.4
%
Earnings from continuing operations
before income taxes
8,911
1.5
%
8,497
1.5
%
Income tax expense(2)
27,759
4.7
%
1,908
0.3
%
Earnings (loss) from continuing operations
(18,848
)
-3.2
%
6,589
1.1
%
Loss from discontinued operations, net of tax
(84
)
0.0
%
(50
)
0.0
%
Net Earnings (Loss)
$
(18,932
)
-3.2
%
$
6,539
1.1
%
(1) Includes a $0.1 million charge in
each of the third quarters of Fiscal 2025 and Fiscal 2024 for asset
impairments. (2) Includes a $26.3 million U.S. valuation allowance
in the third quarter of Fiscal 2025.
GENESCO INC.
Sales/Earnings Summary by Segment (in thousands)
(Unaudited) Nine
Months Ended Nine Months Ended
Nov. 2,
% of
Oct. 28,
% of
2024
Net Sales
2023
Net Sales
Sales: Journeys Group
$
920,808
58.3
%
$
908,832
57.3
%
Schuh Group
338,736
21.5
%
334,033
21.1
%
Johnston & Murphy Group
228,707
14.5
%
241,823
15.3
%
Genesco Brands Group
90,862
5.8
%
100,986
6.4
%
Net Sales
$
1,579,113
100.0
%
$
1,585,674
100.0
%
Operating Income (Loss): Journeys Group
$
(16,807
)
-1.8
%
$
(21,265
)
-2.3
%
Schuh Group
4,562
1.3
%
12,110
3.6
%
Johnston & Murphy Group
1,861
0.8
%
10,178
4.2
%
Genesco Brands Group(1)
5,415
6.0
%
259
0.3
%
Corporate and Other(2)
(27,223
)
-1.7
%
(23,601
)
-1.5
%
Goodwill Impairment
-
0.0
%
(28,453
)
-1.8
%
Operating loss
(32,192
)
-2.0
%
(50,772
)
-3.2
%
Other components of net periodic benefit cost
281
0.0
%
388
0.0
%
Interest, net
3,448
0.2
%
6,241
0.4
%
Loss from continuing operations
before income taxes
(35,921
)
-2.3
%
(57,401
)
-3.6
%
Income tax expense (benefit)(3)
17,144
1.1
%
(13,483
)
-0.9
%
Loss from continuing operations
(53,065
)
-3.4
%
(43,918
)
-2.8
%
Loss from discontinued operations, net of tax
(206
)
0.0
%
(98
)
0.0
%
Net Loss
$
(53,271
)
-3.4
%
$
(44,016
)
-2.8
%
(1) Includes a $1.8 million gross
margin charge in the first nine months of Fiscal 2025 related to a
distribution model transition in Genesco Brands Group. (2) Includes
a $1.5 million charge in the first nine months of Fiscal 2025 which
includes $1.0 million for severance and $0.5 million for asset
impairments. Includes a $0.6 million charge in the first nine
months of Fiscal 2024 for asset impairments. (3) Includes a $26.3
million U.S. valuation allowance in Fiscal 2025.
GENESCO
INC. Condensed Consolidated Balance Sheets (in
thousands) (Unaudited)
November 2, 2024
October 28, 2023
Assets Cash
$
33,578
$
21,691
Accounts receivable
52,373
56,934
Inventories
523,152
516,735
Other current assets
50,600
43,350
Total current assets
659,703
638,710
Property and equipment
230,090
245,009
Operating lease right of use assets
424,886
459,524
Goodwill and other intangibles
36,444
35,725
Non-current prepaid income taxes
58,670
55,632
Other non-current assets
25,728
58,331
Total Assets
$
1,435,521
$
1,492,931
Liabilities and Equity Accounts payable
$
214,935
$
186,683
Current portion operating lease liabilities
123,397
134,850
Other current liabilities
83,750
75,631
Total current liabilities
422,082
397,164
Long-term debt
100,114
128,163
Long-term operating lease liabilities
348,672
387,347
Other long-term liabilities
47,749
43,299
Equity
516,904
536,958
Total Liabilities and Equity
$
1,435,521
$
1,492,931
GENESCO INC. Store Count Activity
Balance
Balance
Balance
01/28/23
Open
Close
02/03/24
Open
Close
11/02/24
Journeys Group
1,130
27
94
1,063
6
41
1,028
Schuh Group
122
3
3
122
2
2
122
Johnston & Murphy Group
158
2
4
156
0
4
152
Total Retail Stores
1,410
32
101
1,341
8
47
1,302
GENESCO INC. Store Count Activity
Balance
Balance
08/03/24
Open
Close
11/02/24
Journeys Group
1,039
1
12
1,028
Schuh Group
123
1
2
122
Johnston & Murphy Group
152
0
0
152
Total Retail Stores
1,314
2
14
1,302
GENESCO INC. Comparable Sales Quarter 3
Nine Months
Nov. 2,
Oct. 28,
Nov. 2,
Oct. 28,
2024
2023
2024
2023
Journeys Group
11
%
-8
%
2
%
-10
%
Schuh Group
-1
%
5
%
-3
%
11
%
Johnston & Murphy Group
-1
%
1
%
-3
%
10
%
Total Comparable Sales
6
%
-4
%
0
%
-4
%
Same Store Sales
4
%
-7
%
-2
%
-7
%
Comparable E-commerce Sales
15
%
8
%
9
%
10
%
Schedule B Genesco Inc. Adjustments to Reported Earnings (Loss)
from Continuing Operations Three Months Ended November 2, 2024 and
October 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.
Quarter 3 Quarter 3
November 2,
2024 October 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
$
(18,848
)
($1.76
)
$
6,589
$
0.60
Gross margin adjustment: Charges related to distribution model
transition
$
-
6
0.00
$
-
-
0.00
Asset impairments and other adjustments: Asset impairment charges
$
134
103
0.01
$
99
79
0.01
Severance
-
3
0.00
-
-
0.00
Impact of additional dilutive shares
-
-
0.02
-
-
0.00
Total asset impairments and other adjustments
$
134
106
0.03
$
99
79
0.01
Income tax expense adjustments: Tax impact share based awards
-
0.00
48
0.00
U.S. valuation allowance
26,250
2.42
-
0.00
Other tax items
(920
)
(0.08
)
(509
)
(0.04
)
Total income tax expense adjustments
25,330
2.34
(461
)
(0.04
)
Adjusted earnings from continuing operations (1) and (2)
$
6,594
$0.61
$
6,207
$
0.57
(1) The adjusted tax rate for the third quarter of Fiscal
2025 and 2024 is 27.1% and 27.8%, respectively. (2) EPS reflects
10.9 million and 11.0 million share count for the third quarter of
Fiscal 2025 and 2024, respectively, which includes common stock
equivalents in both periods for adjusted earnings from continuing
operations. The loss from continuing operations, as reported for
the third quarter of Fiscal 2025, excludes common stock
equivalents. Genesco Inc. Adjustments to Reported Operating Income
Three Months Ended November 2, 2024 and October 28, 2023
Quarter 3 - November 2, 2024 Operating
Asset Impair Adj Operating In Thousands
Income (Loss) & Other Adj Income
(Loss) Journeys Group
$
13,166
$
-
$
13,166
Schuh Group
3,119
-
3,119
Johnston & Murphy Group
(91
)
-
(91
)
Genesco Brands Group
3,729
-
3,729
Corporate and Other
(9,713
)
134
(9,579
)
Total Operating Income
$
10,210
$
134
$
10,344
% of sales
1.7
%
1.7
%
Quarter 3 - October 28, 2023 Operating
Asset Impair Adj Operating In Thousands Income (Loss)
& Other Adj Income (Loss) Journeys Group
$
11,975
$
-
$
11,975
Schuh Group
5,484
-
5,484
Johnston & Murphy Group
2,706
-
2,706
Genesco Brands Group
(1,560
)
-
(1,560
)
Corporate and Other
(7,753
)
99
(7,654
)
Total Operating Income
$
10,852
$
99
$
10,951
% of sales
1.9
%
1.9
%
Schedule B Genesco Inc. Adjustments to Reported Loss from
Continuing Operations Nine Months Ended November 2, 2024 and
October 28, 2023 The Company believes that disclosure of
loss and loss per share from continuing operations and operating
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.
Nine
Months Nine Months
November 2, 2024 October 28, 2023
Net of Per Share Net of Per Share In Thousands
(except per share amounts)
Pretax Tax Amounts
Pretax Tax Amounts Loss from continuing operations, as reported
$
(53,065
)
($4.88
)
$
(43,918
)
($3.87
)
Gross margin adjustment: Charges related to distribution model
transition
$
1,750
1,333
0.12
$
-
-
0.00
Asset impairments and other adjustments: Asset impairment charges
$
494
376
0.03
$
581
446
0.04
Severance
996
758
0.07
-
-
0.00
Goodwill impairment
-
-
0.00
28,453
21,858
1.93
Total asset impairments and other adjustments
$
1,490
1,134
0.10
$
29,034
22,304
1.97
Income tax expense adjustments: Tax impact share based awards
722
0.07
1,059
0.09
U.S. valuation allowance
26,250
2.41
-
0.00
Other tax items
(1,842
)
(0.17
)
(1,578
)
(0.14
)
Total income tax expense adjustments
25,130
2.31
(519
)
(0.05
)
Adjusted loss from continuing operations (1) and (2)
$
(25,468
)
($2.35
)
$
(22,133
)
($1.95
)
(1) The adjusted tax rate for the first nine months of
Fiscal 2025 and 2024 is 22.1% and 22.0%, respectively. (2) EPS
reflects 10.9 million and 11.4 million share count for the first
nine months of Fiscal 2025 and 2024, respectively, which excludes
common stock equivalents in the first nine months of each period
due to the loss from continuing operations each year. Genesco Inc.
Adjustments to Reported Operating Income (Loss) and Gross Margin
Nine Months Ended November 2, 2024 and October 28, 2023
Nine Months November 2, 2024 Operating
Asset Impair Adj Operating In Thousands
Income (Loss) & Other Adj Income
(Loss) Journeys Group
$
(16,807
)
$
-
$
(16,807
)
Schuh Group
4,562
-
4,562
Johnston & Murphy Group
1,861
-
1,861
Genesco Brands Group
5,415
1,750
7,165
Corporate and Other
(27,223
)
1,490
(25,733
)
Total Operating Loss
$
(32,192
)
$
3,240
$
(28,952
)
% of sales
-2.0
%
-1.8
%
Nine Months October 28, 2023 Operating
Asset Impair Adj Operating In Thousands Income (Loss)
& Other Adj Income (Loss) Journeys Group
$
(21,265
)
$
-
$
(21,265
)
Schuh Group
12,110
-
12,110
Johnston & Murphy Group
10,178
-
10,178
Genesco Brands Group
259
-
259
Goodwill Impairment
(28,453
)
28,453
-
Corporate and Other
(23,601
)
581
(23,020
)
Total Operating Loss
$
(50,772
)
$
29,034
$
(21,738
)
% of sales
-3.2
%
-1.4
%
Nine Months In Thousands
Nov.
2, 2024 Oct. 28, 2023 Gross margin, as reported
$
747,176
$
756,753
% of sales
47.3
%
47.7
%
Charges related to distribution model
transition
1,750
-
Total adjustments
1,750
-
Adjusted gross margin
$
748,926
$
756,753
% of sales
47.4
%
47.7
%
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
$
8.4
$
0.76
$
5.8
$
0.53
Charges related to distribution
model transition
1.3
0.12
1.3
0.12
Asset impairments and other
adjustments: Asset impairments and
other matters
1.3
0.12
1.7
0.15
Total asset impairments and other adjustments (1)
1.3
0.12
1.7
0.15
Adjusted forecasted earnings
from continuing operations (2)
$
11.0
$
1.00
$
8.8
$
0.80
(1) All adjustments are net of
tax where applicable. The forecasted tax rate for Fiscal 2025 is
approximately 27%. (2) EPS reflects 11.0 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/20241205691391/en/
Genesco Financial Contacts Sandra Harris, SVP Finance,
Chief Financial Officer (615) 367-7578 / SHarris2@genesco.com
Tom George, Principal Accounting Officer (615) 367-7465 /
tgeorge@genesco.com
Genesco Media Contact Claire S. McCall, Director,
Corporate Relations (615) 367-8283 / cmccall@genesco.com
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