NASHVILLE, Tenn., Sept. 6, 2019 /PRNewswire/ --
Second Quarter Fiscal 2020 Financial Summary
- Net sales were flat at $487
million
- Comparable sales increased 3%
- GAAP EPS from continuing operations was $0.05 vs. $0.00
last year
- Non-GAAP EPS from continuing operations was $0.151vs. ($0.01) last year
Genesco Inc. (NYSE: GCO) today reported GAAP earnings from
continuing operations per diluted share of $0.05 for the three months ended August 3, 2019, compared to $0.00 in the second quarter last year.
Adjusted for the excluded items in both periods, the Company
reported second quarter earnings from continuing operations per
diluted share of $0.15, compared to a
loss from continuing operations per diluted share of ($0.01) last year.
Robert J. Dennis, Genesco
Chairman, President and Chief Executive Officer, said, "We
delivered second quarter consolidated results that exceeded
expectations across the board. Our outperformance was driven
primarily by the ongoing strength of our Journeys business, which
continued to experience strong comparable sales even as
year-over-year comparisons became more difficult. The second
quarter marked the ninth consecutive quarter of positive
consolidated comparable sales for our footwear businesses and
included positive store and digital comps. At the same time, gross
margins improved at each of our divisions, helping offset
incremental marketing investments to achieve operating profit and
earnings per share well above last year's levels.
"The top-line momentum we experienced in the second quarter
continued nicely in August with Journeys and Schuh leading the way
during the important back-to-school selling season. Based on
our strong second quarter results and positive start to the third
quarter, combined with the repurchase of more shares than we
initially expected, we are raising our full year guidance. We now
expect earnings per share for Fiscal 2020 to be between
$3.80 to $4.20, with an expectation that earnings for the
year will be near the mid-point of the range, up from our previous
range of $3.35 to $3.75. Our recent performance represents a great
start to our first fiscal year as a footwear-focused company and we
believe that the strategic course we have set for Genesco will
result in improved profitability and increased shareholder value
over the long-term."
1Excludes a charge for lease terminations and asset
impairment charges, net of tax effect in the second quarter of
Fiscal 2020 ("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 and
earnings per share from continuing operations adjusted for the
items not reflected in the previously announced expectations will
be meaningful to investors, especially in light of the impact of
such items on the results.
Second Quarter Review
Net sales for the second quarter of Fiscal 2020 were flat at
$487 million compared to the second
quarter of Fiscal 2019. Excluding the effect of lower exchange
rates, net sales would have increased 1%. Comparable sales
increased 3%, with stores up 1% and direct up 20%.
Direct-to-consumer sales were 10.4% of total retail sales for the
quarter, compared to 8.9% last year.
Comparable
Sales
|
|
|
|
Comparable Same
Store and Direct Sales:
|
2QFY20
|
2QFY19
|
Journeys
Group
|
4%
|
10%
|
Schuh
Group
|
0%
|
(7)%
|
Johnston & Murphy
Group
|
1%
|
8%
|
Total Genesco
Comparable Sales
|
3%
|
6%
|
Same Store
Sales
|
1%
|
6%
|
Comparable Direct
Sales
|
20%
|
7%
|
Second quarter gross margin this year was 48.6%, up 110 basis
points, compared with 47.5% last year. The increase as a percentage
of sales reflects freight claim credits for Journeys Group,
improved wholesale gross margin in Johnston & Murphy Group and
efficient sell through of sale product at Schuh Group with lower
markdowns.
Selling and administrative expense for the second quarter this
year was 47.6%, up 30 basis points, compared to 47.3% of sales for
the same period last year. The increase as a percentage of
sales reflects increased marketing expenses, partially offset by
decreased bonus expense and store rent.
Genesco's GAAP operating income for the second quarter was
$3.0 million, or 0.6% of sales this
year, compared with $1.1 million, or
0.2% of sales last year. Adjusted for the excluded items in
both periods, operating income for the second quarter was
$4.7 million this year compared with
$1.0 million last year.
Adjusted operating margin was 1.0% of sales in the second quarter
of Fiscal 2020 and 0.2% last year.
Income tax expense for the quarter was $1.9 million in Fiscal 2020 compared to
essentially none last year. Adjusted income tax expense,
reflecting excluded items, was $2.0
million in Fiscal 2020 compared to $0.2 million last year. The higher adjusted
tax amount for this year reflects the inability to recognize a tax
benefit for certain foreign losses.
GAAP earnings from continuing operations were $0.8 million in the second quarter of Fiscal
2020, compared to $0.0 million in the
second quarter last year. Adjusted for the excluded items in
both periods, second quarter earnings from continuing operations
were $2.5 million, or $0.15 earnings per share, in Fiscal 2020,
compared to a loss from continuing operations of ($0.2) million, or ($0.01) loss per share, last
year.
Cash, Borrowings and Inventory
Cash and cash equivalents at August 3,
2019, were $58.0 million,
compared with $49.8 million at
August 4, 2018. Total debt
at the end of the second quarter of Fiscal 2020 was $75.1 million compared with $83.3 million at the end of last year's second
quarter, a decrease of 10%. Inventories increased 2% in the second
quarter of Fiscal 2020 on a year-over-year basis.
Capital Expenditures and Store Activity
For the second quarter, capital expenditures were $7 million, which consisted of $6 million related to store remodels and new
stores and $1 million related to
direct-to-consumer, omnichannel, information technology,
distribution center and other projects. Depreciation and
amortization was $12 million.
During the quarter, the Company opened two new stores and closed 12
stores. The Company ended the quarter with 1,494 stores
compared with 1,532 stores at the end of the second quarter last
year, or a decrease of 2%. Square footage was down 2% on a
year-over-year basis.
Share Repurchases
For the second quarter of Fiscal 2020, the Company repurchased
1,610,705 shares for approximately $68.1
million at an average price of $42.29 per share, as part of a $100 million share repurchase program approved by
the Board of Directors in May 2019. For the third quarter of
Fiscal 2020 through last Friday, August 30,
2019, the Company has repurchased 857,750 shares for
approximately $30.0 million at an
average price of $34.98 per share,
which almost exhausts the current $100
million repurchase authorization.
Fiscal 2020 Outlook
For Fiscal 2020, the Company now expects:
- Comparable sales to be up 2% to 3%, and
- Adjusted diluted earnings per share from continuing operations
in the range of $3.80 to $4.20 with an expectation that earnings for the
year will be near the mid-point of the range.2
Access the conference call for details regarding guidance
assumptions.
Conference Call and Summary Financial Presentation and
Guidance
The Company has posted a summary financial
presentation of second quarter results and guidance on its website,
www.genesco.com, in the investor relations section. The
Company's live conference call on September
6, 2019, 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 the
performance outlook for the Company and its individual businesses
(including, without limitation, sales, expenses, margins and
earnings) and all other statements not addressing solely historical
facts or present conditions. Actual results could vary materially
from the expectations reflected in these statements. A number of
factors could cause differences. These include adjustments to
estimates and projections reflected in forward-looking statements,
including the level and timing of promotional activity necessary to
maintain inventories at appropriate levels; the timing and amount
of any share repurchases by the Company; the imposition of tariffs
on imported products by the Company or its vendors as well as the
ability and costs to move production of products to countries from
which imported goods are not subject to tariffs; potential
disruption to the flow of goods in the ports due to reactions made
by companies to the imposition of 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; unfavorable trends in fuel costs, foreign exchange
rates, foreign labor and material costs, and other factors
affecting the cost of products; the effects of the British decision
to exit the European Union and other sources of weakness in the
U.K. market, including potential effects on consumer demand,
currency exchange rates, and the supply chain; the effectiveness of
the Company's omnichannel initiatives; costs associated with
changes in minimum wage and overtime requirements;
cost associated with wage pressure associated with a full
employment environment in the U.S. and the U.K.; weakness in the
consumer economy and retail industry for the products we sell;
competition in the Company's markets, including online and
including competition from the Company's vendors in the branded
footwear market; fashion trends, including the lack of new fashion
trends or products, that affect the sales or product margins of the
Company's retail product offerings; weakness in shopping mall
traffic and challenges to the viability of malls where the Company
operates stores, related to planned closings of department stores
and other stores or other factors and the extent and pace of growth
of online shopping; risks related to the potential for terrorist
events, especially in malls and shopping districts; changes in
buying patterns by significant wholesale customers; bankruptcies or
deterioration in financial condition of significant wholesale
customers or the inability of wholesale customers or consumers to
obtain credit; the Company's ability to continue to complete and
integrate acquisitions, expand its business and diversify its
product base; retained liabilities associated with divestitures of
businesses including potential liabilities under leases as the
prior tenant or as a guarantor of certain leases; and changes in
the timing of holidays or in the onset of seasonal weather
affecting period-to-period sales comparisons. Additional factors
that could affect the Company's prospects and cause differences
from expectations include the ability to build, open, staff and
support additional retail stores and to renew leases in existing
stores and control or lower occupancy costs, and to conduct
required remodeling or refurbishment on schedule and at expected
expense levels; the Company's ability to eliminate stranded costs
associated with dispositions, including the sale of the Lids Sport
Group business; the Company's ability to realize anticipated cost
savings; 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; 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; and the cost and outcome
of litigation, investigations and environmental matters involving
the Company. Additional factors are cited in the "Risk Factors,"
"Legal Proceedings" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of, and
elsewhere in, our 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 our website, www.genesco.com.
Many of the factors that will determine the outcome of the subject
matter of this release are beyond Genesco's ability to control or
predict. Genesco undertakes no obligation to release publicly the
results of any revisions to these forward-looking statements that
may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Forward-looking statements reflect the expectations of the Company
at the time they are made. The Company disclaims any obligation to
update such statements.
About Genesco Inc.
Genesco Inc., a Nashville-based
specialty retailer, sells footwear and accessories in more than
1,490 retail stores throughout the U.S., Canada, the United
Kingdom and the Republic of
Ireland, principally under the names Journeys, Journeys
Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy,
and on internet websites www.journeys.com, www.journeyskidz.com,
www.journeys.ca, www.schuh.co.uk, www.littleburgundyshoes.com,
www.johnstonmurphy.com, www.johnstonmurphy.ca, www.trask.com, and
www.dockersshoes.com. In addition, Genesco sells wholesale
footwear under its Johnston & Murphy brand, the Trask brand,
the licensed Dockers brand, and other brands. For more information
on Genesco and its operating divisions, please visit
www.genesco.com.
GENESCO
INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
2
|
|
Quarter 2
|
|
|
|
|
|
Aug.
3,
|
%
of
|
|
Aug. 4,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Net sales
|
|
|
$
486,573
|
100.0%
|
|
$ 487,015
|
100.0%
|
|
|
Cost of
sales
|
|
250,040
|
51.4%
|
|
255,546
|
52.5%
|
|
|
Gross
margin
|
|
236,533
|
48.6%
|
|
231,469
|
47.5%
|
|
|
Selling and
administrative expenses
|
231,796
|
47.6%
|
|
230,423
|
47.3%
|
|
|
Asset impairments and
other, net
|
1,775
|
0.4%
|
|
(29)
|
0.0%
|
|
|
Operating income
|
|
2,962
|
0.6%
|
|
1,075
|
0.2%
|
|
|
Other components of
net periodic benefit cost
|
(93)
|
0.0%
|
|
(29)
|
0.0%
|
|
|
Interest expense,
net
|
|
347
|
0.1%
|
|
1,103
|
0.2%
|
|
|
Earnings from continuing operations before
|
|
|
|
|
|
|
|
income
taxes
|
|
2,708
|
0.6%
|
|
1
|
0.0%
|
|
|
Income tax
expense
|
|
1,915
|
0.4%
|
|
26
|
0.0%
|
|
|
Earnings (loss) from continuing operations
|
793
|
0.2%
|
|
(25)
|
0.0%
|
|
|
(Loss) earnings from
discontinued operations, net of tax
|
(216)
|
0.0%
|
|
10
|
0.0%
|
|
|
Net
Earnings (Loss)
|
|
$
577
|
0.1%
|
|
$
(15)
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.05
|
|
|
$0.00
|
|
|
|
Net earnings (loss)
|
|
$
0.04
|
|
|
$0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
15,959
|
|
|
19,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.05
|
|
|
$0.00
|
|
|
|
Net earnings (loss)
|
|
$
0.04
|
|
|
$0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Diluted
|
16,028
|
|
|
19,342
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
Aug.
3,
|
%
of
|
|
Aug. 4,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Net sales
|
|
|
$
982,224
|
100.0%
|
|
$
973,234
|
100.0%
|
|
|
Cost of
sales
|
|
500,783
|
51.0%
|
|
503,759
|
51.8%
|
|
|
Gross
margin
|
|
481,441
|
49.0%
|
|
469,475
|
48.2%
|
|
|
Selling and
administrative expenses
|
468,351
|
47.7%
|
|
463,599
|
47.6%
|
|
|
Asset impairments and
other, net
|
1,044
|
0.1%
|
|
1,089
|
0.1%
|
|
|
Operating income
|
|
12,046
|
1.2%
|
|
4,787
|
0.5%
|
|
|
Other components of
net periodic benefit cost
|
(179)
|
0.0%
|
|
(37)
|
0.0%
|
|
|
Interest expense,
net
|
|
181
|
0.0%
|
|
2,131
|
0.2%
|
|
|
Earnings from continuing operations before income
taxes
|
12,044
|
1.2%
|
|
2,693
|
0.3%
|
|
|
Income tax
expense
|
|
4,781
|
0.5%
|
|
862
|
0.1%
|
|
|
Earnings from continuing operations
|
7,263
|
0.7%
|
|
1,831
|
0.2%
|
|
|
Loss from
discontinued operations, net of tax
|
(340)
|
0.0%
|
|
(4,177)
|
-0.4%
|
|
|
Net
Earnings (Loss)
|
|
$
6,923
|
0.7%
|
|
$
(2,346)
|
-0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.43
|
|
|
$
0.09
|
|
|
|
Net earnings (loss)
|
|
$
0.41
|
|
|
$
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
16,802
|
|
|
19,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.43
|
|
|
$
0.09
|
|
|
|
Net earnings (loss)
|
|
$
0.41
|
|
|
$
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Diluted
|
16,939
|
|
|
19,448
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Sales/Earnings
Summary by Segment
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
2
|
|
Quarter 2
|
|
|
|
|
|
Aug.
3,
|
%
of
|
|
Aug. 4,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
315,175
|
64.8%
|
|
$ 304,995
|
62.6%
|
|
|
Schuh Group
|
|
92,476
|
19.0%
|
|
98,159
|
20.2%
|
|
|
Johnston & Murphy Group
|
67,267
|
13.8%
|
|
68,441
|
14.1%
|
|
|
Licensed Brands
|
|
11,583
|
2.4%
|
|
15,336
|
3.1%
|
|
|
Corporate and Other
|
|
72
|
0.0%
|
|
84
|
0.0%
|
|
|
Net Sales
|
|
|
$
486,573
|
100.0%
|
|
$ 487,015
|
100.0%
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
11,329
|
3.6%
|
|
$
7,038
|
2.3%
|
|
|
Schuh Group
|
|
39
|
0.0%
|
|
1,073
|
1.1%
|
|
|
Johnston & Murphy Group
|
1,518
|
2.3%
|
|
715
|
1.0%
|
|
|
Licensed Brands
|
|
(251)
|
-2.2%
|
|
(437)
|
-2.8%
|
|
|
Corporate and Other(1)
|
|
(9,673)
|
-2.0%
|
|
(7,314)
|
-1.5%
|
|
|
Operating
income
|
|
2,962
|
0.6%
|
|
1,075
|
0.2%
|
|
|
Other components of
net periodic benefit cost
|
(93)
|
0.0%
|
|
(29)
|
0.0%
|
|
|
Interest,
net
|
|
|
347
|
0.1%
|
|
1,103
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
before
|
|
|
|
|
|
|
income taxes
|
|
2,708
|
0.6%
|
|
1
|
0.0%
|
|
|
Income tax
expense
|
|
1,915
|
0.4%
|
|
26
|
0.0%
|
|
|
Earnings (loss) from
continuing operations
|
793
|
0.2%
|
|
(25)
|
0.0%
|
|
|
(Loss) earnings
from discontinued operations, net of tax
|
(216)
|
0.0%
|
|
10
|
0.0%
|
|
|
Net Earnings
(Loss)
|
|
$
577
|
0.1%
|
|
$
(15)
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes a $1.7 million charge in the
second quarter of Fiscal 2020 which includes $1.0 million for lease
terminations and $0.7 million
|
|
|
for asset impairments. Includes a ($0.0) million gain in the
second quarter of Fiscal 2019 which includes a ($0.4) million gain
related to
|
|
Hurricane Maria, offset by $0.3 million for asset impairments and
$0.1 million for legal and other matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Sales/Earnings
Summary by Segment
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
Aug.
3,
|
%
of
|
|
Aug. 4,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
639,147
|
65.1%
|
|
$
611,137
|
62.8%
|
|
|
Schuh Group
|
|
169,320
|
17.2%
|
|
178,425
|
18.3%
|
|
|
Johnston & Murphy Group
|
142,001
|
14.5%
|
|
144,125
|
14.8%
|
|
|
Licensed Brands
|
|
31,666
|
3.2%
|
|
39,401
|
4.0%
|
|
|
Corporate and Other
|
|
90
|
0.0%
|
|
146
|
0.0%
|
|
|
Net Sales
|
|
|
$
982,224
|
100.0%
|
|
$
973,234
|
100.0%
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
30,305
|
4.7%
|
|
$
20,030
|
3.3%
|
|
|
Schuh Group
|
|
(5,389)
|
-3.2%
|
|
(4,567)
|
-2.6%
|
|
|
Johnston & Murphy Group
|
6,624
|
4.7%
|
|
5,582
|
3.9%
|
|
|
Licensed Brands
|
|
178
|
0.6%
|
|
(161)
|
-0.4%
|
|
|
Corporate and Other(1)
|
|
(19,672)
|
-2.0%
|
|
(16,097)
|
-1.7%
|
|
|
Operating
Income
|
|
12,046
|
1.2%
|
|
4,787
|
0.5%
|
|
|
Other components of
net periodic benefit cost
|
(179)
|
0.0%
|
|
(37)
|
0.0%
|
|
|
Interest,
net
|
|
|
181
|
0.0%
|
|
2,131
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
12,044
|
1.2%
|
|
2,693
|
0.3%
|
|
|
Income tax
expense
|
|
4,781
|
0.5%
|
|
862
|
0.1%
|
|
|
Earnings from
continuing operations
|
7,263
|
0.7%
|
|
1,831
|
0.2%
|
|
|
Loss from
discontinued operations, net of tax
|
(340)
|
0.0%
|
|
(4,177)
|
-0.4%
|
|
|
Net Earnings
(Loss)
|
|
$
6,923
|
0.7%
|
|
$
(2,346)
|
-0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes a $1.0 million charge in the
first six months of Fiscal 2020 for asset impairments. Includes a
$1.1 million charge in the first six months of Fiscal
|
|
2019
which includes $1.3 million for asset impairments and $0.3 million
for legal and other matters, partially offset by a gain of ($0.5)
million related to
|
|
Hurricane Maria.
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 3,
2019
|
|
August 4,
2018
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
57,965
|
|
$
49,787
|
|
|
Accounts
receivable
|
|
|
26,626
|
|
30,912
|
|
|
Inventories
|
|
|
444,706
|
|
436,721
|
|
|
Other current
assets
|
|
|
45,040
|
|
64,623
|
|
|
Current assets -
discontinued operations
|
|
-
|
|
192,312
|
|
|
Total
current assets
|
|
|
574,337
|
|
774,355
|
|
|
Property and
equipment
|
|
|
261,924
|
|
287,288
|
|
|
Operating lease right
of use asset
|
|
754,537
|
|
-
|
|
|
Goodwill and other
intangibles
|
|
|
116,685
|
|
124,581
|
|
|
Other non-current
assets
|
|
|
48,044
|
|
48,221
|
|
|
Non-current assets -
discontinued operations
|
-
|
|
133,351
|
|
|
Total
Assets
|
|
|
$
1,755,527
|
|
$
1,367,796
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
157,822
|
|
$
174,814
|
|
|
Current portion
long-term debt
|
|
|
14,896
|
|
1,625
|
|
|
Current portion
operating lease liability
|
|
141,233
|
|
-
|
|
|
Other current
liabilities
|
|
|
87,511
|
|
83,911
|
|
|
Current liabilities -
discontinued operations
|
-
|
|
57,769
|
|
|
Total
current liabilities
|
|
|
401,462
|
|
318,119
|
|
|
Long-term
debt
|
|
|
60,244
|
|
81,712
|
|
|
Long-term operating
lease liability
|
|
671,047
|
|
-
|
|
|
Other long-term
liabilities
|
|
|
38,153
|
|
118,998
|
|
|
Non-current
liabilities - discontinued operations
|
-
|
|
24,809
|
|
|
Equity
|
|
|
584,621
|
|
824,158
|
|
|
Total
Liabilities and Equity
|
|
|
$
1,755,527
|
|
$
1,367,796
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Store Count
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
Balance
|
|
|
|
|
Balance
|
|
02/03/18
|
Open
|
Close
|
|
02/02/19
|
|
Open
|
Close
|
|
08/03/19
|
Journeys
Group
|
1,220
|
26
|
53
|
|
1,193
|
|
3
|
12
|
|
1,184
|
Schuh
Group
|
134
|
6
|
4
|
|
136
|
|
1
|
5
|
|
132
|
Johnston & Murphy
Group
|
181
|
4
|
2
|
|
183
|
|
1
|
6
|
|
178
|
Total Retail
Units
|
1,535
|
36
|
59
|
|
1,512
|
|
5
|
23
|
|
1,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
|
|
Store Count
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
Balance
|
|
|
|
|
|
|
05/04/19
|
Open
|
Close
|
|
08/03/19
|
|
|
|
|
|
Journeys
Group
|
1,188
|
2
|
6
|
|
1,184
|
|
|
|
|
|
Schuh
Group
|
136
|
0
|
4
|
|
132
|
|
|
|
|
|
Johnston & Murphy
Group
|
180
|
0
|
2
|
|
178
|
|
|
|
|
|
Total Retail
Units
|
1,504
|
2
|
12
|
|
1,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Comparable
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
2
|
|
|
Six
Months
|
|
|
|
Aug.
3,
|
|
Aug. 4,
|
|
|
Aug.
3,
|
|
Aug 4,
|
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
Journeys
Group
|
|
|
4%
|
|
10%
|
|
|
5%
|
|
8%
|
Schuh
Group
|
|
|
0%
|
|
(7)%
|
|
|
1%
|
|
(10)%
|
Johnston & Murphy
Group
|
|
|
1%
|
|
8%
|
|
|
0%
|
|
7%
|
Total
Comparable Sales
|
|
|
3%
|
|
6%
|
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Sales
|
|
|
1%
|
|
6%
|
|
|
3%
|
|
4%
|
Comparable Direct
Sales
|
|
|
20%
|
|
7%
|
|
|
17%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings (Loss) from Continuing Operations
|
Three Months Ended
August 3, 2019 and August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
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
2
|
|
|
|
August 3,
2019
|
|
August 4,
2018
|
|
|
|
|
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
|
|
|
$
793
|
$0.05
|
|
|
$
(25)
|
$0.00
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
731
|
451
|
0.03
|
|
$
330
|
181
|
0.01
|
|
Loss on lease
terminations
|
|
1,044
|
717
|
0.04
|
|
-
|
-
|
0.00
|
|
Legal and
other matters
|
|
-
|
-
|
0.00
|
|
77
|
44
|
0.00
|
|
Gain on
Hurricane Maria
|
|
-
|
2
|
0.00
|
|
(436)
|
(293)
|
(0.01)
|
|
Total asset
impairments and other adjustments
|
|
$
1,775
|
1,170
|
0.07
|
|
$
(29)
|
(68)
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
adjustments:
|
|
|
|
|
|
|
|
|
|
Tax impact
share based awards
|
|
|
(54)
|
0.00
|
|
|
452
|
0.02
|
|
Other tax
items
|
|
|
547
|
0.03
|
|
|
(561)
|
(0.03)
|
|
Total income
tax expense adjustments
|
|
|
493
|
0.03
|
|
|
(109)
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
(loss) from continuing
operations(1)and(2)
|
|
$
2,456
|
$0.15
|
|
|
$
(202)
|
($0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)The
adjusted tax rate for the second quarter of Fiscal 2020 and 2019 is
45.2% and -620.9%, respectively, including a FIN 48 discrete item
of less than $0.1
|
million in each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)EPS
reflects 16.0 million and 19.3 million share count for the second
quarter of Fiscal 2020 and 2019, respectively, which includes
common stock
|
|
equivalents in each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesco
Inc.
|
|
|
|
|
|
Adjustments to
Reported Operating Income
|
|
|
|
|
|
Three Months Ended
August 3, 2019 and August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 2 -
August 3, 2019
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
11,329
|
$
-
|
$
11,329
|
|
|
|
|
|
Schuh
Group
|
|
39
|
-
|
39
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
1,518
|
-
|
1,518
|
|
|
|
|
|
Licensed
Brands
|
|
(251)
|
-
|
(251)
|
|
|
|
|
|
Corporate and
Other
|
|
(9,673)
|
1,775
|
(7,898)
|
|
|
|
|
|
Total Operating
Income
|
|
$
2,962
|
$
1,775
|
$
4,737
|
|
|
|
|
|
% of
sales
|
|
0.6%
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 2 -
August 4, 2018
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
7,038
|
$
-
|
$
7,038
|
|
|
|
|
|
Schuh
Group
|
|
1,073
|
-
|
1,073
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
715
|
-
|
715
|
|
|
|
|
|
Licensed
Brands
|
|
(437)
|
-
|
(437)
|
|
|
|
|
|
Corporate and
Other
|
|
(7,314)
|
(29)
|
(7,343)
|
|
|
|
|
|
Total Operating
Income
|
|
$
1,075
|
$
(29)
|
$
1,046
|
|
|
|
|
|
% of
sales
|
|
0.2%
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings from Continuing Operations
|
Six Months Ended
August 3, 2019 and August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months
|
|
|
|
August 3,
2019
|
|
August 4,
2018
|
|
|
|
|
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
|
|
|
$
7,263
|
$0.43
|
|
|
$
1,831
|
$0.09
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
1,038
|
663
|
0.04
|
|
$
1,355
|
922
|
0.05
|
|
Loss on lease
terminations
|
|
44
|
28
|
0.00
|
|
-
|
-
|
0.00
|
|
Legal and
other matters
|
|
-
|
-
|
0.00
|
|
270
|
184
|
0.01
|
|
Gain on
Hurricane Maria
|
|
(38)
|
(24)
|
0.00
|
|
(536)
|
(365)
|
(0.02)
|
|
Total asset
impairments and other adjustments
|
|
$
1,044
|
667
|
0.04
|
|
$
1,089
|
741
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
adjustments:
|
|
|
|
|
|
|
|
|
|
Tax impact
share based awards
|
|
|
(54)
|
0.00
|
|
|
452
|
0.02
|
|
Other tax
items
|
|
|
489
|
0.02
|
|
|
(492)
|
(0.02)
|
|
Total income
tax expense adjustments
|
|
|
435
|
0.02
|
|
|
(40)
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from continuing
operations(1)and(2)
|
|
|
$
8,365
|
$0.49
|
|
|
$
2,532
|
$0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)The
adjusted tax rate for the first six months of Fiscal 2020 and 2019
is 36.1% and 33.1%, respectively, including a FIN 48 discrete item
of less than $0.1
|
|
million in each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)EPS
reflects 16.9 million and 19.4 million share count for the first
six months of Fiscal 2020 and 2019, respectively, which includes
common stock
|
|
equivalents in each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesco
Inc.
|
|
|
|
|
|
Adjustments to
Reported Operating Income
|
|
|
|
|
|
Six Months Ended
August 3, 2019 and August 4, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months -
August 3, 2019
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
30,305
|
$
-
|
$
30,305
|
|
|
|
|
|
Schuh
Group
|
|
(5,389)
|
-
|
(5,389)
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
6,624
|
-
|
6,624
|
|
|
|
|
|
Licensed
Brands
|
|
178
|
-
|
178
|
|
|
|
|
|
Corporate and
Other
|
|
(19,672)
|
1,044
|
(18,628)
|
|
|
|
|
|
Total Operating
Income
|
|
$
12,046
|
$
1,044
|
$
13,090
|
|
|
|
|
|
% of
sales
|
|
1.2%
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months -
August 4, 2018
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
20,030
|
$
-
|
$
20,030
|
|
|
|
|
|
Schuh
Group
|
|
(4,567)
|
-
|
(4,567)
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
5,582
|
-
|
5,582
|
|
|
|
|
|
Licensed
Brands
|
|
(161)
|
-
|
(161)
|
|
|
|
|
|
Corporate and
Other
|
|
(16,097)
|
1,089
|
(15,008)
|
|
|
|
|
|
Total Operating
Income
|
|
$
4,787
|
$
1,089
|
$
5,876
|
|
|
|
|
|
% of
sales
|
|
0.5%
|
|
0.6%
|
|
|
|
|
|
Schedule B
|
Genesco
Inc.
|
Adjustments to
Forecasted Earnings from Continuing Operations
|
Fiscal Year Ending
February 1, 2020
|
|
|
|
|
|
|
In millions (except
per share amounts)
|
|
High
Guidance
|
Low
Guidance
|
|
|
Fiscal
2020
|
Fiscal
2020
|
Forecasted earnings
from continuing operations
|
|
$
54.0
|
$
3.43
|
$
46.9
|
$
2.98
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
Store impairments and
other matters
|
|
2.1
|
0.13
|
2.8
|
0.18
|
Pension plan
termination
|
|
10.1
|
0.64
|
10.1
|
0.64
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
66.2
|
$
4.20
|
$
59.8
|
$
3.80
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)All
adjustments are net of tax where applicable. The forecasted
tax rate for Fiscal 2020 is approximately 28%.
|
|
|
|
|
|
|
|
(2)EPS
reflects 15.7 million share count for Fiscal 2020 which includes
common stock equivalents.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This reconciliation
reflects estimates and current expectations of future results.
Actual results may vary
|
|
materially from these
expectations and estimates, for reasons including those included in
the discussion
|
|
of forward-looking
statements elsewhere in this release. The Company disclaims any
obligation to update
|
|
such expectations and
estimates.
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/genesco-inc-reports-fiscal-2020-second-quarter-results-300912997.html
SOURCE Genesco Inc.