NASHVILLE, Tenn., Dec. 6, 2019 /PRNewswire/ --
Third Quarter Fiscal 2020 Financial Summary
- Net sales were flat at $537
million
- Comparable sales increased 3%
- GAAP EPS from continuing operations increased to $1.31 vs. $1.00
last year
- Non-GAAP EPS from continuing operations increased to
$1.331 vs. $0.97 last year
Genesco Inc. (NYSE: GCO) today reported GAAP earnings from
continuing operations per diluted share of $1.31 for the three months ended November 2, 2019, compared to $1.00 in the third quarter last year.
Adjusted for the excluded items in both periods, the Company
reported third quarter earnings from continuing operations per
diluted share of $1.33 compared to
$0.97 per diluted share last
year.
Robert J. Dennis, Genesco
chairman, president and chief executive officer, said, "Our third
quarter results meaningfully exceeded our expectations.
Consolidated comparable sales increased 3% driven by the ongoing
strength of our Journeys business, coupled with a much improved
performance from Schuh in the U.K. The third quarter represented
our tenth consecutive quarter of positive comparable sales for our
footwear businesses and included digital comp growth of almost 20%
as well as our ninth consecutive quarter of positive store comps.
At the same time, higher gross margins at each of our divisions
combined with our aggressive share repurchase activity over the
past several months helped to achieve a 37% increase in adjusted
earnings per share versus a year ago.
"The fourth quarter has started well, highlighted by solid
results during the Black Friday through Cyber Monday period versus
the comparable period last year. Based on our strong third quarter
results and positive start to the holiday season, we are raising
our full-year guidance. We now expect earnings per share for Fiscal
2020 to be between $4.10 to
$4.40, with an expectation that
earnings for the year will be near the mid-point of the range, up
from our previous range of $3.80 to
$4.20. Our year-to-date
performance highlights the success we are having as a
footwear-focused company. Looking ahead, we believe the strong
market positions occupied by each of our footwear businesses
provide us with compelling future growth prospects which we are
committed to capitalizing on to generate greater value for our
shareholders."
1Excludes a charge for asset impairments, net of tax
effect in the third quarter of Fiscal 2020 ("Excluded Items").
A reconciliation of earnings and earnings per share from
continuing operations in accordance with U.S. Generally Accepted
Accounting Principles ("GAAP") with the adjusted earnings and
earnings per share numbers is set forth on Schedule B to this press
release. The Company believes that disclosure of earnings and
earnings per share from continuing operations adjusted for the
items not reflected in the previously announced expectations will
be meaningful to investors, especially in light of the impact of
such items on the results.
Third Quarter Review
Net sales for the third quarter
of Fiscal 2020 were flat at $537
million compared to the third quarter of Fiscal 2019.
Excluding the effect of lower exchange rates, net sales would have
increased $2 million compared to last
year. Comparable sales increased 3%, with stores up 1% and direct
up 19%. Direct-to-consumer sales were 11.4% of total retail sales
for the quarter, compared to 9.6% last year.
Comparable
Sales
|
|
|
|
Comparable Same
Store and Direct Sales:
|
3QFY20
|
3QFY19
|
Journeys
Group
|
4%
|
9%
|
Schuh
Group
|
3%
|
(4)%
|
Johnston & Murphy
Group
|
(6)%
|
10%
|
Total Genesco
Comparable Sales
|
3%
|
6%
|
Same Store
Sales
|
1%
|
6%
|
Comparable Direct
Sales
|
19%
|
12%
|
Third quarter gross margin this year was 49.2%, up 70 basis
points, compared with 48.5% last year. The increase as a percentage
of sales reflects higher initial margins and decreased markdowns
for Journeys Group, improved margin in both sale and full price
product at Schuh Group and a higher mix of direct to consumer sales
and improved wholesale gross margin in Johnston & Murphy
Group.
Selling and administrative expense for the third quarter this
year was 44.2%, up 60 basis points, compared to 43.6% of sales for
the same period last year. The increase as a percentage of
sales was driven by the negative comparable sales at Johnston &
Murphy and increased selling salaries, partially offset by
decreased store rent.
Genesco's GAAP operating income for the third quarter was
$25.9 million, or 4.8% of sales this
year, compared with $26.4 million, or
4.9% of sales last year. Adjusted for the excluded items in
both periods, operating income for the third quarter was
$26.7 million this year compared with
$26.3 million last year.
Adjusted operating margin was 5.0% of sales in the third quarter of
Fiscal 2020 and 4.9% last year.
Income tax expense for the quarter was $6.5 million, or 25.4% in Fiscal 2020 compared to
$5.9 million, or 23.0% last
year. Adjusted income tax expense, reflecting excluded items,
was $6.9 million, or 26.2% in Fiscal
2020 compared to $6.4 million, or
25.1% 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 $19.0 million in the third quarter of Fiscal
2020, compared to $19.7 million in
the third quarter last year. Adjusted for the excluded items
in both periods, third quarter earnings from continuing operations
were $19.4 million, or $1.33 per share, in Fiscal 2020, compared to
$19.1 million, or $0.97 per share, last
year.
Cash, Borrowings and Inventory
Cash and cash
equivalents at November 2, 2019, were
$55.8 million, compared with
$53.4 million at November 3, 2018. Total debt at the
end of the third quarter of Fiscal 2020 was $79.5 million compared with $81.8 million at the end of last year's third
quarter, a decrease of 3%. Inventories increased 4% in the third
quarter of Fiscal 2020 on a year-over-year basis.
Capital Expenditures and Store Activity
For the third
quarter, capital expenditures were $8
million, which consisted of $5
million related to store remodels and new stores and
$3 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 four new stores and closed
six stores. The Company ended the quarter with 1,492 stores
compared with 1,537 stores at the end of the third quarter last
year, or a decrease of 3%. Square footage was down 2% on a
year-over-year basis.
Share Repurchases
For the third quarter of Fiscal
2020, the Company repurchased 1,150,198 shares for approximately
$41.3 million at an average price of
$35.90 per share. Since late
December 2018 through last Friday,
the Company has spent approximately $235
million repurchasing over 5.5 million shares across three
authorizations totaling $325 million,
including a new $100 million
authorization announced in late September.
Fiscal 2020 Outlook
For Fiscal 2020, the Company expects:
- Comparable sales to be up 2% to 3%, and
- Adjusted diluted earnings per share from continuing operations
in the range of $4.10 to $4.40 with an expectation that earnings per share
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 third quarter results and guidance on its website,
www.genesco.com, in the investor relations section. The
Company's live conference call on December
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.
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 potential 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. and competitor wage
decisions; 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,
including rent 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.
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.
GENESCO
INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
3
|
|
Quarter 3
|
|
|
|
|
|
Nov.
2,
|
%
of
|
|
Nov. 3,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Net sales
|
|
|
$
537,263
|
100.0%
|
|
$ 539,828
|
100.0%
|
|
|
Cost of
sales
|
|
273,061
|
50.8%
|
|
277,910
|
51.5%
|
|
|
Gross
margin
|
|
264,202
|
49.2%
|
|
261,918
|
48.5%
|
|
|
Selling and
administrative expenses
|
237,460
|
44.2%
|
|
235,601
|
43.6%
|
|
|
Asset impairments and
other, net
|
799
|
0.1%
|
|
(70)
|
0.0%
|
|
|
Operating income
|
|
25,943
|
4.8%
|
|
26,387
|
4.9%
|
|
|
Other components of
net periodic benefit cost
|
(92)
|
0.0%
|
|
(30)
|
0.0%
|
|
|
Interest expense,
net
|
|
602
|
0.1%
|
|
837
|
0.2%
|
|
|
Earnings from continuing operations before
|
|
|
|
|
|
|
|
income
taxes
|
|
25,433
|
4.7%
|
|
25,580
|
4.7%
|
|
|
Income tax
expense
|
|
6,454
|
1.2%
|
|
5,886
|
1.1%
|
|
|
Earnings from continuing operations
|
18,979
|
3.5%
|
|
19,694
|
3.6%
|
|
|
Loss from
discontinued operations, net of tax
|
(80)
|
0.0%
|
|
(5,307)
|
-1.0%
|
|
|
Net
Earnings
|
|
$
18,899
|
3.5%
|
|
$
14,387
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
1.31
|
|
|
$1.01
|
|
|
|
Net earnings
|
|
$
1.31
|
|
|
$0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
14,465
|
|
|
19,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
1.31
|
|
|
$1.00
|
|
|
|
Net earnings
|
|
$
1.30
|
|
|
$0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Diluted
|
14,529
|
|
|
19,637
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
Nov.
2,
|
%
of
|
|
Nov. 3,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Net sales
|
|
|
$
1,519,487
|
100.0%
|
|
$
1,513,062
|
100.0%
|
|
|
Cost of
sales
|
|
773,844
|
50.9%
|
|
781,669
|
51.7%
|
|
|
Gross
margin
|
|
745,643
|
49.1%
|
|
731,393
|
48.3%
|
|
|
Selling and
administrative expenses
|
705,811
|
46.5%
|
|
699,200
|
46.2%
|
|
|
Asset impairments and
other, net
|
1,843
|
0.1%
|
|
1,019
|
0.1%
|
|
|
Operating income
|
|
37,989
|
2.5%
|
|
31,174
|
2.1%
|
|
|
Other components of
net periodic benefit cost
|
(271)
|
0.0%
|
|
(67)
|
0.0%
|
|
|
Interest expense,
net
|
|
783
|
0.1%
|
|
2,968
|
0.2%
|
|
|
Earnings from continuing operations before income
taxes
|
37,477
|
2.5%
|
|
28,273
|
1.9%
|
|
|
Income tax
expense
|
|
11,235
|
0.7%
|
|
6,748
|
0.4%
|
|
|
Earnings from continuing operations
|
26,242
|
1.7%
|
|
21,525
|
1.4%
|
|
|
Loss from
discontinued operations, net of tax
|
(420)
|
0.0%
|
|
(9,484)
|
-0.6%
|
|
|
Net
Earnings
|
|
$
25,822
|
1.7%
|
|
$
12,041
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
1.64
|
|
|
$
1.11
|
|
|
|
Net earnings
|
|
$
1.61
|
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Basic
|
16,023
|
|
|
19,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
1.63
|
|
|
$
1.10
|
|
|
|
Net earnings
|
|
$
1.60
|
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - Diluted
|
16,136
|
|
|
19,511
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Sales/Earnings
Summary by Segment
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
3
|
|
Quarter 3
|
|
|
|
|
|
Nov.
2,
|
%
of
|
|
Nov. 3,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
354,920
|
66.1%
|
|
$ 345,702
|
64.0%
|
|
|
Schuh Group
|
|
92,899
|
17.3%
|
|
95,567
|
17.7%
|
|
|
Johnston & Murphy Group
|
72,703
|
13.5%
|
|
79,736
|
14.8%
|
|
|
Licensed Brands
|
|
16,726
|
3.1%
|
|
18,757
|
3.5%
|
|
|
Corporate and Other
|
|
15
|
0.0%
|
|
66
|
0.0%
|
|
|
Net Sales
|
|
|
$
537,263
|
100.0%
|
|
$ 539,828
|
100.0%
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
28,955
|
8.2%
|
|
$
24,692
|
7.1%
|
|
|
Schuh Group
|
|
4,369
|
4.7%
|
|
4,207
|
4.4%
|
|
|
Johnston & Murphy Group
|
3,715
|
5.1%
|
|
5,072
|
6.4%
|
|
|
Licensed Brands
|
|
(27)
|
-0.2%
|
|
(218)
|
-1.2%
|
|
|
Corporate and Other(1)
|
|
(11,069)
|
-2.1%
|
|
(7,366)
|
-1.4%
|
|
|
Operating
income
|
|
25,943
|
4.8%
|
|
26,387
|
4.9%
|
|
|
Other components of
net periodic benefit cost
|
(92)
|
0.0%
|
|
(30)
|
0.0%
|
|
|
Interest,
net
|
|
|
602
|
0.1%
|
|
837
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
before
|
|
|
|
|
|
|
income taxes
|
|
25,433
|
4.7%
|
|
25,580
|
4.7%
|
|
|
Income tax
expense
|
|
6,454
|
1.2%
|
|
5,886
|
1.1%
|
|
|
Earnings from
continuing operations
|
18,979
|
3.5%
|
|
19,694
|
3.6%
|
|
|
Loss from
discontinued operations, net of tax
|
(80)
|
0.0%
|
|
(5,307)
|
-1.0%
|
|
|
Net
Earnings
|
|
$
18,899
|
3.5%
|
|
$
14,387
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes a $0.8 million charge in
the third quarter of Fiscal 2020 for asset impairments.
Includes a ($0.1) million gain in the third quarter
|
|
of
Fiscal 2019 which includes a gain of ($0.9) million related to
Hurricane Maria, partially offset by $0.7 million for asset
impairments
|
|
|
and $0.1
million for hurricane losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Sales/Earnings
Summary by Segment
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
Nov.
2,
|
%
of
|
|
Nov. 3,
|
% of
|
|
|
|
|
|
2019
|
Net
Sales
|
|
2018
|
Net Sales
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
994,067
|
65.4%
|
|
$
956,839
|
63.2%
|
|
|
Schuh Group
|
|
262,219
|
17.3%
|
|
273,992
|
18.1%
|
|
|
Johnston & Murphy Group
|
214,704
|
14.1%
|
|
223,861
|
14.8%
|
|
|
Licensed Brands
|
|
48,392
|
3.2%
|
|
58,158
|
3.8%
|
|
|
Corporate and Other
|
|
105
|
0.0%
|
|
212
|
0.0%
|
|
|
Net Sales
|
|
|
$
1,519,487
|
100.0%
|
|
$
1,513,062
|
100.0%
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
Journeys Group
|
|
$
59,260
|
6.0%
|
|
$
44,722
|
4.7%
|
|
|
Schuh Group
|
|
(1,020)
|
-0.4%
|
|
(360)
|
-0.1%
|
|
|
Johnston & Murphy Group
|
10,339
|
4.8%
|
|
10,654
|
4.8%
|
|
|
Licensed Brands
|
|
151
|
0.3%
|
|
(379)
|
-0.7%
|
|
|
Corporate and Other(1)
|
|
(30,741)
|
-2.0%
|
|
(23,463)
|
-1.6%
|
|
|
Operating
Income
|
|
37,989
|
2.5%
|
|
31,174
|
2.1%
|
|
|
Other components of
net periodic benefit cost
|
(271)
|
0.0%
|
|
(67)
|
0.0%
|
|
|
Interest,
net
|
|
|
783
|
0.1%
|
|
2,968
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
37,477
|
2.5%
|
|
28,273
|
1.9%
|
|
|
Income tax
expense
|
|
11,235
|
0.7%
|
|
6,748
|
0.4%
|
|
|
Earnings from
continuing operations
|
26,242
|
1.7%
|
|
21,525
|
1.4%
|
|
|
Loss from
discontinued operations, net of tax
|
(420)
|
0.0%
|
|
(9,484)
|
-0.6%
|
|
|
Net
Earnings
|
|
$
25,822
|
1.7%
|
|
$
12,041
|
0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes a $1.8 million charge in
the first nine months of Fiscal 2020 for asset impairments.
Includes a $1.0 million charge in the first nine months
of
|
|
Fiscal
2019 which includes $2.0 million for asset impairments, $0.3
million for legal and other matters and $0.1 million for hurricane
losses, partially
|
|
|
offset by a
($1.4) million gain related to Hurricane Maria.
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nov. 2,
2019
|
|
Nov. 3,
2018
|
|
|
Assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
55,826
|
|
$
53,423
|
|
|
Accounts
receivable
|
|
|
34,849
|
|
39,158
|
|
|
Inventories
|
|
|
473,940
|
|
454,673
|
|
|
Other current
assets
|
|
|
36,179
|
|
60,159
|
|
|
Current assets -
discontinued operations
|
|
-
|
|
235,689
|
|
|
Total
current assets
|
|
|
600,794
|
|
843,102
|
|
|
Property and
equipment
|
|
|
261,281
|
|
285,853
|
|
|
Operating lease right
of use asset
|
|
750,855
|
|
-
|
|
|
Goodwill and other
intangibles
|
|
|
122,803
|
|
124,124
|
|
|
Other non-current
assets
|
|
|
49,759
|
|
52,712
|
|
|
Non-current assets -
discontinued operations
|
-
|
|
124,922
|
|
|
Total
Assets
|
|
|
$
1,785,492
|
|
$
1,430,713
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$
195,906
|
|
$
176,451
|
|
|
Current portion
long-term debt
|
|
|
17,146
|
|
9,325
|
|
|
Current portion
operating lease liability
|
|
145,788
|
|
-
|
|
|
Other current
liabilities
|
|
|
89,684
|
|
85,918
|
|
|
Current liabilities -
discontinued operations
|
-
|
|
100,598
|
|
|
Total
current liabilities
|
|
|
448,524
|
|
372,292
|
|
|
Long-term
debt
|
|
|
62,368
|
|
72,455
|
|
|
Long-term operating
lease liability
|
|
663,168
|
|
-
|
|
|
Other long-term
liabilities
|
|
|
37,984
|
|
119,525
|
|
|
Non-current
liabilities - discontinued operations
|
-
|
|
24,680
|
|
|
Equity
|
|
|
573,448
|
|
841,761
|
|
|
Total
Liabilities and Equity
|
|
|
$
1,785,492
|
|
$
1,430,713
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Store Count
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
Balance
|
|
|
|
|
Balance
|
|
02/03/18
|
Open
|
Close
|
|
02/02/19
|
|
Open
|
Close
|
|
11/02/19
|
Journeys
Group
|
1,220
|
26
|
53
|
|
1,193
|
|
6
|
17
|
|
1,182
|
Schuh
Group
|
134
|
6
|
4
|
|
136
|
|
1
|
6
|
|
131
|
Johnston & Murphy
Group
|
181
|
4
|
2
|
|
183
|
|
2
|
6
|
|
179
|
Total Retail
Units
|
1,535
|
36
|
59
|
|
1,512
|
|
9
|
29
|
|
1,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Store Count
Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
Balance
|
|
|
08/03/19
|
Open
|
Close
|
|
11/02/19
|
|
Journeys
Group
|
1,184
|
3
|
5
|
|
1,182
|
|
Schuh
Group
|
132
|
0
|
1
|
|
131
|
|
Johnston & Murphy
Group
|
178
|
1
|
0
|
|
179
|
|
Total Retail
Units
|
1,494
|
4
|
6
|
|
1,492
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Comparable
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
3
|
|
|
Nine
Months
|
|
|
|
Nov.
2,
|
|
Nov. 3,
|
|
|
Nov.
2,
|
|
Nov. 3,
|
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
Journeys
Group
|
|
|
4%
|
|
9%
|
|
|
5%
|
|
8%
|
Schuh
Group
|
|
|
3%
|
|
(4)%
|
|
|
2%
|
|
(8)%
|
Johnston & Murphy
Group
|
|
|
(6)%
|
|
10%
|
|
|
(2)%
|
|
8%
|
Total
Comparable Sales
|
|
|
3%
|
|
6%
|
|
|
4%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Sales
|
|
|
1%
|
|
6%
|
|
|
2%
|
|
4%
|
Comparable Direct
Sales
|
|
|
19%
|
|
12%
|
|
|
18%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings from Continuing Operations
|
Three Months Ended
November 2, 2019 and November 3, 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
3
|
|
|
|
November 2,
2019
|
|
November 3,
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
|
|
|
$
18,979
|
$1.31
|
|
|
$
19,694
|
$1.00
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
799
|
633
|
0.04
|
|
$
699
|
599
|
0.03
|
|
Loss on lease
terminations
|
|
-
|
3
|
0.00
|
|
-
|
-
|
0.00
|
|
Legal and
other matters
|
|
-
|
-
|
0.00
|
|
-
|
16
|
0.00
|
|
Gain on
Hurricane Maria
|
|
-
|
(3)
|
0.00
|
|
(884)
|
(686)
|
(0.03)
|
|
Other
hurricane losses
|
|
-
|
-
|
0.00
|
|
115
|
85
|
0.00
|
|
Total asset
impairments and other adjustments
|
|
$
799
|
633
|
0.04
|
|
$
(70)
|
14
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
adjustments:
|
|
|
|
|
|
|
|
|
|
Other tax
items
|
|
|
(245)
|
(0.02)
|
|
|
(611)
|
(0.03)
|
|
Total income
tax expense adjustments
|
|
|
(245)
|
(0.02)
|
|
|
(611)
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from continuing operations (1) and
(2)
|
|
|
$
19,367
|
$1.33
|
|
|
$
19,097
|
$0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
adjusted tax rate for the third quarter of Fiscal 2020 and 2019 is
26.2% and 25.1%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) EPS
reflects 14.5 million and 19.6 million share count for the third
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
November 2, 2019 and November 3, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 3 -
November 3, 2019
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
28,955
|
$
-
|
$
28,955
|
|
|
|
|
|
Schuh
Group
|
|
4,369
|
-
|
4,369
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
3,715
|
-
|
3,715
|
|
|
|
|
|
Licensed
Brands
|
|
(27)
|
-
|
(27)
|
|
|
|
|
|
Corporate and
Other
|
|
(11,069)
|
799
|
(10,270)
|
|
|
|
|
|
Total Operating
Income
|
|
$
25,943
|
$
799
|
$
26,742
|
|
|
|
|
|
% of
sales
|
|
4.8%
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter 3 -
November 3, 2018
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
24,692
|
$
-
|
$
24,692
|
|
|
|
|
|
Schuh
Group
|
|
4,207
|
-
|
4,207
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
5,072
|
-
|
5,072
|
|
|
|
|
|
Licensed
Brands
|
|
(218)
|
-
|
(218)
|
|
|
|
|
|
Corporate and
Other
|
|
(7,366)
|
(70)
|
(7,436)
|
|
|
|
|
|
Total Operating
Income
|
|
$
26,387
|
$
(70)
|
$
26,317
|
|
|
|
|
|
% of
sales
|
|
4.9%
|
|
4.9%
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings from Continuing Operations
|
Nine Months Ended
November 2, 2019 and November 3, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months
|
|
|
|
November 2,
2019
|
|
November 3,
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
|
|
|
$
26,242
|
$1.63
|
|
|
$
21,525
|
$1.10
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
1,837
|
1,296
|
0.08
|
|
$
2,054
|
1,521
|
0.08
|
|
Loss on lease
terminations
|
|
44
|
31
|
0.00
|
|
-
|
-
|
0.00
|
|
Legal and
other matters
|
|
-
|
-
|
0.00
|
|
270
|
200
|
0.01
|
|
Gain on
Hurricane Maria
|
|
(38)
|
(27)
|
0.00
|
|
(1,420)
|
(1,051)
|
(0.05)
|
|
Other
hurricane losses
|
|
-
|
-
|
0.00
|
|
115
|
85
|
0.00
|
|
Total asset
impairments and other adjustments
|
|
$
1,843
|
1,300
|
0.08
|
|
$
1,019
|
755
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
adjustments:
|
|
|
|
|
|
|
|
|
|
Tax impact
share based awards
|
|
|
(54)
|
0.00
|
|
|
452
|
0.02
|
|
Other tax
items
|
|
|
244
|
0.01
|
|
|
(1,103)
|
(0.05)
|
|
Total income
tax expense adjustments
|
|
|
190
|
0.01
|
|
|
(651)
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from continuing operations (1) and
(2)
|
|
|
$
27,732
|
$1.72
|
|
|
$
21,629
|
$1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
adjusted tax rate for the first nine months of Fiscal 2020 and 2019
is 29.5% and 26.2%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) EPS
reflects 16.1 million and 19.5 million share count for the first
nine months of Fiscal 2020 and 2019, respectively, which includes
common stock
|
|
equivalents in each period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesco
Inc.
|
|
|
|
|
|
Adjustments to
Reported Operating Income
|
|
|
|
|
|
Nine Months Ended
November 2, 2019 and November 3, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
- November 2, 2019
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
59,260
|
$
-
|
$
59,260
|
|
|
|
|
|
Schuh
Group
|
|
(1,020)
|
-
|
(1,020)
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
10,339
|
-
|
10,339
|
|
|
|
|
|
Licensed
Brands
|
|
151
|
-
|
151
|
|
|
|
|
|
Corporate and
Other
|
|
(30,741)
|
1,843
|
(28,898)
|
|
|
|
|
|
Total Operating
Income
|
|
$
37,989
|
$
1,843
|
$
39,832
|
|
|
|
|
|
% of
sales
|
|
2.5%
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months -
November 3, 2018
|
|
|
|
|
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
|
|
|
|
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
|
|
|
|
|
Journeys
Group
|
|
$
44,722
|
$
-
|
$
44,722
|
|
|
|
|
|
Schuh
Group
|
|
(360)
|
-
|
(360)
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
10,654
|
-
|
10,654
|
|
|
|
|
|
Licensed
Brands
|
|
(379)
|
-
|
(379)
|
|
|
|
|
|
Corporate and
Other
|
|
(23,463)
|
1,019
|
(22,444)
|
|
|
|
|
|
Total Operating
Income
|
|
$
31,174
|
$
1,019
|
$
32,193
|
|
|
|
|
|
% of
sales
|
|
2.1%
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
57.9
|
$
3.70
|
$
52.5
|
$
3.35
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
Store impairments and
other matters
|
|
1.0
|
0.06
|
1.7
|
0.11
|
Pension plan
termination
|
|
10.1
|
0.64
|
10.1
|
0.64
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
69.0
|
$
4.40
|
$
64.3
|
$
4.10
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-third-quarter-results-300970469.html
SOURCE Genesco Inc.