--Fourth Quarter-to-Date Comparable Sales
Increased 3% Year-Over-Year
--Expects Fiscal 2023 Adjusted EPS to be at
the Low End of the Most Recent Guidance Range--
--Participating in 2023 ICR Conference,
January 10, 2023--
NASHVILLE, Tenn., Jan. 9, 2023
/PRNewswire/ -- Genesco Inc. (NYSE: GCO) announced today that
comparable sales, including both stores and direct sales, increased
by 3% for the quarter-to-date period ended December 24, 2022. Same store sales decreased 2%
and sales for the Company's e-commerce businesses increased 22% on
a comparable basis for that period. Comparable sales changes for
each retail business for the period were as follows:
Quarter-to-Date (8 weeks ended December 24, 2022)
|
|
Comparable
Sales
vs.
FY22
|
Overall
Sales
vs.
FY22
|
|
Journeys
Group
|
|
(2) %
|
(3) %
|
|
Schuh Group
|
|
18 %
|
6 %
|
|
Johnston & Murphy
Group
|
|
15 %
|
11 %
|
|
Licensed
Brands
|
|
NA
|
(39) %
|
|
Total Comp/Overall Sales
|
|
3 %
|
(2) %
|
|
Store Sales
|
|
(2) %
|
(4) %
|
|
Direct Sales
|
|
22 %
|
16 %
|
|
Mimi E. Vaughn, Genesco board
chair, president and chief executive officer, said, "We are pleased
with our 3% comparable sales increase fourth quarter-to-date given
the external challenges facing elements of our business this
holiday season. Our multi-divisional, multi-channel operating model
allowed us to capitalize on the strength at Schuh and Johnston
& Murphy, along with robust gains in our online business, to
offset lower than expected results at Journeys due primarily to a
highly promotional selling environment and weaker store traffic.
While fourth quarter sales are trending towards the higher-end of
our projections, more than expected shipping and warehouse expense
is pressuring gross margins and December store performance in the
U.S. has resulted in store expense deleverage. Therefore, we now
expect total year adjusted EPS to be at the low end of our most
recent range of $5.50 to $5.90 compared with our prior view that we'd be
near the midpoint."
Genesco to Present at the 2023 ICR Conference
As
previously announced, Genesco management will present at the 2023
ICR Conference on Tuesday, January 10,
2023, at 10:00 a.m. (Eastern
Time). The audio portion of the presentation will be webcast
live and may be accessed through the Company's internet website,
http://www.genesco.com. To listen, 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 future sales,
earnings, operating income, gross margins, expenses, capital
expenditures, depreciation and amortization, tax rates, stores
openings and closures, ESG progress and all other statements not
addressing solely historical facts or present conditions.
Forward-looking statements are usually identified by or are
associated with such words as "intend," "expect," "feel,"
"believe," "anticipate," "optimistic" 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 the
effects of COVID-19 on the Company's business, including COVID-19
case spikes in locations in which the Company operates, additional
stores closures due to COVID-19, 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 stores closures and effects on the business
as a result of civil disturbances; the level and timing of
promotional activity necessary to maintain inventories at
appropriate levels; our ability to pass on price increases to our
customers; the imposition of tariffs on product imported by the
Company or its vendors as well as the ability and costs to move
production of products in response to tariffs; the Company's
ability to obtain from suppliers products that are in-demand on a
timely basis and effectively manage disruptions in product supply
or distribution, including disruptions as a result of COVID-19 or
geopolitical events; 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, 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 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 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 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, 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., a Nashville-based specialty retailer and branded
company, sells footwear and accessories in more than 1,400 retail
stores throughout the U.S., Canada, the United
Kingdom and the Republic of
Ireland, principally under the names Journeys, Journeys
Kidz, Little Burgundy, Schuh, Schuh Kids, Johnston & Murphy,
and on internet websites www.journeys.com, www.journeyskidz.com,
www.journeys.ca, www.littleburgundyshoes.com, www.schuh.co.uk,
www.schuh.ie, www.schuh.eu, www.johnstonmurphy.com,
www.johnstonmurphy.ca, www.nashvilleshoewarehouse.com, and
www.dockersshoes.com. In addition, Genesco sells footwear at
wholesale under its Johnston & Murphy brand, the licensed
Levi's brand, the licensed Dockers brand, the licensed Bass brand,
and other brands. Genesco is committed to progress in its
diversity, equity and inclusion efforts, and the Company's
environmental, social and governance stewardship. For more
information on Genesco and its operating divisions, please visit
www.genesco.com.
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SOURCE Genesco Inc.