NASHVILLE, Tenn., March 10, 2017 /PRNewswire/ -- Genesco Inc.
(NYSE: GCO) today reported earnings from continuing operations for
the fourth quarter ended January 28,
2017, of $46.8 million, or
$2.40 per diluted share, compared to
earnings from continuing operations of $45.0
million, or $2.07 per diluted
share, for the fourth quarter ended January
30, 2016. Fiscal 2017 fourth quarter results reflect a
pretax gain of $9.2 million, or
$0.25 per diluted share after tax,
including a gain on the sale of SureGrip Footwear of $12.3 million and a gain of $0.8 million on other legal matters, partially
offset by $3.9 million of asset
impairment charges, pension settlement expenses and other items.
Fiscal 2016 fourth quarter results reflect a pretax gain of
$0.8 million, or a $0.04 loss per diluted share after tax, including
a gain on the sale of Lids Team Sports of $4.7 million, partially offset by $3.9 million of asset impairment charges, asset
write-downs and network intrusion expenses.
Adjusted for the items described above in both periods, earnings
from continuing operations were $41.8
million, or $2.15 per diluted
share, for the fourth quarter of Fiscal 2017, compared to earnings
from continuing operations of $45.8
million, or $2.11 per diluted
share, for the fourth quarter of Fiscal 2016. For consistency
with Fiscal 2017's previously announced earnings expectations and
with previously reported adjusted results for the prior year
period, the Company believes that the disclosure of the results
from continuing operations adjusted for these items will be useful
to investors. A reconciliation of earnings and earnings per share
from continuing operations in accordance with U.S. Generally
Accepted Accounting Principles with the adjusted earnings and
earnings per share numbers presented in this paragraph is set forth
on Schedule B to this press release.
Net sales for the fourth quarter of Fiscal 2017 decreased 5% to
$883 million from $932 million in the fourth quarter of Fiscal
2016, reflecting the sale of the Lids Team Sports business in the
fourth quarter of last year and a decrease of approximately 2% in
sales from the remaining businesses. Consolidated fourth
quarter 2017 comparable sales, including same store sales and
comparable e-commerce and catalog sales were flat with an 8%
increase in the Lids Sports Group, a 6% decrease in the Journeys
Group, a 2% increase in the Schuh Group, and a 1% decrease in the
Johnston & Murphy Group. Comparable sales for the Company
reflected a 2% decrease in same store sales and a 12% increase in
e-commerce sales.
The Company also reported net sales for the year ended
January 28, 2017, of $2.9 billion, a decrease of 5% from net sales of
$3.0 billion for the year ended
January 30, 2016 reflecting the sale
of the Lids Team Sports business in the fourth quarter of last year
and a decrease of less than 1% in sales from the remaining
businesses. Earnings from continuing operations for Fiscal
2017 were $97.9 million, or
$4.85 per diluted share, compared to
earnings from continuing operations of $95.4
million, or $4.15 per diluted
share, for Fiscal 2016. Fiscal 2017 earnings reflect an after-tax
gain of $0.52 per diluted share,
including a $14.7 million gain on the
sale of SureGrip Footwear and Lids Team Sports, an $8.9 million gain on network intrusion expenses
as a result of a litigation settlement, and a $0.8 million gain on other legal matters,
partially offset by $8.9 million in
asset impairments and pension settlement expenses. Fiscal 2016
earnings reflect after-tax charges of $0.14 per diluted share, including $9.4 million in asset impairments, asset
write-downs, network intrusion expenses, compensation expense
associated with the Schuh deferred purchase price, and other legal
matters, partially offset by a $4.7
million gain on the sale of Lids Team Sports.
Adjusted for the listed items in both years, earnings from
continuing operations were $87.2
million, or $4.33 per diluted
share, for Fiscal 2017, compared to earnings from continuing
operations of $98.6 million, or
$4.29 per diluted share, for Fiscal
2016. For consistency with previously announced earnings
expectations, which did not reflect the listed items, the Company
believes that disclosure of earnings from continuing operations
adjusted for those items will be useful to investors. A
reconciliation of the adjusted financial measures to their
corresponding measures as reported pursuant to U.S. Generally
Accepted Accounting Principles is included in Schedule B to this
press release.
The Company repurchased a total of 2.2 million shares of common
stock in Fiscal 2017 at a total cost of $133
million and an average price of $61.81 per share. The Company did not
repurchase any shares in the fourth quarter of Fiscal 2017.
Through the end of fiscal February
2018, the Company had repurchased 138,900 shares at a total
cost of $8 million and an average
price of $59.49.
Robert J. Dennis, chairman,
president and chief executive officer of Genesco, said, "Fourth
quarter EPS came in above last year's levels and above expectations
fueled in large part by better holiday selling than anticipated for
most of our businesses. The strong gross margin and operating
income recovery experienced at Lids and Schuh offset some impact of
the significant fashion rotation at Journeys. January
markdown and other assumptions proved to be conservative and we
benefitted from a number of year-end items that contributed to the
EPS beat as well. Year-over-year operating income was down,
but EPS improved due to share buybacks and a lower tax rate.
"While Journeys has made good progress adjusting its assortment
to better reflect current consumer demand, until it anniversaries
the negative comps from last summer, we will continue to face
headwinds. In addition, Fiscal 2018 is off to a sluggish
start, as expected, with the delayed income tax refunds clouding
visibility into our sales trends early in the year. This plus
some uncertainty with the direction of the overall retail economy
causes us to be cautious about the current year. We expect
adjusted diluted earnings per share for the year in the range of
$4.40 to $4.55." These
expectations do not include expected non-cash asset impairments and
other charges, estimated in the range of $5.8 million to $6.8 million pretax, or
$0.22 to $0.26 per share after tax,
for the full fiscal year. This guidance assumes comparable
sales increases in the 2% to 3% range for the full year. A
reconciliation of the adjusted financial measures cited in the
guidance to their corresponding measures as reported pursuant to
U.S. Generally Accepted Accounting Principles is included in
Schedule B to this press release.
Dennis concluded, "While the current retail operating
environment remains challenging, we continue to be optimistic about
our long-term prospects for growth and margin recovery due to the
solid strategic positioning of our businesses and the strength of
our disciplined operating teams."
Conference Call and Management Commentary
The Company
has posted detailed financial commentary in writing on its website,
www.genesco.com, in the investor relations section. The Company's
live conference call on March 10,
2017 at 7:30 a.m. (Central
time), may be accessed through the Company's internet
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.
Cautionary Note Concerning Forward-Looking
Statements
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
non-cash asset impairments related to retail store fixed assets and
intangible assets of acquired businesses; the effectiveness of the
Company's omnichannel initiatives; costs associated with changes in
minimum wage and overtime requirements; the level of chargebacks
from credit card users for fraudulent purchases or other reasons;
weakness in the consumer economy and retail industry; competition
in the Company's markets; fashion trends 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 or other factors; the imposition of tariffs on
imported products or the disallowance of tax deductions on imported
products; 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; 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, including potential effects on consumer
demand, currency exchange rates, and the supply chain; the
Company's ability to continue to complete and integrate
acquisitions, expand its business and diversify its product base;
changes in the timing of holidays or in the onset of seasonal
weather affecting period-to-period sales comparisons; and the
performance of athletic teams, the participants in major sporting
events such as the Super Bowl and World Series, developments with
respect to certain individual athletes, and other sports-related
events or changes that may affect period-to-period comparisons in
the Company's Lids Sports Group retail businesses. 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 occupancy costs, and to conduct
required remodeling or refurbishment on schedule and at expected
expense levels; 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 or intangible
assets or other adverse financial consequences; unexpected changes
to the market for the Company's shares; variations from expected
pension-related charges caused by conditions in the financial
markets; disruptions in the Company's 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, headwear, sports apparel and accessories in more than
2,775 retail stores and leased departments throughout the U.S.,
Canada, the United Kingdom, the Republic of Ireland and Germany, principally under the names Journeys,
Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Little Burgundy,
Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy,
and on internet websites www.journeys.com, www.journeyskidz.com,
www.journeys.ca, www.shibyjourneys.com, www.schuh.co.uk,
www.littleburgundyshoes.com, www.johnstonmurphy.com, www.lids.com,
www.lids.ca, www.lidslockerroom.com, www.lidsclubhouse.com,
www.neweracap.com, www.trask.com, and www.dockersshoes.com.
The Company's Lids Sports Group division operates the Lids headwear
stores, the Locker Room by Lids and other team sports fan shops and
single team clubhouse stores. In addition, Genesco
sells wholesale footwear under its Johnston & Murphy brand, the
Trask brand, the licensed Dockers brand, G.H. Bass & Co., and other brands. For more
information on Genesco and its operating divisions, please visit
www.genesco.com.
GENESCO
INC.
|
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Consolidated
Earnings Summary
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal Year
Ended
|
|
|
|
Jan.
28,
|
|
Jan. 30
|
|
Jan.
28,
|
|
Jan. 30
|
|
|
In
Thousands
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Net sales
|
$
883,169
|
|
$
932,214
|
|
$
2,868,341
|
|
$
3,022,234
|
|
|
Cost of
sales
|
465,712
|
|
509,058
|
|
1,450,815
|
|
1,578,768
|
|
|
Selling and
administrative expenses*
|
350,765
|
|
348,782
|
|
1,276,368
|
|
1,284,322
|
|
|
Asset impairments and
other, net
|
2,997
|
|
3,923
|
|
(802)
|
|
7,893
|
|
|
Earnings from
operations
|
63,695
|
|
70,451
|
|
141,960
|
|
151,251
|
|
|
Gain on sale of
SureGrip Footwear
|
(12,297)
|
|
-
|
|
(12,297)
|
|
-
|
|
|
Gain on sale of Lids
Team Sports
|
81
|
|
(4,685)
|
|
(2,404)
|
|
(4,685)
|
|
|
Interest expense,
net
|
1,316
|
|
1,500
|
|
5,247
|
|
4,403
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
|
before income taxes
|
74,595
|
|
73,636
|
|
151,414
|
|
151,533
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
27,752
|
|
28,648
|
|
53,555
|
|
56,152
|
|
|
Earnings from
continuing operations
|
46,843
|
|
44,988
|
|
97,859
|
|
95,381
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
discontinued operations
|
(295)
|
|
(324)
|
|
(428)
|
|
(812)
|
|
|
Net
Earnings
|
$
46,548
|
|
$
44,664
|
|
$
97,431
|
|
$
94,569
|
|
|
|
|
|
|
|
|
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|
*
|
Includes $1.5 million
in deferred payments related to the Schuh acquisition for the
fiscal year ended January 30, 2016.
|
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|
|
|
|
|
|
|
|
Earnings Per Share
Information
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal Year
Ended
|
|
|
|
Jan.
28,
|
|
Jan. 30
|
|
Jan.
28,
|
|
Jan. 30
|
|
|
In Thousands (except
per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
- Basic EPS
|
19,383
|
|
21,595
|
|
20,076
|
|
22,880
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
|
|
Before discontinued
operations
|
$2.42
|
|
$2.08
|
|
$4.87
|
|
$4.17
|
|
|
Net
earnings
|
$2.40
|
|
$2.07
|
|
$4.85
|
|
$4.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common and
common
|
|
|
|
|
|
|
|
|
|
equivalent shares - Diluted EPS
|
19,493
|
|
21,693
|
|
20,172
|
|
23,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
Before discontinued
operations
|
$2.40
|
|
$2.07
|
|
$4.85
|
|
$4.15
|
|
|
Net
earnings
|
$2.39
|
|
$2.06
|
|
$4.83
|
|
$4.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
|
|
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|
|
|
|
|
|
Consolidated
Earnings Summary
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Fiscal Year
Ended
|
|
|
|
Jan.
28,
|
|
Jan. 30
|
|
Jan.
28,
|
|
Jan. 30
|
|
|
In
Thousands
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
$
391,132
|
|
$
403,832
|
|
$
1,251,646
|
|
$
1,251,637
|
|
|
Schuh Group
|
110,155
|
|
122,264
|
|
372,872
|
|
405,674
|
|
|
Lids Sports Group
|
278,943
|
|
299,990
|
|
847,510
|
|
975,504
|
|
|
Johnston & Murphy Group
|
82,083
|
|
81,081
|
|
289,324
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|
278,681
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|
|
Licensed Brands
|
20,748
|
|
24,708
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|
106,372
|
|
109,826
|
|
|
Corporate and Other
|
108
|
|
339
|
|
617
|
|
912
|
|
|
Net Sales
|
$
883,169
|
|
$
932,214
|
|
$
2,868,341
|
|
$
3,022,234
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
$
36,118
|
|
$
53,654
|
|
$
85,875
|
|
$
126,248
|
|
|
Schuh Group (1)
|
10,883
|
|
8,244
|
|
20,530
|
|
19,124
|
|
|
Lids Sports Group
|
20,221
|
|
10,140
|
|
41,563
|
|
17,040
|
|
|
Johnston & Murphy Group
|
7,663
|
|
8,301
|
|
19,682
|
|
17,761
|
|
|
Licensed Brands
|
(210)
|
|
1,710
|
|
4,566
|
|
9,236
|
|
|
Corporate and Other (2)
|
(10,980)
|
|
(11,598)
|
|
(30,256)
|
|
(38,158)
|
|
|
Earnings
from operations
|
63,695
|
|
70,451
|
|
141,960
|
|
151,251
|
|
|
Gain on sale
of SureGrip Footwear
|
(12,297)
|
|
-
|
|
(12,297)
|
|
-
|
|
|
Gain on sale
of Lids Team Sports
|
81
|
|
(4,685)
|
|
(2,404)
|
|
(4,685)
|
|
|
Interest, net
|
1,316
|
|
1,500
|
|
5,247
|
|
4,403
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
|
|
before income taxes
|
74,595
|
|
73,636
|
|
151,414
|
|
151,533
|
|
|
Income tax
expense
|
27,752
|
|
28,648
|
|
53,555
|
|
56,152
|
|
|
Earnings from
continuing operations
|
46,843
|
|
44,988
|
|
97,859
|
|
95,381
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
discontinued operations
|
(295)
|
|
(324)
|
|
(428)
|
|
(812)
|
|
|
Net
Earnings
|
$
46,548
|
|
$
44,664
|
|
$
97,431
|
|
$
94,569
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $1.5
million in deferred payments related to the Schuh acquisition for
the fiscal year ended January 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes a $3.0
million charge in the fourth quarter of Fiscal 2017 which includes
$2.5 million pension settlement expense
|
|
and $1.4 million for
asset impairments, partially offset by a $0.9 million gain for
other legal matters. Includes a $0.8 million
gain
|
|
for Fiscal 2017 which
includes an $8.9 million gain for network intrusion expenses as a
result of a litigation settlement and a
|
|
$0.8 million gain for
other legal matters, partially offset by $6.4 million for asset
impairments and a $2.5 million pension
|
|
settlement
expense.
|
|
|
|
|
|
|
|
|
|
|
|
Includes a $3.9
million charge in the fourth quarter of Fiscal 2016 which includes
$2.5 million for asset write-downs,
|
|
$1.3 million for
asset impairments and $0.1 million for network intrusion
expenses. Includes a $7.9 million charge for
|
|
Fiscal 2016 which
includes $3.1 million for asset impairments, $2.5 million for asset
write-downs, $2.2 million for
|
|
network intrusion
expenses and $0.1 million for other legal matters.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jan.
28,
|
|
Jan
30,
|
|
|
In
Thousands
|
|
|
|
|
2017
|
|
2016
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
48,301
|
|
$
133,288
|
|
|
Accounts
receivable
|
|
|
|
|
43,525
|
|
47,265
|
|
|
Inventories
|
|
|
|
|
563,677
|
|
529,758
|
|
|
Other current
assets
|
|
|
|
|
82,664
|
|
89,775
|
|
|
Total current
assets
|
|
|
|
|
738,167
|
|
800,086
|
|
|
Property and
equipment
|
|
|
|
|
330,611
|
|
323,328
|
|
|
Goodwill and other
intangibles
|
|
|
|
|
357,941
|
|
371,694
|
|
|
Other non-current
assets
|
|
|
|
|
22,187
|
|
46,082
|
|
|
Total
Assets
|
|
|
|
|
$
1,448,906
|
|
$
1,541,190
|
|
|
Liabilities
and Equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
170,751
|
|
$
154,241
|
|
|
Current portion
long-term debt
|
|
|
|
|
9,175
|
|
14,182
|
|
|
Other current
liabilities
|
|
|
|
|
129,460
|
|
155,194
|
|
|
Total current
liabilities
|
|
|
|
|
309,386
|
|
323,617
|
|
|
Long-term
debt
|
|
|
|
|
73,730
|
|
97,583
|
|
|
Pension
liability
|
|
|
|
|
6,265
|
|
9,957
|
|
|
Deferred rent and
other long-term liabilities
|
|
|
|
|
137,004
|
|
153,250
|
|
|
Equity
|
|
|
|
|
922,521
|
|
956,783
|
|
|
Total Liabilities
and Equity
|
|
|
|
|
$
1,448,906
|
|
$
1,541,190
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Units
Operated - Twelve Months Ended January 28, 2017
|
|
|
|
|
Balance
|
|
Acquisi-
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
01/31/15
|
|
tions
|
|
Open
|
|
Close
|
|
01/30/16
|
|
Open
|
|
Close
|
|
01/28/17
|
|
|
Journeys
Group
|
|
1,182
|
|
37
|
|
29
|
|
26
|
|
1,222
|
|
51
|
|
24
|
|
1,249
|
|
|
Journeys
|
|
834
|
|
0
|
|
13
|
|
5
|
|
842
|
|
18
|
|
11
|
|
849
|
|
|
Underground by Journeys
|
|
110
|
|
0
|
|
0
|
|
12
|
|
98
|
|
0
|
|
3
|
|
95
|
|
|
Journeys Kidz
|
|
189
|
|
0
|
|
16
|
|
5
|
|
200
|
|
33
|
|
3
|
|
230
|
|
|
Shi by Journeys
|
|
49
|
|
0
|
|
0
|
|
3
|
|
46
|
|
0
|
|
7
|
|
39
|
|
|
Little Burgundy
|
|
0
|
|
37
|
|
0
|
|
1
|
|
36
|
|
0
|
|
0
|
|
36
|
|
|
Schuh
Group
|
|
108
|
|
0
|
|
17
|
|
0
|
|
125
|
|
7
|
|
4
|
|
128
|
|
|
Lids Sports
Group*
|
|
1,364
|
|
0
|
|
27
|
|
59
|
|
1,332
|
|
15
|
|
107
|
|
1,240
|
|
|
Johnston & Murphy
Group
|
|
170
|
|
0
|
|
8
|
|
5
|
|
173
|
|
8
|
|
4
|
|
177
|
|
|
Shops
|
|
105
|
|
0
|
|
3
|
|
5
|
|
103
|
|
5
|
|
2
|
|
106
|
|
|
Factory Outlets
|
|
65
|
|
0
|
|
5
|
|
0
|
|
70
|
|
3
|
|
2
|
|
71
|
|
|
Total Retail
Units
|
|
2,824
|
|
37
|
|
81
|
|
90
|
|
2,852
|
|
81
|
|
139
|
|
2,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Units
Operated - Three Months Ended January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
Acquisi-
|
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
10/29/16
|
|
tions
|
|
Open
|
|
Close
|
|
01/28/17
|
|
|
|
|
|
|
|
|
Journeys
Group
|
|
1,237
|
|
0
|
|
19
|
|
7
|
|
1,249
|
|
|
|
|
|
|
|
|
Journeys
|
|
847
|
|
0
|
|
5
|
|
3
|
|
849
|
|
|
|
|
|
|
|
|
Underground by Journeys
|
|
96
|
|
0
|
|
0
|
|
1
|
|
95
|
|
|
|
|
|
|
|
|
Journeys Kidz
|
|
218
|
|
0
|
|
14
|
|
2
|
|
230
|
|
|
|
|
|
|
|
|
Shi by Journeys
|
|
40
|
|
0
|
|
0
|
|
1
|
|
39
|
|
|
|
|
|
|
|
|
Little Burgundy
|
|
36
|
|
0
|
|
0
|
|
0
|
|
36
|
|
|
|
|
|
|
|
|
Schuh
Group
|
|
126
|
|
0
|
|
2
|
|
0
|
|
128
|
|
|
|
|
|
|
|
|
Lids Sports
Group*
|
|
1,267
|
|
0
|
|
2
|
|
29
|
|
1,240
|
|
|
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
176
|
|
0
|
|
2
|
|
1
|
|
177
|
|
|
|
|
|
|
|
|
Shops
|
|
105
|
|
0
|
|
1
|
|
0
|
|
106
|
|
|
|
|
|
|
|
|
Factory Outlets
|
|
71
|
|
0
|
|
1
|
|
1
|
|
71
|
|
|
|
|
|
|
|
|
Total Retail
Units
|
|
2,806
|
|
0
|
|
25
|
|
37
|
|
2,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes 151 Locker
Room by Lids in Macy's stores as of January 28, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Sales
(including same store and comparable direct sales)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
Jan.
28,
|
|
Jan. 30,
|
|
Jan.
28,
|
|
Jan. 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Journeys
Group
|
|
-6%
|
|
5%
|
|
-4%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
Schuh
Group
|
|
2%
|
|
-2%
|
|
-1%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
Lids Sports
Group
|
|
8%
|
|
3%
|
|
3%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
-1%
|
|
6%
|
|
2%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
Total Comparable
Sales
|
|
0%
|
|
4%
|
|
-1%
|
|
5%
|
|
|
|
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings from Continuing Operations
|
Three Months Ended
January 28, 2017 and January 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
January 28,
2017
|
|
January 30,
2016
|
|
|
|
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
|
|
$
46,843
|
$
2.40
|
|
|
$
44,988
|
$
2.07
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
1,377
|
871
|
0.05
|
|
$
1,346
|
846
|
0.04
|
Gain on sale of
SureGrip Footwear
|
|
(12,297)
|
(7,912)
|
(0.40)
|
|
-
|
-
|
-
|
Gain on sale of Lids
Team Sports
|
|
81
|
55
|
-
|
|
(4,685)
|
(2,961)
|
(0.13)
|
Pension settlement
expense
|
|
2,456
|
1,580
|
0.08
|
|
-
|
-
|
-
|
Asset
write-down
|
|
-
|
-
|
-
|
|
2,475
|
1,564
|
0.07
|
Other legal
matters
|
|
(836)
|
(537)
|
(0.03)
|
|
-
|
-
|
-
|
Network intrusion
expenses
|
|
-
|
-
|
-
|
|
102
|
59
|
-
|
Total
adjustments
|
|
$
(9,219)
|
(5,943)
|
(0.30)
|
|
$
(762)
|
(492)
|
(0.02)
|
|
|
|
|
|
|
|
|
|
Resolution of income
tax matters and other items
|
|
926
|
0.05
|
|
|
1,290
|
0.06
|
Adjusted earnings
from continuing operations (1) and (2)
|
|
$
41,826
|
$
2.15
|
|
|
$
45,786
|
$
2.11
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
(1) The adjusted tax
rate for the fourth quarter of Fiscal 2017 is 36.0% excluding a FIN
48 discrete item of less than $0.1 million. The adjusted tax
rate
|
for the fourth quarter of
Fiscal 2016 is 37.1% excluding a FIN 48 discrete item of less than
$0.1 million.
|
|
|
|
|
|
|
|
|
|
(2) EPS reflects 19.5
and 21.7 million share count for Fiscal 2017 and 2016, which
includes common stock equivalents in both years.
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesco
Inc.
|
|
|
|
|
Adjustments to
Reported Operating Income
|
|
|
|
|
Three Months Ended
January 28, 2017 and January 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended January 28, 2017
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
36,118
|
$
-
|
$
36,118
|
|
|
|
|
Schuh
Group
|
|
10,883
|
-
|
10,883
|
|
|
|
|
Lids Sports
Group
|
|
20,221
|
-
|
20,221
|
|
|
|
|
Johnston & Murphy
Group
|
|
7,663
|
-
|
7,663
|
|
|
|
|
Licensed
Brands
|
|
(210)
|
-
|
(210)
|
|
|
|
|
Corporate and
Other
|
|
(10,980)
|
2,997
|
(7,983)
|
|
|
|
|
Total Operating
Income
|
|
$
63,695
|
$
2,997
|
$
66,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended January 30, 2016
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
53,654
|
$
-
|
$
53,654
|
|
|
|
|
Schuh
Group
|
|
8,244
|
-
|
8,244
|
|
|
|
|
Lids Sports
Group
|
|
10,140
|
-
|
10,140
|
|
|
|
|
Johnston & Murphy
Group
|
|
8,301
|
-
|
8,301
|
|
|
|
|
Licensed
Brands
|
|
1,710
|
-
|
1,710
|
|
|
|
|
Corporate and
Other
|
|
(11,598)
|
3,923
|
(7,675)
|
|
|
|
|
Total Operating
Income
|
|
$
70,451
|
$
3,923
|
$
74,374
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings from Continuing Operations
|
Twelve Months Ended
January 28, 2017 and January 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
January 28,
2017
|
|
January 30,
2016
|
|
|
|
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
|
|
$
97,859
|
$
4.85
|
|
|
$
95,381
|
$
4.15
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
$
6,409
|
4,124
|
0.20
|
|
$
3,125
|
1,975
|
0.09
|
Gain on sale of
SureGrip Footwear
|
|
(12,297)
|
(7,912)
|
(0.39)
|
|
-
|
-
|
-
|
Gain on sale of Lids
Team Sports
|
|
(2,404)
|
(1,547)
|
(0.08)
|
|
(4,685)
|
(2,961)
|
(0.13)
|
Pension settlement
expense
|
|
2,456
|
1,580
|
0.08
|
|
-
|
-
|
-
|
Deferred payment -
Schuh acquisition
|
|
-
|
-
|
-
|
|
1,490
|
1,490
|
0.06
|
Asset
write-down
|
|
-
|
-
|
-
|
|
2,475
|
1,564
|
0.07
|
Other legal
matters
|
|
(746)
|
(480)
|
(0.02)
|
|
118
|
75
|
-
|
Network intrusion
expenses
|
|
(8,921)
|
(5,740)
|
(0.28)
|
|
2,175
|
1,375
|
0.06
|
Total
adjustments
|
|
$
(15,503)
|
(9,975)
|
(0.49)
|
|
$
4,698
|
3,518
|
0.15
|
|
|
|
|
|
|
|
|
|
Resolution of income
tax matters and other items
|
|
(639)
|
(0.03)
|
|
|
(271)
|
(0.01)
|
Adjusted earnings
from continuing operations (1) and (2)
|
|
$
87,245
|
$
4.33
|
|
|
$
98,628
|
$
4.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The adjusted tax
rate for Fiscal 2017 is 35.7% excluding a FIN 48 discrete item of
$0.2 million. The adjusted tax rate for Fiscal 2016
is
|
36.8% excluding a FIN 48
discrete item of $0.1 million.
|
|
|
|
|
|
|
|
|
|
(2) EPS reflects 20.2
and 23.0 million share count for Fiscal 2017 and 2016, which
includes common stock equivalents in both years.
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Genesco
Inc.
|
|
|
|
|
Adjustments to
Reported Operating Income
|
|
|
|
|
Twelve Months Ended
January 28, 2017 and January 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended January 28, 2017
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
85,875
|
$
-
|
$
85,875
|
|
|
|
|
Schuh
Group
|
|
20,530
|
-
|
20,530
|
|
|
|
|
Lids Sports
Group
|
|
41,563
|
-
|
41,563
|
|
|
|
|
Johnston & Murphy
Group
|
|
19,682
|
-
|
19,682
|
|
|
|
|
Licensed
Brands
|
|
4,566
|
-
|
4,566
|
|
|
|
|
Corporate and
Other
|
|
(30,256)
|
(802)
|
(31,058)
|
|
|
|
|
Total Operating
Income
|
|
$
141,960
|
$
(802)
|
$
141,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended January 30, 2016
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
126,248
|
$
-
|
$
126,248
|
|
|
|
|
Schuh
Group*
|
|
19,124
|
1,490
|
20,614
|
|
|
|
|
Lids Sports
Group
|
|
17,040
|
-
|
17,040
|
|
|
|
|
Johnston & Murphy
Group
|
|
17,761
|
-
|
17,761
|
|
|
|
|
Licensed
Brands
|
|
9,236
|
-
|
9,236
|
|
|
|
|
Corporate and
Other
|
|
(38,158)
|
7,893
|
(30,265)
|
|
|
|
|
Total Operating
Income
|
|
$
151,251
|
$
9,383
|
$
160,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Schuh Group
adjustments include $1.5 million in deferred purchase price
payments.
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Forecasted Earnings from Continuing Operations
|
Fiscal Year Ending
February 3, 2018
|
|
|
|
|
|
|
In Thousands (except
per share amounts)
|
|
High
Guidance
|
Low
Guidance
|
|
|
Fiscal
2018
|
Fiscal
2018
|
Forecasted earnings
from continuing operations
|
|
$
84,146
|
$
4.33
|
$
80,511
|
$
4.14
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
Asset impairment and
other charges
|
|
3,736
|
0.19
|
4,380
|
0.23
|
Tax impact for
share-based awards
|
|
587
|
0.03
|
587
|
0.03
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
88,469
|
$
4.55
|
$
85,478
|
$
4.40
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All adjustments
are net of tax where applicable. The forecasted tax rate for
Fiscal 2018 is approximately 35.6%.
|
|
|
|
|
|
|
(2) EPS reflects 19.4
million share count for Fiscal 2018 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/genesco-reports-fourth-quarter-fiscal-2017-results-300421862.html
SOURCE Genesco Inc.