NASHVILLE, Tenn., March 15, 2018 /PRNewswire/ -- Genesco Inc.
(NYSE: GCO) today reported earnings from continuing operations for
the 14-week period ended February 3,
2018, of $56.3 million, or
$2.91 per diluted share, compared to
earnings from continuing operations of $46.8
million, or $2.40 per diluted
share, for the 13-week period ended January
28, 2017. Fiscal 2018 fourth quarter results reflect a
benefit of $19.8 million, or
$1.02 per diluted share from lower
tax expense, partially offset by pre-tax charges of $7.5 million, or $0.26 per diluted share including $5.4 million, or $0.19 per diluted share in licensing termination
expenses and $2.1 million, or
$0.07 per diluted share of store
impairment charges, among other items. 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.
Adjusted for the items described above in both periods, earnings
from continuing operations were $41.5
million, or $2.15 per diluted
share, for the fourth quarter of Fiscal 2018, compared to earnings
from continuing operations of $41.8
million, or $2.15 per diluted
share, for the fourth quarter of Fiscal 2017. For consistency
with Fiscal 2018'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 2018 increased 5%,
including the results of a 53rd week, to $930 million from $883
million in the fourth quarter of Fiscal 2017.
Consolidated fourth quarter 2018 comparable sales, including same
store sales and comparable e-commerce and catalog sales increased
1% with an 11% increase in the Journeys Group, a 1% increase in the
Schuh Group, a 14% decrease in the Lids Sports Group, and a 4%
increase in the Johnston & Murphy Group. Comparable sales for
the Company included a 1% decrease in same store sales and a 15%
increase in e-commerce sales.
The Company also reported net sales for the 53-week year ended
February 3, 2018, of $2.91 billion, an increase of 1% from net sales
of approximately $2.87 billion for
the 52-week year ended January 28,
2017. The loss from continuing operations for Fiscal 2018 was
$111.4 million, or $5.80 per diluted share, compared to earnings
from continuing operations of $97.9
million, or $4.85 per diluted
share, for Fiscal 2017. Fiscal 2018 earnings reflect charges of
$191.6 million, or $8.52 per diluted share after tax including a
goodwill impairment charge of $182.2
million, or $8.18 per diluted
share after tax, related primarily to the sustained decline in the
Company's market value to a level below book value, among other
items, plus a tax expense of $7.7
million, or $0.41 per diluted
share related to the impact of share-based awards and goodwill
impairment. 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.
Adjusted for the listed items in both years, earnings from
continuing operations were $60.3
million, or $3.13 per diluted
share, for Fiscal 2018, compared to earnings from continuing
operations of $87.2 million, or
$4.33 per diluted share, for Fiscal
2017. 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.
Robert J. Dennis, chairman,
president and chief executive officer of Genesco, said, "Our fourth
quarter earnings per share were in-line with our most recent
outlook and flat with last year's level, as strong performance by
our U.S. retail footwear businesses was offset by specific
challenges in our other operating divisions. Overall Fiscal
2018 was a difficult year as Journeys managed through a fashion
rotation up until the start of back to school, Lids faced a number
of specific marketplace headwinds, and consumers shifted their
shopping from brick & mortar to online at an accelerated pace.
While comparable sales were flat, our profitability suffered due
primarily to deleverage from negative store results coupled with
higher expenses from our omnichannel initiatives. On a
positive note, the EPS gap to last year improved sequentially each
quarter and ultimately closed in the fourth quarter.
"Looking ahead, we believe our near-term performance will
continue to be shaped by the divergence in our two biggest
businesses although not to the degree we experienced in the fourth
quarter. Like our other businesses, Lids is subject to fashion
cycles, and headwear is currently between trends, which we believe
positions the business for the type of recovery that Journeys
is now enjoying once a new fashion driver emerges. Though we
don't know the timing of when this will occur, history points to an
eventual rebound. While we believe that Journeys' current
product assortment is well positioned in terms of brands and styles
to drive continued growth, this timing uncertainty combined with
generally weak store traffic across retail causes us to be cautious
about the current year. We expect adjusted diluted earnings per
share for Fiscal 2019 in the range of $3.05 to $3.45,
inclusive of the benefit from lower tax expense following the
passage of the Tax Cuts and Jobs Act in December 2017." These
expectations do not include expected non-cash asset impairments and
other charges, estimated in the range of $3.9 million to $4.9
million pretax, or $0.15 to
$0.18 per share after tax, for the
full fiscal year. It also does not include certain tax
effects related to equity grants pursuant to ASU 2016-09, estimated
at $0.03 per share after tax or any
possible SAB 118 adjustments related to our estimates arising from
the 2017 Tax Act. This guidance assumes comparable sales in
the flat to positive 2% 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, "We continue to be confident that the work we
are doing to strengthen the strategic positioning of our businesses
will drive long-term growth. At the same time, we are undertaking a
multi-year reshaping of our cost structure in order to improve
profitability and deliver greater value to our shareholders and
have already identified potential annualized cost savings in the
range of $35 million to $40 million."
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 15,
2018 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, including online and including
competition from some of the Company's vendors in both the licensed
sports and branded footwear 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 effects of the
implementation of federal tax reform on the estimated tax rate
reflected in certain forward-looking statements; 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; 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, headwear, sports apparel and accessories in more than
2,675 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.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, 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
|
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|
Fourth
Quarter*
|
|
Fiscal Year
Ended*
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|
|
Feb.
3,
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|
Jan. 28,
|
|
Feb.
3,
|
|
Jan. 28,
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|
|
In
Thousands
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|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
Net sales
|
|
$
930,383
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|
$
883,169
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$
2,907,016
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|
$
2,868,341
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|
Cost of
sales
|
|
493,679
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465,712
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1,490,894
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1,450,815
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Selling and
administrative expenses
|
374,120
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|
350,765
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1,321,319
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1,276,368
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Goodwill
impairment
|
-
|
|
-
|
|
182,211
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-
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|
Asset impairments and
other, net
|
7,218
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|
2,997
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8,841
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(802)
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|
Earnings (loss) from
operations
|
55,366
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|
63,695
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(96,249)
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|
141,960
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Gain on sale of
SureGrip Footwear
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-
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(12,297)
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-
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(12,297)
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|
Gain on sale of Lids
Team Sports
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-
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|
81
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-
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|
(2,404)
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|
Interest expense,
net
|
1,529
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|
1,316
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|
5,412
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|
5,247
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|
Earnings (loss)
from continuing operations
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before income taxes
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53,837
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74,595
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(101,661)
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151,414
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Income tax expense
(benefit)
|
(2,417)
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27,752
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9,769
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|
53,555
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|
|
Earnings (loss) from
continuing operations
|
56,254
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|
46,843
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|
(111,430)
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|
97,859
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|
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|
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Provision for
discontinued operations
|
(209)
|
|
(295)
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|
(409)
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|
(428)
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|
Net Earnings
(Loss)
|
$
56,045
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|
$
46,548
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$
(111,839)
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$
97,431
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*
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Fourth quarter for
the 14-week period ended February 3, 2018 and 13-week period ended
January 28, 2017.
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Fiscal 2018 for the
53-week period ended February 3, 2018 and Fiscal 2017 for the
52-week period ended
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January 28,
2017.
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Earnings Per Share
Information
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Fourth
Quarter
|
|
Fiscal Year
Ended
|
|
|
|
|
Feb.
3,
|
|
Jan. 28,
|
|
Feb.
3,
|
|
Jan. 28,
|
|
|
In Thousands (except
per share amounts)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
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|
Average common shares
- Basic EPS
|
19,266
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|
19,383
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|
19,218
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|
20,076
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Basic earnings (loss)
per share:
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Before discontinued
operations
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$2.92
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$2.42
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$(5.80)
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|
$4.87
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|
Net earnings
(loss)
|
$2.91
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|
$2.40
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|
$(5.82)
|
|
$4.85
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Average common and
common
|
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|
equivalent shares - Diluted EPS
|
19,330
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|
19,493
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|
19,218
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|
20,172
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Diluted earnings
(loss) per share:
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Before discontinued
operations
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$2.91
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$2.40
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$(5.80)
|
|
$4.85
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Net earnings
(loss)
|
$2.90
|
|
$2.39
|
|
$(5.82)
|
|
$4.83
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GENESCO
INC.
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|
|
Consolidated
Earnings Summary
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|
Fourth
Quarter
|
|
Fiscal Year
Ended
|
|
|
|
|
Feb.
3,
|
|
Jan. 28,
|
|
Feb.
3,
|
|
Jan. 28,
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In
Thousands
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2018
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2017
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2018
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2017
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Sales:
|
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Journeys Group
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$
452,882
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$
391,132
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$
1,329,460
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$
1,251,646
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Schuh Group
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128,128
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110,155
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403,698
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372,872
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Lids Sports Group
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240,991
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278,943
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779,469
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847,510
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Johnston & Murphy Group
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92,375
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82,083
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304,160
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289,324
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Licensed Brands
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15,894
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20,748
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89,809
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106,372
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Corporate and Other
|
113
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|
108
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|
420
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|
617
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|
Net Sales
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|
$
930,383
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$
883,169
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$
2,907,016
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$
2,868,341
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Operating Income
(Loss):
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|
|
Journeys Group (1)
|
$
46,533
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$
36,118
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|
$
76,094
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|
$
85,875
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|
Schuh Group
|
|
9,199
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|
10,883
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|
20,104
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|
20,530
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|
Lids Sports Group (2)
|
8,439
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|
20,221
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|
11,684
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|
41,563
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|
|
Johnston & Murphy Group (2)
|
9,393
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|
7,663
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|
20,047
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|
19,682
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|
Licensed Brands (2)
|
(2,540)
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|
(210)
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|
(163)
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|
4,566
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|
|
Corporate and Other (3)
|
(15,658)
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|
(10,980)
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|
(41,804)
|
|
(30,256)
|
|
|
Goodwill impairment charge
|
-
|
|
-
|
|
(182,211)
|
|
-
|
|
|
Earnings (loss) from
operations
|
55,366
|
|
63,695
|
|
(96,249)
|
|
141,960
|
|
|
Gain on sale of
SureGrip Footwear
|
-
|
|
(12,297)
|
|
-
|
|
(12,297)
|
|
|
Gain on sale of Lids
Team Sports
|
-
|
|
81
|
|
-
|
|
(2,404)
|
|
|
Interest,
net
|
|
1,529
|
|
1,316
|
|
5,412
|
|
5,247
|
|
|
Earnings (loss)
from continuing operations
|
|
|
|
|
|
|
|
|
|
before income taxes
|
53,837
|
|
74,595
|
|
(101,661)
|
|
151,414
|
|
|
Income tax expense
(benefit)
|
(2,417)
|
|
27,752
|
|
9,769
|
|
53,555
|
|
|
Earnings (loss) from
continuing operations
|
56,254
|
|
46,843
|
|
(111,430)
|
|
97,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
discontinued operations
|
(209)
|
|
(295)
|
|
(409)
|
|
(428)
|
|
|
Net Earnings
(Loss)
|
$
56,045
|
|
$
46,548
|
|
$
(111,839)
|
|
$
97,431
|
|
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(1) Includes a $0.3
million charge for acquisition transition expenses for Fiscal
2018.
|
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|
(2) Includes $0.4
million and $0.2 million in reduction in force expenses for Lids
Sports Group and Licensed Brands, respectively,
|
|
for the fourth quarter and
year of Fiscal 2018. In addition, Licensed Brands includes
$0.1 million of markdowns related to
|
|
the licensing termination
for the fourth quarter and year of Fiscal 2018. Includes $0.5
million of income in Johnston & Murphy
|
|
Group for a cancelled
license for the fourth quarter and year of Fiscal 2018.
|
|
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(3) Includes a $7.2
million charge in the fourth quarter of Fiscal 2018 which includes
a $5.2 million licensing termination
|
|
expense and $2.0 million for
asset impairments. Includes an $8.8 million charge for Fiscal
2018 which includes a $5.2 million
|
|
licensing termination
expense, $2.7 million for asset impairments and $0.9 million for
hurricane losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
3,
|
|
Jan. 28,
|
|
|
In
Thousands
|
|
|
|
|
|
2018
|
|
2017
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
39,937
|
|
$
48,301
|
|
|
Accounts
receivable
|
|
|
|
|
43,292
|
|
43,525
|
|
|
Inventories
|
|
|
|
|
|
542,625
|
|
563,677
|
|
|
Other current
assets
|
|
|
|
|
70,526
|
|
61,470
|
|
|
Total current
assets
|
|
|
|
|
696,380
|
|
716,973
|
|
|
Property and
equipment
|
|
|
|
|
382,629
|
|
330,611
|
|
|
Goodwill and other
intangibles
|
|
|
|
|
190,000
|
|
357,941
|
|
|
Other non-current
assets
|
|
|
|
|
49,636
|
|
35,474
|
|
|
Total
Assets
|
|
|
|
|
|
$
1,318,645
|
|
$
1,440,999
|
|
|
Liabilities
and Equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
140,962
|
|
$
170,751
|
|
|
Current portion
long-term debt
|
|
|
|
|
1,766
|
|
9,175
|
|
|
Other current
liabilities
|
|
|
|
|
115,632
|
|
129,460
|
|
|
Total current
liabilities
|
|
|
|
|
258,360
|
|
309,386
|
|
|
Long-term
debt
|
|
|
|
|
|
86,619
|
|
73,730
|
|
|
Pension
liability
|
|
|
|
|
-
|
|
6,265
|
|
|
Deferred rent and
other long-term liabilities
|
|
|
|
|
142,962
|
|
129,097
|
|
|
Equity
|
|
|
|
|
|
830,704
|
|
922,521
|
|
|
Total Liabilities
and Equity
|
|
|
|
|
$
1,318,645
|
|
$
1,440,999
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Units
Operated - Twelve Months Ended February 3, 2018
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
01/30/16
|
|
Open
|
|
Close
|
|
01/28/17
|
|
Open
|
|
Close
|
|
02/03/18
|
|
|
Journeys
Group
|
|
1,222
|
|
51
|
|
24
|
|
1,249
|
|
45
|
|
74
|
|
1,220
|
|
|
Schuh
Group
|
|
125
|
|
7
|
|
4
|
|
128
|
|
7
|
|
1
|
|
134
|
|
|
Lids Sports
Group*
|
|
1,332
|
|
15
|
|
107
|
|
1,240
|
|
18
|
|
99
|
|
1,159
|
|
|
Johnston & Murphy
Group
|
|
173
|
|
8
|
|
4
|
|
177
|
|
7
|
|
3
|
|
181
|
|
|
Total Retail
Units
|
|
2,852
|
|
81
|
|
139
|
|
2,794
|
|
77
|
|
177
|
|
2,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Units
Operated - Three Months Ended February 3, 2018
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
10/28/17
|
|
Open
|
|
Close
|
|
02/03/18
|
|
|
|
|
|
|
|
|
Journeys
Group
|
|
1,237
|
|
10
|
|
27
|
|
1,220
|
|
|
|
|
|
|
|
|
Schuh
Group
|
|
132
|
|
2
|
|
0
|
|
134
|
|
|
|
|
|
|
|
|
Lids Sports
Group*
|
|
1,177
|
|
7
|
|
25
|
|
1,159
|
|
|
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
181
|
|
2
|
|
2
|
|
181
|
|
|
|
|
|
|
|
|
Total Retail
Units
|
|
2,727
|
|
21
|
|
54
|
|
2,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes 122 Locker
Room by Lids in Macy's stores as of February 3, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Sales
(including same store and comparable direct sales)
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
|
|
Feb.
3,
|
|
Jan. 28,
|
|
Feb.
3,
|
|
Jan. 28,
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Journeys
Group
|
|
11%
|
|
-6%
|
|
4%
|
|
-4%
|
|
|
|
|
|
|
|
|
Schuh
Group
|
|
1%
|
|
2%
|
|
4%
|
|
-1%
|
|
|
|
|
|
|
|
|
Lids Sports
Group
|
|
-14%
|
|
8%
|
|
-7%
|
|
3%
|
|
|
|
|
|
|
|
|
Johnston & Murphy
Group
|
|
4%
|
|
-1%
|
|
0%
|
|
2%
|
|
|
|
|
|
|
|
|
Total Comparable
Sales
|
|
1%
|
|
0%
|
|
0%
|
|
-1%
|
|
|
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings (Loss) from Continuing Operations
|
Three Months Ended
February 3, 2018 and January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
February 3,
2018
|
|
January 28,
2017
|
|
|
|
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
|
|
|
$
56,254
|
$
2.91
|
|
|
$
46,843
|
$
2.40
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
Store impairment
charges
|
|
$
1,982
|
1,340
|
0.07
|
|
$
1,377
|
871
|
0.05
|
Licensing termination
(1)
|
|
5,374
|
3,612
|
0.19
|
|
-
|
-
|
-
|
Loss due to Hurricane
Maria
|
|
7
|
5
|
-
|
|
-
|
-
|
-
|
Reduction in force
expense
|
|
607
|
408
|
0.02
|
|
-
|
-
|
-
|
License cancellation
income
|
|
(500)
|
(336)
|
(0.02)
|
|
-
|
-
|
-
|
Other legal
matters
|
|
-
|
-
|
-
|
|
(836)
|
(537)
|
(0.03)
|
Sale of SureGrip
Footwear
|
|
-
|
-
|
-
|
|
(12,297)
|
(7,912)
|
(0.40)
|
Sale of Lids Team
Sports
|
|
-
|
-
|
-
|
|
81
|
55
|
-
|
Pension settlement
expense
|
|
-
|
-
|
-
|
|
2,456
|
1,580
|
0.08
|
Total
adjustments
|
|
$
7,470
|
5,029
|
0.26
|
|
$
(9,219)
|
(5,943)
|
(0.30)
|
|
|
|
|
|
|
|
|
|
Tax impact of the
goodwill impairment and the Tax Cut and Jobs Act
|
(19,777)
|
(1.02)
|
|
|
926
|
0.05
|
Adjusted earnings
from continuing operations (2) and (3)
|
|
|
$
41,506
|
$
2.15
|
|
|
$
41,826
|
$
2.15
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $0.1
million in gross margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The adjusted tax
rate for the fourth quarter of Fiscal 2018 is 32.3% excluding a FIN
48 discrete item of less than $0.1 million. 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) EPS reflects 19.3
and 19.5 million share count for Fiscal 2018 and 2017,
respectively, 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
February 3, 2018 and January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended February 3, 2018
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
46,533
|
$
-
|
$
46,533
|
|
|
|
|
Schuh
Group
|
|
9,199
|
-
|
9,199
|
|
|
|
|
Lids Sports
Group
|
|
8,439
|
428
|
8,867
|
|
|
|
|
Johnston & Murphy
Group
|
|
9,393
|
(500)
|
8,893
|
|
|
|
|
Licensed
Brands
|
|
(2,540)
|
324
|
(2,216)
|
|
|
|
|
Corporate and
Other
|
|
(15,658)
|
7,218
|
(8,440)
|
|
|
|
|
Total Operating
Income
|
|
$
55,366
|
$
7,470
|
$
62,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings (Loss) from Continuing Operations
|
Twelve Months Ended
February 3, 2018 and January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
February 3,
2018
|
|
January 28,
2017
|
|
|
|
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
|
|
|
$
(111,430)
|
$
(5.80)
|
|
|
$
97,859
|
$
4.85
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
Store impairment
charges
|
|
$
2,669
|
1,794
|
0.09
|
|
$
6,409
|
4,124
|
0.20
|
Loss due to Hurricane
Maria
|
|
943
|
634
|
0.03
|
|
-
|
-
|
-
|
Acquisition
transition expenses
|
|
288
|
194
|
0.01
|
|
-
|
-
|
-
|
Goodwill impairment
charge
|
|
182,211
|
157,752
|
8.18
|
|
-
|
-
|
-
|
Licensing termination
(1)
|
|
5,374
|
3,612
|
0.19
|
|
-
|
-
|
-
|
Reduction in force
expense
|
|
607
|
408
|
0.02
|
|
-
|
-
|
-
|
License cancellation
income
|
|
(500)
|
(336)
|
(0.02)
|
|
-
|
-
|
-
|
Impact of additional
dilutive shares
|
|
-
|
-
|
0.02
|
|
-
|
-
|
-
|
Sale of SureGrip
Footwear
|
|
-
|
-
|
-
|
|
(12,297)
|
(7,912)
|
(0.39)
|
Sale of Lids Team
Sports
|
|
-
|
-
|
-
|
|
(2,404)
|
(1,547)
|
(0.08)
|
Pension settlement
expense
|
|
-
|
-
|
-
|
|
2,456
|
1,580
|
0.08
|
Other legal
matters
|
|
-
|
-
|
-
|
|
(746)
|
(480)
|
(0.02)
|
Network intrusion
expenses
|
|
-
|
-
|
-
|
|
(8,921)
|
(5,740)
|
(0.28)
|
Total
adjustments
|
|
$
191,592
|
164,058
|
8.52
|
|
$
(15,503)
|
(9,975)
|
(0.49)
|
|
|
|
|
|
|
|
|
|
Tax impact for
share-based awards
|
|
|
2,167
|
0.11
|
|
|
-
|
-
|
Tax impact of the Tax
Cut and Jobs Act and other tax items
|
|
5,526
|
0.30
|
|
|
(639)
|
(0.03)
|
Adjusted earnings
from continuing operations (2) and (3)
|
|
|
$
60,321
|
$
3.13
|
|
|
$
87,245
|
$
4.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $0.1
million in gross margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The adjusted tax
rate for Fiscal 2018 is 32.8% excluding a FIN 48 discrete item of
$0.1 million. The adjusted tax rate for Fiscal 2017 is
35.7%
|
excluding a FIN 48
discrete item of $0.2 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) EPS reflects 19.3
and 20.2 million share count for Fiscal 2018 and 2017,
respectively, 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 (Loss)
|
|
|
|
|
Twelve Months Ended
February 3, 2018 and January 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended February 3, 2018
|
|
|
|
|
|
|
Operating
|
|
Adj
Operating
|
|
|
|
|
In
Thousands
|
|
Inc
(Loss)
|
Other
Adj
|
Income
|
|
|
|
|
Journeys
Group
|
|
$
76,094
|
$
288
|
$
76,382
|
|
|
|
|
Schuh
Group
|
|
20,104
|
-
|
20,104
|
|
|
|
|
Lids Sports
Group
|
|
11,684
|
428
|
12,112
|
|
|
|
|
Johnston & Murphy
Group
|
|
20,047
|
(500)
|
19,547
|
|
|
|
|
Licensed
Brands
|
|
(163)
|
324
|
161
|
|
|
|
|
Corporate and
Other
|
|
(41,804)
|
8,841
|
(32,963)
|
|
|
|
|
Goodwill impairment
charge
|
|
(182,211)
|
182,211
|
-
|
|
|
|
|
Total Operating
Income (Loss)
|
|
$
(96,249)
|
$
191,592
|
$
95,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Forecasted Earnings from Continuing Operations
|
Fiscal Year Ending
February 2, 2019
|
|
|
|
|
|
|
In Thousands (except
per share amounts)
|
|
High
Guidance
|
Low
Guidance
|
|
|
Fiscal
2019
|
Fiscal
2019
|
Forecasted earnings
from continuing operations
|
|
$
63,818
|
$
3.27
|
$
55,216
|
$
2.84
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
Store impairment and
other charges
|
|
2,838
|
0.15
|
3,570
|
0.18
|
Tax impact for
share-based awards
|
|
563
|
0.03
|
563
|
0.03
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
67,219
|
$
3.45
|
$
59,349
|
$
3.05
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All adjustments
are net of tax where applicable. The forecasted tax rate for
Fiscal 2019 is approximately 26.8%.
|
|
|
|
|
|
|
(2) EPS reflects 19.5
million share count for Fiscal 2019 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-reports-fourth-quarter-fiscal-2018-results-300614327.html
SOURCE Genesco Inc.