NASHVILLE, Tenn., Jan. 14, 2019 /PRNewswire/ -- Genesco Inc.
(NYSE: GCO) announced today that comparable sales, including both
stores and direct sales, increased 4% for the quarter-to-date
period ended January 10, 2019.
Same store sales increased 3% and sales for the Company's
e-commerce businesses increased 8% on a comparable basis for that
period. Comparable sales changes for each retail
business for the period were as follows:
Quarter-to-Date
(January 10, 2019)
|
|
|
|
Comparable
Sales
(Stores and
Direct)
|
Journeys
Group
|
7%
|
Schuh
Group
|
(9)%
|
Lids Sports
Group
|
2%
|
Johnston & Murphy
Group
|
5%
|
The Company also announced that it continues to expect adjusted
earnings per diluted share for the fiscal year ending February 2, 2019, in the range of $3.10 to $3.40,
viewing results near the middle of the range as most
likely.
Robert J. Dennis, Chairman,
President and Chief Executive Officer of Genesco, said, "Overall,
we enjoyed a very solid Holiday selling season, with stronger than
expected results. Journeys once again delivered stellar
results, and the highly promotional U.K. market continued to
negatively impact Schuh's performance. January is off to a
good start, helped in part by favorable comparisons against periods
of bad weather and earlier school re-openings in some markets last
year. We remain comfortable with our previously announced adjusted
earnings per share range for the full fiscal year and reiterate
expectations that earnings will be near the midpoint.
"
The Company's adjusted earnings per share expectations
for Fiscal 2019 do not reflect the anticipated sale of
the Lids Sport Group and do not include fixed asset impairments and
other charges, estimated in the range of $10.7 million to $11.7
million pretax, or $0.40 to
$0.44 per share after tax, for the
full fiscal year. They also do not include certain tax
effects related to equity grants pursuant to ASU 2016-09, estimated
at $0.02 per share after tax. 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 A to this press release.
Genesco plans to announce its fourth quarter and fiscal year
2019 results on March 14, 2019.
Genesco to Present at the 2019 ICR XChange
Conference
Genesco also announced that management will
present at the 2019 ICR Conference on Monday, January 14, 2019, at 2:30 p.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.
Cautionary Note Concerning Forward-Looking
Statements
This release contains forward-looking statements,
including those regarding the performance outlook for the Company
(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 Company's ability
to complete the sale of the Lids Sports Group business on
acceptable terms and the timing of any sale transaction; the
imposition of tariffs on imported products; the effects of a
protracted shutdown of the federal government; 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; ability to attract and
retain employees and costs associated with changes in minimum wage
and overtime requirements; costs associated with wage pressure in
connection with a full employment environment in the U.S. and the
U.K.; weakness in the consumer economy and retail industry for the
products we sell; competition in the Company's markets, including
online and including competition from some of the Company's vendors
in both the licensed sports and branded footwear markets; 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; the effects of the implementation of
federal tax reform on the estimated tax rate reflected in certain
forward-looking statements; 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;
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 NBA finals, Super Bowl, World Series, and
College Football Playoffs, developments with respect to certain
individual athletes, and other sports-related events or changes,
including the timing of major sporting events, 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 or lower
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 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; the cost and outcome of
litigation, investigations and environmental matters involving the
Company; and the Company's ability to execute its cost-reduction
initiatives and to achieve acceptable levels of expense in a
changing retail environment. 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
2,600 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, 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.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.
Schedule A
|
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 (1)
|
|
$
58,153
|
$
2.98
|
$
51,585
|
$
2.64
|
|
|
|
|
|
|
Adjustments:
(2)
|
|
|
|
|
|
Store/Trademark
impairments, other legal matters, gain/loss on
hurricanes
|
7,780
|
0.40
|
8,510
|
0.44
|
Tax impact for
share-based awards
|
|
452
|
0.02
|
452
|
0.02
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (3)
|
$
66,385
|
$
3.40
|
$
60,547
|
$
3.10
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Forecasted earnings from continuing
operations do not reflect the anticipated sale of Lids Sports
Group.
|
|
|
|
|
|
|
|
(2)All
adjustments are net of tax where applicable. The forecasted
tax rate for Fiscal 2019 is approximately 27.0%.
|
|
|
|
|
|
|
(3)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.
|
|
|
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SOURCE Genesco Inc.