-- Profitability Exceeds Expectations --
-- Reaffirms Fiscal 2023 Outlook --
First Quarter Fiscal 2023 Financial Summary
- Net sales of $521 million, a
decrease of 3% from last year and an increase of 5% over Q1FY20
with 90 fewer stores compared with three years ago
- Gross margin increased 50 basis points over last year
- GAAP operating income decreased 47% from last year and down 9%
over Q1FY20
- Non-GAAP operating income decreased 50% from last year and
increased 14% over Q1FY20
- E-commerce sales decreased 29% from last year and increased 74%
from Q1FY20
- E-commerce sales represented 19% of retail sales this year
versus 25% of retail sales last year and 11% of retail sales in
Q1FY20
- GAAP EPS from continuing operations was $0.37 vs. $0.60
last year and $0.36 in Q1FY20
- Non-GAAP EPS from continuing operations was $0.441 vs. $0.79 last year and $0.33 in Q1FY20
- Sequential retail sales improvement in April and May to-date
compared with last year
NASHVILLE, Tenn., May 26, 2022
/PRNewswire/ -- Genesco Inc. (NYSE: GCO) today reported GAAP
earnings from continuing operations per diluted share of
$0.37 for the three months ended
April 30, 2022, compared to
$0.60 in the first quarter last year
and $0.36 per diluted share three
years ago, prior to the pandemic. Adjusted for the Excluded Items
in all periods, the Company reported first quarter earnings from
continuing operations per diluted share of $0.44, compared to $0.79 last year and $0.33 per diluted share pre-pandemic.
Mimi E. Vaughn, Genesco board
chair, president and chief executive officer, said, "We are very
pleased with our start to fiscal 2023, particularly our ability to
exceed profitability expectations. While the year ago period posed
a difficult comparison due to government stimulus-fueled consumer
spending, especially for our Journeys business, our top and bottom
line performance on a multi-year basis underscores the success of
our footwear focused strategy and our conviction that our company
is fundamentally stronger than prior to the pandemic. Importantly,
our business accelerated sequentially in April and thus far in May
versus last year as inventory levels improved. Our work on
increasing digital penetration, improving store economics, and
growing branded sales has put us in a great position to drive
profitable growth across all channels. We believe these results are
a good indication of the positive things to come as we move into
the back to school and holiday selling seasons."
_____________________
|
1Excludes a
gain related to the pension plan termination, retail store asset
impairments and expenses related to the new headquarters building,
net of tax effect in the first quarter of Fiscal 2023 ("Excluded
Items"). A reconciliation of earnings/loss and earnings/loss per
share from continuing operations in accordance with U.S. Generally
Accepted Accounting Principles ("GAAP") with the adjusted
earnings/loss and earnings/loss per share numbers is set forth on
Schedule B to this press release. The Company believes that
disclosure of earnings/loss and earnings/loss 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.
|
Thomas A. George, Genesco chief
financial officer, commented, "Our first quarter results were
highlighted by strong full priced selling as we continue to
experience healthy demand for our merchandise offerings. While
sales would have been higher if not for inventory shortfalls, we
are pleased that our top-line grew 5% versus the same pre-pandemic
period three years ago with 90 fewer stores and adjusted operating
income increased 14%. This combined with share repurchases, allowed
us to achieve a 33% increase in adjusted EPS compared with
pre-pandemic levels with the more efficient use of capital to drive
these results. With this first quarter performance and
updated outlook on the remainder of the year, we are reaffirming
our expectations for adjusted earnings per share for Fiscal 2023 to
range between $7.00 and $7.75. We still believe somewhere close to the
middle of the range is where we will land.
First Quarter Review
Net sales for the first quarter of Fiscal 2023 decreased 3% to
$521 million from $539 million in the first quarter of Fiscal 2022
and increased 5% from $496 million in
the first quarter of Fiscal 2020, prior to the pandemic. The sales
decrease compared to last year was driven by decreased comparable
direct sales, partially offset by increased sales in the wholesale
and store channels. The store channel increase was led by our Schuh
business as their stores were only open 19% of possible days in the
first quarter last year. As a result of store closures in response
to the COVID-19 pandemic, the Company has not included first
quarter comparable sales for this year or last year, except for
comparable direct sales, as it believes that overall sales is a
more meaningful metric for these periods. Comparable direct sales
for the first quarter of Fiscal 2023 were down 26% compared to an
increase of 43% for the first quarter of Fiscal 2022.
The overall sales decrease of 3% for the first quarter this year
compared to the first quarter of Fiscal 2022 was led by Journeys
where sales were down 16%, as Journeys was the biggest beneficiary
of government stimulus in the first quarter last year and
experienced a lack of inventory in the first quarter this year due
to the impact of supply chain disruptions. The sales decrease in
Journeys was partially offset by sales increases of 28% at Schuh,
46% at Johnston & Murphy and 5% at Licensed Brands.
First quarter gross margin this year was 48.3%, up 50 basis
points, compared with 47.8% last year and down 110 basis points
compared with 49.4% in Fiscal 2020. The increase as a percentage of
sales as compared to Fiscal 2022 is due primarily to lower shipping
and warehouse expense as a result of lower e-commerce penetration,
increased full-priced selling and price increases partially offset
by the channel mix impact of increased wholesale sales and
increased freight and logistics costs.
Selling and administrative expense for the first quarter this
year increased 230 basis points as a percentage of sales as
compared with last year and decreased 90 basis points compared with
Fiscal 2020. Adjusted selling and administrative expense for
the first quarter this year increased 220 basis points as a
percentage of sales compared with last year and decreased 120 basis
points compared with Fiscal 2020. The increase as compared to
Fiscal 2022 is due in large part to one-time benefits for rent
credits and government tax relief in the first quarter of Fiscal
2022. In addition, increased selling salaries were partially
offset by decreased performance-based compensation expense.
Genesco's GAAP operating income for the first quarter was
$8.2 million, or 1.6% of sales this
year, compared with $15.5 million, or
2.9% of sales in the first quarter last year, and $9.1 million, or 1.8% of sales in the first
quarter of Fiscal 2020. Adjusted for the Excluded Items in all
periods, operating income for the first quarter was $9.5 million this year compared to $18.8 million last year and $8.4 million in the first quarter of Fiscal 2020.
Adjusted operating margin was 1.8% of sales in the first quarter of
Fiscal 2023, 3.5% in the first quarter last year and 1.7% in the
first quarter of Fiscal 2020.
The effective tax rate for the quarter was 36.7% in Fiscal 2023
compared to 40.1% in the first quarter last year and 30.7% in the
first quarter of Fiscal 2020. The adjusted tax rate, reflecting
Excluded Items, was 34.7% in in the first quarter of Fiscal 2023
compared to 35.7% in the first quarter of last year and 31.3% in
the first quarter of Fiscal 2020. The lower adjusted tax rate for
Q1 this year as compared to Q1 last year reflects a reduction in
the amount of foreign losses for which we are unable to recognize a
tax benefit.
GAAP earnings from continuing operations were $5.0 million in the first quarter of Fiscal 2023,
compared to $8.9 million in the first
quarter last year and $6.5 million in
the first quarter of Fiscal 2020. Adjusted for the Excluded Items
in all periods, first quarter earnings from continuing operations
were $5.9 million, or $0.44 per share, in Fiscal 2023, compared to
$11.6 million, or $0.79 per share, in the first quarter of last
year and $5.9 million, or
$0.33 per share, in the first quarter
of Fiscal 2020.
Cash, Borrowings and
Inventory
Cash and cash equivalents at April 30,
2022, were $200.6 million,
compared with $258.0 million at
May 1, 2021. Total debt at the end of
the first quarter of Fiscal 2023 was $14.7
million compared with $44.2
million at the end of last year's first quarter. Inventories
increased 33% in the first quarter of Fiscal 2023 on a
year-over-year basis and increased 9% versus the first quarter of
Fiscal 2020.
Capital Expenditures and Store
Activity
For the first quarter, capital expenditures excluding the new
headquarters building were $11
million, related primarily to digital and omnichannel
initiatives. Depreciation and amortization was $11 million. During the quarter, the Company
opened four stores and closed 15 stores. The Company ended the
quarter with 1,414 stores compared with 1,444 stores at the end of
the first quarter last year, or a decrease of 2%. Square footage
was down 2% on a year-over-year basis.
Share Repurchases
The Company repurchased 102,895 shares during the first quarter
of Fiscal 2023 at a cost of $6.5
million or an average of $63.17 per share. The Company currently has
$100.3 million remaining on its
expanded share repurchase authorization announced in February 2022.
Fiscal 2023 Outlook
The Company reaffirms its Fiscal 2023 full year EPS
guidance:
- Sales to be up 1% to 3%, compared to FY22, incorporating the
impact of the lower exchange rates with a stronger U.S.
dollar.
- Adjusted diluted earnings per share from continuing operations
in the range of $7.00 to $7.75, with an expectation that earnings per
share for the year will be near the mid-point of the
range.2
Please refer to the Q1FY23 conference call and Q1FY23 Summary
Results presentation for details regarding guidance
assumptions.
__________________________
|
2A
reconciliation of the adjusted financial measures cited in the
guidance to their corresponding measures as reported pursuant to
GAAP is included in Schedule B to this press release.
|
Conference Call, Management
Commentary and Investor Presentation
The Company has posted detailed financial commentary and a
supplemental financial presentation of first quarter results on its
website, www.genesco.com, in the investor relations section. The
Company's live conference call on May 26,
2022, at 7:30 a.m. (Central
time), may be accessed through the Company's website,
www.genesco.com. To listen live, please go to the website at least
15 minutes early to register, download and install any necessary
software.
Safe Harbor Statement
This release contains forward-looking statements, including
those regarding future sales, earnings, gross margins, expenses,
capital expenditures, depreciation and amortization, tax rates,
stores openings and closures 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," "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 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; 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; 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 1,410 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.
GENESCO
INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
Quarter
1
|
|
Quarter 1
|
|
|
|
April
30,
|
% of
|
|
May 1,
|
% of
|
|
|
|
2022
|
Net
Sales
|
|
2021
|
Net Sales
|
|
|
Net sales
|
$
520,748
|
100.0%
|
|
$
538,695
|
100.0%
|
|
|
Cost of
sales
|
269,304
|
51.7%
|
|
281,033
|
52.2%
|
|
|
Gross
margin
|
251,444
|
48.3%
|
|
257,662
|
47.8%
|
|
|
Selling and
administrative expenses
|
243,481
|
46.8%
|
|
239,465
|
44.5%
|
|
|
Asset impairments and
other, net
|
(283)
|
-0.1%
|
|
2,670
|
0.5%
|
|
|
Operating income
|
8,246
|
1.6%
|
|
15,527
|
2.9%
|
|
|
Other components of net
periodic benefit cost (income)
|
98
|
0.0%
|
|
(39)
|
0.0%
|
|
|
Interest expense,
net
|
297
|
0.1%
|
|
729
|
0.1%
|
|
|
Earnings from continuing operations before
|
|
|
|
|
|
|
|
income
taxes
|
7,851
|
1.5%
|
|
14,837
|
2.8%
|
|
|
Income tax
expense
|
2,882
|
0.6%
|
|
5,943
|
1.1%
|
|
|
Earnings from continuing operations
|
4,969
|
1.0%
|
|
8,894
|
1.7%
|
|
|
Loss from discontinued
operations, net of tax
|
(22)
|
0.0%
|
|
(16)
|
0.0%
|
|
|
Net
Earnings
|
$
4,947
|
0.9%
|
|
$ 8,878
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.38
|
|
|
$
0.62
|
|
|
|
Net
earnings
|
$
0.38
|
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
Before discontinued operations
|
$
0.37
|
|
|
$
0.60
|
|
|
|
Net
earnings
|
$
0.37
|
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
12,961
|
|
|
14,287
|
|
|
|
Diluted
|
13,369
|
|
|
14,702
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Sales/Earnings
Summary by Segment
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
1
|
|
Quarter 1
|
|
|
|
April
30,
|
% of
|
|
May 1,
|
% of
|
|
|
|
2022
|
Net
Sales
|
|
2021
|
Net Sales
|
|
|
Sales:
|
|
|
|
|
|
|
|
Journeys Group
|
$
314,445
|
60.4%
|
|
$
376,548
|
69.9%
|
|
|
Schuh Group
|
88,159
|
16.9%
|
|
68,711
|
12.8%
|
|
|
Johnston & Murphy Group
|
71,016
|
13.6%
|
|
48,762
|
9.1%
|
|
|
Licensed Brands
|
47,128
|
9.1%
|
|
44,674
|
8.3%
|
|
|
Net Sales
|
$
520,748
|
100.0%
|
|
$
538,695
|
100.0%
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
Journeys Group
|
$ 14,930
|
4.7%
|
|
$
33,124
|
8.8%
|
|
|
Schuh Group
|
(2,746)
|
-3.1%
|
|
(3,847)
|
-5.6%
|
|
|
Johnston & Murphy Group
|
550
|
0.8%
|
|
(3,180)
|
-6.5%
|
|
|
Licensed Brands
|
3,793
|
8.0%
|
|
2,561
|
5.7%
|
|
|
Corporate and Other(1)
|
(8,281)
|
-1.6%
|
|
(13,131)
|
-2.4%
|
|
|
Operating
income
|
8,246
|
1.6%
|
|
15,527
|
2.9%
|
|
|
Other components of net
periodic benefit cost (income)
|
98
|
0.0%
|
|
(39)
|
0.0%
|
|
|
Interest expense,
net
|
297
|
0.1%
|
|
729
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
before
|
|
|
|
|
|
|
|
income
taxes
|
7,851
|
1.5%
|
|
14,837
|
2.8%
|
|
|
Income tax
expense
|
2,882
|
0.6%
|
|
5,943
|
1.1%
|
|
|
Earnings from
continuing operations
|
4,969
|
1.0%
|
|
8,894
|
1.7%
|
|
|
Loss from discontinued
operations, net of tax
|
(22)
|
0.0%
|
|
(16)
|
0.0%
|
|
|
Net
Earnings
|
$
4,947
|
0.9%
|
|
$ 8,878
|
1.6%
|
|
|
|
|
|
|
|
|
(1)
Includes a $0.3 million gain in the first
quarter of Fiscal 2023 which includes a $0.7 million gain on the
termination of the pension plan,
|
|
|
partially offset by $0.4 million for retail store asset
impairments. Includes a $2.7 million charge in the first
quarter of Fiscal 2022 which
|
|
|
includes $2.3 million for legal fees related to the shareholder
activist and $0.4 million for retail store asset
impairments.
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
April 30,
2022
|
|
May 1, 2021
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
200,623
|
|
$
258,044
|
|
|
Accounts
receivable
|
48,868
|
|
45,891
|
|
|
Inventories
|
401,479
|
|
301,017
|
|
|
Other current assets
(1)
|
74,609
|
|
117,467
|
|
|
Total
current assets
|
725,579
|
|
722,419
|
|
|
Property and
equipment
|
219,421
|
|
208,759
|
|
|
Operating lease right
of use assets
|
508,986
|
|
639,575
|
|
|
Goodwill and other
intangibles
|
66,785
|
|
70,056
|
|
|
Other non-current
assets
|
27,671
|
|
21,558
|
|
|
Total
Assets
|
$
1,548,442
|
|
$ 1,662,367
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Accounts
payable
|
$
243,224
|
|
$
164,975
|
|
|
Current portion
operating lease liabilities
|
137,770
|
|
158,295
|
|
|
Other current
liabilities
|
83,882
|
|
112,648
|
|
|
Total
current liabilities
|
464,876
|
|
435,918
|
|
|
Long-term
debt
|
14,712
|
|
44,169
|
|
|
Long-term operating
lease liabilities
|
430,606
|
|
555,204
|
|
|
Other long-term
liabilities
|
37,910
|
|
48,068
|
|
|
Equity
|
600,338
|
|
579,008
|
|
|
Total
Liabilities and Equity
|
$
1,548,442
|
|
$ 1,662,367
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes prepaid income taxes of $47.1
million and $92.1 million at April 30, 2022 and
|
|
|
May
1, 2021, respectively.
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
Store Count
Activity
|
|
|
Balance
|
|
|
|
Balance
|
|
|
|
|
Balance
|
|
|
01/30/21
|
Open
|
Close
|
|
01/29/22
|
|
Open
|
Close
|
|
04/30/22
|
|
Journeys
Group
|
1,159
|
5
|
29
|
|
1,135
|
|
3
|
8
|
|
1,130
|
|
Schuh Group
|
123
|
0
|
0
|
|
123
|
|
1
|
2
|
|
122
|
|
Johnston & Murphy
Group
|
178
|
1
|
12
|
|
167
|
|
0
|
5
|
|
162
|
|
Total Retail
Stores
|
1,460
|
6
|
41
|
|
1,425
|
|
4
|
15
|
|
1,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
Comparable
Sales
|
|
|
Quarter
1
|
|
Apr.
30,
|
|
May 1,
|
|
2022(1)
|
|
2021(1)
|
Comparable Direct
Sales
|
-26%
|
|
43%
|
|
(1)
As a result of store closures in response
to the COVID-19 pandemic during the first quarter of Fiscal 2022,
and the
|
Company's policy of removing any store closed for seven consecutive
days from comparable sales, the Company has
|
not
included comparable sales for both the first quarter this year and
last year, except for comparable direct sales, as
it
|
felt
that overall sales is a more meaningful metric during these
periods.
|
Schedule B
|
|
Genesco Inc.
|
Adjustments to Reported
Earnings from Continuing Operations
|
Three Months Ended
April 30, 2022, May 1, 2021 and May 4, 2019
|
|
|
The Company believes
that disclosure of earnings and earnings per share from continuing
operations and operating income adjusted for the items not
reflected in the previously announced expectations will be
meaningful to investors, especially in light of the impact of such
items on the results.
|
|
|
|
|
|
|
April 30,
2022
|
|
May 1,
2021
|
|
May 4,
2019
|
|
|
|
Net
of
|
Per
Share
|
|
|
Net
of
|
Per
Share
|
|
|
Net
of
|
Per
Share
|
|
In Thousands (except
per share amounts)
|
Pretax
|
Tax
|
Amounts
|
|
Pretax
|
Tax
|
Amounts
|
|
Pretax
|
Tax
|
Amounts
|
|
Earnings from
continuing operations, as reported
|
|
$
4,969
|
$0.37
|
|
|
$
8,894
|
$0.60
|
|
|
$
6,470
|
$0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail store
asset impairment charges
|
$
412
|
359
|
0.03
|
|
$
414
|
326
|
0.02
|
|
$
307
|
212
|
0.01
|
|
Gain on pension
termination
|
(695)
|
(511)
|
(0.04)
|
|
-
|
-
|
0.00
|
|
-
|
-
|
0.00
|
|
Fees related to
shareholder activist
|
-
|
-
|
0.00
|
|
2,256
|
1,600
|
0.11
|
|
-
|
-
|
0.00
|
|
Expenses related
to new HQ building
|
1,526
|
1,122
|
0.08
|
|
597
|
424
|
0.03
|
|
-
|
-
|
0.00
|
|
Gain on lease
termination
|
-
|
-
|
0.00
|
|
-
|
-
|
0.00
|
|
(1,000)
|
(689)
|
(0.04)
|
|
Gain on
Hurricane Maria
|
-
|
-
|
0.00
|
|
-
|
-
|
0.00
|
|
(38)
|
(26)
|
0.00
|
|
Total asset
impairments and other adjustments
|
$
1,243
|
970
|
0.07
|
|
$
3,267
|
2,350
|
0.16
|
|
$
(731)
|
(503)
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other tax
items
|
|
(3)
|
(0.00)
|
|
|
400
|
0.03
|
|
|
(58)
|
0.00
|
|
Total income tax
expense adjustments
|
|
(3)
|
(0.00)
|
|
|
400
|
0.03
|
|
|
(58)
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings from
continuing operations (1) and
(2)
|
|
$
5,936
|
$0.44
|
|
|
$ 11,644
|
$0.79
|
|
|
$
5,909
|
$0.33
|
|
|
|
|
|
(1)
The adjusted tax rate for the first
quarter of Fiscal 2023, 2022 and 2020 is 34.7%, 35.7% and 31.3%,
respectively.
|
|
|
|
(2)
EPS reflects 13.4 million, 14.7 million
and 17.9 million share count for the first quarter of Fiscal 2023,
2022 and 2020, respectively, which includes common stock
equivalents in all periods.
|
|
Genesco Inc.
|
Adjustments to Reported
Operating Income and Selling and Administrative Expenses
|
Three Months Ended
April 30, 2022, May 1, 2021 and May 4, 2019
|
|
|
|
April 30,
2022
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
Journeys
Group
|
|
$
14,930
|
$
-
|
$
14,930
|
Schuh Group
|
|
(2,746)
|
-
|
(2,746)
|
Johnston & Murphy
Group
|
|
550
|
-
|
550
|
Licensed
Brands
|
|
3,793
|
-
|
3,793
|
Corporate and
Other
|
|
(8,281)
|
1,243
|
(7,038)
|
Total Operating
Income
|
|
$
8,246
|
$
1,243
|
$
9,489
|
% of
sales
|
|
1.6%
|
|
1.8%
|
|
|
|
|
|
|
|
May 1,
2021
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
Journeys
Group
|
|
$
33,124
|
$
-
|
$
33,124
|
Schuh Group
|
|
(3,847)
|
-
|
(3,847)
|
Johnston & Murphy
Group
|
|
(3,180)
|
-
|
(3,180)
|
Licensed
Brands
|
|
2,561
|
-
|
2,561
|
Corporate and
Other
|
|
(13,131)
|
3,267
|
(9,864)
|
Total Operating
Income
|
|
$
15,527
|
$
3,267
|
$
18,794
|
% of
sales
|
|
2.9%
|
|
3.5%
|
|
|
|
|
|
|
|
May 4,
2019
|
|
|
Operating
|
Asset
Impair
|
Adj
Operating
|
In
Thousands
|
|
Income
(Loss)
|
& Other
Adj
|
Income
(Loss)
|
Journeys
Group
|
|
$
18,976
|
$
-
|
$
18,976
|
Schuh Group
|
|
(5,428)
|
-
|
(5,428)
|
Johnston & Murphy
Group
|
|
5,106
|
-
|
5,106
|
Licensed
Brands
|
|
429
|
-
|
429
|
Corporate and
Other
|
|
(9,999)
|
(731)
|
(10,730)
|
Total Operating
Income
|
|
$
9,084
|
$
(731)
|
$
8,353
|
% of
sales
|
|
1.8%
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
In Thousands
|
|
April 30,
2022
|
May 1,
2021
|
May 4,
2019
|
Selling and
administrative expenses, as reported
|
|
$
243,481
|
$ 239,465
|
$
236,555
|
|
|
|
|
|
Expenses related
to new HQ building
|
|
(1,526)
|
(597)
|
-
|
Total
adjustments
|
|
(1,526)
|
(597)
|
-
|
Adjusted selling and
administrative expenses
|
|
$
241,955
|
$ 238,868
|
$
236,555
|
% of
sales
|
|
46.5%
|
44.3%
|
47.7%
|
Schedule B
|
|
|
|
|
|
|
Genesco Inc.
|
Adjustments to
Forecasted Earnings from Continuing Operations
|
Fiscal Year Ending
January 28, 2023
|
|
|
|
|
|
|
In millions (except per
share amounts)
|
High
Guidance
|
Low Guidance
|
|
Fiscal 2023
|
Fiscal 2023
|
|
Net of Tax
|
Per Share
|
Net of Tax
|
Per Share
|
Forecasted earnings
from continuing operations
|
$
102.0
|
$ 7.59
|
$ 91.6
|
$ 6.81
|
|
|
|
|
|
Asset impairments and
other adjustments:
|
|
|
|
|
Retail store asset
impairments and other matters
|
0.6
|
0.04
|
0.9
|
0.07
|
New building
costs
|
1.6
|
0.12
|
1.6
|
0.12
|
Total asset impairments
and other adjustments (1)
|
2.2
|
0.16
|
2.5
|
0.19
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
104.2
|
$ 7.75
|
$ 94.1
|
$ 7.00
|
|
|
(1)
All adjustments are net of tax where
applicable. The forecasted tax rate for Fiscal 2023 is
approximately 27%.
|
|
(2)
EPS reflects 13.4 million share count for
Fiscal 2023 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:https://www.prnewswire.com/news-releases/genesco-inc-reports-fiscal-2023-first-quarter-results-301555490.html
SOURCE Genesco Inc.