UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): March 12, 2020 (March 12, 2020)
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) | (Zip Code) | ||
(615 ) 367-7000
Registrant's telephone number, including area code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On March 12, 2020, Genesco Inc. issued a press release announcing results of operations for the fiscal fourth quarter and fiscal year ended February 1, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
On March 12, 2020, the Company also posted on its website, www.genesco.com, a slide presentation with summary results and guidance. A copy of the slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the press release furnished herewith contain non-GAAP financial measures, including adjusted selling, general and administrative expense, operating income, pretax earnings, earnings from continuing operations and earnings per share from continuing operations, as discussed in the text of the release and as detailed on the reconciliation schedule attached to the press release. For consistency and ease of comparison with Fiscal 2020’s previously announced earnings expectations and the adjusted results for the prior period announced last year, the Company believes that disclosure of the non-GAAP measures will be useful to investors.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The following exhibits are furnished herewith:
Exhibit Number | Description | ||
99.1 | |||
99.2 | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GENESCO INC. | ||||
Date: March 12, 2020 | By: | /s/ Melvin G. Tucker | ||
Name: | Melvin G. Tucker | |||
Title: | Senior Vice President and Chief Financial Officer | |||
Exhibit 99.1
GENESCO INC. REPORTS FISCAL 2020 FOURTH QUARTER
AND FULL YEAR RESULTS
-Fourth Quarter Comps Increased 1%-
-Fiscal 2020 Earnings Per Share Exceed High-end of Expectations-
Fourth Quarter Fiscal 2020 Financial Summary
• | Net sales were $678 million |
• | Comparable sales increased 1% |
• | GAAP EPS from continuing operations increased to $2.49 vs. $1.53 last year, up 63% |
• | Non-GAAP EPS from continuing operations increased to $3.09(1) vs. $2.18 last year, up 42% |
Fiscal 2020 Financial Summary
• | Net sales were $2.2 billion |
• | Comparable sales increased 3% |
• | GAAP EPS from continuing operations increased to $3.94 vs. $2.63 last year, up 50% |
• | Non-GAAP EPS from continuing operations increased to $4.58(1) vs. $3.28 last year, up 40% |
NASHVILLE, Tenn., March 12, 2020 --- Genesco Inc. (NYSE: GCO) today reported GAAP earnings from continuing operations per diluted share of $2.49 for the three months ended February 1, 2020, compared to earnings from continuing operations per diluted share of $1.53 in the fourth quarter last year. Adjusted for the Excluded Items in both periods, the Company reported fourth quarter earnings from continuing operations per diluted share of $3.09, compared to earnings from continuing operations per diluted share of $2.18 last year.
GAAP earnings from continuing operations per diluted share were $3.94 for the year ended February 1, 2020, compared to earnings from continuing operations per diluted share of $2.63 for the year ended February 2, 2019. Adjusted for the Excluded Items in both periods, the Company reported Fiscal 2020 earnings from continuing operations per diluted share of $4.58, compared to earnings from continuing operations per diluted share of $3.28 for Fiscal 2019.
__________________________
(1) Excludes a charge for pension plan settlement, acquisition expenses and asset impairments, partially offset by a gain on the sale of the Lids headquarters building, a gain on lease terminations and a gain related to Hurricane Maria, net of tax effect in the fourth quarter and year of Fiscal 2020 (“Excluded Items”). A reconciliation of earnings and earnings per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) with the adjusted earnings and earnings per share numbers is set forth on Schedule B to this press release. 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.
Exhibit 99.1
Mimi E. Vaughn, Genesco President and Chief Executive Officer, said, “Fiscal 2020, which marked our first year as a footwear focused company, was filled with many notable successes and important accomplishments. We delivered strong results, building on the turnaround in profitability that began in fiscal 2019. This included positive consolidated comparable sales growth in every quarter, even as we faced more challenging comparisons, and positive store comps for the year. Positive comps combined with gross margin expansion, cost reduction efforts and share repurchase activity, helped fuel a 40% year-over-year increase in adjusted earnings per share. In addition, we made an accretive acquisition late in the year that advances our go-forward strategy to build the branded side of our business and provides Genesco with another growth vehicle as we embark upon this exciting new chapter in our Company’s history.
“The first quarter has started slowly for our U.S. footwear businesses which have experienced challenging traffic trends early in the new fiscal year due in part to unseasonably warm weather in many parts of the country. We have also seen store traffic affected in tourist destinations both in the U.K. and U.S. and in our airport locations due to the impact on travel from the Coronavirus. Despite these near-term headwinds, we are confident in the strategic course we have set for Genesco. With a very healthy balance sheet, we have the flexibility to invest for growth and new capabilities in our current businesses, pursue new growth opportunities and return cash to our shareholders.”
Fourth Quarter Review
Net sales for the fourth quarter of Fiscal 2020 were flat at $678 million compared to the fourth quarter of Fiscal 2019. Excluding the impact of lower exchange rates this year, revenue was still flat for the quarter. Comparable sales increased 1%, with stores down 2% and direct up 19%. Direct-to-consumer sales were 16.6% of total retail sales for the quarter, compared to 13.7% last year.
Comparable Sales | ||
Comparable Same Store and Direct Sales: | 4QFY20 | 4QFY19 |
Journeys Group | 1% | 7% |
Schuh Group | 3% | (8)% |
Johnston & Murphy Group | (3)% | 4% |
Total Genesco Comparable Sales | 1% | 4% |
Same Store Sales | (2)% | 3% |
Comparable Direct Sales | 19% | 10% |
Fourth quarter gross margin this year was 46.9%, up 20 basis points, compared with 46.7% last year. The increase as a percentage of sales reflects decreased markdowns for Journeys Group, more full-price selling for Schuh Group, partially offset by increased markdowns at Johnston & Murphy retail.
Selling and administrative expense as a percentage of sales for the fourth quarter this year was 38.5%, down 40 basis points, compared to 38.9% of sales for the same period last year. Adjusted selling and administrative expenses were flat for the fourth quarter this year. Expenses reflect lower bonus expense and improved rent, offset by increased marketing expense.
Exhibit 99.1
Genesco’s GAAP operating income for the fourth quarter was $45.3 million, or 6.7% of sales this year, compared with $50.6 million, or 7.5% of sales last year. Adjusted for the Excluded Items in both periods, operating income for the fourth quarter was $59.3 million, or 8.8% of sales this year, compared with $58.5 million, or 8.7% of sales last year.
The effective tax rate for the quarter was 21.0% in Fiscal 2020 compared to 40.6% last year. The adjusted tax rate, reflecting Excluded Items, was 25.3% in Fiscal 2020 compared to 27.5% last year. The lower adjusted tax rate for this year reflects the benefit of additional income taxed at lower jurisdictional statutory tax rates, partially offset by a reduction in U.S. federal tax credits.
GAAP earnings from continuing operations were $35.5 million in the fourth quarter of Fiscal 2020, compared to $29.7 million in the fourth quarter last year. Adjusted for the Excluded Items in both periods, fourth quarter earnings from continuing operations were $44.1 million, or $3.09 per share, in Fiscal 2020, compared to $42.4 million, or $2.18 per share, last year.
Full Year Review
Net sales for Fiscal 2020 were flat at $2.2 billion compared to Fiscal 2019. Excluding the impact of lower exchange rates this year, revenue increased 1% for the year. Comparable sales increased 3%, with stores up 1% and direct up 18%. Direct-to-consumer sales were 12.6% of total retail sales for the year compared to 10.8% last year.
Comparable Sales | ||
Comparable Same Store and Direct Sales: | FY20 | FY19 |
Journeys Group | 4% | 8% |
Schuh Group | 2% | (8)% |
Johnston & Murphy Group | (2)% | 7% |
Total Genesco Comparable Sales | 3% | 5% |
Same Store Sales | 1% | 4% |
Comparable Direct Sales | 18% | 10% |
Fiscal 2020 gross margin this year was 48.4%, up 60 basis points, compared with 47.8% last year. The increase as a percentage of sales reflects decreased markdowns for Journeys Group, better margins on sale-price product for Schuh Group and improved wholesale margins for Johnston & Murphy.
Selling and administrative expense as a percentage of sales for the year was flat at 44.0% compared to the same period last year. Adjusted selling and administrative expense was up 20 basis points for the year compared to the same period last year. The increase reflects increased marketing expenses, partially offset by lower rent expenses.
Genesco’s GAAP operating income for Fiscal 2020 was $83.3 million, or 3.8% of sales, compared with $81.8 million, or 3.7% of sales last year. Adjusted for the Excluded Items in both periods, operating income was $99.2 million, or 4.5% of sales this year, compared with $90.7 million, or 4.1% of sales last year.
Exhibit 99.1
The effective tax rate was 25.1% in Fiscal 2020 compared to 34.5% last year. The adjusted tax rate, reflecting Excluded Items, was 26.9% in Fiscal 2020 compared to 27.1% last year. The lower adjusted tax rate for this year reflects the benefit of additional income taxed at lower jurisdictional statutory tax rates, partially offset by a reduction in U.S. federal tax credits.
GAAP earnings from continuing operations were $61.8 million in Fiscal 2020, compared to $51.2 million in Fiscal 2019. Adjusted for the Excluded Items in both periods, earnings from continuing operations were $71.8 million, or $4.58 per share, in Fiscal 2020, compared to $64.0 million, or $3.28 per share, last year.
Cash, Borrowings and Inventory
Cash and cash equivalents at February 1, 2020, were $81.4 million, compared with $167.4 million at February 2, 2019. Total debt at the end of the fourth quarter of Fiscal 2020 was $14.4 million compared with $65.7 million at the end of last year’s fourth quarter, a decrease of 78%. Inventories were flat in the fourth quarter of Fiscal 2020 on a year-over-year basis.
Capital Expenditures and Store Activity
For the fourth quarter, capital expenditures were $8 million, which consisted of $5 million related to store remodels and new stores and $3 million related to direct to consumer, omnichannel, information technology, distribution center and other projects. Depreciation and amortization was $12 million. During the quarter, the Company opened three new stores and closed 15 stores. The Company ended the quarter with 1,480 stores compared with 1,512 stores at the end of the fourth quarter last year, or a decrease of 2%. Square footage was down 2% on a year-over-year basis.
Share Repurchases
For the fourth quarter of Fiscal 2020, the Company did not repurchase any shares. Since late December 2018 through the end of Fiscal 2020, the Company has spent approximately $235 million repurchasing over 5.5 million shares across three authorizations totaling $325 million, including a new $100 million authorization announced in late September 2019.
Fiscal 2021 Outlook
For Fiscal 2021, the Company expects:
• | Total sales to increase 3% to 6% including sales from the recent Togast acquisition. |
• | Comparable sales to be down 1% to up 2%, and |
• | Adjusted diluted earnings per share from continuing operations in the range of $4.90 to $5.40 with an expectation that earnings for the year will be near the midpoint of the range.(2) |
Access the conference call for details regarding guidance assumptions.
__________________________
(2) A 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.
Exhibit 99.1
Conference Call and Summary Financial Presentation and Guidance
The Company has posted detailed financial commentary and a supplemental financial presentation of fourth quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on March 12, 2020, 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 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 any share repurchases by the Company; the imposition of tariffs on products 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; 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; 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; weakness in shopping mall traffic; risks related to the potential for terrorist events; risks related to public health and safety events, including for example, the COVID-19 coronavirus outbreak which began in 2019; changes in buying patterns by significant wholesale customers; the Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor of certain leases; 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 open 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; the Company’s ability to eliminate stranded costs associated with dispositions; the Company’s ability to realize anticipated
cost savings, including rent savings; 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; 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
Exhibit 99.1
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 and accessories in more than 1,475 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.johnstonmurphy.com, www.johnstonmurphy.ca, www.trask.com, and www.dockersshoes.com. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, the licensed Levi’s brand, the licensed Bass brand, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.
Financial Contacts:
Mel Tucker
Senior Vice President, Chief Financial Officer
Genesco Inc.
(615) 367-7465
mtucker@genesco.com
Dave Slater
Vice President, Financial Planning & Analysis and IR
Genesco Inc.
(615)367-7604
dslater@genesco.com
Media Contact:
Claire S. McCall
Director, Corporate Relations
Genesco Inc.
(615) 367-8283
cmccall@genesco.com
Exhibit 99.1
GENESCO INC. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Quarter 4 | Quarter 4 | ||||||||||
February 1, 2020 | % of | February 2, 2019 | % of | ||||||||
Net Sales | Net Sales | ||||||||||
Net sales | $ | 677,579 | 100.0 | % | $ | 675,491 | 100.0 | % | |||
Cost of sales | 360,107 | 53.1 | % | 359,828 | 53.3 | % | |||||
Gross margin | 317,472 | 46.9 | % | 315,663 | 46.7 | % | |||||
Selling and administrative expenses | 260,612 | 38.5 | % | 262,876 | 38.9 | % | |||||
Asset impairments and other, net | 11,531 | 1.7 | % | 2,144 | 0.3 | % | |||||
Operating income | 45,329 | 6.7 | % | 50,643 | 7.5 | % | |||||
Loss on early retirement of debt | — | 0.0 | % | 597 | 0.1 | % | |||||
Other components of net periodic benefit cost | (124 | ) | 0.0 | % | (313 | ) | 0.0 | % | |||
Interest expense, net | 495 | 0.1 | % | 373 | 0.1 | % | |||||
Earnings from continuing operations before | |||||||||||
income taxes | 44,958 | 6.6 | % | 49,986 | 7.4 | % | |||||
Income tax expense | 9,443 | 1.4 | % | 20,287 | 3.0 | % | |||||
Earnings from continuing operations | 35,515 | 5.2 | % | 29,699 | 4.4 | % | |||||
Earnings (loss) from discontinued operations, net of tax | |||||||||||
benefit of $0.0 million and $24.2 million for the fourth | |||||||||||
quarter ended Feb. 1, 2020 and Feb. 2, 2019, respectively | 47 | 0.0 | % | (93,670 | ) | -13.9 | % | ||||
Net Earnings (Loss) | $ | 35,562 | 5.2 | % | $ | (63,971 | ) | -9.5 | % | ||
Basic earnings (loss) per share: | |||||||||||
Before discontinued operations | $ | 2.52 | $ | 1.54 | |||||||
Net earnings (loss) | $ | 2.52 | $ | (3.31 | ) | ||||||
Basic weighted-average shares outstanding | 14,108 | 19,323 | |||||||||
Diluted earnings (loss) per share: | |||||||||||
Before discontinued operations | $ | 2.49 | $ | 1.53 | |||||||
Net earnings (loss) | $ | 2.49 | $ | (3.29 | ) | ||||||
Diluted weighted-average shares outstanding | 14,277 | 19,445 | |||||||||
Exhibit 99.1
GENESCO INC. | |||||||||||
Condensed Consolidated Statements of Operations | |||||||||||
(in thousands, except per share data) | |||||||||||
(Unaudited) | |||||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||||
February 1, 2020 | % of | February 2, 2019 | % of | ||||||||
Net Sales | Net Sales | ||||||||||
Net sales | $ | 2,197,066 | 100.0 | % | $ | 2,188,553 | 100.0 | % | |||
Cost of sales | 1,133,951 | 51.6 | % | 1,141,497 | 52.2 | % | |||||
Gross margin | 1,063,115 | 48.4 | % | 1,047,056 | 47.8 | % | |||||
Selling and administrative expenses | 966,423 | 44.0 | % | 962,076 | 44.0 | % | |||||
Asset impairments and other, net | 13,374 | 0.6 | % | 3,163 | 0.1 | % | |||||
Operating income | 83,318 | 3.8 | % | 81,817 | 3.7 | % | |||||
Loss on early retirement of debt | — | 0.0 | % | 597 | 0.0 | % | |||||
Other components of net periodic benefit cost | (395 | ) | 0.0 | % | (380 | ) | 0.0 | % | |||
Interest expense, net | 1,278 | 0.1 | % | 3,341 | 0.2 | % | |||||
Earnings from continuing operations before income taxes | 82,435 | 3.8 | % | 78,259 | 3.6 | % | |||||
Income tax expense | 20,678 | 0.9 | % | 27,035 | 1.2 | % | |||||
Earnings from continuing operations | 61,757 | 2.8 | % | 51,224 | 2.3 | % | |||||
Loss from discontinued operations, net of tax benefit of $0.1 | |||||||||||
million and $27.5 million for Fiscal 2020 and 2019, respectively | (373 | ) | 0.0 | % | (103,154 | ) | -4.7 | % | |||
Net Earnings (Loss) | $ | 61,384 | 2.8 | % | $ | (51,930 | ) | -2.4 | % | ||
Basic earnings (loss) per share: | |||||||||||
Before discontinued operations | $ | 3.97 | $ | 2.65 | |||||||
Net earnings (loss) | $ | 3.95 | $ | (2.68 | ) | ||||||
Basic weighted-average shares outstanding | 15,544 | 19,351 | |||||||||
Diluted earnings (loss) per share: | |||||||||||
Before discontinued operations | $ | 3.94 | $ | 2.63 | |||||||
Net earnings (loss) | $ | 3.92 | $ | (2.66 | ) | ||||||
Diluted weighted-average shares outstanding | 15,671 | 19,495 | |||||||||
Exhibit 99.1
GENESCO INC. | |||||||||||
Sales/Earnings Summary by Segment | |||||||||||
(in thousands) | |||||||||||
(Unaudited) | |||||||||||
Quarter 4 | Quarter 4 | ||||||||||
February 1, 2020 | % of | February 2, 2019 | % of | ||||||||
Net Sales | Net Sales | ||||||||||
Sales: | |||||||||||
Journeys Group | $ | 466,186 | 68.8 | % | $ | 463,154 | 68.6 | % | |||
Schuh Group | 111,711 | 16.5 | % | 108,599 | 16.1 | % | |||||
Johnston & Murphy Group | 86,146 | 12.7 | % | 89,273 | 13.2 | % | |||||
Licensed Brands | 13,467 | 2.0 | % | 14,406 | 2.1 | % | |||||
Corporate and Other | 69 | 0.0 | % | 59 | 0.0 | % | |||||
Net Sales | $ | 677,579 | 100.0 | % | $ | 675,491 | 100.0 | % | |||
Operating Income (Loss): | |||||||||||
Journeys Group | $ | 55,685 | 11.9 | % | $ | 56,077 | 12.1 | % | |||
Schuh Group | 5,679 | 5.1 | % | 4,125 | 3.8 | % | |||||
Johnston & Murphy Group | 7,363 | 8.5 | % | 9,731 | 10.9 | % | |||||
Licensed Brands | (849 | ) | -6.3 | % | (109 | ) | -0.8 | % | |||
Corporate and Other(1) | (22,549 | ) | -3.3 | % | (19,181 | ) | -2.8 | % | |||
Operating Income | 45,329 | 6.7 | % | 50,643 | 7.5 | % | |||||
Loss on early retirement of debt | — | 0.0 | % | 597 | 0.1 | % | |||||
Other components of net periodic benefit cost | (124 | ) | 0.0 | % | (313 | ) | 0.0 | % | |||
Interest, net | 495 | 0.1 | % | 373 | 0.1 | % | |||||
Earnings from continuing operations before income taxes | 44,958 | 6.6 | % | 49,986 | 7.4 | % | |||||
Income tax expense | 9,443 | 1.4 | % | 20,287 | 3.0 | % | |||||
Earnings from continuing operations | 35,515 | 5.2 | % | 29,699 | 4.4 | % | |||||
Earnings (loss) from discontinued operations, net of tax | |||||||||||
benefit of $0.0 million and $24.2 million for the fourth | |||||||||||
quarter ended Feb. 1, 2020 and Feb. 2, 2019, respectively | 47 | 0.0 | % | (93,670 | ) | -13.9 | % | ||||
Net Earnings (Loss) | $ | 35,562 | 5.2 | % | $ | (63,971 | ) | -9.5 | % | ||
(1) Includes an $11.6 million charge in the fourth quarter of Fiscal 2020 which includes $11.5 million pension settlement expense and $1.3 million for asset impairments, partially offset by a $0.6 million gain on the sale of the Lids headquarters building, a $0.4 million gain for lease terminations and a $0.2 million gain related to Hurricane Maria and includes $2.5 million for acquisition related expenses. Includes a $2.2 million charge in the fourth quarter of Fiscal 2019 which includes $2.1 million for asset impairments and $0.1 million for hurricane losses and includes $5.7 million for bonus related to the sale of Lids Sports Group. | |||||||||||
Exhibit 99.1
GENESCO INC. | |||||||||||
Sales/Earnings Summary by Segment | |||||||||||
(in thousands) | |||||||||||
(Unaudited) | |||||||||||
Fiscal Year Ended | Fiscal Year Ended | ||||||||||
February 1, 2020 | % of | February 2, 2019 | % of | ||||||||
Net Sales | Net Sales | ||||||||||
Sales: | |||||||||||
Journeys Group | $ | 1,460,253 | 66.5 | % | $ | 1,419,993 | 64.9 | % | |||
Schuh Group | 373,930 | 17.0 | % | 382,591 | 17.5 | % | |||||
Johnston & Murphy Group | 300,850 | 13.7 | % | 313,134 | 14.3 | % | |||||
Licensed Brands | 61,859 | 2.8 | % | 72,564 | 3.3 | % | |||||
Corporate and Other | 174 | 0.0 | % | 271 | 0.0 | % | |||||
Net Sales | $ | 2,197,066 | 100.0 | % | $ | 2,188,553 | 100.0 | % | |||
Operating Income (Loss): | |||||||||||
Journeys Group | $ | 114,945 | 7.9 | % | $ | 100,799 | 7.1 | % | |||
Schuh Group | 4,659 | 1.2 | % | 3,765 | 1.0 | % | |||||
Johnston & Murphy Group | 17,702 | 5.9 | % | 20,385 | 6.5 | % | |||||
Licensed Brands | (698 | ) | -1.1 | % | (488 | ) | -0.7 | % | |||
Corporate and Other(1) | (53,290 | ) | -2.4 | % | (42,644 | ) | -1.9 | % | |||
Operating Income | 83,318 | 3.8 | % | 81,817 | 3.7 | % | |||||
Loss on early retirement of debt | — | 0.0 | % | 597 | 0.0 | % | |||||
Other components of net periodic benefit cost | (395 | ) | 0.0 | % | (380 | ) | 0.0 | % | |||
Interest, net | 1,278 | 0.1 | % | 3,341 | 0.2 | % | |||||
Earnings from continuing operations before income taxes | 82,435 | 3.8 | % | 78,259 | 3.6 | % | |||||
Income tax expense | 20,678 | 0.9 | % | 27,035 | 1.2 | % | |||||
Earnings from continuing operations | 61,757 | 2.8 | % | 51,224 | 2.3 | % | |||||
Loss from discontinued operations, net of tax benefit of $0.1 | |||||||||||
million and $27.5 million for Fiscal 2020 and 2019, respectively | (373 | ) | 0.0 | % | (103,154 | ) | -4.7 | % | |||
Net Earnings (Loss) | $ | 61,384 | 2.8 | % | $ | (51,930 | ) | -2.4 | % | ||
(1) Includes a $13.4 million charge in Fiscal 2020 which includes $11.5 million pension settlement expense and $3.1 million for asset impairments, partially offset by a $0.6 million gain on the sale of the Lids headquarters building, a $0.4 million gain for lease terminations and a $0.2 million gain related to Hurricane Maria and includes $2.5 million for acquisition related expenses. Includes a $3.2 million charge in Fiscal 2019 which includes $4.2 million for asset impairments, $0.3 million in legal and other matters and $0.1 million in hurricane losses, partially offset by a $1.4 million gain related to Hurricane Maria and includes $5.7 million for bonus related to the sale of Lids Sports Group. | |||||||||||
Exhibit 99.1
GENESCO INC. | |||||||
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
February 1, 2020 | February 2, 2019 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 81,418 | $ | 167,355 | |||
Accounts receivable(1) | 29,195 | 132,390 | |||||
Inventories | 365,269 | 366,667 | |||||
Other current assets | 32,301 | 64,634 | |||||
Total current assets | 508,183 | 731,046 | |||||
Property and equipment | 238,320 | 277,375 | |||||
Operating lease right of use asset | 735,044 | — | |||||
Goodwill and other intangibles | 158,548 | 124,928 | |||||
Other non-current assets | 40,383 | 47,732 | |||||
Total Assets | $ | 1,680,478 | $ | 1,181,081 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 135,784 | $ | 158,603 | |||
Current portion long-term debt | — | 8,992 | |||||
Current portion operating lease liability | 142,695 | — | |||||
Other current liabilities | 83,456 | 108,634 | |||||
Total current liabilities | 361,935 | 276,229 | |||||
Long-term debt | 14,393 | 56,751 | |||||
Long-term operating lease liability | 647,949 | — | |||||
Other long-term liabilities | 36,858 | 110,550 | |||||
Equity | 619,343 | 737,551 | |||||
Total Liabilities and Equity | $ | 1,680,478 | $ | 1,181,081 | |||
(1) Includes $103 million receivable from the sale of Lids Sports Group in Fiscal 2019. | |||||||
Exhibit 99.1
GENESCO INC. | |||||||||||||||
Store Count Activity | |||||||||||||||
Balance | Balance | Balance | |||||||||||||
2/3/2018 | Open | Close | 2/2/2019 | Open | Close | 2/1/2020 | |||||||||
Journeys Group | 1,220 | 26 | 53 | 1,193 | 8 | 30 | 1,171 | ||||||||
Schuh Group | 134 | 6 | 4 | 136 | 1 | 8 | 129 | ||||||||
Johnston & Murphy Group | 181 | 4 | 2 | 183 | 3 | 6 | 180 | ||||||||
Total Retail Units | 1,535 | 36 | 59 | 1,512 | 12 | 44 | 1,480 | ||||||||
GENESCO INC. | |||||||||
Store Count Activity | |||||||||
Balance | Balance | ||||||||
11/2/2019 | Open | Close | 2/1/2020 | ||||||
Journeys Group | 1,182 | 2 | 13 | 1,171 | |||||
Schuh Group | 131 | — | 2 | 129 | |||||
Johnston & Murphy Group | 179 | 1 | — | 180 | |||||
Total Retail Units | 1,492 | 3 | 15 | 1,480 | |||||
GENESCO INC. | |||||||||||
Comparable Sales | |||||||||||
Quarter 4 | Fiscal Year Ended | ||||||||||
February 1, 2020 | February 2, 2019 | February 1, 2020 | February 2, 2019 | ||||||||
Journeys Group | 1 | % | 7 | % | 4 | % | 8 | % | |||
Schuh Group | 3 | % | (8 | )% | 2 | % | (8 | )% | |||
Johnston & Murphy Group | (3 | )% | 4 | % | (2 | )% | 7 | % | |||
Total Comparable Sales | 1 | % | 4 | % | 3 | % | 5 | % | |||
Same Store Sales | (2 | )% | 3 | % | 1 | % | 4 | % | |||
Comparable Direct Sales | 19 | % | 10 | % | 18 | % | 10 | % | |||
Schedule B
Genesco Inc. | |||||||||||||||||
Adjustments to Reported Earnings from Continuing Operations | |||||||||||||||||
Three Months Ended February 1, 2020 and February 2, 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. | |||||||||||||||||
Quarter 4 | |||||||||||||||||
February 1, 2020 | February 2, 2019 | ||||||||||||||||
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 | $ | 35,515 | $2.49 | $ | 29,699 | $1.53 | |||||||||||
Asset impairments and other adjustments: | |||||||||||||||||
Impairment charges | $ | 1,258 | 965 | 0.07 | $ | 2,099 | 1,521 | 0.08 | |||||||||
Pension settlement | 11,510 | 8,409 | 0.59 | — | — | 0.00 | |||||||||||
Gain on lease terminations | (502 | ) | (366 | ) | (0.03 | ) | — | — | 0.00 | ||||||||
Acquisition expenses | 2,474 | 1,808 | 0.13 | — | — | 0.00 | |||||||||||
Gain on sale Lids building | (586 | ) | (428 | ) | (0.03 | ) | — | — | 0.00 | ||||||||
Bonus related to sale of Lids Sports Group | — | — | 0.00 | 5,707 | 4,136 | 0.21 | |||||||||||
Loss on early retirement of debt | — | — | 0.00 | 597 | 433 | 0.02 | |||||||||||
Gain on Hurricane Maria | (149 | ) | (110 | ) | (0.01 | ) | — | — | 0.00 | ||||||||
Other hurricane losses | — | — | 0.00 | 45 | 33 | 0.00 | |||||||||||
Total asset impairments and other adjustments | $ | 14,005 | 10,278 | 0.72 | $ | 8,448 | 6,123 | 0.31 | |||||||||
Income tax expense adjustments: | |||||||||||||||||
Other tax items | (1,719 | ) | (0.12 | ) | 6,537 | 0.34 | |||||||||||
Total income tax expense adjustments | (1,719 | ) | (0.12 | ) | 6,537 | 0.34 | |||||||||||
Adjusted earnings from continuing operations (1) and (2) | $ | 44,074 | $3.09 | $ | 42,359 | $2.18 | |||||||||||
(1) The adjusted tax rate for the fourth quarter of Fiscal 2020 and 2019 is 25.3% and 27.5%, respectively.
(2) EPS reflects 14.3 million and 19.4 million share count for the fourth quarter of Fiscal 2020 and 2019, respectively, which includes common stock equivalents in each period.
Schedule B
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Three Months Ended February 1, 2020 and February 2, 2019 | |||||||||
Quarter 4 - February 1, 2020 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income (Loss) | Adjust | Income (Loss) | ||||||
Journeys Group | $ | 55,685 | $ | — | $ | 55,685 | |||
Schuh Group | 5,679 | — | 5,679 | ||||||
Johnston & Murphy Group | 7,363 | — | 7,363 | ||||||
Licensed Brands | (849 | ) | — | (849 | ) | ||||
Corporate and Other | (22,549 | ) | 14,005 | (8,544 | ) | ||||
Total Operating Income | $ | 45,329 | $ | 14,005 | $ | 59,334 | |||
% of sales | 6.7 | % | 8.8 | % | |||||
Quarter 4 - February 2, 2019 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income (Loss) | Adjust | Income (Loss) | ||||||
Journeys Group | $ | 56,077 | $ | — | $ | 56,077 | |||
Schuh Group | 4,125 | — | 4,125 | ||||||
Johnston & Murphy Group | 9,731 | — | 9,731 | ||||||
Licensed Brands | (109 | ) | — | (109 | ) | ||||
Corporate and Other | (19,181 | ) | 7,851 | (11,330 | ) | ||||
Total Operating Income | $ | 50,643 | $ | 7,851 | $ | 58,494 | |||
% of sales | 7.5 | % | 8.7 | % | |||||
'
Schedule B
Genesco Inc. | |||||||||||||||||
Adjustments to Reported Earnings from Continuing Operations | |||||||||||||||||
Fiscal Year Ended February 1, 2020 and February 2, 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. | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
February 1, 2020 | February 2, 2019 | ||||||||||||||||
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 | $ | 61,757 | $3.94 | $ | 51,224 | $2.63 | |||||||||||
Asset impairments and other adjustments: | |||||||||||||||||
Impairment charges | $ | 3,095 | 2,261 | 0.14 | $ | 4,153 | 3,032 | 0.15 | |||||||||
Pension settlement | 11,510 | 8,409 | 0.54 | — | — | 0.00 | |||||||||||
Gain on lease terminations | (458 | ) | (335 | ) | (0.02 | ) | — | — | 0.00 | ||||||||
Acquisition expenses | 2,474 | 1,808 | 0.12 | — | — | 0.00 | |||||||||||
Gain on sale Lids building | (586 | ) | (428 | ) | (0.03 | ) | — | — | 0.00 | ||||||||
Bonus related to sale of Lids Sports Group | — | — | 0.00 | 5,707 | 4,166 | 0.21 | |||||||||||
Loss on early retirement of debt | — | — | 0.00 | 597 | 436 | 0.02 | |||||||||||
Legal and other matters | — | — | 0.00 | 270 | 197 | 0.01 | |||||||||||
Gain on Hurricane Maria | (187 | ) | (137 | ) | (0.01) | (1,419 | ) | (1,036 | ) | (0.05) | |||||||
Other hurricane losses | — | — | 0.00 | 160 | 117 | 0.01 | |||||||||||
Total asset impairments and other adjustments | $ | 15,848 | 11,578 | 0.74 | $ | 9,468 | 6,912 | 0.35 | |||||||||
Income tax expense adjustments: | |||||||||||||||||
Tax impact share based awards | (54 | ) | 0.00 | 452 | 0.02 | ||||||||||||
Other tax items | (1,475 | ) | (0.10) | 5,399 | 0.28 | ||||||||||||
Total income tax expense adjustments | (1,529 | ) | (0.10) | 5,851 | 0.30 | ||||||||||||
Adjusted earnings from continuing operations (1) and (2) | $ | 71,806 | $4.58 | $ | 63,987 | $3.28 | |||||||||||
(1) The adjusted tax rate for Fiscal 2020 and 2019 is 26.9% and 27.1%, respectively.
(2) EPS reflects 15.7 million and 19.5 million share count for Fiscal 2020 and 2019, respectively, which includes common stock equivalents in each period.
Schedule B
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Fiscal Year Ended February 1, 2020 and February 2, 2019 | |||||||||
Fiscal Year Ended - February 1, 2020 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income (Loss) | Adjust | Income (Loss) | ||||||
Journeys Group | $ | 114,945 | $ | — | $ | 114,945 | |||
Schuh Group | 4,659 | — | 4,659 | ||||||
Johnston & Murphy Group | 17,702 | — | 17,702 | ||||||
Licensed Brands | (698 | ) | — | (698 | ) | ||||
Corporate and Other | (53,290 | ) | 15,848 | (37,442 | ) | ||||
Total Operating Income | $ | 83,318 | $ | 15,848 | $ | 99,166 | |||
% of sales | 3.8 | % | 4.5 | % | |||||
Fiscal Year Ended - February 2, 2019 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income (Loss) | Adjust | Income (Loss) | ||||||
Journeys Group | $ | 100,799 | $ | — | $ | 100,799 | |||
Schuh Group | 3,765 | — | 3,765 | ||||||
Johnston & Murphy Group | 20,385 | — | 20,385 | ||||||
Licensed Brands | (488 | ) | — | (488 | ) | ||||
Corporate and Other | (42,644 | ) | 8,870 | (33,774 | ) | ||||
Total Operating Income | $ | 81,817 | $ | 8,870 | $ | 90,687 | |||
% of sales | 3.7 | % | 4.1 | % | |||||
Schedule B
Genesco Inc. | ||||||||||||
Adjustments to Forecasted Earnings from Continuing Operations | ||||||||||||
Fiscal Year Ending January 30, 2021 | ||||||||||||
In millions (except per share amounts) | High Guidance | Low Guidance | ||||||||||
Fiscal 2021 | Fiscal 2021 | |||||||||||
Forecasted earnings from continuing operations | $ | 74.1 | $ | 5.16 | $ | 66.2 | $ | 4.61 | ||||
Adjustments:(1) | ||||||||||||
Store impairments and other matters | 3.5 | 0.24 | 4.2 | 0.29 | ||||||||
Adjusted forecasted earnings from continuing operations (2) | $ | 77.6 | $ | 5.40 | $ | 70.4 | $ | 4.90 | ||||
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2021 is approximately 26.5%.
(2) EPS reflects 14.4 million share count for Fiscal 2021 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.
FY20 Fourth Quarter March 12,2020
Genesco Inc. FY20 Q4 Earnings Summary Results and Guidance March 12, 2020
Safe Harbor Statement This presentation 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 any share repurchases by the Company; the imposition of tariffs on products 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; 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; 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; weakness in shopping mall traffic; risks related to the potential for terrorist events; risks related to public health and safety events, including for example, the COVID-19 coronavirus outbreak which began in 2019; changes in buying patterns by significant wholesale customers; the Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor of certain leases; 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 open 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; the Company’s ability to eliminate stranded costs associated with dispositions; the Company’s ability to realize anticipated cost savings, including rent savings; 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; 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. 3
Non-GAAP Financial Measures The Company reports consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). However, to supplement these consolidated financial results the Company’s presentation includes certain non-GAAP financial measures such as earnings and earnings per share and operating income. This supplemental information should not be considered in isolation as a substitute for related GAAP measures. 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. Reconciliations of the non- GAAP supplemental information to the comparable GAAP measures can be found in the Appendix. 4
Key Earnings Highlights Q4 FY20 Quarter 4 Quarter 4 February 1, 2020 February 2, 2019(1) Total Net Sales Change 0% (2)% Comparable Sales 1% 4% Gross Margin % 46.9% 46.7% Selling and Admin. Expenses % 38.5% 38.9% Operating Income % (2) GAAP 6.7% 7.5% Non-GAAP 8.8% 8.7% Earnings per Diluted Share (2) GAAP $2.49 $1.53 Non-GAAP $3.09 $2.18 (1) 13 weeks in FY19 vs 14 weeks in FY18. (2) See GAAP to Non-GAAP adjustments in appendix. 5
Key Earnings Highlights YTD FY20 Fiscal Year Ended Fiscal Year Ended February 1, 2020 February 2, 2019(1) Total Net Sales Change 0% 3% Comparable Sales 3% 5% Gross Margin % 48.4% 47.8% Selling and Admin. Expenses % 44.0% 44.0% Operating Income % (2) GAAP 3.8% 3.7% Non-GAAP 4.5% 4.1% Earnings per Diluted Share (2) GAAP $3.94 $2.63 Non-GAAP $4.58 $3.28 (1) 52 weeks in FY19 vs 53 weeks in FY18. (2) See GAAP to Non-GAAP adjustments in appendix. 6
Comparable Sales Q4 FY20 Quarter 4 Feb. 1, Feb. 2, 2020 2019 Journeys Group 1% 7% Schuh Group 3% (8)% Johnston & Murphy Group (3)% 4% Total Comparable Sales 1% 4% Same Store Sales (2)% 3% Comparable Direct Sales 19% 10% 7
Sales by Segment Q4 FY20 and FY19 Net Sales $677.6 million Net Sales $675.5 million 2% 2% FY20 FY19 13% Journeys Group 13% Journeys Group Schuh Group Schuh Group 16% 16% Johnston & Murphy Johnston & Murphy Group Group 69% Licensed Brands 69% Licensed Brands 8
Sales by Segment YTD FY20 and FY19 Net Sales $2.2 billion Net Sales $2.2 billion 3% 3% FY20 FY19 14% 14% Journeys Group Journeys Group Schuh Group Schuh Group 17% 18% Johnston & Murphy Johnston & Murphy Group Group 66% Licensed Brands 65% Licensed Brands 9
Adjusted Operating Income by Segment Q4 FY20(1) ($ in millions) Quarter 4 - February 1, 2020 Quarter 4 - February 2, 2019 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 55.7 $ - $ 55.7 $ 56.1 $ - $ 56.1 Schuh Group 5.7 - 5.7 4.1 - 4.1 Johnston & Murphy Group 7.4 - 7.4 9.7 - 9.7 Licensed Brands (0.8) - (0.8) (0.1) - (0.1) Corporate and Other (22.5) 14.0 (8.5) (19.2) 7.9 (11.3) Total Operating Income $ 45.3 $ 14.0 $ 59.3 $ 50.6 $ 7.9 $ 58.5 % of sales 6.7% 8.8% 7.5% 8.7% (1) See GAAP to Non-GAAP adjustments in appendix. 10
Adjusted Operating Income by Segment YTD FY20(1) ($ in millions) Fiscal Year Ended - Feb. 1, 2020 Fiscal Year Ended - Feb. 2, 2019 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 114.9 $ - $ 114.9 $ 100.8 $ - $ 100.8 Schuh Group 4.7 - 4.7 3.8 - 3.8 Johnston & Murphy Group 17.7 - 17.7 20.4 - 20.4 Licensed Brands (0.7) - (0.7) (0.5) - (0.5) Corporate and Other (53.3) 15.8 (37.4) (42.6) 8.9 (33.8) Total Operating Income $ 83.3 $ 15.8 $ 99.2 $ 81.8 $ 8.9 $ 90.7 % of sales 3.8% 4.5% 3.7% 4.1% (1) See GAAP to Non-GAAP adjustments in appendix. 11
Inventory/Sales Change by Segment Q4 FY20 ($ in millions) Feb. 1, 2020 Q4 FY20 Segment Inventory/Sales Inventory Sales Journeys Group 1% 1% Schuh Group (1) 15% 1% Johnston & Murphy Group -14% -4% Licensed Brands 0% -7% Total $ 365 $ 678 % Change from prior year 0% 0% (1) On a constant currency basis. 12
Retail Stores Summary Q4 FY20 Nov 2, Feb. 1, 2019 Open Close 2020 Journeys Group 1,182 2 13 1,171 Journeys stores (U.S.) 859 2 8 853 Journeys stores (Canada) 46 - - 46 Journeys Kidz stores 237 - 4 233 Little Burgundy 40 - 1 39 Schuh Group 131 - 2 129 Johnston & Murphy Group 179 1 - 180 Total Stores 1,492 3 15 1,480 13
Retail Square Footage Q4 FY20 Square feet in thousands Nov 2, Net Feb. 1, Square Footage: 2019 Change 2020 % Change Journeys Group 2,332 (16) 2,316 -0.7% Schuh Group 643 (14) 629 -2.2% Johnston & Murphy Group 341 1 342 0.3% Total Square Footage 3,316 (29) 3,287 -0.9% Year over year change in retail inventory per square foot 9% 5% 14
FY21 Outlook(1) Note: See earnings call transcript for important details regarding guidance assumptions $4.90 - $5.40 per share, expectations Non-GAAP EPS near mid-point Total Sales 3% to 6% Comparable Sales -1% to +2% Gross Margin 30 to 50 basis points reduction SG&A Expense 20 to 40 basis points leverage Tax Rate ~ 26.5% $60 to 65 million CapEx Includes ~ $15 million for New HQ Depreciation & Amortization ~ $52 million 14.4 million Avg Shares Outstanding (assumes no further repurchases) (1) On a Non-GAAP basis, see GAAP to Non-GAAP adjustments in appendix 15
FY21 Comparable Sales Guidance Guidance Guidance Guidance Guidance Guidance Q1 Q2 Q3 Q4 FY21 Journeys Group (7) - (3)% (3) - 1% 0 - 2% 2 - 4% (1) - 1% Schuh Group 0 - 4% (1) - 3% 1 - 3% 2 - 4% 0 - 3% Johnston & (4) - 0% (4) - 0% 4 - 6% 3 - 5% 0 - 3% Murphy Group Total Genesco (6) - (2)% (3) - 1% 1 - 3% 2 - 4% (1) - 2% 16
FY21 Projected Retail Store Count Actual Proj Proj Proj 2020 Open Close 2021 Journeys Group 1,171 20 14 1,177 Journeys stores (U.S.) 853 10 10 853 Journeys stores (Canada) 46 3 1 48 Journeys Kidz stores 233 5 3 235 Little Burgundy 39 2 - 41 Schuh Group 129 1 4 126 Johnston & Murphy Group 180 11 3 188 Total Stores 1,480 32 21 1,491 Estimated change in square feet 0% 17
FY21 Projection Capital Spending Projection FY21 CapEx $60-65 million 48% New Stores & Remodels 52% Omni-channel, IT, DC & Other FY21 Projection Depreciation = $52 million 18
Appendix
Non-GAAP Reconciliation – Q4 FY20 Quarter 4 February 1, 2020 February 2, 2019 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 $ 35,515 $ 2.49 $ 29,699 $1.53 Asset impairments and other adjustments: Impairment charges $ 1,258 965 0.07 $ 2,099 1,521 0.08 Pension settlement 11,510 8,409 0.59 - - 0.00 Gain on lease terminations (502) (366) (0.03) - - 0.00 Acquisition expenses 2,474 1,808 0.13 - - 0.00 Gain on sale of Lids building (586) (428) (0.03) - - 0.00 Bonus related to sale of Lids Sports Group - - 0.00 5,707 4,136 0.21 Loss on early retirement of debt - - 0.00 597 433 0.02 Gain on Hurricane Maria (149) (110) (0.01) - - 0.00 Other hurricane losses - - 0.00 45 33 0.00 Total asset impairments and other adjustments $ 14,005 10,278 0.72 $ 8,448 6,123 0.31 Income tax expense adjustments: Other tax items (1,719) (0.12) 6,537 0.34 Total income tax expense adjustments (1,719) (0.12) 6,537 0.34 Adjusted earnings from continuing operations (1) and (2) $ 44,074 $ 3.09 $ 42,359 $2.18 (1) The adjusted tax rate for the fourth quarter of Fiscal 2020 and 2019 is 25.3% and 27.5%, respectively. (2) EPS reflects 14.3 million and 19.4 million share count for the fourth quarter of Fiscal 2020 and 2019, respectively, which includes common stock equivalents in each period. 20
Non-GAAP Reconciliation – YTD FY20 Fiscal Year Ended February 1, 2020 February 2, 2019 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 $ 61,757 $ 3.94 $ 51,224 $ 2.63 Asset impairments and other adjustments: Impairment charges $ 3,095 2,261 0.14 $ 4,153 3,032 0.15 Pension settlement 11,510 8,409 0.54 - - 0.00 Gain on lease terminations (458) (335) (0.02) - - 0.00 Acquisition expenses 2,474 1,808 0.12 - - 0.00 Gain on sale of Lids building (586) (428) (0.03) - - 0.00 Bonus related to sale of Lids Sports Group - - 0.00 5,707 4,166 0.21 Loss on early retirement of debt - - 0.00 597 436 0.02 Legal and other matters - - 0.00 270 197 0.01 Gain on Hurricane Maria (187) (137) (0.01) (1,419) (1,036) (0.05) Other hurricane losses - - 0.00 160 117 0.01 Total asset impairments and other adjustments $ 15,848 11,578 0.74 $ 9,468 6,912 0.35 Income tax expense adjustments: Tax impact for share-based awards (54) 0.00 452 0.02 Other tax items (1,475) (0.10) 5,399 0.28 Total income tax expense adjustments (1,529) (0.10) 5,851 0.30 Adjusted earnings from continuing operations (1) and (2) $ 71,806 $ 4.58 $ 63,987 $ 3.28 (1) The adjusted tax rate for Fiscal 2020 and 2019 is 26.9% and 27.1%, respectively. (2) EPS reflects 15.7 million and 19.5 million share count for Fiscal 2020 and 2019, respectively, which includes common stock equivalents in each period. 21