gco-10q_20210731.htm
0000018498 false 2022 Q2 --01-29 true 2021-05-01 true 0000018498 2021-01-31 2021-07-31 xbrli:shares 0000018498 2021-08-27 iso4217:USD 0000018498 2021-07-31 0000018498 2021-01-30 0000018498 2020-08-01 iso4217:USD xbrli:shares 0000018498 2021-05-02 2021-07-31 0000018498 2020-05-03 2020-08-01 0000018498 2020-02-02 2020-08-01 0000018498 2020-02-01 0000018498 us-gaap:PreferredStockMember 2020-02-01 0000018498 us-gaap:CommonStockMember 2020-02-01 0000018498 us-gaap:AdditionalPaidInCapitalMember 2020-02-01 0000018498 us-gaap:RetainedEarningsMember 2020-02-01 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-01 0000018498 us-gaap:TreasuryStockMember 2020-02-01 0000018498 us-gaap:RetainedEarningsMember 2020-02-02 2020-05-02 0000018498 2020-02-02 2020-05-02 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-02 2020-05-02 0000018498 us-gaap:AdditionalPaidInCapitalMember 2020-02-02 2020-05-02 0000018498 us-gaap:CommonStockMember 2020-02-02 2020-05-02 0000018498 us-gaap:PreferredStockMember 2020-05-02 0000018498 us-gaap:CommonStockMember 2020-05-02 0000018498 us-gaap:AdditionalPaidInCapitalMember 2020-05-02 0000018498 us-gaap:RetainedEarningsMember 2020-05-02 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-02 0000018498 us-gaap:TreasuryStockMember 2020-05-02 0000018498 2020-05-02 0000018498 us-gaap:RetainedEarningsMember 2020-05-03 2020-08-01 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-03 2020-08-01 0000018498 us-gaap:AdditionalPaidInCapitalMember 2020-05-03 2020-08-01 0000018498 us-gaap:CommonStockMember 2020-05-03 2020-08-01 0000018498 us-gaap:PreferredStockMember 2020-08-01 0000018498 us-gaap:CommonStockMember 2020-08-01 0000018498 us-gaap:AdditionalPaidInCapitalMember 2020-08-01 0000018498 us-gaap:RetainedEarningsMember 2020-08-01 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-08-01 0000018498 us-gaap:TreasuryStockMember 2020-08-01 0000018498 us-gaap:PreferredStockMember 2021-01-30 0000018498 us-gaap:CommonStockMember 2021-01-30 0000018498 us-gaap:AdditionalPaidInCapitalMember 2021-01-30 0000018498 us-gaap:RetainedEarningsMember 2021-01-30 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-30 0000018498 us-gaap:TreasuryStockMember 2021-01-30 0000018498 us-gaap:RetainedEarningsMember 2021-01-31 2021-05-01 0000018498 2021-01-31 2021-05-01 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-31 2021-05-01 0000018498 us-gaap:AdditionalPaidInCapitalMember 2021-01-31 2021-05-01 0000018498 us-gaap:PreferredStockMember 2021-01-31 2021-05-01 0000018498 us-gaap:CommonStockMember 2021-01-31 2021-05-01 0000018498 us-gaap:PreferredStockMember 2021-05-01 0000018498 us-gaap:CommonStockMember 2021-05-01 0000018498 us-gaap:AdditionalPaidInCapitalMember 2021-05-01 0000018498 us-gaap:RetainedEarningsMember 2021-05-01 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-05-01 0000018498 us-gaap:TreasuryStockMember 2021-05-01 0000018498 2021-05-01 0000018498 us-gaap:RetainedEarningsMember 2021-05-02 2021-07-31 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-05-02 2021-07-31 0000018498 us-gaap:AdditionalPaidInCapitalMember 2021-05-02 2021-07-31 0000018498 us-gaap:CommonStockMember 2021-05-02 2021-07-31 0000018498 us-gaap:PreferredStockMember 2021-07-31 0000018498 us-gaap:CommonStockMember 2021-07-31 0000018498 us-gaap:AdditionalPaidInCapitalMember 2021-07-31 0000018498 us-gaap:RetainedEarningsMember 2021-07-31 0000018498 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-31 0000018498 us-gaap:TreasuryStockMember 2021-07-31 gco:store gco:Segment 0000018498 gco:WholesaleCostsOfDistributionMember 2021-05-02 2021-07-31 0000018498 gco:WholesaleCostsOfDistributionMember 2020-05-03 2020-08-01 0000018498 gco:WholesaleCostsOfDistributionMember 2021-01-31 2021-07-31 0000018498 gco:WholesaleCostsOfDistributionMember 2020-02-02 2020-08-01 0000018498 gco:RetailOccupancyCostsMember 2021-05-02 2021-07-31 0000018498 gco:RetailOccupancyCostsMember 2020-05-03 2020-08-01 0000018498 gco:RetailOccupancyCostsMember 2021-01-31 2021-07-31 0000018498 gco:RetailOccupancyCostsMember 2020-02-02 2020-08-01 0000018498 us-gaap:AccountingStandardsUpdate201912Member 2021-07-31 0000018498 gco:SchuhGroupSegmentMember gco:CoronavirusMember 2020-02-02 2020-05-02 0000018498 us-gaap:TrademarksMember gco:CoronavirusMember 2020-02-02 2020-05-02 0000018498 gco:CoronavirusMember 2020-05-03 2020-08-01 0000018498 gco:CoronavirusMember 2021-01-31 2021-05-01 0000018498 gco:CoronavirusMember 2021-05-02 2021-07-31 0000018498 gco:CoronavirusMember 2020-02-02 2020-05-02 0000018498 gco:CoronavirusMember country:GB 2021-01-31 2021-05-01 0000018498 gco:CoronavirusMember country:GB 2021-05-02 2021-07-31 0000018498 gco:CoronavirusMember gco:UnitedKingdomTheRepublicOfIrelandAndCanadaMember 2021-01-31 2021-05-01 0000018498 gco:CoronavirusMember gco:UnitedKingdomTheRepublicOfIrelandAndCanadaMember 2021-05-02 2021-07-31 0000018498 gco:JourneysGroupSegmentMember 2021-01-30 0000018498 gco:LicensedBrandsSegmentMember 2021-01-30 0000018498 gco:JourneysGroupSegmentMember 2021-01-31 2021-07-31 0000018498 gco:LicensedBrandsSegmentMember 2021-01-31 2021-07-31 0000018498 gco:JourneysGroupSegmentMember 2021-07-31 0000018498 gco:LicensedBrandsSegmentMember 2021-07-31 0000018498 us-gaap:TrademarksMember 2021-07-31 0000018498 us-gaap:TrademarksMember 2021-01-30 0000018498 us-gaap:CustomerListsMember 2021-07-31 0000018498 us-gaap:CustomerListsMember 2021-01-30 0000018498 us-gaap:OtherIntangibleAssetsMember 2021-07-31 0000018498 us-gaap:OtherIntangibleAssetsMember 2021-01-30 0000018498 us-gaap:TrademarksMember gco:SchuhGroupSegmentMember 2021-07-31 0000018498 us-gaap:TrademarksMember gco:JourneysGroupSegmentMember 2021-07-31 0000018498 gco:ProfessionalFeesRelatedToActionsOfActivistShareholderMember 2021-05-02 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember 2021-05-02 2021-07-31 0000018498 gco:TogastAcquisitionMember 2020-02-02 2020-08-01 0000018498 gco:ProfessionalFeesRelatedToActionsOfActivistShareholderMember 2021-01-31 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember 2021-01-31 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember 2020-05-03 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember 2020-02-02 2020-08-01 0000018498 us-gaap:TrademarksMember 2020-02-02 2020-08-01 0000018498 us-gaap:RevolvingCreditFacilityMember gco:USRevolverBorrowingsMember 2021-07-31 0000018498 us-gaap:RevolvingCreditFacilityMember gco:UKRevolverBorrowingsMember 2021-07-31 0000018498 us-gaap:RevolvingCreditFacilityMember gco:USRevolverBorrowingsMember 2021-01-30 0000018498 us-gaap:RevolvingCreditFacilityMember gco:UKRevolverBorrowingsMember 2021-01-30 0000018498 us-gaap:FairValueInputsLevel3Member 2021-07-31 0000018498 gco:USRevolverBorrowingsMember 2021-07-31 0000018498 gco:USRevolverBorrowingsMember 2021-01-30 0000018498 gco:UKRevolverBorrowingsMember 2021-07-31 0000018498 gco:UKRevolverBorrowingsMember 2021-01-30 0000018498 gco:FILOLoanMember gco:USRevolverBorrowingsMember 2021-05-02 2021-07-31 0000018498 srt:MinimumMember gco:EnvironmentalMonitoringOperationandMaintenanceActivitiesMember 2021-07-31 0000018498 srt:MaximumMember gco:EnvironmentalMonitoringOperationandMaintenanceActivitiesMember 2021-07-31 0000018498 gco:EPAInterimOversightCostsMember 2021-07-31 gco:Well 0000018498 srt:MinimumMember 2021-01-31 2021-07-31 0000018498 srt:MaximumMember 2021-01-31 2021-07-31 0000018498 gco:VillageofGardenCityNewYorkMember 2021-01-31 2021-07-31 0000018498 gco:VillageofGardenCityNewYorkMember 2016-06-01 2016-06-30 0000018498 gco:ResponseCostsClaimedbytheEPAMember 2015-04-30 0000018498 gco:ResponseCostsClaimedbytheEPAMember 2017-02-01 2017-02-28 xbrli:pure 0000018498 gco:ResponseCostsClaimedbytheEPAMember 2017-02-28 0000018498 gco:SamsungCTAmericaIncorporationMember 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:CorporateNonSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2021-07-31 0000018498 us-gaap:CorporateNonSegmentMember 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember 2021-05-02 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:JourneysGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:SchuhGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:JohnstonAndMurphyGroupSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:LicensedBrandsSegmentMember 2021-05-02 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember 2021-05-02 2021-07-31 0000018498 gco:JourneysGroupSegmentMember 2021-05-02 2021-07-31 0000018498 gco:SchuhGroupSegmentMember 2021-05-02 2021-07-31 0000018498 gco:JohnstonAndMurphyGroupSegmentMember 2021-05-02 2021-07-31 0000018498 gco:LicensedBrandsSegmentMember 2021-05-02 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JourneysGroupSegmentMember 2021-05-02 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:SchuhGroupSegmentMember 2021-05-02 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2021-05-02 2021-07-31 0000018498 country:GB 2021-07-31 0000018498 country:CA 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:CorporateNonSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2020-08-01 0000018498 us-gaap:CorporateNonSegmentMember 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember 2020-05-03 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:JourneysGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:SchuhGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:JohnstonAndMurphyGroupSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:LicensedBrandsSegmentMember 2020-05-03 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember 2020-05-03 2020-08-01 0000018498 gco:JourneysGroupSegmentMember 2020-05-03 2020-08-01 0000018498 gco:SchuhGroupSegmentMember 2020-05-03 2020-08-01 0000018498 gco:JohnstonAndMurphyGroupSegmentMember 2020-05-03 2020-08-01 0000018498 gco:LicensedBrandsSegmentMember 2020-05-03 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember gco:SchuhGroupSegmentMember 2020-05-03 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JourneysGroupSegmentMember 2020-05-03 2020-08-01 0000018498 country:GB 2020-08-01 0000018498 country:CA 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:CorporateNonSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember 2021-01-31 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:JourneysGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:SchuhGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:JohnstonAndMurphyGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember gco:LicensedBrandsSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:IntersegmentEliminationMember 2021-01-31 2021-07-31 0000018498 gco:SchuhGroupSegmentMember 2021-01-31 2021-07-31 0000018498 gco:JohnstonAndMurphyGroupSegmentMember 2021-01-31 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2021-01-31 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:SchuhGroupSegmentMember 2021-01-31 2021-07-31 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JourneysGroupSegmentMember 2021-01-31 2021-07-31 0000018498 us-gaap:OperatingSegmentsMember gco:JourneysGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:SchuhGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember gco:LicensedBrandsSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:CorporateNonSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:OperatingSegmentsMember 2020-02-02 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:JourneysGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:SchuhGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:JohnstonAndMurphyGroupSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember gco:LicensedBrandsSegmentMember 2020-02-02 2020-08-01 0000018498 us-gaap:IntersegmentEliminationMember 2020-02-02 2020-08-01 0000018498 gco:JourneysGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:SchuhGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:JohnstonAndMurphyGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:LicensedBrandsSegmentMember 2020-02-02 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JohnstonAndMurphyGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember gco:SchuhGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:RetailStoreAssetImpairmentsMember gco:JourneysGroupSegmentMember 2020-02-02 2020-08-01 0000018498 gco:JourneysGroupSegmentMember us-gaap:TrademarksMember 2020-02-02 2020-08-01 0000018498 gco:JohnstonAndMurphyGroupSegmentMember us-gaap:TrademarksMember 2020-02-02 2020-08-01

Table of Contents

 

 

 

 

 

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended July 31, 2021

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from              to             

Commission File No. 1-3083

Genesco Inc.

(Exact name of registrant as specified in its charter)

 

Tennessee

 

62-0211340

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

Genesco Park,

1415 Murfreesboro Pike

 

37217-2895

Nashville,

Tennessee

 

(Zip Code)

(Address of principal executive offices)

 

 

 

Registrant's telephone number, including area code: (615367-7000

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 par value

GCO

New York Stock Exchange

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer; an accelerated filer; a non-accelerated filer; a smaller reporting company; or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes      No  

As of August 27, 2021, there were 15,109,062 shares of the registrant's common stock outstanding.

 

 

 


Table of Contents

 

 

INDEX

 

 

 

Part I. Financial Information

 

Item 1. Financial Statements (unaudited):

 

Condensed Consolidated Balance Sheets – July 31, 2021, January 30, 2021 and August 1, 2020

4

Condensed Consolidated Statements of Operations - Three and Six Months ended July 31, 2021 and August 1, 2020

5

Condensed Consolidated Statements of Comprehensive Income - Three and Six Months ended July 31, 2021 and August 1, 2020

6

Condensed Consolidated Statements of Cash Flows – Six Months ended July 31, 2021 and August 1, 2020

7

Condensed Consolidated Statements of Equity - Three and Six Months ended July 31, 2021 and August 1, 2020

8

Notes to Condensed Consolidated Financial Statements (unaudited)

9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3. Quantitative and Qualitative Disclosures about Market Risk

27

Item 4. Controls and Procedures

27

Part II. Other Information

28

Item 1. Legal Proceedings

28

Item 1A. Risk Factors

28

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

28

Item 6. Exhibits

29

Signature

30

 

 

 

2


Table of Contents

 

 

cautionary notice regarding forward-looking statements

Statements in this Quarterly Report on Form 10-Q include certain forward-looking statements, which include statements regarding our intent, belief or expectations and all statements other than those made solely with respect to historical fact. Actual results could differ materially from those reflected by the forward-looking statements in this Quarterly Report on Form 10-Q and a number of factors may adversely affect the forward-looking statements and our future results, liquidity, capital resources or prospects. These include, but are not limited to, risks related to public health and safety issues, including, for example, risks related to the ongoing novel coronavirus ("COVID-19") pandemic and emergence of variants from the original strain, as well as the timing and availability of effective medical treatments and the ongoing rollout of vaccines in response to the COVID-19 pandemic, (including the public’s acceptance of vaccines), including disruptions to our business, sales, supply chain and financial results, the level of consumer spending on our merchandise and in general, the timing of the re-opening and potential reclosing of our stores, the timing of in-person back-to-work and back-to-school and sales with respect thereto, the consumer impact of the reduction of government stimulus and tax relief programs, the level and timing of promotional activity necessary to protect our reputation and maintain inventories at appropriate levels, the timing and amount of any share repurchases by us, risks related to doing business internationally, the increasing scope of our non-U.S. operations, the imposition of tariffs on products imported by us or our vendors as well as the ability and costs to move production of products in response to tariffs, our 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, a disruption in shipping or increase in cost of our imported products, and other factors affecting the cost of products, our dependence on third-party vendors and licensors for the products we sell, the effects of the British decision to exit the European Union and other sources of market weakness in the U.K. and the Republic of Ireland, the effectiveness of our omnichannel initiatives, our ability to staff our stores, costs associated with changes in minimum wage and overtime requirements, wage pressure in the U.S. and the U.K., and other inflationary pressures, the evolving regulatory landscape related to our use of social media, the establishment and protection of our intellectual property, weakness in the consumer economy and retail industry, competition and fashion trends in our markets, including trends with respect to the popularity of casual and dress footwear, weakness in shopping mall traffic, any failure to increase sales at our existing stores, given our high fixed expense cost structure, and in our e-commerce businesses, risks related to the potential for terrorist events, changes in buying patterns by significant wholesale customers, changes in consumer preferences, our ability to continue to complete and integrate acquisitions, expand our business and diversify our product base, impairment of goodwill in connection with acquisitions, payment related risks that could increase our operating cost, expose us to fraud or theft, subject us to potential liability and disrupt our business, 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, to renew leases in existing stores, to control or lower occupancy costs, and to conduct required remodeling or refurbishment on schedule and at expected expense levels, our ability to realize anticipated cost savings, including rent savings, our ability to realize any anticipated tax benefits, our ability to achieve expected digital gains and gain market share, deterioration in the performance of individual businesses or of our market value relative to our 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 our shares or for the retail sector in general, costs and reputational harm as a result of disruptions in our business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems, uncertainty regarding the expected phase out of the London Interbank Offered Rate ("LIBOR"), the cost and outcome of litigation, investigations and environmental matters that involve us, and the impact of actions initiated by activist shareholders.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A contained in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021, and Item 1A in Part II of this Quarterly Report on Form 10-Q, which should be read in conjunction with the forward-looking statements in this Quarterly Report on Form 10-Q. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

The events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. As a result, our actual results may differ materially from the results contemplated by these forward-looking statements.

We maintain a website at www.genesco.com where investors and other interested parties may obtain, free of charge, press releases and other information as well as gain access to our periodic filings with the Securities and Exchange Commission (“SEC”). The information contained on this website should not be considered to be a part of this or any other report filed with or furnished to the SEC.

3


Table of Contents

 

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

 

Genesco Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)

 

Assets

 

July 31, 2021

 

 

January 30, 2021

 

 

August 1, 2020

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

304,039

 

 

$

215,091

 

 

$

299,144

 

Accounts receivable, net of allowances of $4,440 at July 31, 2021,

 

 

 

 

 

 

 

 

 

 

 

 

   $5,015 at January 30, 2021 and $5,485 at August 1, 2020

 

 

31,872

 

 

 

31,410

 

 

 

54,793

 

Inventories

 

 

326,477

 

 

 

290,966

 

 

 

365,267

 

Prepaids and other current assets

 

 

91,554

 

 

 

130,128

 

 

 

58,454

 

Total current assets

 

 

753,942

 

 

 

667,595

 

 

 

777,658

 

Property and equipment, net

 

 

202,711

 

 

 

207,842

 

 

 

220,458

 

Operating lease right of use assets

 

 

610,188

 

 

 

621,727

 

 

 

670,323

 

Goodwill

 

 

38,787

 

 

 

38,550

 

 

 

37,931

 

Other intangibles

 

 

31,063

 

 

 

30,929

 

 

 

30,008

 

Deferred income taxes

 

 

 

 

 

 

 

 

12,443

 

Other noncurrent assets

 

 

21,929

 

 

 

20,725

 

 

 

21,207

 

Total Assets

 

 

1,658,620

 

 

 

1,587,368

 

 

 

1,770,028

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

186,593

 

 

 

150,437

 

 

 

178,541

 

Current portion - long-term debt

 

 

 

 

 

 

 

 

24,860

 

Current portion - operating lease liabilities

 

 

156,562

 

 

 

173,505

 

 

 

199,392

 

Other accrued liabilities

 

 

134,407

 

 

 

78,991

 

 

 

88,047

 

Total current liabilities

 

 

477,562

 

 

 

402,933

 

 

 

490,840

 

Long-term debt

 

 

20,022

 

 

 

32,986

 

 

 

186,049

 

Long-term operating lease liabilities

 

 

524,857

 

 

 

527,549

 

 

 

593,723

 

Other long-term liabilities

 

 

48,082

 

 

 

57,141

 

 

 

38,552

 

Total liabilities

 

 

1,070,523

 

 

 

1,020,609

 

 

 

1,309,164

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

Non-redeemable preferred stock

 

 

828

 

 

 

1,009

 

 

 

1,009

 

Common equity:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $1 par value:

 

 

 

 

 

 

 

 

 

 

 

 

Authorized: 80,000,000 shares

 

 

 

 

 

 

 

 

 

 

 

 

Issued common stock

 

 

15,597

 

 

 

15,438

 

 

 

15,482

 

Additional paid-in capital

 

 

286,298

 

 

 

282,308

 

 

 

278,254

 

Retained earnings

 

 

336,659

 

 

 

320,920

 

 

 

223,536

 

Accumulated other comprehensive loss

 

 

(33,428

)

 

 

(35,059

)

 

 

(39,560

)

Treasury shares, at cost (488,464 shares)

 

 

(17,857

)

 

 

(17,857

)

 

 

(17,857

)

Total equity

 

 

588,097

 

 

 

566,759

 

 

 

460,864

 

Total Liabilities and Equity

 

$

1,658,620

 

 

$

1,587,368

 

 

$

1,770,028

 

 

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

4


Table of Contents

 

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

July 31, 2021

 

 

August 1, 2020

 

Net sales

 

$

555,183

 

 

$

391,217

 

 

$

1,093,878

 

 

$

670,449

 

Cost of sales

 

 

282,661

 

 

 

224,217

 

 

 

563,694

 

 

 

383,305

 

Gross margin

 

 

272,522

 

 

 

167,000

 

 

 

530,184

 

 

 

287,144

 

Selling and administrative expenses

 

 

252,551

 

 

 

187,261

 

 

 

492,016

 

 

 

376,303

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

79,259

 

Asset impairments and other, net

 

 

7,070

 

 

 

1,733

 

 

 

9,740

 

 

 

9,594

 

Operating income (loss)

 

 

12,901

 

 

 

(21,994

)

 

 

28,428

 

 

 

(178,012

)

Other components of net periodic benefit cost (income)

 

 

56

 

 

 

(182

)

 

 

17

 

 

 

(306

)

Interest expense (net of interest income of $0.1 million, $0.0 million, $0.3 million and $0.2 million for the three and six months ended July 31, 2021 and August 1, 2020, respectively)

 

 

617

 

 

 

1,918

 

 

 

1,346

 

 

 

2,774

 

Earnings (loss) from continuing operations before income taxes

 

 

12,228

 

 

 

(23,730

)

 

 

27,065

 

 

 

(180,480

)

Income tax expense (benefit)

 

 

1,354

 

 

 

(4,806

)

 

 

7,297

 

 

 

(26,932

)

Earnings (loss) from continuing operations

 

 

10,874

 

 

 

(18,924

)

 

 

19,768

 

 

 

(153,548

)

Gain (loss) from discontinued operations, net of tax

 

 

63

 

 

 

(112

)

 

 

47

 

 

 

(265

)

Net Earnings (Loss)

 

$

10,937

 

 

$

(19,036

)

 

$

19,815

 

 

$

(153,813

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.76

 

 

$

(1.33

)

 

$

1.38

 

 

$

(10.86

)

Discontinued operations

 

 

0.00

 

 

 

(0.01

)

 

 

0.00

 

 

 

(0.01

)

Net earnings (loss)

 

$

0.76

 

 

$

(1.34

)

 

$

1.38

 

 

$

(10.87

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.74

 

 

$

(1.33

)

 

$

1.35

 

 

$

(10.86

)

Discontinued operations

 

 

0.01

 

 

 

(0.01

)

 

 

0.00

 

 

 

(0.01

)

Net earnings (loss)

 

$

0.75

 

 

$

(1.34

)

 

$

1.35

 

 

$

(10.87

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

 

14,339

 

 

 

14,179

 

 

 

14,313

 

 

 

14,145

 

       Diluted

 

 

14,611

 

 

 

14,179

 

 

 

14,657

 

 

 

14,145

 

 

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

5


Table of Contents

 

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

 

July 31, 2021

 

 

August 1, 2020

 

Net earnings (loss)

 

$

10,937

 

 

$

(19,036

)

 

$

19,815

 

 

$

(153,813

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement liability adjustments, net of tax

 

 

21

 

 

 

(156

)

 

 

(23

)

 

 

(276

)

Foreign currency translation adjustments

 

 

152

 

 

 

3,199

 

 

 

1,654

 

 

 

(7,616

)

Total other comprehensive income (loss)

 

 

173

 

 

 

3,043

 

 

 

1,631

 

 

 

(7,892

)

Comprehensive Income (Loss)

 

$

11,110

 

 

$

(15,993

)

 

$

21,446

 

 

$

(161,705

)

 

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

6


Table of Contents

 

 

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Six Months Ended

 

 

 

July 31, 2021

 

 

August 1, 2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

19,815

 

 

$

(153,813

)

Adjustments to reconcile net earnings (loss) to net cash provided by

 

 

 

 

 

 

 

 

operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

21,634

 

 

 

24,210

 

Deferred income taxes

 

 

(9,994

)

 

 

7,129

 

Impairment of intangible assets

 

 

 

 

 

84,519

 

Impairment of long-lived assets

 

 

1,824

 

 

 

4,782

 

Restricted stock expense

 

 

3,967

 

 

 

4,449

 

Other

 

 

375

 

 

 

3,865

 

Changes in working capital and other assets and liabilities, net of

   acquisitions/dispositions:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

66

 

 

 

(28,541

)

Inventories

 

 

(34,614

)

 

 

(1,111

)

Prepaids and other current assets

 

 

38,742

 

 

 

(26,384

)

Accounts payable

 

 

36,681

 

 

 

55,678

 

Other accrued liabilities

 

 

57,009

 

 

 

4,516

 

Other assets and liabilities

 

 

(9,730

)

 

 

67,304

 

Net cash provided by operating activities

 

 

125,775

 

 

 

46,603

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(19,545

)

 

 

(10,642

)

Proceeds from asset sales

 

 

9

 

 

 

100

 

Other

 

 

74

 

 

 

 

Net cash used in investing activities

 

 

(19,462

)

 

 

(10,542

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowings under revolving credit facility

 

 

23,363

 

 

 

214,821

 

Payments on revolving credit facility

 

 

(36,854

)

 

 

(20,239

)

Restricted shares withheld for taxes

 

 

(4,076

)

 

 

(1,224

)

Change in overdraft balances

 

 

(517

)

 

 

(13,019

)

Other

 

 

(35

)

 

 

(1,087

)

Net cash provided by (used in) financing activities

 

 

(18,119

)

 

 

179,252

 

Effect of foreign exchange rate fluctuations on cash

 

 

754

 

 

 

2,412

 

Net Increase in Cash and Cash Equivalents

 

 

88,948

 

 

 

217,725

 

Cash and cash equivalents at beginning of period

 

 

215,091

 

 

 

81,418

 

Cash and cash equivalents at end of period

 

$

304,039

 

 

$

299,143

 

Supplemental information:

 

 

 

 

 

 

 

 

Interest paid

 

$

1,256

 

 

$

2,171

 

Income taxes paid (refunded)

 

 

(29,485

)

 

 

3,784

 

Cash paid for amounts included in measurement of operating lease liabilities

 

 

96,248

 

 

 

25,795

 

Operating leased assets obtained in exchange for new operating lease liabilities

 

 

64,884

 

 

 

15,216

 

 

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

7


Table of Contents

 

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Equity

(In thousands)

 

 

 

Non-

Redeemable

Preferred

Stock

 

 

Common

Stock

 

 

Additional

Paid-In

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Treasury

Shares

 

 

Total

Equity

 

Balance February 1, 2020

 

$

1,009

 

 

$

15,186

 

 

$

274,101

 

 

$

378,572

 

 

$

(31,668

)

 

$

(17,857

)

 

$

619,343

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(134,777

)

 

 

 

 

 

 

 

 

(134,777

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,935

)

 

 

 

 

 

(10,935

)

Employee and non-employee share-based compensation

 

 

 

 

 

 

 

 

2,191

 

 

 

 

 

 

 

 

 

 

 

 

2,191

 

Other

 

 

 

 

 

(15

)

 

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance May 2, 2020

 

 

1,009

 

 

 

15,171

 

 

 

276,307

 

 

 

243,795

 

 

 

(42,603

)

 

 

(17,857

)

 

 

475,822

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(19,036

)

 

 

 

 

 

 

 

 

(19,036

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,043

 

 

 

 

 

 

3,043

 

Employee and non-employee restricted stock

 

 

 

 

 

 

 

 

2,258

 

 

 

 

 

 

 

 

 

 

 

 

2,258

 

Restricted stock issuance

 

 

 

 

 

461

 

 

 

(461

)

 

 

 

 

 

 

 

 

 

 

 

 

Restricted shares withheld for taxes

 

 

 

 

 

(64

)

 

 

64

 

 

 

(1,223

)

 

 

 

 

 

 

 

 

(1,223

)

Other

 

 

 

 

 

(86

)

 

 

86

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance August 1, 2020

 

$

1,009

 

 

$

15,482

 

 

$