NASHVILLE, Tenn., Dec. 1, 2017 /PRNewswire/ -- Genesco Inc.
(NYSE: GCO) today reported a loss from continuing operations for
the third quarter ended October 28,
2017, of $164.8 million, or
($8.55) per diluted share, compared
to earnings from continuing operations of $25.9 million, or $1.30 per diluted share, for the third quarter
ended October 29, 2016. Fiscal
2018 third quarter results reflect a goodwill impairment charge of
$182.2 million, or $8.13 per diluted share after-tax, related
primarily to the sustained decline in the Company's market value to
a level below book value, losses of $0.9
million, or $0.03 per diluted
share after-tax due to Hurricane Maria, fixed asset impairment
charges of $0.5 million, or
$0.02 per diluted share after-tax,
$0.01 per diluted share for the
impact of additional dilutive shares, and a $26.6 million tax impact, or $1.38 per diluted share, related primarily to the
goodwill impairment. Fiscal 2017 third quarter results
reflected pretax fixed asset impairment charges of
$0.6 million, or $0.02 per diluted share after tax, offset by
$0.8 million, or $0.04 per diluted share, from a lower than normal
tax rate due to the release of tax reserves and other items.
Adjusted for the items described above in both periods, earnings
from continuing operations were $19.7
million, or $1.02 per diluted
share, for the third quarter of Fiscal 2018, compared to earnings
from continuing operations of $25.5
million, or $1.28 per diluted
share, for the third quarter of Fiscal 2017. For consistency
with Fiscal 2018's previously announced earnings expectations and
with previously reported adjusted results for the prior year
period, the Company believes that the disclosure of the results
from continuing operations adjusted for these items will be useful
to investors. A reconciliation of earnings and earnings per share
from continuing operations in accordance with U.S. Generally
Accepted Accounting Principles with the adjusted earnings and
earnings per share numbers presented in this paragraph is set forth
on Schedule B to this press release.
Net sales for the third quarter of Fiscal 2018 increased 1% to
$717 million from $711 million in the third quarter of Fiscal
2017. Consolidated third quarter 2018 comparable sales,
including same store sales and comparable e-commerce and catalog
sales, increased 1%, with a 4% increase in the Journeys Group, a 4%
increase in the Schuh Group, a 6% decrease in the Lids Sports
Group, and a 1% decrease in the Johnston & Murphy Group.
Comparable sales for the Company included a 2% decrease in same
store sales and a 24% increase in e-commerce sales.
Robert J. Dennis, chairman,
president and chief executive officer of Genesco, said, "Our third
quarter results are the tale of two businesses. Journeys
built on its momentum following its emergence from the recent
fashion shift in its markets and posted a solid comp gain.
Meanwhile Lids, after a tough second quarter, faced additional
challenges that pressured its performance. The dramatic shift
in consumer shopping behavior away from stores to digital continued
across all of our divisions, although we did see bright spots in
both store traffic and store purchases during Back-to-School in
more than one of our concepts. The combination of these factors
with gross margin headwinds in many of our businesses, the
deleverage resulting from negative store comps and higher expenses
from our omnichannel initiatives led to earnings below last year's
level but slightly ahead of our internal forecasts.
"Top line results for our footwear businesses for the fourth
quarter to date, including sales and e-commerce bookings over Black
Friday Weekend and Cyber Monday, accelerated over the third
quarter, and we are now more optimistic about Journeys' fourth
quarter prospects. Strong e-commerce sales growth continues
in our retail businesses, while store traffic remains
challenging. While we expected tough comparisons lapping the
anniversary of the Cubs' World Series victory, unfortunately, due
to other challenges, current trends at Lids are running below our
expectations. These challenges include, among others,
dampened demand for NFL licensed merchandise resulting from the
well-publicized challenges facing the League and disruption in our
Canadian business from the NHL vendor transition. Therefore, we
have adopted a more conservative outlook for Lids. We now expect
adjusted diluted earnings per share to range from $3.05 to $3.35 compared to our previous guidance
range of $3.35 to $3.65 given these
challenges." This guidance assumes comparable sales in the
range of -1% to 1% for the full year. It does not include the
non-cash goodwill impairment charge, fixed asset impairments and
other charges, estimated in the range of $186.3 million to $187.4 million pretax, or
$8.27 to $8.31 per share after tax,
for the full fiscal year. It also does not include certain
tax effects related to equity grants pursuant to the newly
effective ASU 2016-09, estimated at $0.11 per share after tax. A reconciliation of
the adjusted financial measures cited in the guidance to their
corresponding measures as reported pursuant to U.S. Generally
Accepted Accounting Principles is included in Schedule B to this
press release.
Dennis concluded, "While we are very disappointed with our
reduced outlook, in addition to successfully executing our holiday
plans, we continue to focus on taking the necessary steps toward
meeting the challenges in this changing retail environment and
strengthening our strategic positioning for sustained growth. These
steps include initiatives aimed at reducing our real estate risk
and rent expense, enhancing our in-store experience and driving
traffic to our stores, building further our omnichannel and digital
capabilities, strengthening the equity of our retail brands, and
managing capital spending as we look toward next year, all of which
we plan to discuss in more detail on this morning's conference
call. I believe that we are on the right course to deliver
enhanced profitability and increased shareholder value over the
longer-term."
Goodwill Impairment
In the third quarter of Fiscal 2018, primarily because of the
sustained decline of the Company's market value to a level below
book value and underperformance relative to projected operating
results, particularly in the Lids Sports Group, the Company
concluded that it was appropriate to conduct an interim assessment
of the recoverability of the carrying value of the goodwill on its
balance sheet. Based upon this assessment, the Company
recognized the full impairment of goodwill in the Lids Sports Group
and recorded a non-cash impairment charge of $182.2 million pretax, or $8.13 per diluted share after tax. The
impaired goodwill was created in connection with the Company's
acquisition of Hat World in 2004 and several subsequent, smaller
acquisitions, primarily in the Lids Locker Room licensed sports
business.
Conference Call and Management Commentary
The Company has posted detailed financial commentary in writing
on its website, www.genesco.com, in the investor relations section.
The Company's live conference call on December 1, 2017 at 7:30
a.m. (Central time), may be accessed through the Company's
internet website, www.genesco.com. To listen live, please go to the
website at least 15 minutes early to register, download and install
any necessary software.
Cautionary Note Concerning Forward-Looking Statements
This release contains forward-looking statements, including
those regarding the performance outlook for the Company and its
individual businesses (including, without limitation, sales,
expenses, margins, growth and earnings) and all other statements
not addressing solely historical facts or present conditions.
Actual results could vary materially from the expectations
reflected in these statements. A number of factors could cause
differences. These include adjustments to estimates and
projections reflected in forward-looking statements, including the
level and timing of promotional activity necessary to maintain
inventories at appropriate levels; the timing and amount of
non-cash asset impairments related to retail store fixed assets and
intangible assets of acquired businesses; the effectiveness of the
Company's omnichannel initiatives; costs associated with changes in
minimum wage and overtime requirements; the effects of proposed tax
reform legislation on the Company's effective tax rate, including
the potential for a significant, one-time, non-cash charge to
adjust the Company's deferred tax asset; the level of chargebacks
from credit card users for fraudulent purchases or other reasons;
weakness in the consumer economy and retail industry; effects on
local consumer demand or on the national economy related to
hurricanes or natural disasters; competition in the Company's
markets, including online and including competition from some of
the Company's vendors in both the licensed sports and branded
footwear markets; fashion trends that affect the sales or product
margins of the Company's retail product offerings as well as the
lack of new fashion trends that might drive business, and the
Company's ability to respond to fashion shifts quickly and
effectively; weakness in shopping mall traffic and challenges to
the viability of malls where the Company operates stores, including
weakness related to planned closings of anchor, and department and
other stores and other factors, and the extent and pace of growth
of online shopping; risks related to the potential for terrorist
events, especially in malls and shopping districts; the imposition
of tariffs on imported products; changes in buying patterns by
significant wholesale customers; bankruptcies or deterioration in
financial condition of significant wholesale customers or the
inability of wholesale customers or consumers to obtain credit; the
Company's ability to obtain from suppliers products that are
in-demand on a timely basis and disruptions in product supply or
distribution; unfavorable trends in fuel costs, foreign exchange
rates, foreign labor and material costs, and other factors
affecting the cost of products; the effects of the British decision
to exit the European Union, including potential effects on consumer
demand, currency exchange rates, and the supply chain; the
Company's ability to continue to complete and integrate
acquisitions, expand its business and diversify its product base;
changes in the timing of holidays or in the onset of seasonal
weather affecting period-to-period sales comparisons; the
performance of athletic teams, interest in athletic teams and
leagues, and the participants in major sporting events such as the
Super Bowl and World Series, developments with respect to certain
individual athletes, changes in partnerships between professional
and collegiate sports organizations and the vendors that provide
their uniforms and merchandise at retail, and other sports-related
events or changes, including the timing of major sporting events,
that may affect the Company's Lids Sports Group retail businesses,
including period-to-period comparisons. Additional factors
that could affect the Company's prospects and cause differences
from expectations include the ability to build, open, staff and
support additional retail stores and to renew leases in existing
stores and control occupancy costs, and to conduct required
remodeling or refurbishment on schedule and at expected expense
levels; deterioration in the performance of individual businesses
or of the Company's market value relative to its book value,
resulting in impairments of fixed assets or intangible assets or
other adverse financial consequences, including tax consequences
related thereto, especially in view of the Company's recent market
valuation; unexpected changes to the market for the Company's
shares, including but not limited to changes related to general
disfavor of the retail sector by investors; variations from
expected pension-related charges caused by conditions in the
financial markets; disruptions in the Company's information
technology systems either by security breaches and incidents or by
potential problems associated with the implementation of new or
upgraded systems; and the cost and outcome of litigation,
investigations and environmental matters involving the Company.
Additional factors are cited in the "Risk Factors," "Legal
Proceedings" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections of, and elsewhere in,
our SEC filings, copies of which may be obtained from the SEC
website, www.sec.gov, or by contacting the investor relations
department of Genesco via our website, www.genesco.com. Many of the
factors that will determine the outcome of the subject matter of
this release are beyond Genesco's ability to control or predict.
Genesco undertakes no obligation to release publicly the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. Forward-looking
statements reflect the expectations of the Company at the time they
are made. The Company disclaims any obligation to update such
statements.
About Genesco Inc.
Genesco Inc., a Nashville-based
specialty retailer, sells footwear, headwear, sports apparel and
accessories in more than 2,725 retail stores and leased departments
throughout the U.S., Canada, the
United Kingdom, the Republic of Ireland and Germany, principally under the names Journeys,
Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Little Burgundy,
Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy,
and on internet websites www.journeys.com, www.journeyskidz.com,
www.journeys.ca, www.shibyjourneys.com, www.schuh.co.uk,
www.littleburgundyshoes.com, www.johnstonmurphy.com, www.lids.com,
www.lids.ca, www.lidslockerroom.com, www.lidsclubhouse.com,
www.trask.com, and www.dockersshoes.com. The Company's Lids
Sports Group division operates the Lids headwear stores, the Locker
Room by Lids and other team sports fan shops and single team
clubhouse stores. In addition, Genesco sells wholesale
footwear under its Johnston & Murphy brand, the Trask brand,
the licensed Dockers brand, G.H.
Bass & Co., and other brands. For more information on
Genesco and its operating divisions, please visit
www.genesco.com.
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Earnings Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
Oct.
28,
|
|
Oct. 29,
|
|
Oct.
28,
|
|
Oct. 29,
|
|
|
In
Thousands
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Net sales
|
|
$
716,759
|
|
$
710,822
|
|
$
1,976,633
|
|
$
1,985,172
|
|
|
Cost of
sales
|
|
362,761
|
|
355,187
|
|
997,215
|
|
985,103
|
|
|
Selling and
administrative expenses
|
322,740
|
|
314,698
|
|
947,199
|
|
925,603
|
|
|
Goodwill
impairment
|
182,211
|
|
-
|
|
182,211
|
|
-
|
|
|
Asset impairments and
other, net
|
1,446
|
|
589
|
|
1,623
|
|
(3,799)
|
|
|
Earnings (loss) from
operations
|
(152,399)
|
|
40,348
|
|
(151,615)
|
|
78,265
|
|
|
Gain on sale of Lids
Team Sports
|
-
|
|
-
|
|
-
|
|
(2,485)
|
|
|
Interest expense,
net
|
1,457
|
|
1,488
|
|
3,883
|
|
3,931
|
|
|
Earnings (loss)
from continuing operations
|
|
|
|
|
|
|
|
|
|
before income taxes
|
(153,856)
|
|
38,860
|
|
(155,498)
|
|
76,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
10,950
|
|
12,912
|
|
12,186
|
|
25,803
|
|
|
Earnings (loss) from
continuing operations
|
(164,806)
|
|
25,948
|
|
(167,684)
|
|
51,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
discontinued operations
|
(15)
|
|
(53)
|
|
(200)
|
|
(133)
|
|
|
Net Earnings
(Loss)
|
$
(164,821)
|
|
$
25,895
|
|
$
(167,884)
|
|
$
50,883
|
|
|
Earnings Per Share
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
Oct.
28,
|
|
Oct. 29,
|
|
Oct.
28,
|
|
Oct. 29,
|
|
|
In Thousands (except
per share amounts)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
- Basic EPS
|
19,265
|
|
19,912
|
|
19,202
|
|
20,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
|
Before discontinued
operations
|
$(8.55)
|
|
$1.30
|
|
$(8.73)
|
|
$2.51
|
|
|
Net earnings
(loss)
|
$(8.56)
|
|
$1.30
|
|
$(8.74)
|
|
$2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common and
common
|
|
|
|
|
|
|
|
|
|
equivalent shares - Diluted EPS
|
19,265
|
|
19,962
|
|
19,202
|
|
20,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
Before discontinued
operations
|
$(8.55)
|
|
$1.30
|
|
$(8.73)
|
|
$2.50
|
|
|
Net earnings
(loss)
|
$(8.56)
|
|
$1.30
|
|
$(8.74)
|
|
$2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Earnings Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
|
Oct.
28,
|
|
Oct. 29,
|
|
Oct.
28,
|
|
Oct. 29,
|
|
|
In
Thousands
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Sales:
|
|
|
|
|
|
|
|
|
|
|
Journeys Group
|
$
333,506
|
|
$
314,159
|
|
$
876,578
|
|
$
860,514
|
|
|
Schuh Group
|
|
101,489
|
|
90,087
|
|
275,570
|
|
262,717
|
|
|
Lids Sports Group
|
181,347
|
|
200,279
|
|
538,478
|
|
568,567
|
|
|
Johnston & Murphy Group
|
74,132
|
|
72,115
|
|
211,785
|
|
207,241
|
|
|
Licensed Brands
|
26,208
|
|
34,058
|
|
73,915
|
|
85,624
|
|
|
Corporate and Other
|
77
|
|
124
|
|
307
|
|
509
|
|
|
Net Sales
|
|
$
716,759
|
|
$
710,822
|
|
$
1,976,633
|
|
$
1,985,172
|
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
Journeys Group (1)
|
$
24,283
|
|
$
25,656
|
|
$
29,561
|
|
$
49,757
|
|
|
Schuh Group
|
|
7,054
|
|
6,615
|
|
10,905
|
|
9,647
|
|
|
Lids Sports Group
|
1,991
|
|
8,173
|
|
3,245
|
|
21,342
|
|
|
Johnston & Murphy Group
|
5,287
|
|
4,922
|
|
10,654
|
|
12,019
|
|
|
Licensed Brands
|
1,153
|
|
2,689
|
|
2,377
|
|
4,776
|
|
|
Corporate and Other (2)
|
(9,956)
|
|
(7,707)
|
|
(26,146)
|
|
(19,276)
|
|
|
Goodwill impairment charge
|
(182,211)
|
|
-
|
|
(182,211)
|
|
-
|
|
|
Earnings (loss) from
operations
|
(152,399)
|
|
40,348
|
|
(151,615)
|
|
78,265
|
|
|
Gain on sale of Lids
Team Sports
|
-
|
|
-
|
|
-
|
|
(2,485)
|
|
|
Interest,
net
|
|
1,457
|
|
1,488
|
|
3,883
|
|
3,931
|
|
|
Earnings (loss)
from continuing operations
|
|
|
|
|
|
|
|
|
|
before income taxes
|
(153,856)
|
|
38,860
|
|
(155,498)
|
|
76,819
|
|
|
Income tax
expense
|
10,950
|
|
12,912
|
|
12,186
|
|
25,803
|
|
|
Earnings (loss) from
continuing operations
|
(164,806)
|
|
25,948
|
|
(167,684)
|
|
51,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
discontinued operations
|
(15)
|
|
(53)
|
|
(200)
|
|
(133)
|
|
|
Net Earnings
(Loss)
|
$
(164,821)
|
|
$
25,895
|
|
$
(167,884)
|
|
$
50,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes a $0.3
million charge for acquisition transition expenses for the first
nine months of Fiscal 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes a $1.4
million charge in the third quarter of Fiscal 2018 which includes
$0.9 million for hurricane losses and
|
|
$0.5 million for
asset impairments. Includes a $1.6 million charge for the
first nine months of Fiscal 2018 which includes
|
|
$0.9 million for
hurricane losses and $0.7 million for asset impairments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Includes a $0.6
million charge in the third quarter of Fiscal 2017 for asset
impairments. Includes a $3.8 million gain for the
|
|
first nine months of
Fiscal 2017 which includes an $8.9 million gain for network
intrusion expenses as a result of a
|
|
|
litigation
settlement, partially offset by $5.0 million for asset impairments
and $0.1 million for other legal matters.
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct.
28,
|
|
Oct. 29,
|
|
|
In
Thousands
|
|
|
|
|
|
2017
|
|
2016
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
50,740
|
|
$
30,520
|
|
|
Accounts
receivable
|
|
|
|
|
52,704
|
|
55,109
|
|
|
Inventories
|
|
|
|
|
|
697,949
|
|
719,975
|
|
|
Other current
assets
|
|
|
|
|
73,895
|
|
65,090
|
|
|
Total current
assets
|
|
|
|
|
875,288
|
|
870,694
|
|
|
Property and
equipment
|
|
|
|
|
378,483
|
|
321,780
|
|
|
Goodwill and other
intangibles
|
|
|
|
|
180,910
|
|
355,512
|
|
|
Other non-current
assets
|
|
|
|
|
63,802
|
|
36,385
|
|
|
Total
Assets
|
|
|
|
|
|
$
1,498,483
|
|
$
1,584,371
|
|
|
Liabilities
and Equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
|
$
244,366
|
|
$
247,282
|
|
|
Current portion
long-term debt
|
|
|
|
|
2,207
|
|
12,172
|
|
|
Other current
liabilities
|
|
|
|
|
132,921
|
|
112,826
|
|
|
Total current
liabilities
|
|
|
|
|
379,494
|
|
372,280
|
|
|
Long-term
debt
|
|
|
|
|
|
221,372
|
|
214,076
|
|
|
Pension
liability
|
|
|
|
|
5,878
|
|
9,283
|
|
|
Deferred rent and
other long-term liabilities
|
|
|
|
|
137,339
|
|
122,999
|
|
|
Equity
|
|
|
|
|
|
754,400
|
|
865,733
|
|
|
Total Liabilities
and Equity
|
|
|
|
|
$
1,498,483
|
|
$
1,584,371
|
|
|
GENESCO
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Units
Operated - Nine Months Ended October 28, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
01/30/16
|
|
Open
|
|
Close
|
|
01/28/17
|
|
Open
|
|
Close
|
|
10/28/17
|
|
|
Journeys
Group
|
|
1,222
|
|
51
|
|
24
|
|
1,249
|
|
35
|
|
47
|
|
1,237
|
|
|
Schuh
Group
|
|
125
|
|
7
|
|
4
|
|
128
|
|
5
|
|
1
|
|
132
|
|
|
Lids Sports
Group*
|
|
1,332
|
|
15
|
|
107
|
|
1,240
|
|
11
|
|
74
|
|
1,177
|
|
|
Johnston & Murphy
Group
|
|
173
|
|
8
|
|
4
|
|
177
|
|
5
|
|
1
|
|
181
|
|
|
Total Retail
Units
|
|
2,852
|
|
81
|
|
139
|
|
2,794
|
|
56
|
|
123
|
|
2,727
|
|
|
Retail Units
Operated - Three Months Ended October 28, 2017
|
|
|
|
|
Balance
|
|
|
|
|
|
Balance
|
|
|
|
|
07/29/17
|
|
Open
|
|
Close
|
|
10/28/17
|
|
|
Journeys
Group
|
|
1,247
|
|
9
|
|
19
|
|
1,237
|
|
|
Schuh
Group
|
|
131
|
|
2
|
|
1
|
|
132
|
|
|
Lids Sports
Group*
|
|
1,188
|
|
2
|
|
13
|
|
1,177
|
|
|
Johnston & Murphy
Group
|
|
179
|
|
3
|
|
1
|
|
181
|
|
|
Total Retail
Units
|
|
2,745
|
|
16
|
|
34
|
|
2,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes 123 Locker
Room by Lids in Macy's stores as of October 28, 2017.
|
|
|
|
|
Comparable Sales
(including same store and comparable direct sales)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
Oct.
28,
|
|
Oct. 29,
|
|
Oct.
28,
|
|
Oct. 29,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Journeys
Group
|
|
4%
|
|
-8%
|
|
0%
|
|
-4%
|
|
|
Schuh
Group
|
|
4%
|
|
0%
|
|
5%
|
|
-2%
|
|
|
Lids Sports
Group
|
|
-6%
|
|
2%
|
|
-3%
|
|
1%
|
|
|
Johnston & Murphy
Group
|
|
-1%
|
|
1%
|
|
-2%
|
|
3%
|
|
|
Total Comparable
Sales
|
|
1%
|
|
-3%
|
|
0%
|
|
-1%
|
|
Schedule B
|
|
|
Genesco
Inc.
|
Adjustments to
Reported Earnings (Loss) from Continuing Operations
|
Three Months Ended
October 28, 2017 and October 29, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
October 28,
2017
|
|
October 29,
2016
|
|
|
|
Net
of
|
Per
Share
|
|
|
Net
of
|
Per Share
|
In Thousands (except
per share amounts)
|
|
Pretax
|
Tax
|
Amounts
|
|
Pretax
|
Tax
|
Amounts
|
Earnings (loss) from
continuing operations, as reported
|
|
|
$
(164,806)
|
$
(8.55)
|
|
|
$
25,948
|
$
1.30
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
Store impairment
charges
|
|
$
510
|
332
|
0.02
|
|
$
579
|
383
|
0.02
|
Loss due to Hurricane
Maria
|
|
936
|
619
|
0.03
|
|
-
|
-
|
-
|
Goodwill impairment
charge
|
|
182,211
|
156,924
|
8.13
|
|
-
|
-
|
-
|
Impact of additional
dilutive shares
|
|
-
|
-
|
0.01
|
|
-
|
-
|
-
|
Network intrusion
expenses
|
|
-
|
-
|
-
|
|
10
|
6
|
-
|
Total
adjustments
|
|
$
183,657
|
157,875
|
8.19
|
|
$
589
|
389
|
0.02
|
|
|
|
|
|
|
|
|
|
Tax impact for
share-based awards
|
|
|
-
|
-
|
|
|
-
|
-
|
Tax impact of the
goodwill impairment
|
|
|
26,632
|
1.38
|
|
|
(789)
|
(0.04)
|
Adjusted earnings
from continuing operations (1) and (2)
|
|
|
$
19,701
|
$
1.02
|
|
|
$
25,548
|
$
1.28
|
|
|
|
|
|
|
.
|
|
|
|
|
|
|
|
|
|
|
|
(1) The adjusted tax
rate for the third quarter of Fiscal 2018 is 33.8% excluding a FIN
48 discrete item of less than $0.1 million. The adjusted tax
rate
|
for the third quarter of
Fiscal 2017 is 35.2% excluding a FIN 48 discrete item of less than
$0.1 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) EPS reflects 19.3
and 20.0 million share count for Fiscal 2018 and 2017, which
includes common stock equivalents in both years.
|
|
|
|
|
|
|
|
|
|
|
The Company believes
that disclosure of earnings and earnings per share from continuing
operations adjusted for the items not reflected in
the
|
previously announced
expectations will be meaningful to investors, especially in light
of the impact of such items on the results.
|
|
Genesco
Inc.
|
Adjustments to
Reported Operating Income (Loss)
|
Three Months Ended
October 28, 2017 and October 29, 2016
|
|
|
|
|
|
|
|
Three Months
Ended October 28, 2017
|
|
|
Operating
|
|
Adj
Operating
|
In
Thousands
|
|
Inc
(Loss)
|
Other
Adj
|
Income
|
Journeys
Group
|
|
$
24,283
|
$
-
|
$
24,283
|
Schuh
Group
|
|
7,054
|
-
|
7,054
|
Lids Sports
Group
|
|
1,991
|
-
|
1,991
|
Johnston & Murphy
Group
|
|
5,287
|
-
|
5,287
|
Licensed
Brands
|
|
1,153
|
-
|
1,153
|
Corporate and
Other
|
|
(9,956)
|
1,446
|
(8,510)
|
Goodwill impairment
charge
|
|
(182,211)
|
182,211
|
-
|
Total Operating
Income (Loss)
|
|
$
(152,399)
|
$
183,657
|
$
31,258
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended October 29, 2016
|
|
|
Operating
|
|
Adj
Operating
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
Journeys
Group
|
|
$
25,656
|
$
-
|
$
25,656
|
Schuh
Group
|
|
6,615
|
-
|
6,615
|
Lids Sports
Group
|
|
8,173
|
-
|
8,173
|
Johnston & Murphy
Group
|
|
4,922
|
-
|
4,922
|
Licensed
Brands
|
|
2,689
|
-
|
2,689
|
Corporate and
Other
|
|
(7,707)
|
589
|
(7,118)
|
Total Operating
Income
|
|
$
40,348
|
$
589
|
$
40,937
|
Schedule B
|
|
Genesco
Inc.
|
|
Adjustments to
Reported Earnings (Loss) from Continuing Operations
|
|
Nine Months Ended
October 28, 2017 and October 29, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
October 28,
2017
|
|
October 29,
2016
|
|
|
|
|
Net
of
|
Per
Share
|
|
|
Net
of
|
Per
Share
|
|
In Thousands (except
per share amounts)
|
|
Pretax
|
Tax
|
Amounts
|
|
Pretax
|
Tax
|
Amounts
|
|
Earnings (loss) from
continuing operations, as reported
|
|
|
$(167,684)
|
$
(8.73)
|
|
|
$
51,016
|
$
2.50
|
|
|
|
|
|
|
|
|
|
|
|
Pretax
adjustments:
|
|
|
|
|
|
|
|
|
|
Store impairment
charges
|
|
$
687
|
454
|
0.02
|
|
$
5,032
|
3,253
|
0.16
|
|
Loss due to Hurricane
Maria
|
|
936
|
619
|
0.03
|
|
-
|
-
|
-
|
|
Acquisition
transition expenses
|
|
288
|
190
|
0.01
|
|
-
|
-
|
-
|
|
Goodwill impairment
charge
|
|
182,211
|
156,924
|
8.15
|
|
-
|
-
|
-
|
|
Impact of additional
dilutive shares
|
|
-
|
-
|
0.03
|
|
-
|
-
|
-
|
|
Sale of Lids Team
Sports
|
|
-
|
-
|
-
|
|
(2,485)
|
(1,602)
|
(0.08)
|
|
Other legal
matters
|
|
-
|
-
|
-
|
|
90
|
57
|
-
|
|
Network intrusion
expenses
|
|
-
|
-
|
-
|
|
(8,921)
|
(5,750)
|
(0.28)
|
|
Total
adjustments
|
|
$
184,122
|
158,187
|
8.24
|
|
$
(6,284)
|
(4,042)
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
|
Tax impact for
share-based awards
|
|
|
2,167
|
0.11
|
|
|
-
|
-
|
|
Tax impact of the
goodwill impairment
|
|
|
26,145
|
1.36
|
|
|
(1,555)
|
(0.07)
|
|
Adjusted earnings
from continuing operations (1) and (2)
|
|
|
$
18,815
|
$
0.98
|
|
|
$
45,419
|
$
2.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The adjusted tax
rate for the first nine months of Fiscal 2018 is 33.9% excluding a
FIN 48 discrete item of $0.1 million. The adjusted tax rate
for
|
the first nine months of
Fiscal 2017 is 35.4% excluding a FIN 48 discrete item of $0.2
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) EPS reflects 19.3
and 20.4 million share count for Fiscal 2018 and 2017, which
includes common stock equivalents in both years.
|
|
|
|
|
|
|
|
|
|
|
|
The Company believes
that disclosure of earnings and earnings per share from continuing
operations adjusted for the items not reflected in
|
|
the previously
announced expectations will be meaningful to investors, especially
in light of the impact of such items on the results.
|
|
|
Genesco
Inc.
|
Adjustments to
Reported Operating Income (Loss)
|
Nine Months Ended
October 28, 2017 and October 29, 2016
|
|
|
|
|
|
|
|
Nine Months
Ended October 28, 2017
|
|
|
Operating
|
|
Adj
Operating
|
In
Thousands
|
|
Inc
(Loss)
|
Other
Adj
|
Income
|
Journeys
Group
|
|
$
29,561
|
$
288
|
$
29,849
|
Schuh
Group
|
|
10,905
|
-
|
10,905
|
Lids Sports
Group
|
|
3,245
|
-
|
3,245
|
Johnston & Murphy
Group
|
|
10,654
|
-
|
10,654
|
Licensed
Brands
|
|
2,377
|
-
|
2,377
|
Corporate and
Other
|
|
(26,146)
|
1,623
|
(24,523)
|
Goodwill impairment
charge
|
|
(182,211)
|
182,211
|
-
|
Total Operating
Income (Loss)
|
|
$
(151,615)
|
$
184,122
|
$
32,507
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended October 29, 2016
|
|
|
Operating
|
|
Adj
Operating
|
In
Thousands
|
|
Income
|
Other
Adj
|
Income
|
Journeys
Group
|
|
$
49,757
|
$
-
|
$
49,757
|
Schuh
Group
|
|
9,647
|
-
|
9,647
|
Lids Sports
Group
|
|
21,342
|
-
|
21,342
|
Johnston & Murphy
Group
|
|
12,019
|
-
|
12,019
|
Licensed
Brands
|
|
4,776
|
-
|
4,776
|
Corporate and
Other
|
|
(19,276)
|
(3,799)
|
(23,075)
|
Total Operating
Income
|
|
$
78,265
|
$
(3,799)
|
$
74,466
|
Schedule B
|
|
Genesco
Inc.
|
Adjustments to
Forecasted Earnings from Continuing Operations
|
Fiscal Year Ending
February 3, 2018
|
|
|
|
|
|
|
In Thousands (except
per share amounts)
|
|
High
Guidance
|
Low
Guidance
|
|
|
Fiscal
2018
|
Fiscal
2018
|
Forecasted loss from
continuing operations
|
|
$
(96,935)
|
$
(5.03)
|
$(103,376)
|
$
(5.37)
|
|
|
|
|
|
|
Adjustments:
(1)
|
|
|
|
|
|
Goodwill impairment
charge
|
|
156,663
|
8.13
|
156,663
|
8.13
|
Store impairment and
other charges
|
|
2,694
|
0.14
|
3,417
|
0.18
|
Tax impact for
share-based awards
|
|
2,167
|
0.11
|
2,167
|
0.11
|
|
|
|
|
|
|
Adjusted forecasted
earnings from continuing operations (2)
|
$
64,589
|
$
3.35
|
$
58,871
|
$
3.05
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) All adjustments
are net of tax where applicable. The forecasted tax rate for
Fiscal 2018 is approximately 34.3%.
|
|
|
|
|
|
|
(2) EPS reflects 19.3
million share count for Fiscal 2018 which includes common stock
equivalents.
|
|
|
|
|
|
|
|
This reconciliation
reflects estimates and current expectations of future results.
Actual results may vary
|
|
materially from these
expectations and estimates, for reasons including those included in
the discussion
|
|
of forward-looking
statements elsewhere in this release. The Company disclaims any
obligation to update
|
|
such expectations and
estimates.
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/genesco-reports-third-quarter-fiscal-2018-results-300565058.html
SOURCE Genesco Inc.