Financial Contact: James S. Gulmi (615) 367-8325
Media Contact: Claire S. McCall (615) 367-8283
GENESCO REPORTS SECOND QUARTER FISCAL 2015 RESULTS
NASHVILLE, Tenn., Aug. 28, 2014 --- Genesco Inc. (NYSE: GCO) today reported earnings from continuing operations for the second quarter ended August 2, 2014, of $4.8 million, or $0.20 per diluted share, compared to earnings from continuing operations of $8.5 million, or $0.36 per diluted share, for the second quarter ended August 3, 2013. Fiscal 2015 second quarter results reflect expenses of $3.6 million, or $0.14 per diluted share after tax, including $2.2 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited; and $1.4 million in network intrusion expenses, asset impairment charges and other legal matters. Fiscal 2014 second quarter results reflected expenses of $6.6 million, or $0.20 per diluted share after tax, including $5.9 million associated with a change in accounting for bonus awards, $2.8 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited, and $1.2 million for other legal matters, network intrusion expenses and impairment charges, partially offset by a net gain of $3.3 million on the termination of the lease of a New York City Journeys store location.
Adjusted for the items described above in both periods, earnings from continuing operations were $8.0 million, or $0.34 per diluted share, for the second quarter of Fiscal 2015, compared to earnings from continuing operations of $13.2 million, or $0.56 per diluted share, for the second quarter of Fiscal 2014. For consistency with Fiscal 2015'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 second quarter of Fiscal 2015 increased 7.1% to $615 million from $575 million in the second quarter of Fiscal 2014. Consolidated second quarter 2015 comparable sales, including same store sales and comparable e-commerce and catalog sales, increased 2%, with a 5% increase in the Journeys Group, a 2% decrease in the Lids Sports Group, a 1% increase in the Schuh Group, and a 2% increase in the Johnston & Murphy Group.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We are disappointed with our second quarter earnings performance. Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group. The third quarter is off to a solid start, with consolidated comparable sales for the Company up 4% through August 23, 2014.”
Dennis also discussed the Company’s updated outlook. “Based on our second quarter performance and slightly lower expectations for the balance of the year at Lids, we now expect adjusted Fiscal 2015 diluted earnings per share in the range of $5.10 to $5.20, or from flat to a 2% increase over Fiscal 2014’s adjusted earnings per share of $5.09, down from our previously issued guidance of $5.40 to $5.55. Consistent with our previous guidance, these expectations do not include non-cash asset impairments and other charges, partially offset by a gain on a lease termination in the first quarter this year, which we estimate will be in the range of $3.2 million to $3.7 million pretax, or $0.08 to $0.10 per share, after tax, in Fiscal 2015. These expectations also do not reflect a $5.7 million, or $0.15 per diluted share, change in
the first quarter related to the change in accounting for bonus awards. Finally, the expected earnings per share do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately $7.4 million, or $0.31 per diluted share, for the full year. This guidance assumes a comparable sales increase in the low single digit range for the full fiscal year.” 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, “We continue to believe our longer-term future is compelling based on the strength of our brands and the numerous omnichannel initiatives that are helping fortify their strategic positions.”
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 August 28, 2014 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 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 reflected in forward-looking statements, including the amount of required accruals related to the earn-out bonus potentially payable to Schuh management based on the achievement of certain performance objectives; the timing and amount of non-cash asset impairments related to retail store fixed assets or to intangible assets of acquired businesses; the effectiveness of our omnichannel initiatives, weakness in the consumer economy; competition in the Company's markets; inability of customers to obtain credit; fashion trends that affect the sales or product margins of the Company's retail product offerings; changes in buying patterns by significant wholesale customers; bankruptcies or deterioration in financial condition of significant wholesale customers; 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 Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales 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; unexpected changes to the market for the Company's shares; variations from expected pension-related charges caused by conditions in the financial markets; 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 2,670 retail stores and leased departments throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Underground by Journeys, Schuh, Schuh Kids, Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.shibyjourneys.com, www.schuh.co.uk, www.johnstonmurphy.com, www.lids.com, www.lids.ca, www.lidslockerroom.com, www.lidsteamsports.com, www.lidsclubhouse.com, www.trask.com, www.suregripfootwear.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, and the Lids Team Sports team dealer business. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, SureGrip, 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 | | Six Months Ended | |
| | | August 2, |
| | August 3, |
| August 2, |
| | August 3, |
|
| In Thousands | | 2014 |
| | 2013 |
| 2014 |
| | 2013 |
|
| Net sales | | $ | 615,474 |
| | $ | 574,746 |
| $ | 1,244,299 |
| | $ | 1,166,134 |
|
| Cost of sales | | 313,729 |
| | 291,938 |
| 626,610 |
| | 584,889 |
|
| Selling and administrative expenses* | | 290,239 |
| | 274,420 |
| 583,576 |
| | 545,804 |
|
| Asset impairments and other, net | | 1,422 |
| | (7,140 | ) | 311 |
| | (5,811 | ) |
| Earnings from operations | | 10,084 |
| | 15,528 |
| 33,802 |
| | 41,252 |
|
| Interest expense, net | | 782 |
| | 1,140 |
| 1,483 |
| | 2,179 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 9,302 |
| | 14,388 |
| 32,319 |
| | 39,073 |
|
| | | | | | | | |
| Income tax expense | | 4,534 |
| | 5,923 |
| 13,453 |
| | 16,099 |
|
| Earnings from continuing operations | | 4,768 |
| | 8,465 |
| 18,866 |
| | 22,974 |
|
| | | | | | | | |
| Provision for discontinued operations | | (74 | ) | | (125 | ) | (199 | ) | | (224 | ) |
| Net Earnings | | $ | 4,694 |
| | $ | 8,340 |
| $ | 18,667 |
| | $ | 22,750 |
|
*Includes $2.2 million and $5.3 million, respectively, in deferred payments related to the Schuh acquisition for the second quarter and first six months ended August 2, 2014, respectively, and $2.8 million and $5.7 million for the second quarter and first six months ended August 3, 2013, respectively.
|
| | | | | | | | | | | | | | | |
| Earnings Per Share Information |
| | | Three Months Ended | | Six Months Ended | |
| | | August 2, |
| | August 3, |
| August 2, |
| | August 3, |
|
| In Thousands (except per share amounts) | | 2014 |
| | 2013 |
| 2014 |
| | 2013 |
|
| Preferred dividend requirements | | $ | — |
| | $ | — |
| $ | — |
| | $ | 33 |
|
| | | | | | | | |
| Average common shares - Basic EPS | | 23,496 |
| | 23,274 |
| 23,432 |
| | 23,284 |
|
| | | | | | | | |
| Basic earnings per share: | | | | | | | |
| From continuing operations | | $ | 0.20 |
| | $ | 0.36 |
| $ | 0.81 |
| | $ | 0.99 |
|
| Net earnings | | $ | 0.20 |
| | $ | 0.36 |
| $ | 0.80 |
| | $ | 0.98 |
|
| | | | | | | | |
| Average common and common | | | | | | | |
| equivalent shares - Diluted EPS | | 23,622 |
| | 23,523 |
| 23,657 |
| | 23,627 |
|
| | | | | | | | |
| Diluted earnings per share: | | | | | | | |
| From continuing operations | | $ | 0.20 |
| | $ | 0.36 |
| $ | 0.80 |
| | $ | 0.97 |
|
| Net earnings | | $ | 0.20 |
| | $ | 0.35 |
| $ | 0.79 |
| | $ | 0.96 |
|
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | | Three Months Ended | | Six Months Ended | |
| | | August 2, |
| | August 3, |
| August 2, |
| | August 3, |
|
| In Thousands | | 2014 |
| | 2013 |
| 2014 |
| | 2013 |
|
| Sales: | | | | | | | |
| Journeys Group | | $ | 236,838 |
| | $ | 222,471 |
| $ | 498,961 |
| | $ | 479,614 |
|
| Schuh Group | | 99,770 |
| | 82,109 |
| 181,046 |
| | 150,432 |
|
| Lids Sports Group | | 199,317 |
| | 192,456 |
| 388,583 |
| | 370,361 |
|
| Johnston & Murphy Group | | 54,995 |
| | 53,258 |
| 118,392 |
| | 111,683 |
|
| Licensed Brands | | 24,292 |
| | 23,869 |
| 56,754 |
| | 53,224 |
|
| Corporate and Other | | 262 |
| | 583 |
| 563 |
| | 820 |
|
| Net Sales | | $ | 615,474 |
| | $ | 574,746 |
| $ | 1,244,299 |
| | $ | 1,166,134 |
|
| Operating Income (Loss): | | | | | | | |
| Journeys Group | | $ | 6,820 |
| | $ | 1,717 |
| $ | 26,497 |
| | $ | 23,930 |
|
| Schuh Group (1) | | (197 | ) | | (1,433 | ) | (5,338 | ) | | (6,076 | ) |
| Lids Sports Group | | 8,474 |
| | 12,725 |
| 16,611 |
| | 23,521 |
|
| Johnston & Murphy Group | | (424 | ) | | 1,751 |
| 4,072 |
| | 5,599 |
|
| Licensed Brands | | 1,873 |
| | 1,471 |
| 5,394 |
| | 4,392 |
|
| Corporate and Other (2) | | (6,462 | ) | | (703 | ) | (13,434 | ) | | (10,114 | ) |
| Earnings from operations | | 10,084 |
| | 15,528 |
| 33,802 |
| | 41,252 |
|
| Interest, net | | 782 |
| | 1,140 |
| 1,483 |
| | 2,179 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 9,302 |
| | 14,388 |
| 32,319 |
| | 39,073 |
|
| Income tax expense | | 4,534 |
| | 5,923 |
| 13,453 |
| | 16,099 |
|
| Earnings from continuing operations | | 4,768 |
| | 8,465 |
| 18,866 |
| | 22,974 |
|
| | | | | | | | |
| Provision for discontinued operations | | (74 | ) | | (125 | ) | (199 | ) | | (224 | ) |
| Net Earnings | | $ | 4,694 |
| | $ | 8,340 |
| $ | 18,667 |
| | $ | 22,750 |
|
(1)Includes $2.2 million and $5.3 million, respectively, in deferred payments related to the Schuh acquisition for the second quarter and first six months ended August 2, 2014, respectively, and $2.8 million and $5.7 million for the second quarter and first six months ended August 3, 2013, respectively.
(2)Includes a $1.4 million charge in the second quarter of Fiscal 2015 which includes $0.6 million for network intrusion expenses, $0.4 million for asset impairments and $0.6 million for other legal matters, partially offset by a $0.2 million gain for a lease termination. Includes a $0.3 million charge for the first six months of Fiscal 2015 which includes a $3.3 million gain on a lease termination, partially offset by $1.8 million for network intrusion expenses, $1.2 million for asset impairments and $0.6 million for other legal matters. Includes $7.1 million income in the second quarter of Fiscal 2014 which includes an $8.3 million gain on a lease termination, partially offset by a $0.5 million charge for other legal matters, a $0.5 million charge for network intrusion expenses and a $0.2 million charge for asset impairments. Includes $5.8 million income for the first six months of Fiscal 2014 which includes an $8.3 million gain on a lease termination, partially offset by $1.4 million for asset impairments, $0.6 million for network intrusion expenses and $0.5 million for other legal matters.
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| | | | | | | |
| GENESCO INC. |
| | | | |
| Consolidated Balance Sheet |
| | August 2, |
| | August 3, |
|
| In Thousands | 2014 |
| | 2013 |
|
| Assets | | | |
| Cash and cash equivalents | $ | 59,303 |
| | $ | 46,027 |
|
| Accounts receivable | 54,142 |
| | 50,188 |
|
| Inventories | 669,388 |
| | 628,074 |
|
| Other current assets | 96,414 |
| | 84,943 |
|
| Total current assets | 879,247 |
| | 809,232 |
|
| Property and equipment | 296,407 |
| | 244,589 |
|
| Other non-current assets | 405,183 |
| | 403,528 |
|
| Total Assets | $ | 1,580,837 |
| | $ | 1,457,349 |
|
| Liabilities and Equity | | | |
| Accounts payable | $ | 237,777 |
| | $ | 244,752 |
|
| Current portion long-term debt | 29,284 |
| | 5,313 |
|
| Other current liabilities | 172,991 |
| | 134,717 |
|
| Total current liabilities | 440,052 |
| | 384,782 |
|
| Long-term debt | 47,083 |
| | 67,813 |
|
| Other long-term liabilities | 148,411 |
| | 171,562 |
|
| Equity | 945,291 |
| | 833,192 |
|
| Total Liabilities and Equity | $ | 1,580,837 |
| | $ | 1,457,349 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | | | | | | | | | | | |
| Retail Units Operated - Six Months Ended August 2, 2014 | | | | | | | | | | |
| | Balance |
| | Acqui- |
| | | | | | Balance |
| | Acqui- | | | | | | Balance |
|
| | 2/2/2013 |
| | sitions |
| | Open |
| | Close |
| | 2/1/2014 |
| | sitions |
| | Open |
| | Close |
| | 8/2/2014 |
|
| Journeys Group | 1,157 |
| | — |
| | 39 |
| | 28 |
| | 1,168 |
| | — |
| | 12 |
| | 8 |
| | 1,172 |
|
| Journeys | 820 |
| | — |
| | 20 |
| | 13 |
| | 827 |
| | — |
| | 5 |
| | 3 |
| | 829 |
|
| Underground by Journeys | 130 |
| | — |
| | — |
| | 13 |
| | 117 |
| | — |
| | — |
| | 2 |
| | 115 |
|
| Journeys Kidz | 156 |
| | — |
| | 19 |
| | 1 |
| | 174 |
| | — |
| | 7 |
| | 2 |
| | 179 |
|
| Shi by Journeys | 51 |
| | — |
| | — |
| | 1 |
| | 50 |
| | — |
| | — |
| | 1 |
| | 49 |
|
| Schuh Group | 92 |
| | — |
| | 29 |
| | 22 |
| | 99 |
| | — |
| | 4 |
| | 4 |
| | 99 |
|
| Schuh UK* | 70 |
| | — |
| | 29 |
| | 9 |
| | 90 |
| | — |
| | 4 |
| | 4 |
| | 90 |
|
| Schuh ROI | 9 |
| | — |
| | — |
| | — |
| | 9 |
| | — |
| | — |
| | — |
| | 9 |
|
| Schuh Concessions* | 13 |
| | — |
| | — |
| | 13 |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Lids Sports Group** | 1,053 |
| | 15 |
| | 102 |
| | 37 |
| | 1,133 |
| | 19 |
| | 101 |
| | 20 |
| | 1,233 |
|
| Johnston & Murphy Group | 157 |
| | — |
| | 13 |
| | 2 |
| | 168 |
| | — |
| | 6 |
| | 4 |
| | 170 |
|
| Shops | 102 |
| | — |
| | 6 |
| | 2 |
| | 106 |
| | — |
| | 2 |
| | 2 |
| | 106 |
|
| Factory Outlets | 55 |
| | — |
| | 7 |
| | — |
| | 62 |
| | — |
| | 4 |
| | 2 |
| | 64 |
|
| Total Retail Units | 2,459 |
| | 15 |
| | 183 |
| | 89 |
| | 2,568 |
| | 19 |
| | 123 |
| | 36 |
| | 2,674 |
|
| Permanent Units* | 2,446 |
| | 15 |
| | 173 |
| | 69 |
| | 2,565 |
| | 19 |
| | 123 |
| | 33 |
| | 2,674 |
|
|
| | | | | | | | | | | | | | | |
| Retail Units Operated - Three Months Ended August 2, 2014 | | |
| | | | | | | | | | | |
| | | | | | | | | |
| | Balance |
| | | Acqui- | | | | | | Balance |
|
| | 5/3/2014 |
| | | sitions |
| | Open |
| | Close |
| | 8/2/2014 |
|
| Journeys Group | 1,172 |
| | | — |
| | 5 |
| | 5 |
| | 1,172 |
|
| Journeys | 828 |
| | | — |
| | 3 |
| | 2 |
| | 829 |
|
| Underground by Journeys | 117 |
| | | — |
| | — |
| | 2 |
| | 115 |
|
| Journeys Kidz | 178 |
| | | — |
| | 2 |
| | 1 |
| | 179 |
|
| Shi by Journeys | 49 |
| | | — |
| | — |
| | — |
| | 49 |
|
| Schuh Group | 100 |
| | | — |
| | 2 |
| | 3 |
| | 99 |
|
| Schuh UK* | 91 |
| | | — |
| | 2 |
| | 3 |
| | 90 |
|
| Schuh ROI | 9 |
| | | — |
| | — |
| | — |
| | 9 |
|
| Lids Sports Group** | 1,134 |
| | | 19 |
| | 82 |
| | 2 |
| | 1,233 |
|
| Johnston & Murphy Group | 167 |
| | | — |
| | 5 |
| | 2 |
| | 170 |
|
| Shops | 105 |
| | | — |
| | 2 |
| | 1 |
| | 106 |
|
| Factory Outlets | 62 |
| | | — |
| | 3 |
| | 1 |
| | 64 |
|
| Total Retail Units | 2,573 |
| | | 19 |
| | 94 |
| | 12 |
| | 2,674 |
|
| Permanent Units* | 2,571 |
| | | 19 |
| | 94 |
| | 10 |
| | 2,674 |
|
*Excludes Schuh Concessions and temporary "pop-up" locations.
**Includes 95 Locker Room by Lids in Macy's stores as of August 2, 2014.
|
| | | | | | | | | | | |
| Comparable Sales (including same store and comparable direct sales) | | | | | | | |
| | | Three Months Ended | | Six Months Ended | |
| | | August 2, |
| | August 3, |
| August 2, |
| | August 3, |
|
| | | 2014 |
| | 2013 |
| 2014 |
| | 2013 |
|
| Journeys Group | | 5 | % | | (1 | )% | 3 | % | | (1 | )% |
| Schuh Group | | 1 | % | | (7 | )% | 0 | % | | (9 | )% |
| Lids Sports Group | | (2 | )% | | (3 | )% | (1 | )% | | (4 | )% |
| Johnston & Murphy Group | | 2 | % | | 7 | % | 1 | % | | 7 | % |
| Total Comparable Sales | | 2 | % | | (2 | )% | 1 | % | | (3 | )% |
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Three Months Ended August 2, 2014 and August 3, 2013 |
| | | | | |
| | Three | Impact on | Three | Impact on |
| | Months | Diluted | Months | Diluted |
| In Thousands (except per share amounts) | July 2014 | EPS | July 2013 | EPS |
| Earnings from continuing operations, as reported | $ | 4,768 |
| $ | 0.20 |
| $ | 8,465 |
| $ | 0.36 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 260 |
| 0.01 |
| 133 |
| 0.01 |
|
| Deferred payment - Schuh acquisition | 2,227 |
| 0.09 |
| 2,851 |
| 0.12 |
|
| Gain on lease termination | (113 | ) | — |
| (2,077 | ) | (0.09 | ) |
| Change in accounting for bonus awards | — |
| — |
| 3,698 |
| 0.16 |
|
| Other legal matters | 386 |
| 0.02 |
| 315 |
| 0.01 |
|
| Network intrusion expenses | 360 |
| 0.02 |
| 271 |
| 0.01 |
|
| Higher (lower) effective tax rate | 129 |
| — |
| (466 | ) | (0.02 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 8,017 |
| $ | 0.34 |
| $ | 13,190 |
| $ | 0.56 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the second quarter of Fiscal 2015 is 37.9% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the second quarter of Fiscal 2014 is 36.9% excluding a FIN 48 discrete item of less than $0.1 million.
(2) EPS reflects 23.6 million and 23.5 million share count for Fiscal 2015 and 2014, respectively, 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.
Schedule B
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Three Months Ended August 2, 2014 and August 3, 2013 |
| | | | |
| | Three Months Ended August 2, 2014 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 6,820 |
| $ | — |
| $ | 6,820 |
|
| Schuh Group* | (197 | ) | 2,227 |
| 2,030 |
|
| Lids Sports Group | 8,474 |
| — |
| 8,474 |
|
| Johnston & Murphy Group | (424 | ) | — |
| (424 | ) |
| Licensed Brands | 1,873 |
| — |
| 1,873 |
|
| Corporate and Other | (6,462 | ) | 1,422 |
| (5,040 | ) |
| | | | |
| Total Operating Income | $ | 10,084 |
| $ | 3,649 |
| $ | 13,733 |
|
*Schuh Group adjustments include $2.2 million in deferred purchase price payments.
|
| | | | | | | | | |
| | | | |
| | Three Months Ended August 3, 2013 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 1,717 |
| $ | 4,642 |
| $ | 6,359 |
|
| Schuh Group* | (1,433 | ) | 4,224 |
| 2,791 |
|
| Lids Sports Group | 12,725 |
| (37 | ) | 12,688 |
|
| Johnston & Murphy Group | 1,751 |
| 9 |
| 1,760 |
|
| Licensed Brands | 1,471 |
| 2 |
| 1,473 |
|
| Corporate and Other | (703 | ) | (2,284 | ) | (2,987 | ) |
| | | | |
| Total Operating Income | $ | 15,528 |
| $ | 6,556 |
| $ | 22,084 |
|
*Schuh Group adjustments include $2.8 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Six Months Ended August 2, 2014 and August 3, 2013 |
| | | | | |
| | Six | Impact on | Six | Impact on |
| | Months | Diluted | Months | Diluted |
| In Thousands (except per share amounts) | July 2014 | EPS | July 2013 | EPS |
| Earnings from continuing operations, as reported | $ | 18,866 |
| $ | 0.80 |
| $ | 22,974 |
| $ | 0.97 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 779 |
| 0.03 |
| 893 |
| 0.04 |
|
| Deferred payment - Schuh acquisition | 5,329 |
| 0.22 |
| 5,702 |
| 0.24 |
|
| Gain on lease termination | (2,104 | ) | (0.09 | ) | (2,077 | ) | (0.09 | ) |
| Change in accounting for bonus awards | 3,575 |
| 0.15 |
| 7,815 |
| 0.33 |
|
| Other legal matters | 399 |
| 0.02 |
| 302 |
| 0.01 |
|
| Network intrusion expenses | 1,121 |
| 0.05 |
| 360 |
| 0.02 |
|
| Higher (lower) effective tax rate | (654 | ) | (0.03 | ) | (532 | ) | (0.02 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 27,311 |
| $ | 1.15 |
| $ | 35,437 |
| $ | 1.50 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the first six months of Fiscal 2015 is 37.3% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the first six months of Fiscal 2014 is 37.0% excluding a FIN 48 discrete item of less than $0.1 million.
(2) EPS reflects 23.7 million and 23.6 million share count for Fiscal 2015 and 2014, respectively, 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.
Schedule B
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Six Months Ended August 2, 2014 and August 3, 2013 |
| | | | |
| | Six Months Ended August 2, 2014 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 26,497 |
| $ | 4,919 |
| $ | 31,416 |
|
| Schuh Group* | (5,338 | ) | 5,329 |
| (9 | ) |
| Lids Sports Group | 16,611 |
| — |
| 16,611 |
|
| Johnston & Murphy Group | 4,072 |
| 25 |
| 4,097 |
|
| Licensed Brands | 5,394 |
| — |
| 5,394 |
|
| Corporate and Other | (13,434 | ) | 1,046 |
| (12,388 | ) |
| | | | |
| Total Operating Income | $ | 33,802 |
| $ | 11,319 |
| $ | 45,121 |
|
*Schuh Group adjustments include $5.3 million in deferred purchase price payments.
|
| | | | | | | | | |
| | | | |
| | Six Months Ended August 3, 2013 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 23,930 |
| $ | 6,060 |
| $ | 29,990 |
|
| Schuh Group* | (6,076 | ) | 8,692 |
| 2,616 |
|
| Lids Sports Group | 23,521 |
| 1,676 |
| 25,197 |
|
| Johnston & Murphy Group | 5,599 |
| 13 |
| 5,612 |
|
| Licensed Brands | 4,392 |
| (4 | ) | 4,388 |
|
| Corporate and Other | (10,114 | ) | 843 |
| (9,271 | ) |
| | | | |
| Total Operating Income | $ | 41,252 |
| $ | 17,280 |
| $ | 58,532 |
|
*Schuh Group adjustments include $5.7 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Forecasted Earnings from Continuing Operations |
| Fiscal Year Ending January 31, 2015 |
| | | | | |
| In Thousands (except per share amounts) | High Guidance | Low Guidance |
| | Fiscal 2015 | Fiscal 2015 |
| Forecasted earnings from continuing operations | $ | 110,174 |
| $ | 4.66 |
| $ | 107,491 |
| $ | 4.54 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Asset impairment and other charges | 1,983 |
| 0.08 |
| 2,296 |
| 0.1 |
|
| Change in accounting for bonus awards | 3,575 |
| 0.15 |
| 3,575 |
| 0.15 |
|
| Deferred payment - Schuh acquisition | 7,380 |
| 0.31 |
| 7,380 |
| 0.31 |
|
| | | | | |
| Adjusted forecasted earnings from continuing operations (2) | $ | 123,112 |
| $ | 5.20 |
| $ | 120,742 |
| $ | 5.10 |
|
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2015 is approximately 37.3% excluding a FIN 48 discrete item of $0.1 million.
(2) EPS reflects 23.7 million share count for Fiscal 2015 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.
