Financial Contact: Mimi E. Vaughn (615) 367-7386
Media Contact: Claire S. McCall (615) 367-8283
GENESCO REPORTS THIRD QUARTER FISCAL 2016 RESULTS
NASHVILLE, Tenn., Dec. 4, 2015 --- Genesco Inc. (NYSE:GCO) today reported earnings from continuing operations for the third quarter ended October 31, 2015, of $32.9 million, or $1.43 per diluted share, compared to earnings from continuing operations of $28.8 million, or $1.21 per diluted share, for the third quarter ended November 1, 2014. Fiscal 2016 third quarter results reflect pretax items of $0.2 million, or $0.00 per diluted share after tax, for network intrusion expenses and asset impairment charges, offset by $0.7 million, or $0.03 per diluted share, from a lower than normal tax rate due to the release of valuation allowances. Fiscal 2015 third quarter results reflect pretax items of $2.0 million, or $0.07 per diluted share after tax, including $1.0 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited and $1.0 million in network intrusion expenses and asset impairment charges. They also reflect the favorable resolution of formerly uncertain tax positions taken by Schuh at the time of the acquisition, resulting in the write-off of an indemnification asset of $7.1 million and the reversal of a corresponding FIN 48 provision, with essentially no net after-tax effect on earnings for the third quarter last year.
Adjusted for the items described above in both periods, earnings from continuing operations were $32.2 million, or $1.40 per diluted share, for the third quarter of Fiscal 2016, compared to earnings from continuing operations of $30.3 million, or $1.28 per diluted share, for the third quarter of Fiscal 2015. For consistency with Fiscal 2016'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 2016 increased 7% to $774 million from $723 million in the third quarter of Fiscal 2015. Consolidated third quarter 2016 comparable sales, including same store sales and comparable e-commerce and catalog sales, increased 7%, with a 6% increase in the Journeys Group, a 12% increase in the Lids Sports Group, a 2% increase in the Schuh Group, and a 5% increase in the Johnston & Murphy Group. Comparable sales for the Company reflected a 6% increase in same store sales and a 25% increase in e-commerce sales.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We are very pleased with the comparable sales increase we delivered in the third quarter. Our results were driven by strong full price selling combined with higher promotional activity in line with our strategy to right size the Lids Sports Group’s inventory levels. The pressure on gross margins from our clearance actions offset some of the earnings upside from our solid top-line performance.
“The fourth quarter started off slowly but accelerated over the Black Friday weekend. Fourth quarter consolidated comparable sales are up 6% through December 1, 2015.
“Recent comparable sales trends have been volatile and we expect that the retail market will remain promotional through the balance of the Holiday season. Given these factors in combination with the incremental promotional activity we now plan at Lids Sports Group through the fourth quarter to conclude its inventory reduction initiative and to position it for the freshest possible start to the next fiscal year, we are revising our full year outlook. We now expect adjusted diluted earnings per share to be in the range of $4.50 to $4.60, compared to our previously issued guidance of $4.70 to $4.80. Consistent with previous guidance, these expectations do not include expected non-cash asset impairments and other charges, estimated in the range of $6.1 million to $6.6 million pretax, or $0.17 to $0.18 per share after tax, for the full fiscal year. These expectations also do not reflect expenses related to Schuh deferred purchase price payments as described above, which are $1.5 million, or $0.06 per diluted share, for the full year. This guidance now assumes comparable sales increases in the 5% to 6% range for the full 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, “While we are disappointed with our reduced outlook, we believe that the steps we are taking now will allow the Company to realize greater earnings power next year and beyond.”
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 4, 2015 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 our ability to right size inventory levels in the Lids Sports Group; 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 the Company’s omnichannel initiatives; weakness in the consumer economy and retail industry; 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; changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons; and the performance of athletic teams, the participants in major sporting events such as the Super Bowl and World Series, developments with respect to certain individual athletes, and other sports-related events or changes that may affect period-to-period comparisons in the Company’s Lids Sports Group retail business. 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 2,800 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, 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 | | Nine Months Ended | |
| | | October 31, |
| | November 1, |
| October 31, |
| | November 1, |
|
| In Thousands | | 2015 |
| | 2014 |
| 2015 |
| | 2014 |
|
| Net sales | | $ | 773,898 |
| | $ | 722,915 |
| $ | 2,090,020 |
| | $ | 1,967,214 |
|
| Cost of sales | | 400,012 |
| | 364,426 |
| 1,069,710 |
| | 991,036 |
|
| Selling and administrative expenses* | | 321,685 |
| | 310,893 |
| 935,540 |
| | 894,469 |
|
| Asset impairments and other, net | | 151 |
| | 1,036 |
| 3,970 |
| | 1,347 |
|
| Earnings from operations | | 52,050 |
| | 46,560 |
| 80,800 |
| | 80,362 |
|
| Indemnification asset write-off | | — |
| | 7,050 |
| — |
| | 7,050 |
|
| Interest expense, net | | 1,330 |
| | 891 |
| 2,903 |
| | 2,374 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 50,720 |
| | 38,619 |
| 77,897 |
| | 70,938 |
|
| | | | | | | | |
| Income tax expense | | 17,865 |
| | 9,869 |
| 27,504 |
| | 23,322 |
|
| Earnings from continuing operations | | 32,855 |
| | 28,750 |
| 50,393 |
| | 47,616 |
|
| | | | | | | | |
| Provision for discontinued operations | | (348 | ) | | (88 | ) | (488 | ) | | (287 | ) |
| Net Earnings | | $ | 32,507 |
| | $ | 28,662 |
| $ | 49,905 |
| | $ | 47,329 |
|
*Includes $0.0 million and $1.5 million, respectively, in deferred payments related to the Schuh acquisition for the third quarter and first nine months ended October 31, 2015, respectively, and $1.0 million and $6.3 million for the third quarter and first nine months ended November 1, 2014, respectively.
|
| | | | | | | | | | | | | | | |
| Earnings Per Share Information |
| | | Three Months Ended | | Nine Months Ended | |
| | | October 31, |
| | November 1, |
| October 31, |
| | November 1, |
|
| In Thousands (except per share amounts) | | 2015 |
| | 2014 |
| 2015 |
| | 2014 |
|
| | | | | | | | |
| Average common shares - Basic EPS | | 22,834 |
| | 23,602 |
| 23,308 |
| | 23,489 |
|
| | | | | | | | |
| Basic earnings per share: | | | | | | | |
| From continuing operations | | $ | 1.44 |
| | $ | 1.22 |
| $ | 2.16 |
| | $ | 2.03 |
|
| Net earnings | | $ | 1.42 |
| | $ | 1.21 |
| $ | 2.14 |
| | $ | 2.01 |
|
| | | | | | | | |
| Average common and common | | | | | | | |
| equivalent shares - Diluted EPS | | 22,917 |
| | 23,760 |
| 23,436 |
| | 23,691 |
|
| | | | | | | | |
| Diluted earnings per share: | | | | | | | |
| From continuing operations | | $ | 1.43 |
| | $ | 1.21 |
| $ | 2.15 |
| | $ | 2.01 |
|
| Net earnings | | $ | 1.42 |
| | $ | 1.21 |
| $ | 2.13 |
| | $ | 2.00 |
|
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | | Three Months Ended | | Nine Months Ended | |
| | | October 31, |
| | November 1, |
| October 31, |
| | November 1, |
|
| In Thousands | | 2015 |
| | 2014 |
| 2015 |
| | 2014 |
|
| Sales: | | | | | | | |
| Journeys Group | | $ | 321,996 |
| | $ | 303,781 |
| $ | 847,805 |
| | $ | 802,742 |
|
| Schuh Group | | 101,644 |
| | 101,959 |
| 283,410 |
| | 283,005 |
|
| Lids Sports Group | | 246,967 |
| | 220,038 |
| 675,514 |
| | 608,621 |
|
| Johnston & Murphy Group | | 70,416 |
| | 65,965 |
| 197,600 |
| | 184,357 |
|
| Licensed Brands | | 32,599 |
| | 30,981 |
| 85,118 |
| | 87,735 |
|
| Corporate and Other | | 276 |
| | 191 |
| 573 |
| | 754 |
|
| Net Sales | | $ | 773,898 |
| | $ | 722,915 |
| $ | 2,090,020 |
| | $ | 1,967,214 |
|
| Operating Income (Loss): | | | | | | | |
| Journeys Group | | $ | 38,944 |
| | $ | 35,047 |
| $ | 72,594 |
| | $ | 61,544 |
|
| Schuh Group (1) | | 8,649 |
| | 3,949 |
| 10,880 |
| | (1,389 | ) |
| Lids Sports Group | | 4,704 |
| | 8,606 |
| 6,900 |
| | 25,217 |
|
| Johnston & Murphy Group | | 4,637 |
| | 4,505 |
| 9,460 |
| | 8,577 |
|
| Licensed Brands | | 3,345 |
| | 3,082 |
| 7,526 |
| | 8,476 |
|
| Corporate and Other (2) | | (8,229 | ) | | (8,629 | ) | (26,560 | ) | | (22,063 | ) |
| Earnings from operations | | 52,050 |
| | 46,560 |
| 80,800 |
| | 80,362 |
|
| Indemnification asset write-off | | — |
| | 7,050 |
| — |
| | 7,050 |
|
| Interest, net | | 1,330 |
| | 891 |
| 2,903 |
| | 2,374 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 50,720 |
| | 38,619 |
| 77,897 |
| | 70,938 |
|
| Income tax expense | | 17,865 |
| | 9,869 |
| 27,504 |
| | 23,322 |
|
| Earnings from continuing operations | | 32,855 |
| | 28,750 |
| 50,393 |
| | 47,616 |
|
| | | | | | | | |
| Provision for discontinued operations | | (348 | ) | | (88 | ) | (488 | ) | | (287 | ) |
| Net Earnings | | $ | 32,507 |
| | $ | 28,662 |
| $ | 49,905 |
| | $ | 47,329 |
|
(1)Includes $0.0 million and $1.5 million, respectively, in deferred payments related to the Schuh acquisition for the third quarter and first nine months ended October 31, 2015, respectively, and $1.0 million and $6.3 million for the third quarter and first nine months ended November 1, 2014, respectively.
(2)Includes a $0.2 million charge in the third quarter of Fiscal 2016 which includes $0.1 million for asset impairments and 0.1 million for network intrusion expenses. Includes a $4.0 million charge for the first nine months of Fiscal 2016 which includes $2.1 million for network intrusion expenses, $1.8 million for asset impairments and $0.1 million for other legal matters. Includes a $1.0 million charge in the third quarter of Fiscal 2015 which includes $0.6 million for network intrusion expenses and $0.4 million for asset impairments. Includes a $1.3 million charge for the first nine months of Fiscal 2015 which includes $2.4 million for network intrusion expenses, $1.6 million for asset impairments and $0.6 million for other legal matters, partially offset by a $3.3 million gain on a lease termination.
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| | | | | | | |
| GENESCO INC. |
| | | | |
| Consolidated Balance Sheet |
| | October 31, |
| | November 1, |
|
| In Thousands | 2015 |
| | 2014 |
|
| Assets | | | |
| Cash and cash equivalents | $ | 28,148 |
| | $ | 38,026 |
|
| Accounts receivable | 82,136 |
| | 71,796 |
|
| Inventories | 779,895 |
| | 737,577 |
|
| Other current assets | 96,912 |
| | 83,653 |
|
| Total current assets | 987,091 |
| | 931,052 |
|
| Property and equipment | 322,069 |
| | 314,664 |
|
| Goodwill and other intangibles | 390,733 |
| | 402,089 |
|
| Other non-current assets | 43,811 |
| | 21,440 |
|
| Total Assets | $ | 1,743,704 |
| | $ | 1,669,245 |
|
| Liabilities and Equity | | | |
| Accounts payable | $ | 270,951 |
| | $ | 248,782 |
|
| Current portion long-term debt | 15,437 |
| | 35,347 |
|
| Other current liabilities | 148,220 |
| | 200,593 |
|
| Total current liabilities | 434,608 |
| | 484,722 |
|
| Long-term debt | 199,691 |
| | 79,688 |
|
| Pension liability | 21,441 |
| | 8,597 |
|
| Deferred rent and other long-term liabilities | 157,601 |
| | 125,580 |
|
| Equity | 930,363 |
| | 970,658 |
|
| Total Liabilities and Equity | $ | 1,743,704 |
| | $ | 1,669,245 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | | | | | | | | | | |
| Retail Units Operated - Nine Months Ended October 31, 2015 | | | | | | | |
| | Balance |
| | Acqui- |
| | | | | | Balance |
| | | | | | | Balance |
|
| | 2/1/2014 |
| | sitions |
| | Open |
| | Close |
| | 1/31/2015 |
| | | Open |
| | Close |
| | 10/31/2015 |
|
| Journeys Group | 1,168 |
| | — |
| | 34 |
| | 20 |
| | 1,182 |
| | | 20 |
| | 23 |
| | 1,179 |
|
| Journeys | 827 |
| | — |
| | 16 |
| | 9 |
| | 834 |
| | | 9 |
| | 5 |
| | 838 |
|
| Underground by Journeys | 117 |
| | — |
| | — |
| | 7 |
| | 110 |
| | | — |
| | 10 |
| | 100 |
|
| Journeys Kidz | 174 |
| | — |
| | 18 |
| | 3 |
| | 189 |
| | | 11 |
| | 5 |
| | 195 |
|
| Shi by Journeys | 50 |
| | — |
| | — |
| | 1 |
| | 49 |
| | | — |
| | 3 |
| | 46 |
|
| Schuh Group | 99 |
| | — |
| | 13 |
| | 4 |
| | 108 |
| | | 9 |
| | — |
| | 117 |
|
| Schuh UK | 90 |
| | — |
| | 12 |
| | 4 |
| | 98 |
| | | 8 |
| | — |
| | 106 |
|
| Schuh Germany | — |
| | — |
| | — |
| | — |
| | — |
| | | 1 |
| | — |
| | 1 |
|
| Schuh ROI | 9 |
| | — |
| | 1 |
| | — |
| | 10 |
| | | — |
| | — |
| | 10 |
|
| Lids Sports Group* | 1,133 |
| | 56 |
| | 218 |
| | 43 |
| | 1,364 |
| | | 24 |
| | 41 |
| | 1,347 |
|
| Johnston & Murphy Group | 168 |
| | — |
| | 8 |
| | 6 |
| | 170 |
| | | 7 |
| | 3 |
| | 174 |
|
| Shops | 106 |
| | — |
| | 3 |
| | 4 |
| | 105 |
| | | 3 |
| | 3 |
| | 105 |
|
| Factory Outlets | 62 |
| | — |
| | 5 |
| | 2 |
| | 65 |
| | | 4 |
| | — |
| | 69 |
|
| Total Retail Units | 2,568 |
| | 56 |
| | 273 |
| | 73 |
| | 2,824 |
| | | 60 |
| | 67 |
| | 2,817 |
|
|
| | | | | | | | | | | | | | | |
| Retail Units Operated - Three Months Ended October 31, 2015 | | |
| | | | | | | | | | | |
| | | | | | | | | |
| | Balance |
| | | Acqui- | | | | | | Balance |
|
| | 8/1/2015 |
| | | sitions |
| | Open |
| | Close |
| | 10/31/2015 |
|
| Journeys Group | 1,171 |
| | | — |
| | 11 |
| | 3 |
| | 1,179 |
|
| Journeys | 834 |
| | | — |
| | 5 |
| | 1 |
| | 838 |
|
| Underground by Journeys | 102 |
| | | — |
| | — |
| | 2 |
| | 100 |
|
| Journeys Kidz | 189 |
| | | — |
| | 6 |
| | — |
| | 195 |
|
| Shi by Journeys | 46 |
| | | — |
| | — |
| | — |
| | 46 |
|
| Schuh Group | 113 |
| | | — |
| | 4 |
| | — |
| | 117 |
|
| Schuh UK | 102 |
| | | — |
| | 4 |
| | — |
| | 106 |
|
| Schuh Germany | 1 |
| | | — |
| | — |
| | — |
| | 1 |
|
| Schuh ROI | 10 |
| | | — |
| | — |
| | — |
| | 10 |
|
| Lids Sports Group* | 1,344 |
| | | — |
| | 15 |
| | 12 |
| | 1,347 |
|
| Johnston & Murphy Group | 172 |
| | | — |
| | 3 |
| | 1 |
| | 174 |
|
| Shops | 104 |
| | | — |
| | 2 |
| | 1 |
| | 105 |
|
| Factory Outlets | 68 |
| | | — |
| | 1 |
| | — |
| | 69 |
|
| Total Retail Units | 2,800 |
| | | — |
| | 33 |
| | 16 |
| | 2,817 |
|
*Includes 187 Locker Room by Lids in Macy's stores as of October 31, 2015.
|
| | | | | | | | | | | |
| Comparable Sales (including same store and comparable direct sales) | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | |
| | | October 31, |
| | November 1, |
| October 31, |
| | November 1, |
|
| | | 2015 |
| | 2014 |
| 2015 |
| | 2014 |
|
| Journeys Group | | 6 | % | | 6 | % | 5 | % | | 4 | % |
| Schuh Group | | 2 | % | | — | % | 5 | % | | — | % |
| Lids Sports Group | | 12 | % | | 1 | % | 8 | % | | — | % |
| Johnston & Murphy Group | | 5 | % | | — | % | 6 | % | | — | % |
| Total Comparable Sales | | 7 | % | | 3 | % | 6 | % | | 2 | % |
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Three Months Ended October 31, 2015 and November 1, 2014 |
| | | | | |
| | Three | Impact on | Three | Impact on |
| | Months | Diluted | Months | Diluted |
| In Thousands (except per share amounts) | Oct 2015 | EPS | Oct 2014 | EPS |
| Earnings from continuing operations, as reported | $ | 32,855 |
| $ | 1.43 |
| $ | 28,750 |
| $ | 1.21 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 48 |
| — |
| 244 |
| 0.01 |
|
| Deferred payment - Schuh acquisition | — |
| — |
| 1,017 |
| 0.04 |
|
| Indemnification asset write-off | — |
| — |
| 7,050 |
| 0.3 |
|
| Other legal matters | — |
| — |
| 38 |
| — |
|
| Network intrusion expenses | 39 |
| — |
| 388 |
| 0.02 |
|
| Higher (lower) effective tax rate | (749 | ) | (0.03 | ) | (7,185 | ) | (0.30 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 32,193 |
| $ | 1.40 |
| $ | 30,302 |
| $ | 1.28 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the third quarter of Fiscal 2016 is 36.7% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the third quarter of Fiscal 2015 is 36.4% excluding a FIN 48 discrete item of less than $0.1 million.
(2) EPS reflects 22.9 million and 23.8 million share count for Fiscal 2016 and 2015, 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 October 31, 2015 and November 1, 2014 |
| | | | |
| | Three Months Ended October 31, 2015 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 38,944 |
| $ | — |
| $ | 38,944 |
|
| Schuh Group | 8,649 |
| — |
| 8,649 |
|
| Lids Sports Group | 4,704 |
| — |
| 4,704 |
|
| Johnston & Murphy Group | 4,637 |
| — |
| 4,637 |
|
| Licensed Brands | 3,345 |
| — |
| 3,345 |
|
| Corporate and Other | (8,229 | ) | 151 |
| (8,078 | ) |
| | | | |
| Total Operating Income | $ | 52,050 |
| $ | 151 |
| $ | 52,201 |
|
|
| | | | | | | | | |
| | | | |
| | Three Months Ended November 1, 2014 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 35,047 |
| $ | — |
| $ | 35,047 |
|
| Schuh Group* | 3,949 |
| 1,017 |
| 4,966 |
|
| Lids Sports Group | 8,606 |
| — |
| 8,606 |
|
| Johnston & Murphy Group | 4,505 |
| — |
| 4,505 |
|
| Licensed Brands | 3,082 |
| — |
| 3,082 |
|
| Corporate and Other | (8,629 | ) | 1,036 |
| (7,593 | ) |
| | | | |
| Total Operating Income | $ | 46,560 |
| $ | 2,053 |
| $ | 48,613 |
|
*Schuh Group adjustments include $1.0 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Nine Months Ended October 31, 2015 and November 1, 2014 |
| | | | | |
| | Nine | Impact on | Nine | Impact on |
| | Months | Diluted | Months | Diluted |
| In Thousands (except per share amounts) | Oct 2015 | EPS | Oct 2014 | EPS |
| Earnings from continuing operations, as reported | $ | 50,393 |
| $ | 2.15 |
| $ | 47,616 |
| $ | 2.01 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 1,129 |
| 0.05 |
| 1,023 |
| 0.04 |
|
| Deferred payment - Schuh acquisition | 1,490 |
| 0.06 |
| 6,346 |
| 0.27 |
|
| Gain on lease termination | — |
| — |
| (2,104 | ) | (0.09 | ) |
| Indemnification asset write-off | — |
| — |
| 7,050 |
| 0.30 |
|
| Change in accounting for bonus awards | — |
| — |
| 3,575 |
| 0.15 |
|
| Other legal matters | 75 |
| — |
| 437 |
| 0.02 |
|
| Network intrusion expenses | 1,316 |
| 0.06 |
| 1,509 |
| 0.06 |
|
| Higher (lower) effective tax rate | (1,561 | ) | (0.07 | ) | (7,838 | ) | (0.33 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 52,842 |
| $ | 2.25 |
| $ | 57,614 |
| $ | 2.43 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the first nine months of Fiscal 2016 is 36.5% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the first nine months of Fiscal 2015 is 36.9% excluding a FIN 48 discrete item of $0.1 million.
(2) EPS reflects 23.4 million and 23.7 million share count for Fiscal 2016 and 2015, 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 |
| Nine Months Ended October 31, 2015 and November 1, 2014 |
| | | | |
| | Nine Months Ended October 31, 2015 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 72,594 |
| $ | — |
| $ | 72,594 |
|
| Schuh Group* | 10,880 |
| 1,490 |
| 12,370 |
|
| Lids Sports Group | 6,900 |
| — |
| 6,900 |
|
| Johnston & Murphy Group | 9,460 |
| — |
| 9,460 |
|
| Licensed Brands | 7,526 |
| — |
| 7,526 |
|
| Corporate and Other | (26,560 | ) | 3,970 |
| (22,590 | ) |
| | | | |
| Total Operating Income | $ | 80,800 |
| $ | 5,460 |
| $ | 86,260 |
|
*Schuh Group adjustments include $1.5 million in deferred purchase price payments.
|
| | | | | | | | | |
| | | | |
| | Nine Months Ended November 1, 2014 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 61,544 |
| $ | 4,919 |
| $ | 66,463 |
|
| Schuh Group* | (1,389 | ) | 6,346 |
| 4,957 |
|
| Lids Sports Group | 25,217 |
| — |
| 25,217 |
|
| Johnston & Murphy Group | 8,577 |
| 25 |
| 8,602 |
|
| Licensed Brands | 8,476 |
| — |
| 8,476 |
|
| Corporate and Other | (22,063 | ) | 2,082 |
| (19,981 | ) |
| | | | |
| Total Operating Income | $ | 80,362 |
| $ | 13,372 |
| $ | 93,734 |
|
*Schuh Group adjustments include $6.3 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Forecasted Earnings from Continuing Operations |
| Fiscal Year Ending January 30, 2016 |
| | | | | |
| In Thousands (except per share amounts) | High Guidance | Low Guidance |
| | Fiscal 2016 | Fiscal 2016 |
| Forecasted earnings from continuing operations | $ | 100,385 |
| $ | 4.37 |
| $ | 97,890 |
| $ | 4.26 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Asset impairment and other charges | 3,832 |
| 0.17 |
| 4,148 |
| 0.18 |
|
| Deferred payment - Schuh acquisition | 1,490 |
| 0.06 |
| 1,490 |
| 0.06 |
|
| | | | | |
| Adjusted forecasted earnings from continuing operations (2) | $ | 105,707 |
| $ | 4.60 |
| $ | 103,528 |
| $ | 4.50 |
|
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2016 is approximately 36.8% excluding a FIN 48 discrete item of $0.1 million.
(2) EPS reflects 23.0 million share count for Fiscal 2016 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.
