Financial Contact: Mimi E. Vaughn (615) 367-7386
Media Contact: Claire S. McCall (615) 367-8283
GENESCO REPORTS FOURTH QUARTER FISCAL 2016 RESULTS
NASHVILLE, Tenn., March 11, 2016 --- Genesco Inc. (NYSE:GCO) today reported earnings from continuing operations for the fourth quarter ended January 30, 2016, of $46.7 million, or $2.15 per diluted share, compared to earnings from continuing operations of $51.8 million, or $2.18 per diluted share, for the fourth quarter ended January 31, 2015. Fiscal 2016 fourth quarter results reflect a pretax gain of $3.4 million, or $0.04 per diluted share after tax, including a gain on the sale of Lids Team Sports of $7.3 million, partially offset by $3.9 million of asset impairment charges, asset write-downs and network intrusion expenses. Fiscal 2015 fourth quarter results reflect pretax items of $1.9 million, or $0.12 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 $0.9 million in network intrusion expenses and asset impairment charges.
Adjusted for the items described above in both periods, earnings from continuing operations were $45.8 million, or $2.11 per diluted share, for the fourth quarter of Fiscal 2016, compared to earnings from continuing operations of $54.7 million, or $2.30 per diluted share, for the fourth 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 fourth quarter of Fiscal 2016 increased 4.4% to $932 million from $893 million in the fourth quarter of Fiscal 2015. Consolidated fourth quarter 2016 comparable sales, including same store sales and comparable e-commerce and catalog sales, increased 4%, with a 5% increase in the Journeys Group, a 3% increase in the Lids Sports Group, a 2% decrease in the Schuh Group, and a 6% increase in the Johnston & Murphy Group. Comparable sales for the Company reflected a 2% increase in same store sales and a 21% increase in e-commerce sales.
The Company also reported net sales for the year ended January 30, 2016, of $3.0 billion, an increase of 5.7% from net sales of $2.9 billion for the year ended January 31, 2015. Earnings from continuing operations for Fiscal 2016 were $97.1 million, or $4.22 per diluted share, compared to earnings from continuing operations of $99.4 million, or $4.19 per diluted share, for Fiscal 2015. Fiscal 2016 earnings reflect after-tax charges of $0.07 per diluted share, including $9.4 million in asset impairments, asset write-downs, network intrusion expenses, compensation expense associated with the Schuh deferred purchase price, and other legal matters, partially offset by a $7.3 million gain on the sale of Lids Team Sports. Fiscal 2015 earnings reflect after-tax charges of $0.55 per diluted share, including, an indemnification asset write-off, network intrusion-related expenses, compensation expense associated with the Schuh deferred purchase price, effects of the change in accounting for deferred bonuses under the EVA incentive plan, asset impairments, and other legal matters, partially offset by a gain on a lease termination.
Adjusted for the listed items in both years, earnings from continuing operations were $98.6 million, or $4.29 per diluted share, for Fiscal 2016, compared to earnings from continuing operations of $112.3 million, or $4.74 per diluted share, for Fiscal 2015. For consistency with previously announced earnings expectations, which did not reflect the listed items, the Company believes that disclosure of earnings from continuing operations adjusted for those items will be useful to investors. A reconciliation of the adjusted financial measures to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.
The Company repurchased a total of 2.4 million shares of common stock in Fiscal 2016 at a total cost of $145 million and an average price of $60.79 per share. These purchases included 251,000 shares repurchased in the fourth quarter at a total cost of $16 million and an average price of $63.24. Through March 4, 2016, the Company had repurchased 480,500 shares at a total cost of $31 million and an average price of $64.40 in the first quarter of Fiscal 2017.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “Fourth quarter earnings came in just below our guidance range as a result of gross margin pressure related to our decision to make a final, aggressive push to complete our year-long program to right-size inventory in the Lids Sports Group and similarly aggressive efforts to clear inventory after a slow Holiday selling season at Schuh. Additionally, a later start to IRS tax refunds than in the previous year reduced comparable sales at the end of the quarter. While we are disappointed with our overall results, we are encouraged by the strong performance of Journeys and Johnston & Murphy and the work we’ve done to prepare the Company for sustained, profitable growth going forward.
“Comparable sales for the first quarter through March 5, 2016 increased 3% from the same period last year, reflecting in part the impact on early February sales from the delay in receipt of income tax refunds by customers, and recovery later in the month as tax refunds began.
“Based on the projected margin recovery at Lids Sports Group combined with modest overall comparable sales growth, we expect adjusted diluted earnings per share for the fiscal year ending January 28, 2017, in the range of $4.80 to $4.90, which represents a 12% to 14% increase over Fiscal 2016’s adjusted earnings per share of $4.29. These expectations do not include expected non-cash asset impairments and other charges, estimated in the range of $6.3 million to $6.8 million pretax, or $0.19 to $0.20 per share after tax, for the full fiscal year. This guidance assumes comparable sales increases in the 1% to 2% 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, “We begin Fiscal 2017 in a solid position to execute our long-term strategic plans. We look forward to realizing some of the benefits of last year’s hard work in the new fiscal year.”
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 March 11, 2016 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 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; weakness in the consumer economy and retail industry; competition in the Company's markets; 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 or the inability of wholesale customers or consumers to obtain credit; 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 2,850 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.shibyjourneys.com, www.schuh.co.uk, www.littleburgundyshoes.com, www.johnstonmurphy.com, www.lids.com, www.lids.ca, www.lidslockerroom.com, www.lidsclubhouse.com, http://shop.neweracap.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. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, G.H. Bass, SureGrip, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | | Fourth Quarter | | Fiscal Year Ended | |
| | | Jan. 30, |
| | Jan. 31, |
| Jan. 30, |
| | Jan. 31, |
|
| In Thousands | | 2016 |
| | 2015 |
| 2016 |
| | 2015 |
|
| Net sales | | $ | 932,214 |
| | $ | 892,630 |
| $ | 3,022,234 |
| | $ | 2,859,844 |
|
| Cost of sales | | 509,058 |
| | 468,397 |
| 1,578,768 |
| | 1,459,433 |
|
| Selling and administrative expenses* | | 348,782 |
| | 336,395 |
| 1,284,322 |
| | 1,230,864 |
|
| Asset impairments and other, net | | 3,923 |
| | 934 |
| 7,893 |
| | 2,281 |
|
| Earnings from operations | | 70,451 |
| | 86,904 |
| 151,251 |
| | 167,266 |
|
| Gain on sale of Lids Team Sports | | (7,331 | ) | | — |
| (7,331 | ) | | — |
|
| Indemnification asset write-off | | — |
| | — |
| — |
| | 7,050 |
|
| Interest expense, net | | 1,500 |
| | 853 |
| 4,403 |
| | 3,227 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 76,282 |
| | 86,051 |
| 154,179 |
| | 156,989 |
|
| | | | | | | | |
| Income tax expense | | 29,538 |
| | 34,294 |
| 57,042 |
| | 57,616 |
|
| Earnings from continuing operations | | 46,744 |
| | 51,757 |
| 97,137 |
| | 99,373 |
|
| | | | | | | | |
| Provision for discontinued operations** | | (324 | ) | | (1,361 | ) | (812 | ) | | (1,648 | ) |
| Net Earnings | | $ | 46,420 |
| | $ | 50,396 |
| $ | 96,325 |
| | $ | 97,725 |
|
*Includes $0.0 million and $1.5 million in deferred payments related to the Schuh acquisition in the fourth quarter and fiscal year ended January 30, 2016, respectively, and $1.0 million and $7.3 million for the fourth quarter and fiscal year ended January 31, 2015, respectively.
**Lids Team Sports does not qualify as a discontinued operation.
|
| | | | | | | | | | | | | | | |
| Earnings Per Share Information |
| | | Fourth Quarter | | Fiscal Year Ended | |
| | | Jan. 30, |
| | Jan. 31, |
| Jan. 30, |
| | Jan. 31, |
|
| In Thousands (except per share amounts) | | 2016 |
| | 2015 |
| 2016 |
| | 2015 |
|
| | | | | | | | |
| Average common shares - Basic EPS | | 21,595 |
| | 23,563 |
| 22,880 |
| | 23,507 |
|
| | | | | | | | |
| Basic earnings per share: | | | | | | | |
| From continuing operations | | $ | 2.16 |
| | $ | 2.20 |
| $ | 4.25 |
| | $ | 4.23 |
|
| Net earnings | | $ | 2.15 |
| | $ | 2.14 |
| $ | 4.21 |
| | $ | 4.16 |
|
| | | | | | | | |
| Average common and common | | | | | | | |
| equivalent shares - Diluted EPS | | 21,693 |
| | 23,759 |
| 23,000 |
| | 23,708 |
|
| | | | | | | | |
| Diluted earnings per share: | | | | | | | |
| From continuing operations | | $ | 2.15 |
| | $ | 2.18 |
| $ | 4.22 |
| | $ | 4.19 |
|
| Net earnings | | $ | 2.14 |
| | $ | 2.12 |
| $ | 4.19 |
| | $ | 4.12 |
|
|
| | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | |
| Consolidated Earnings Summary |
| | | Fourth Quarter | | Fiscal Year Ended | |
| | | Jan. 30, |
| | Jan. 31, |
| Jan. 30, |
| | Jan. 31, |
|
| In Thousands | | 2016 |
| | 2015 |
| 2016 |
| | 2015 |
|
| Sales: | | | | | | | |
| Journeys Group | | $ | 403,832 |
| | $ | 376,734 |
| $ | 1,251,637 |
| | $ | 1,179,476 |
|
| Schuh Group | | 122,264 |
| | 123,942 |
| 405,674 |
| | 406,947 |
|
| Lids Sports Group | | 299,990 |
| | 294,040 |
| 975,504 |
| | 902,661 |
|
| Johnston & Murphy Group | | 81,081 |
| | 75,318 |
| 278,681 |
| | 259,675 |
|
| Licensed Brands | | 24,708 |
| | 22,380 |
| 109,826 |
| | 110,115 |
|
| Corporate and Other | | 339 |
| | 216 |
| 912 |
| | 970 |
|
| Net Sales | | $ | 932,214 |
| | $ | 892,630 |
| $ | 3,022,234 |
| | $ | 2,859,844 |
|
| Operating Income (Loss): | | | | | | | |
| Journeys Group | | $ | 53,654 |
| | $ | 53,240 |
| $ | 126,248 |
| | $ | 114,784 |
|
| Schuh Group (1) | | 8,244 |
| | 11,499 |
| 19,124 |
| | 10,110 |
|
| Lids Sports Group | | 10,140 |
| | 23,753 |
| 17,040 |
| | 48,970 |
|
| Johnston & Murphy Group | | 8,301 |
| | 6,279 |
| 17,761 |
| | 14,856 |
|
| Licensed Brands | | 1,710 |
| | 1,983 |
| 9,236 |
| | 10,459 |
|
| Corporate and Other (2) | | (11,598 | ) | | (9,850 | ) | (38,158 | ) | | (31,913 | ) |
| Earnings from operations | | 70,451 |
| | 86,904 |
| 151,251 |
| | 167,266 |
|
| Indemnification asset write-off | | — |
| | — |
| — |
| | 7,050 |
|
| Gain on sale of Lids Team Sports | | (7,331 | ) | | — |
| (7,331 | ) | | — |
|
| Interest, net | | 1,500 |
| | 853 |
| 4,403 |
| | 3,227 |
|
| Earnings from continuing operations | | | | | | | |
| before income taxes | | 76,282 |
| | 86,051 |
| 154,179 |
| | 156,989 |
|
| Income tax expense | | 29,538 |
| | 34,294 |
| 57,042 |
| | 57,616 |
|
| Earnings from continuing operations | | 46,744 |
| | 51,757 |
| 97,137 |
| | 99,373 |
|
| | | | | | | | |
| Provision for discontinued operations (3) | | (324 | ) | | (1,361 | ) | (812 | ) | | (1,648 | ) |
| Net Earnings | | $ | 46,420 |
| | $ | 50,396 |
| $ | 96,325 |
| | $ | 97,725 |
|
(1)Includes $0.0 million and $1.5 million in deferred payments related to the Schuh acquisition in the fourth quarter and fiscal year ended January 30, 2016, respectively, and $1.0 million and $7.3 million for the fourth quarter and fiscal year ended January 31, 2015, respectively.
(2)Includes a $3.9 million charge in the fourth quarter of Fiscal 2016 which includes $2.5 million for asset write-downs, $1.3 million for asset impairments and $0.1 million for network intrusion expenses. Includes a $7.9 million charge for Fiscal 2016 which includes $3.1 million for asset impairments, $2.5 million for asset write-downs, $2.2 million for network intrusion expenses and $0.1 million for other legal matters. Includes a $1.0 million charge in the fourth quarter of Fiscal 2015 which includes $0.7 million for network intrusion expenses and $0.3 million for asset impairments. Includes a $2.3 million charge for Fiscal 2015 which includes $3.1 million for network intrusion expenses, $1.9 million for asset impairments and $0.6 million for other legal matters, partially offset by a $3.3 million gain on a lease termination.
(3)Lids Team Sports does not qualify as a discontinued operation.
|
| | | | | | | |
| GENESCO INC. |
| | | | |
| Consolidated Balance Sheet |
| | Jan. 30, |
| | Jan. 31, |
|
| In Thousands | 2016 |
| | 2015 |
|
| Assets | | | |
| Cash and cash equivalents | $ | 133,288 |
| | $ | 112,867 |
|
| Accounts receivable | 47,820 |
| | 55,263 |
|
| Inventories | 530,565 |
| | 598,145 |
|
| Other current assets | 89,033 |
| | 81,383 |
|
| Total current assets | 800,706 |
| | 847,658 |
|
| Property and equipment | 323,328 |
| | 305,752 |
|
| Goodwill and other intangibles | 371,694 |
| | 390,713 |
|
| Other non-current assets | 46,374 |
| | 38,964 |
|
| Total Assets | $ | 1,542,102 |
| | $ | 1,583,087 |
|
| Liabilities and Equity | | | |
| Accounts payable | $ | 155,049 |
| | $ | 176,307 |
|
| Current portion long-term debt | 14,182 |
| | 13,152 |
|
| Other current liabilities | 153,249 |
| | 216,457 |
|
| Total current liabilities | 322,480 |
| | 405,916 |
|
| Long-term debt | 97,876 |
| | 16,003 |
|
| Pension liability | 9,957 |
| | 22,184 |
|
| Deferred rent and other long-term liabilities | 153,250 |
| | 140,207 |
|
| Equity | 958,539 |
| | 998,777 |
|
| Total Liabilities and Equity | $ | 1,542,102 |
| | $ | 1,583,087 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| GENESCO INC. |
| | | | | | | | | | | | | | | | | | |
| Retail Units Operated - Twelve Months Ended January 30, 2016 | | | | | | | | |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
| | Acquisi- | | | | | | Balance |
|
| | 2/1/2014 |
| | tions |
| | Open |
| | Close |
| | 1/31/2015 |
| | tions |
| | Open |
| | Close |
| | 1/30/2016 |
|
| Journeys Group | 1,168 |
| | — |
| | 34 |
| | 20 |
| | 1,182 |
| | 37 |
| | 29 |
| | 26 |
| | 1,222 |
|
| Journeys | 827 |
| | — |
| | 16 |
| | 9 |
| | 834 |
| | — |
| | 13 |
| | 5 |
| | 842 |
|
| Underground by Journeys | 117 |
| | — |
| | — |
| | 7 |
| | 110 |
| | — |
| | — |
| | 12 |
| | 98 |
|
| Journeys Kidz | 174 |
| | — |
| | 18 |
| | 3 |
| | 189 |
| | — |
| | 16 |
| | 5 |
| | 200 |
|
| Shi by Journeys | 50 |
| | — |
| | — |
| | 1 |
| | 49 |
| | — |
| | — |
| | 3 |
| | 46 |
|
| Little Burgundy | — |
| | — |
| | — |
| | — |
| | — |
| | 37 |
| | — |
| | 1 |
| | 36 |
|
| Schuh Group | 99 |
| | — |
| | 13 |
| | 4 |
| | 108 |
| | — |
| | 17 |
| | — |
| | 125 |
|
| Schuh UK | 90 |
| | — |
| | 12 |
| | 4 |
| | 98 |
| | — |
| | 15 |
| | — |
| | 113 |
|
| Schuh Germany | — |
| | — |
| | — |
| | — |
| | — |
| | | | 2 |
| | — |
| | 2 |
|
| Schuh ROI | 9 |
| | — |
| | 1 |
| | — |
| | 10 |
| | — |
| | — |
| | — |
| | 10 |
|
| Lids Sports Group* | 1,133 |
| | 56 |
| | 218 |
| | 43 |
| | 1,364 |
| | — |
| | 27 |
| | 59 |
| | 1,332 |
|
| Johnston & Murphy Group | 168 |
| | — |
| | 8 |
| | 6 |
| | 170 |
| | — |
| | 8 |
| | 5 |
| | 173 |
|
| Shops | 106 |
| | — |
| | 3 |
| | 4 |
| | 105 |
| | — |
| | 3 |
| | 5 |
| | 103 |
|
| Factory Outlets | 62 |
| | — |
| | 5 |
| | 2 |
| | 65 |
| | — |
| | 5 |
| | — |
| | 70 |
|
| Total Retail Units | 2,568 |
| | 56 |
| | 273 |
| | 73 |
| | 2,824 |
| | 37 |
| | 81 |
| | 90 |
| | 2,852 |
|
|
| | | | | | | | | | | | | | |
| Retail Units Operated - Three Months Ended January 30, 2016 | | | | |
| | Balance |
| | Acquisi- |
| | | | | | Balance |
|
| | 10/31/2015 |
| | tions |
| | Open |
| | Close |
| | 1/30/2016 |
|
| Journeys Group | 1,179 |
| | 37 |
| | 9 |
| | 3 |
| | 1,222 |
|
| Journeys | 838 |
| | — |
| | 4 |
| | — |
| | 842 |
|
| Underground by Journeys | 100 |
| | — |
| | — |
| | 2 |
| | 98 |
|
| Journeys Kidz | 195 |
| | — |
| | 5 |
| | — |
| | 200 |
|
| Shi by Journeys | 46 |
| | — |
| | — |
| | — |
| | 46 |
|
| Little Burgundy | — |
| | 37 |
| | — |
| | 1 |
| | 36 |
|
| Schuh Group | 117 |
| | — |
| | 8 |
| | — |
| | 125 |
|
| Schuh UK | 106 |
| | — |
| | 7 |
| | — |
| | 113 |
|
| Schuh Germany | 1 |
| | | | 1 |
| | — |
| | 2 |
|
| Schuh ROI | 10 |
| | — |
| | — |
| | — |
| | 10 |
|
| Lids Sports Group* | 1,347 |
| | — |
| | 3 |
| | 18 |
| | 1,332 |
|
| Johnston & Murphy Group | 174 |
| | — |
| | 1 |
| | 2 |
| | 173 |
|
| Shops | 105 |
| | — |
| | — |
| | 2 |
| | 103 |
|
| Factory Outlets | 69 |
| | — |
| | 1 |
| | — |
| | 70 |
|
| Total Retail Units | 2,817 |
| | 37 |
| | 21 |
| | 23 |
| | 2,852 |
|
*Includes 185, 190 and 26 Locker Room by Lids in Macy's stores as of January 30, 2016, January 31, 2015 and February 1, 2014, respectively.
|
| | | | | | | | | | | |
| Genesco Inc. |
| | | | | | | | |
| Comparable Sales (including same store and comparable direct sales) | | | | | | | |
| | | Fourth Quarter Ended | | Fiscal Year Ended | |
| | | Jan. 30, |
| | Jan. 31, |
| Jan. 30, |
| | Jan. 31, |
|
| | | 2016 |
| | 2015 |
| 2016 |
| | 2015 |
|
| Journeys Group | | 5 | % | | 16 | % | 5 | % | | 8 | % |
| Schuh Group | | (2 | )% | | 3 | % | 3 | % | | 1 | % |
| Lids Sports Group | | 3 | % | | 7 | % | 6 | % | | 2 | % |
| Johnston & Murphy Group | | 6 | % | | 2 | % | 6 | % | | 1 | % |
| Total Comparable Sales | | 4 | % | | 10 | % | 5 | % | | 4 | % |
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Three Months Ended January 30, 2016 and January 31, 2015 |
| | | | | |
| | | | | |
| | Fourth | Impact on | Fourth | Impact on |
| | Quarter | Diluted | Quarter | Diluted |
| In Thousands (except per share amounts) | Jan 2016 | EPS | Jan 2015 | EPS |
| Earnings from continuing operations, as reported | $ | 46,744 |
| $ | 2.15 |
| $ | 51,757 |
| $ | 2.18 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 846 |
| 0.04 |
| 162 |
| — |
|
| Deferred payment - Schuh acquisition | — |
| — |
| 965 |
| 0.04 |
|
| Gain on lease termination | — |
| — |
| (14 | ) | — |
|
| Asset write-down | 1,564 |
| 0.07 |
| — |
| — |
|
| Gain on sale of Lids Team Sports | (4,633 | ) | (0.21 | ) | — |
| — |
|
| Network intrusion expenses | 59 |
| — |
| 420 |
| 0.02 |
|
| Higher (lower) effective tax rate | 1,206 |
| 0.06 |
| 1,434 |
| 0.06 |
|
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 45,786 |
| $ | 2.11 |
| $ | 54,724 |
| $ | 2.30 |
|
| | | | | |
(1) All adjustments are net of tax where applicable. The tax rate for the fourth quarter of Fiscal 2016 is 37.1% excluding a FIN 48 discrete item of less than $0.1 million. The tax rate for the fourth quarter of Fiscal 2015 is 37.7% excluding a FIN 48 discrete item of less than $0.1 million.
(2) EPS reflects 21.7 million and 23.8 million share counts 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.
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Three Months Ended January 30, 2016 |
| | | | |
| | Three Months ended January 30, 2016 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 53,654 |
| $ | — |
| $ | 53,654 |
|
| Schuh Group | 8,244 |
| — |
| 8,244 |
|
| Lids Sports Group | 10,140 |
| — |
| 10,140 |
|
| Johnston & Murphy Group | 8,301 |
| — |
| 8,301 |
|
| Licensed Brands | 1,710 |
| — |
| 1,710 |
|
| Corporate and Other | (11,598 | ) | 3,923 |
| (7,675 | ) |
| Total Operating Income | $ | 70,451 |
| $ | 3,923 |
| $ | 74,374 |
|
Schedule B
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Three Months Ended January 31, 2015 |
| | | | |
| | Three Months ended January 31, 2015 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 53,240 |
| $ | — |
| $ | 53,240 |
|
| Schuh Group* | 11,499 |
| 965 |
| 12,464 |
|
| Lids Sports Group | 23,753 |
| — |
| 23,753 |
|
| Johnston & Murphy Group | 6,279 |
| — |
| 6,279 |
|
| Licensed Brands | 1,983 |
| — |
| 1,983 |
|
| Corporate and Other | (9,850 | ) | 934 |
| (8,916 | ) |
| Total Operating Income | $ | 86,904 |
| $ | 1,899 |
| $ | 88,803 |
|
*Schuh Group adjustments include $1.0 million in deferred purchase price payments.
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Earnings from Continuing Operations |
| Twelve Months Ended January 30, 2016 and January 31, 2015 |
| | | | | |
| | | Impact on | | Impact on |
| | 12 mos | Diluted | 12 mos | Diluted |
| In Thousands (except per share amounts) | Jan 2016 | EPS | Jan 2015 | EPS |
| Earnings from continuing operations, as reported | $ | 97,137 |
| $ | 4.22 |
| $ | 99,373 |
| $ | 4.19 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Impairment charges | 1,975 |
| 0.09 |
| 1,185 |
| 0.05 |
|
| Deferred payment - Schuh acquisition | 1,490 |
| 0.07 |
| 7,311 |
| 0.31 |
|
| Gain on lease termination | — |
| — |
| (2,118 | ) | (0.09 | ) |
| Indemnification asset write-off | — |
| — |
| 7,050 |
| 0.3 |
|
| Change in accounting for bonus awards | — |
| — |
| 3,575 |
| 0.15 |
|
| Other legal matters | 75 |
| — |
| 437 |
| 0.02 |
|
| Network intrusion expenses | 1,375 |
| 0.06 |
| 1,929 |
| 0.08 |
|
| Asset write-down | 1,564 |
| 0.07 |
| — |
| — |
|
| Gain on sale of Lids Team Sports | (4,633 | ) | (0.20 | ) | — |
| — |
|
| Higher (lower) effective tax rate | (355 | ) | (0.02 | ) | (6,404 | ) | (0.27 | ) |
| | | | | |
| Adjusted earnings from continuing operations (2) | $ | 98,628 |
| $ | 4.29 |
| $ | 112,338 |
| $ | 4.74 |
|
(1) All adjustments are net of tax where applicable. The tax rate for Fiscal 2016 is 36.8% excluding a FIN 48 discrete item of $0.1 million. The tax rate for Fiscal 2015 is 37.3% excluding a FIN 48 discrete item of $0.1 million.
(2) EPS reflects 23.0 million and 23.7 million share counts 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 |
| Twelve Months Ended January 30, 2016 |
| | | | |
| | Twelve Months ended January 30, 2016 |
| | Operating | | Adj Operating |
| In Thousands | Income | Other Adj | Income |
| Journeys Group | $ | 126,248 |
| $ | — |
| $ | 126,248 |
|
| Schuh Group* | 19,124 |
| 1,490 |
| 20,614 |
|
| Lids Sports Group | 17,040 |
| — |
| 17,040 |
|
| Johnston & Murphy Group | 17,761 |
| — |
| 17,761 |
|
| Licensed Brands | 9,236 |
| — |
| 9,236 |
|
| Corporate and Other | (38,158 | ) | 7,893 |
| (30,265 | ) |
| Total Operating Income | $ | 151,251 |
| $ | 9,383 |
| $ | 160,634 |
|
*Schuh Group adjustments include $1.5 million in deferred purchase price payments.
|
| | | | | | | | | |
| Genesco Inc. |
| Adjustments to Reported Operating Income |
| Twelve Months Ended January 31, 2015 |
| | | | |
| | Twelve Months ended January 31, 2015 |
| | Operating | Bonus Adj | Adj Operating |
| In Thousands | Income | and Other | Income |
| Journeys Group | $ | 114,784 |
| $ | 4,919 |
| $ | 119,703 |
|
| Schuh Group* | 10,110 |
| 7,311 |
| 17,421 |
|
| Lids Sports Group | 48,970 |
| — |
| 48,970 |
|
| Johnston & Murphy Group | 14,856 |
| 25 |
| 14,881 |
|
| Licensed Brands | 10,459 |
| — |
| 10,459 |
|
| Corporate and Other | (31,913 | ) | 3,016 |
| (28,897 | ) |
| Total Operating Income | $ | 167,266 |
| $ | 15,271 |
| $ | 182,537 |
|
*Schuh Group adjustments include $7.3 million in deferred purchase price payments.
Schedule B
|
| | | | | | | | | | | | |
| Genesco Inc. |
| Adjustments to Forecasted Earnings from Continuing Operations |
| Fiscal Year Ending January 28, 2017 |
| | | | | |
| In Thousands (except per share amounts) | High Guidance | Low Guidance |
| | Fiscal 2017 | Fiscal 2017 |
| Forecasted earnings from continuing operations | $ | 98,841 |
| $ | 4.71 |
| $ | 96,492 |
| $ | 4.60 |
|
| | | | | |
| Adjustments: (1) | | | | |
| Asset impairment and other charges | 3,957 |
| 0.19 |
| 4,273 |
| 0.2 |
|
| | | | | |
| Adjusted forecasted earnings from continuing operations (2) | $ | 102,798 |
| $ | 4.90 |
| $ | 100,765 |
| $ | 4.80 |
|
(1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2017 is approximately 36.9% excluding a FIN 48 discrete item of $0.3 million.
(2) EPS reflects 21.0 million share count for Fiscal 2017 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.
