EXHIBIT 99.1
PRESS RELEASE
The following is the text of a press release issued by Genesco Inc. on December
18, 2001.
GENESCO CORRECTS PREVIOUSLY ANNOUNCED RESULTS AND REAFFIRMS EARNINGS GUIDANCE
Nashville, Tenn., December 18, 200l--Genesco Inc. (NYSE:GCO) announced that its
Quarterly Report on Form 10-Q filed today reflects the correction of certain
erroneous entries relating to the timing of certain shipments by its Johnston &
Murphy wholesale operation in the Company's current fiscal year. The Company
believes that the cumulative adjustments reflected in the report for the nine
month period of the current fiscal year are not material, reducing net revenues
by approximately $183,000 and reducing net earnings from continuing operations
by approximately $35,000 as compared to the results reported in the earnings
release dated November 27, 2001. The reductions do not affect the previously
reported earnings per share. While the Company continues to review the impact of
similar erroneous entries on the previously announced results for fiscal 2001,
the Company believes the erroneous entries involve less than 1% of reported
revenues and approximately $0.02 of earnings per diluted share for the fiscal
year ended February 3, 2001. The Company does not believe any adjustments will
be necessary for any fiscal year prior to fiscal 2001. The attached appendix
contains information regarding the impact of these erroneous entries on
previously reported periods.
The Company became aware of these timing issues after it released its results of
operations for the third quarter. The Company began an inquiry into these timing
issues upon receiving the response of an employee of its Johnston & Murphy
division to the Company's annual requirement that employees certify compliance
with written policies regarding ethical business conduct. The employee indicated
that a number of wholesale shipments recorded as sales late in a fiscal quarter
were actually shipped to customers early in the following quarter. The Company
believes that the resulting violations of its corporate and accounting policies
were caused by a small number of employees of its Johnston & Murphy division.
The Company has implemented further measures designed to detect and prevent
future similar violations.
Ben T. Harris, Chairman and Chief Executive Officer of Genesco, said, "We are
dealing decisively with this situation and are confident that such conduct will
not recur." Harris also reaffirmed the Company's most recent earnings guidance
for fiscal 2002, stating, "While we are approaching the most important retailing
weekend of the year, we have come through the holiday selling season thus far
in line with our previously announced earnings expectations."
Genesco, based in Nashville, sells footwear and accessories in more than 875
retail stores in the U.S., principally under the names Journeys, Journeys Kidz,
Johnston & Murphy, Jarman and Underground Station, and on internet websites
www.journeys.com and www.johnstonmurphy.com. The Company also sells footwear at
wholesale under its Johnston & Murphy brand and under the licensed Dockers
brand.
Cautionary Note Regarding Forward-Looking Statements
This release and the attached appendix contain forward-looking statements (all
statements other than those made solely with respect to historical fact) and
other expressions of management's belief or opinion which reflect its current
understanding or belief with respect to such matters. Actual results could
differ materially and adversely from such statements due to known and unknown
factors, including the results of the Company's ongoing internal inquiry,
uncertainties associated with potential regulatory or other actions and the
application of certain accounting principles, lower than expected consumer
demand for the Company's products, which could be caused by further weakening in
the overall economy or adverse consumer reaction to developments in the current
anti-terrorist campaign or by changes in fashions or tastes that the Company
fails to anticipate or respond appropriately to, as well as other factors
detailed in the Company's filings with the Securities and Exchange Commission
from time to time. Forward-looking statements reflect the expectations of the
Company at the time they are made and investors should not place undue reliance
on them. The Company undertakes no obligation to update any such forward-looking
or other statement.
GENESCO INC.
Quarterly Financial Information (Unaudited)
In Thousands, except per share amounts
FISCAL 2002
---------------------------------------------------------------------------------------------
As Reported Adjusted As Reported Adjusted As Reported* Adjusted
Three Months Three Months Three Months Three Months Three Months Three Months
Ended Ended Ended Ended Ended Ended
May 5, Adjust- May 5, August 4, Adjust- August 4, November 3, Adjust- November 3,
2001 ments 2001 2001 ments 2001 2001 ments 2001
---------------------------------------- ---------------------------------------------------
Net sales $171,918 $2,558 $174,476 $166,543 $(1,214) $165,329 $185,955 $1,314 $187,269
Gross margin 82,097 832 82,929 78,365 (364) 78,001 86,018 399 86,417
Pretax earnings 13,350 652 14,002 9,878 (340) 9,538 12,924 373 13,297
Earnings before discontinued operations 8,338 415 8,753 6,183 (213) 5,970 8,026 233 8,259
Net earnings 8,338 415 8,753 6,183 (213) 5,970 7,318 233 7,551
Diluted earnings per common share:
Before discontinued operations $ 0.34 $ 0.01 $ 0.35 $ 0.26 $ (0.01) $ 0.25 $ 0.33 $ 0.01 $ 0.34
Net earnings $ 0.34 $ 0.01 $ 0.35 $ 0.26 $ (0.01) $ 0.25 $ 0.30 $ 0.01 $ 0.31
As Reported* Adjusted
Nine Months Nine Months
Ended Ended
November 3, Adjust- November 3,
2001 ments 2001
-------------------------------------------
Net sales $524,416 $2,658 $527,074
Gross margin 246,480 867 247,347
Pretax earnings 36,152 685 36,837
Earnings before discontinued operations 22,547 435 22,982
Net earnings 21,839 435 22,274
Diluted earnings per common share:
Before discontinued operations $ 0.92 $ 0.02 $ 0.94
Net earnings $ 0.90 $ 0.01 $ 0.91
FISCAL 2001
-----------------------------------------------------------------------------------------------
As Reported Adjusted As Reported Adjusted
Three Months Three Months Three Months Three Months
Ended Ended Ended Ended
April 29, Adjust- April 29, July 29, Adjust- July 29,
2000 ments 2000 2000 ments 2000
---------------------------------------------- ------------------------------------------------
Net sales $146,644 $(1,293) $145,351 $ 143,243 $(1,461) $141,782
Gross margin 68,306 (327) 67,979 68,966 (664) 68,302
Pretax earnings 10,190 (284) 9,906 9,041 (638) 8,403
Earnings before discontinued
operations 6,193 (173) 6,020 5,531 (391) 5,140
Net earnings 5,961 (173) 5,788 2,562 (391) 2,171
Diluted earnings per common share:
Before discontinued operations $ 0.26 $ 0.26 $ 0.24 $ (0.02) $ 0.22
Net earnings $ 0.25 $ 0.25 $ 0.13 $ (0.02) $ 0.11
FISCAL 2001
--------------------------------------------
As Reported Adjusted
Three Months Three Months
Ended Ended
October 28, Adjust- October 28,
2000 ments 2000
--------------------------------------------
Net sales $176,086 $2,171 $178,257
Gross margin 82,662 751 83,413
Pretax earnings 14,340 694 15,034
Earnings before discontinued
operations 8,785 424 9,209
Net earnings 8,785 424 9,209
Diluted earnings per common share:
Before discontinued operations $ 0.36 $ 0.01 $ 0.37
Net earnings $ 0.36 $ 0.01 $ 0.37
As Reported Adjusted As Reported Adjusted
Three Months Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
February 3, Adjust- February 3, February 3, Adjust- February 3,
2001 ments 2001 2001 ments 2001
-----------------------------------------------------------------------------------
Net sales $214,193 $(2,258) $211,935 $680,166 $(2,841) $677,325
Gross margin 102,579 (687) 101,892 322,513 (927) 321,586
Pretax earnings 19,416 (513) 18,903 52,987 (741) 52,246
Earnings before discontinued operations 12,322 (330) 11,992 32,831 (470) 32,361
Net earnings 12,290 (330) 11,960 29,598 (470) 29,128
Diluted earnings per common share:
Before discontinued operations $ 0.49 $ (0.01) $ 0.48 $ 1.35 $ (0.02) $ 1.33
Net earnings $ 0.49 $ (0.02) $ 0.47 $ 1.23 $ (0.02) $ 1.21
*As reported in the Company's press release dated November 27, 2001