Tennessee | 1-3083 | 62-0211340 | ||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1415 Murfreesboro Road Nashville, Tennessee | 37217-2895 | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Exhibit Number | Description | ||
99.1 | Press Release dated August 28, 2014, issued by Genesco Inc. | ||
99.2 | Genesco Inc. Second Fiscal Quarter Ended August 2, 2014 Chief Financial Officer’s Commentary |
GENESCO INC. | ||||
Date: August 28, 2014 | By: | /s/ Roger G. Sisson | ||
Name: | Roger G. Sisson | |||
Title: | Senior Vice President, Secretary and General Counsel |
No. | Exhibit | |||
99.1 | Press Release dated August 28, 2014 | |||
99.2 | Genesco Inc. Second Fiscal Quarter Ended August 2, 2014 Chief Financial Officer’s Commentary |
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 |
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 |
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 |
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 | )% |
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 | ||||
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 |
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 |
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 | ||||
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 |
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 |
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 |
Comparable Sales | ||
2nd Qtr | 2nd Qtr | |
Same Store Sales: | FY15 | FY14 |
Journeys Group | 5% | (1)% |
Schuh Group | (1)% | (8)% |
Lids Sports Group | (3)% | (4)% |
Johnston & Murphy Group | 2% | 6% |
Total Genesco | 1% | (3)% |
2nd Qtr | 2nd Qtr | |
Comparable Direct Sales: | FY15 | FY14 |
Journeys Group | 31% | 21% |
Schuh Group | 14% | (1)% |
Lids Sports Group | 10% | 25% |
Johnston & Murphy Group | 2% | 12% |
Total Genesco | 13% | 11% |
2nd Qtr | 2nd Qtr | |
Same Store and Comparable Direct Sales: | FY15 | FY14 |
Journeys Group | 5% | (1)% |
Schuh Group | 1% | (7)% |
Lids Sports Group | (2)% | (3)% |
Johnston & Murphy Group | 2% | 7% |
Total Genesco | 2% | (2)% |
Lids stores (including 112 stores in Canada) | 932 |
Lids Locker Room Stores | 172 |
Lids Clubhouse Stores | 34 |
Journeys Stores (including 32 Stores in Canada) | 829 |
Journeys Kidz Stores | 179 |
Shï by Journeys Stores | 49 |
Underground by Journeys Stores | 115 |
Schuh Stores including 4 Kids Stores | 99 |
Johnston & Murphy Stores and Factory Stores (including 7 stores in Canada) | 170 |
Total Stores | 2,579 |
Locker Room by Lids in Macy’s stores | 95 |
Total Stores and Macy’s Locations | 2,674 |
Actual | Projected | Projected | Projected | Projected | ||||
Jan 2014 | New | Acquisitions | Conversions | Closings | Jan 2015 | |||
Journeys Group | 1,168 | 50 | (14) | 1,204 | ||||
Journeys stores (U.S.) | 796 | 20 | (5) | 811 | ||||
Journeys stores (Canada) | 31 | 5 | 0 | 36 | ||||
Journeys Kidz stores | 174 | 25 | (3) | 196 | ||||
Shï by Journeys | 50 | 0 | (1) | 49 | ||||
Underground by Journeys | 117 | 0 | (5) | 112 | ||||
Johnston & Murphy Group | 168 | 8 | (6) | 170 | ||||
Schuh Group | 96 | 14 | (1) | 109 | ||||
Schuh Stores | 92 | 12 | (1) | 103 | ||||
Schuh Kids | 4 | 2 | 0 | 6 | ||||
Lids Sports Group | 1,133 | 249 | 19 | (21) | 1,380 | |||
Lids hat stores (U.S.) | 820 | 34 | 1 | (15) | 840 | |||
Lids hat stores (Canada) | 110 | 15 | (1) | 124 | ||||
Lids Locker Room, Locker Room by Lids in Macy’s stores & Lids Clubhouse | 203 | 200* | 19 | (1) | (5) | 416 | ||
Total Permanent Stores | 2,565 | 321* | 19 | 0 | (42) | 2,863 | ||
Schuh “pop-up” stores | 3 | 0 | 0 | 0 | (3) | 0 | ||
Total Stores | 2,568 | 321 | 19 | 0 | (45) | 2,863 | ||
Actual | Actual | Guidance | |||
Q1 | Q2 | Q3 | Q4 | FY15 | |
Journeys Group | 1% | 5% | 3 - 4% | 3 - 4% | 3 - 4% |
Lids Sports Group | 1% | (2%) | 1 - 2% | 1 - 2% | 0 - 1% |
Schuh Group | (1%) | 1% | 3 - 4% | 4 - 5% | 2 - 3% |
Johnston & Murphy Group | (1%) | 2% | 0 - 1% | 2 - 3% | 0 - 1% |
Total Genesco | 1% | 2% | 2 - 3% | 3 - 4% | 1 - 2% |