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 March 12, 2015, issued by Genesco Inc. | ||
99.2 | Genesco Inc. Fourth Fiscal Quarter Ended January 31, 2015 Chief Financial Officer’s Commentary |
GENESCO INC. | ||||
Date: March 12, 2015 | By: | /s/ Roger G. Sisson | ||
Name: | Roger G. Sisson | |||
Title: | Senior Vice President, Secretary and General Counsel |
No. | Exhibit | |||
99.1 | Press Release dated March 12, 2015 | |||
99.2 | Genesco Inc. Fourth Fiscal Quarter Ended January 31, 2015 Chief Financial Officer’s Commentary |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Fourth Quarter | Fiscal Year Ended | ||||||||||||||
Jan. 31, | Feb. 1, | Jan. 31, | Feb. 1, | ||||||||||||
In Thousands | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net sales | $ | 892,630 | $ | 792,506 | $ | 2,859,844 | $ | 2,624,972 | |||||||
Cost of sales | 468,397 | 406,862 | 1,459,433 | 1,325,922 | |||||||||||
Selling and administrative expenses* | 336,395 | 304,768 | 1,230,864 | 1,134,274 | |||||||||||
Asset impairments and other, net | 934 | 5,672 | 2,281 | 1,341 | |||||||||||
Earnings from operations | 86,904 | 75,204 | 167,266 | 163,435 | |||||||||||
Indemnification asset write-off | — | — | 7,050 | — | |||||||||||
Interest expense, net | 853 | 1,206 | 3,227 | 4,575 | |||||||||||
Earnings from continuing operations | |||||||||||||||
before income taxes | 86,051 | 73,998 | 156,989 | 158,860 | |||||||||||
Income tax expense | 34,294 | 31,786 | 57,616 | 65,878 | |||||||||||
Earnings from continuing operations | 51,757 | 42,212 | 99,373 | 92,982 | |||||||||||
Provision for discontinued operations | (1,361 | ) | (59 | ) | (1,648 | ) | (329 | ) | |||||||
Net Earnings | $ | 50,396 | $ | 42,153 | $ | 97,725 | $ | 92,653 |
Earnings Per Share Information | |||||||||||||||
Fourth Quarter | Fiscal Year Ended | ||||||||||||||
Jan. 31, | Feb. 1, | Jan. 31, | Feb. 1, | ||||||||||||
In Thousands (except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Preferred dividend requirements | $ | — | $ | — | $ | — | $ | 33 | |||||||
Average common shares - Basic EPS | 23,563 | 23,291 | 23,507 | 23,297 | |||||||||||
Basic earnings per share: | |||||||||||||||
From continuing operations | $ | 2.20 | $ | 1.81 | $ | 4.23 | $ | 3.99 | |||||||
Net earnings | $ | 2.14 | $ | 1.81 | $ | 4.16 | $ | 3.98 | |||||||
Average common and common | |||||||||||||||
equivalent shares - Diluted EPS | 23,759 | 23,600 | 23,708 | 23,615 | |||||||||||
Diluted earnings per share: | |||||||||||||||
From continuing operations | $ | 2.18 | $ | 1.79 | $ | 4.19 | $ | 3.94 | |||||||
Net earnings | $ | 2.12 | $ | 1.79 | $ | 4.12 | $ | 3.92 |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Fourth Quarter | Fiscal Year Ended | ||||||||||||||
Jan. 31, | Feb. 1, | Jan. 31, | Feb. 1, | ||||||||||||
In Thousands | 2015 | 2014 | 2015 | 2014 | |||||||||||
Sales: | |||||||||||||||
Journeys Group | $ | 376,734 | $ | 321,534 | $ | 1,179,476 | $ | 1,082,241 | |||||||
Schuh Group | 123,942 | 121,744 | 406,947 | 364,732 | |||||||||||
Lids Sports Group | 294,040 | 251,481 | 902,661 | 820,996 | |||||||||||
Johnston & Murphy Group | 75,318 | 72,569 | 259,675 | 245,941 | |||||||||||
Licensed Brands | 22,380 | 24,926 | 110,115 | 109,780 | |||||||||||
Corporate and Other | 216 | 252 | 970 | 1,282 | |||||||||||
Net Sales | $ | 892,630 | $ | 792,506 | $ | 2,859,844 | $ | 2,624,972 | |||||||
Operating Income (Loss): | |||||||||||||||
Journeys Group | $ | 53,240 | $ | 41,179 | $ | 114,784 | $ | 97,377 | |||||||
Schuh Group (1) | 11,499 | 7,194 | 10,110 | 3,063 | |||||||||||
Lids Sports Group | 23,753 | 28,231 | 48,970 | 63,748 | |||||||||||
Johnston & Murphy Group | 6,279 | 7,206 | 14,856 | 17,638 | |||||||||||
Licensed Brands | 1,983 | 2,110 | 10,459 | 10,614 | |||||||||||
Corporate and Other (2) | (9,850 | ) | (10,716 | ) | (31,913 | ) | (29,005 | ) | |||||||
Earnings from operations | 86,904 | 75,204 | 167,266 | 163,435 | |||||||||||
Indemnification asset write-off | — | — | 7,050 | — | |||||||||||
Interest, net | 853 | 1,206 | 3,227 | 4,575 | |||||||||||
Earnings from continuing operations | |||||||||||||||
before income taxes | 86,051 | 73,998 | 156,989 | 158,860 | |||||||||||
Income tax expense | 34,294 | 31,786 | 57,616 | 65,878 | |||||||||||
Earnings from continuing operations | 51,757 | 42,212 | 99,373 | 92,982 | |||||||||||
Provision for discontinued operations | (1,361 | ) | (59 | ) | (1,648 | ) | (329 | ) | |||||||
Net Earnings | $ | 50,396 | $ | 42,153 | $ | 97,725 | $ | 92,653 |
GENESCO INC. | |||||||
Consolidated Balance Sheet | |||||||
Jan. 31, | Feb. 1, | ||||||
In Thousands | 2015 | 2014 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 112,867 | $ | 59,447 | |||
Accounts receivable | 55,263 | 52,646 | |||||
Inventories | 598,145 | 567,261 | |||||
Other current assets | 82,305 | 77,521 | |||||
Total current assets | 848,580 | 756,875 | |||||
Property and equipment | 305,752 | 280,037 | |||||
Other non-current assets | 429,677 | 402,372 | |||||
Total Assets | $ | 1,584,009 | $ | 1,439,284 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 176,307 | $ | 145,483 | |||
Current portion long-term debt | 13,152 | 6,793 | |||||
Other current liabilities | 217,702 | 153,302 | |||||
Total current liabilities | 407,161 | 305,578 | |||||
Long-term debt | 16,003 | 26,937 | |||||
Other long-term liabilities | 163,593 | 188,646 | |||||
Equity | 997,252 | 918,123 | |||||
Total Liabilities and Equity | $ | 1,584,009 | $ | 1,439,284 |
GENESCO INC. | ||||||||||||||||||||||||||
Retail Units Operated - Twelve Months Ended January 31, 2015 | ||||||||||||||||||||||||||
Balance | Acquisi- | Balance | Acquisi- | Balance | ||||||||||||||||||||||
2/2/2013 | tions | Open | Close | 2/1/2014 | tions | Open | Close | 1/31/2015 | ||||||||||||||||||
Journeys Group | 1,157 | — | 39 | 28 | 1,168 | — | 34 | 20 | 1,182 | |||||||||||||||||
Journeys | 820 | — | 20 | 13 | 827 | — | 16 | 9 | 834 | |||||||||||||||||
Underground by Journeys | 130 | — | — | 13 | 117 | — | — | 7 | 110 | |||||||||||||||||
Journeys Kidz | 156 | — | 19 | 1 | 174 | — | 18 | 3 | 189 | |||||||||||||||||
Shi by Journeys | 51 | — | — | 1 | 50 | — | — | 1 | 49 | |||||||||||||||||
Schuh Group | 92 | — | 29 | 22 | 99 | — | 13 | 4 | 108 | |||||||||||||||||
Schuh UK* | 70 | — | 29 | 9 | 90 | — | 12 | 4 | 98 | |||||||||||||||||
Schuh ROI | 9 | — | — | — | 9 | — | 1 | — | 10 | |||||||||||||||||
Schuh Concessions* | 13 | — | — | 13 | — | — | — | — | — | |||||||||||||||||
Lids Sports Group** | 1,053 | 15 | 102 | 37 | 1,133 | 56 | 218 | 43 | 1,364 | |||||||||||||||||
Johnston & Murphy Group | 157 | — | 13 | 2 | 168 | — | 8 | 6 | 170 | |||||||||||||||||
Shops | 102 | — | 6 | 2 | 106 | — | 3 | 4 | 105 | |||||||||||||||||
Factory Outlets | 55 | — | 7 | — | 62 | — | 5 | 2 | 65 | |||||||||||||||||
Total Retail Units | 2,459 | 15 | 183 | 89 | 2,568 | 56 | 273 | 73 | 2,824 | |||||||||||||||||
Permanent Units* | 2,446 | 15 | 173 | 69 | 2,565 | 56 | 273 | 70 | 2,824 |
Retail Units Operated - Three Months Ended January 31, 2015 | ||||||||||||||
Balance | Acquisi- | Balance | ||||||||||||
11/1/2014 | tions | Open | Close | 1/31/2015 | ||||||||||
Journeys Group | 1,183 | — | 8 | 9 | 1,182 | |||||||||
Journeys | 837 | — | 2 | 5 | 834 | |||||||||
Underground by Journeys | 113 | — | — | 3 | 110 | |||||||||
Journeys Kidz | 184 | — | 6 | 1 | 189 | |||||||||
Shi by Journeys | 49 | — | — | — | 49 | |||||||||
Schuh Group | 106 | — | 2 | — | 108 | |||||||||
Schuh UK* | 96 | — | 2 | — | 98 | |||||||||
Schuh ROI | 10 | — | — | — | 10 | |||||||||
Lids Sports Group** | 1,377 | — | 3 | 16 | 1,364 | |||||||||
Johnston & Murphy Group | 171 | — | — | 1 | 170 | |||||||||
Shops | 106 | — | — | 1 | 105 | |||||||||
Factory Outlets | 65 | — | — | — | 65 | |||||||||
Total Retail Units | 2,837 | — | 13 | 26 | 2,824 | |||||||||
Permanent Units* | 2,837 | — | 13 | 26 | 2,824 |
Genesco Inc. | |||||||||||
Comparable Sales (including same store and comparable direct sales) | |||||||||||
Fourth Quarter Ended | Fiscal Year Ended | ||||||||||
Jan. 31, | Feb. 1, | Jan. 31, | Feb. 1, | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Journeys Group | 16 | % | 0 | % | 8 | % | (1 | )% | |||
Schuh Group | 3 | % | (7 | )% | 1 | % | (8 | )% | |||
Lids Sports Group | 7 | % | 4 | % | 2 | % | 0 | % | |||
Johnston & Murphy Group | 2 | % | 11 | % | 1 | % | 8 | % | |||
Total Comparable Sales | 10 | % | 1 | % | 4 | % | (1 | )% |
Genesco Inc. | ||||||||||||
Adjustments to Reported Earnings from Continuing Operations | ||||||||||||
Fourth Quarter Ended January 31, 2015 and February 1, 2014 | ||||||||||||
Fourth | Impact on | Fourth | Impact on | |||||||||
Quarter | Diluted | Quarter | Diluted | |||||||||
In Thousands (except per share amounts) | Jan 2015 | EPS | Jan 2014 | EPS | ||||||||
Earnings from continuing operations, as reported | $ | 51,757 | $ | 2.18 | $ | 42,212 | $ | 1.79 | ||||
Adjustments: (1) | ||||||||||||
Impairment charges | 162 | — | 365 | 0.02 | ||||||||
Deferred payment - Schuh acquisition | 965 | 0.04 | 3,042 | 0.13 | ||||||||
Gain on lease termination | (14 | ) | — | — | — | |||||||
Lease termination expense | — | — | 986 | 0.04 | ||||||||
Change in accounting for bonus awards | — | — | (935 | ) | (0.04 | ) | ||||||
Other legal matters | — | — | 1,017 | 0.04 | ||||||||
Network intrusion expenses | 420 | 0.02 | 1,196 | 0.05 | ||||||||
Higher (lower) effective tax rate | 1,434 | 0.06 | 3,128 | 0.13 | ||||||||
Adjusted earnings from continuing operations (2) | $ | 54,724 | $ | 2.30 | $ | 51,011 | $ | 2.16 | ||||
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Fourth Quarter Ended January 31, 2015 | |||||||||
Three Months ended January 31, 2015 | |||||||||
Operating | Bonus Adj | Adj Operating | |||||||
In Thousands | Income | and Other | 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 |
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Fourth Quarter Ended February 1, 2014 | |||||||||
Three Months ended February 1, 2014 | |||||||||
Operating | Bonus Adj | Adj Operating | |||||||
In Thousands | Income | and Other | Income | ||||||
Journeys Group | $ | 41,179 | $ | 1,068 | $ | 42,247 | |||
Schuh Group* | 7,194 | 2,433 | 9,627 | ||||||
Lids Sports Group | 28,231 | — | 28,231 | ||||||
Johnston & Murphy Group | 7,206 | 11 | 7,217 | ||||||
Licensed Brands | 2,110 | 13 | 2,123 | ||||||
Corporate and Other | (10,716 | ) | 3,676 | (7,040 | ) | ||||
Total Operating Income | $ | 75,204 | $ | 7,201 | $ | 82,405 |
Genesco Inc. | ||||||||||||
Adjustments to Reported Earnings from Continuing Operations | ||||||||||||
Twelve Months Ended January 31, 2015 and February 1, 2014 | ||||||||||||
Impact on | Impact on | |||||||||||
12 mos | Diluted | 12 mos | Diluted | |||||||||
In Thousands (except per share amounts) | Jan 2015 | EPS | Jan 2014 | EPS | ||||||||
Earnings from continuing operations, as reported | $ | 99,373 | $ | 4.19 | $ | 92,982 | $ | 3.94 | ||||
Adjustments: (1) | ||||||||||||
Impairment charges | 1,185 | 0.05 | 1,473 | 0.06 | ||||||||
Deferred payment - Schuh acquisition | 7,311 | 0.31 | 11,693 | 0.50 | ||||||||
Gain on lease termination | (2,118 | ) | (0.09 | ) | (2,077 | ) | (0.09 | ) | ||||
Lease termination expense | — | — | 986 | 0.04 | ||||||||
Indemnification asset write-off | 7,050 | 0.30 | — | — | ||||||||
Change in accounting for bonus awards | 3,575 | 0.15 | 9,384 | 0.40 | ||||||||
Other legal matters | 437 | 0.02 | 1,488 | 0.06 | ||||||||
Network intrusion expenses | 1,929 | 0.08 | 2,092 | 0.09 | ||||||||
Higher (lower) effective tax rate | (6,404 | ) | (0.27 | ) | 2,251 | 0.09 | ||||||
Adjusted earnings from continuing operations (2) | $ | 112,338 | $ | 4.74 | $ | 120,272 | $ | 5.09 |
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 |
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Twelve Months Ended February 1, 2014 | |||||||||
Twelve Months ended February 1, 2014 | |||||||||
Operating | Bonus Adj | Adj Operating | |||||||
In Thousands | Income | and Other | Income | ||||||
Journeys Group* | $ | 97,377 | $ | 8,096 | $ | 105,473 | |||
Schuh Group** | 3,063 | 15,028 | 18,091 | ||||||
Lids Sports Group | 63,748 | 1,676 | 65,424 | ||||||
Johnston & Murphy Group | 17,638 | 34 | 17,672 | ||||||
Licensed Brands | 10,614 | 13 | 10,627 | ||||||
Corporate and Other* | (29,005 | ) | 8,117 | (20,888 | ) | ||||
Total Operating Income | $ | 163,435 | $ | 32,964 | $ | 196,399 |
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 | $ | 118,664 | $ | 4.98 | $ | 116,177 | $ | 4.87 | ||||
Adjustments: (1) | ||||||||||||
Asset impairment and other charges | 3,710 | 0.16 | 4,028 | 0.17 | ||||||||
Deferred payment - Schuh acquisition | 1,526 | 0.06 | 1,526 | 0.06 | ||||||||
Adjusted forecasted earnings from continuing operations (2) | $ | 123,900 | $ | 5.20 | $ | 121,731 | $ | 5.10 |
Comparable Sales | ||||||
4th Qtr | 4th Qtr | 12 mos | 12 mos | |||
Same Store Sales: | FY15 | FY14 | FY15 | FY14 | ||
Journeys Group | 14% | (1)% | 7% | (2)% | ||
Schuh Group | (1 | )% | (7)% | (1 | )% | (9)% |
Lids Sports Group | 5% | 3% | 1% | (1)% | ||
Johnston & Murphy Group | 2% | 7% | 1% | 7% | ||
Total Genesco | 9% | 0% | 4% | (2)% | ||
4th Qtr | 4th Qtr | 12 mos | 12 mos | |||
Comparable Direct Sales: | FY15 | FY14 | FY15 | FY14 | ||
Journeys Group | 40% | 20% | 30% | 18% | ||
Schuh Group | 25% | (7)% | 12% | (4)% | ||
Lids Sports Group | 27% | 18% | 14% | 26% | ||
Johnston & Murphy Group | 3% | 26% | (1)% | 15% | ||
Total Genesco | 25% | 10% | 14% | 11% | ||
4th Qtr | 4th Qtr | 12 mos | 12 mos | |||
Same Store and Comparable Direct Sales: | FY15 | FY14 | FY15 | FY14 | ||
Journeys Group | 16% | 0% | 8% | (1)% | ||
Schuh Group | 3% | (7)% | 1% | (8)% | ||
Lids Sports Group | 7% | 4% | 2% | 0% | ||
Johnston & Murphy Group | 2% | 11% | 1% | 8% | ||
Total Genesco | 10% | 1% | 4% | (1)% |
Lids stores (including 117 stores in Canada) | 932 |
Lids Locker Room Stores (including 37 stores in Canada) | 209 |
Lids Clubhouse stores | 33 |
Journeys stores (including 35 stores in Canada) | 834 |
Journeys Kidz stores | 189 |
Shï by Journeys stores | 49 |
Underground by Journeys stores | 110 |
Schuh Stores (including 6 Kids stores) | 108 |
Johnston & Murphy Stores and Factory stores (including 7 stores in Canada) | 170 |
Total Stores | 2,634 |
Locker Room by Lids in Macy’s stores | 190 |
Total Stores and Macy’s Locations | 2,824 |
Actual | Projected | Projected | Projected | Projected | |||
Jan 2015 | New | Conversions | Closings | Jan 2016 | |||
Journeys Group | 1,182 | 58 | (22) | 1,218 | |||
Journeys stores (U.S.) | 799 | 20 | (6) | 813 | |||
Journeys stores (Canada) | 35 | 8 | 0 | 43 | |||
Journeys Kidz stores | 189 | 30 | (4) | 215 | |||
Shï by Journeys | 49 | 0 | (2) | 47 | |||
Underground by Journeys | 110 | 0 | (10) | 100 | |||
Johnston & Murphy Group | 170 | 11 | (3) | 178 | |||
Schuh Group | 108 | 22 | (1) | 129 | |||
Schuh Stores | 102 | 18 | (1) | 119 | |||
Schuh Kids | 6 | 4 | 0 | 10 | |||
Lids Sports Group | 1,364 | 25 | 0 | (8) | 1,381 | ||
Lids hat stores (U.S.) | 815 | 15 | (3) | 827 | |||
Lids hat stores (Canada) | 117 | 5 | (3) | 0 | 119 | ||
Lids Locker Room, Locker Room by Lids in Macy’s stores & Lids Clubhouse | 432 | 5 | 3 | (5) | 435 | ||
Total Permanent Stores | 2,824 | 116 | 0 | (34) | 2,906 | ||
Schuh “pop-up” stores | 0 | 0 | 0 | 0 | 0 | ||
Total Stores | 2,824 | 116 | 0 | (34) | 2,906 | ||
Guidance | Guidance | Guidance | Guidance | ||
Q1 | Q2 | Q3 | Q4 | FY16 | |
Journeys Group | 5 - 6% | 5 - 6% | 4 - 5% | 4 - 5% | 4 - 5% |
Lids Sports Group | 2 - 3% | 4 - 5% | 3 - 4% | 3 - 4% | 3 - 4% |
Schuh Group | 4 - 5% | 3 - 4% | 2 - 3% | 2 - 3% | 3 - 4% |
Johnston & Murphy Group | 0 - 1% | 2 - 3% | 2 - 3% | 2 - 3% | 2 - 3% |
Total Genesco | 3 - 4% | 4 - 5% | 4 - 5% | 3 - 4% | 3 - 4% |