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 September 1, 2016, issued by Genesco Inc. | ||
99.2 | Genesco Inc. Second Fiscal Quarter Ended July 30, 2016 Chief Financial Officer’s Commentary |
GENESCO INC. | ||||
Date: September 1, 2016 | By: | /s/ Roger G. Sisson | ||
Name: | Roger G. Sisson | |||
Title: | Senior Vice President, Secretary and General Counsel |
No. | Exhibit | |||
99.1 | Press Release dated September 1, 2016 | |||
99.2 | Genesco Inc. First Fiscal Quarter Ended July 30, 2016 Chief Financial Officer’s Commentary |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 30, | August 1, | July 30, | August 1, | ||||||||||||
In Thousands | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net sales | $ | 625,557 | $ | 655,525 | $ | 1,274,350 | $ | 1,316,122 | |||||||
Cost of sales | 310,820 | 335,434 | 629,916 | 669,698 | |||||||||||
Selling and administrative expenses* | 302,662 | 306,422 | 610,905 | 613,855 | |||||||||||
Asset impairments and other, net | (7,945 | ) | 1,173 | (4,388 | ) | 3,819 | |||||||||
Earnings from operations | 20,020 | 12,496 | 37,917 | 28,750 | |||||||||||
Gain on sale of Lids Team Sports | (2,485 | ) | — | (2,485 | ) | — | |||||||||
Interest expense, net | 1,306 | 928 | 2,443 | 1,573 | |||||||||||
Earnings from continuing operations | |||||||||||||||
before income taxes | 21,199 | 11,568 | 37,959 | 27,177 | |||||||||||
Income tax expense | 6,695 | 3,975 | 12,891 | 9,639 | |||||||||||
Earnings from continuing operations | 14,504 | 7,593 | 25,068 | 17,538 | |||||||||||
Provision for discontinued operations | 74 | (73 | ) | (80 | ) | (140 | ) | ||||||||
Net Earnings | $ | 14,578 | $ | 7,520 | $ | 24,988 | $ | 17,398 |
Earnings Per Share Information | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 30, | August 1, | July 30, | August 1, | ||||||||||||
In Thousands (except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Average common shares - Basic EPS | 20,195 | 23,538 | 20,505 | 23,544 | |||||||||||
Basic earnings per share: | |||||||||||||||
Before continuing operations | $ | 0.72 | $ | 0.32 | $ | 1.22 | $ | 0.74 | |||||||
Net earnings | $ | 0.72 | $ | 0.32 | $ | 1.22 | $ | 0.74 | |||||||
Average common and common | |||||||||||||||
equivalent shares - Diluted EPS | 20,244 | 23,616 | 20,617 | 23,695 | |||||||||||
Diluted earnings per share: | |||||||||||||||
Before continuing operations | $ | 0.72 | $ | 0.32 | $ | 1.22 | $ | 0.74 | |||||||
Net earnings | $ | 0.72 | $ | 0.32 | $ | 1.21 | $ | 0.73 |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 30, | August 1, | July 30, | August 1, | ||||||||||||
In Thousands | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales: | |||||||||||||||
Journeys Group | $ | 252,134 | $ | 247,177 | $ | 546,355 | $ | 525,809 | |||||||
Schuh Group | 96,960 | 103,204 | 172,630 | 181,766 | |||||||||||
Lids Sports Group | 188,912 | 222,218 | 368,288 | 428,547 | |||||||||||
Johnston & Murphy Group | 65,151 | 60,822 | 135,126 | 127,184 | |||||||||||
Licensed Brands | 22,100 | 21,942 | 51,566 | 52,519 | |||||||||||
Corporate and Other | 300 | 162 | 385 | 297 | |||||||||||
Net Sales | $ | 625,557 | $ | 655,525 | $ | 1,274,350 | $ | 1,316,122 | |||||||
Operating Income (Loss): | |||||||||||||||
Journeys Group | $ | 4,481 | $ | 9,228 | $ | 24,101 | $ | 33,650 | |||||||
Schuh Group (1) | 5,693 | 4,892 | 3,032 | 2,231 | |||||||||||
Lids Sports Group | 7,132 | 5,593 | 13,169 | 2,196 | |||||||||||
Johnston & Murphy Group | 2,255 | 846 | 7,097 | 4,823 | |||||||||||
Licensed Brands | 234 | 1,158 | 2,087 | 4,181 | |||||||||||
Corporate and Other (2) | 225 | (9,221 | ) | (11,569 | ) | (18,331 | ) | ||||||||
Earnings from operations | 20,020 | 12,496 | 37,917 | 28,750 | |||||||||||
Gain on sale of Lids Team Sports | (2,485 | ) | — | (2,485 | ) | — | |||||||||
Interest, net | 1,306 | 928 | 2,443 | 1,573 | |||||||||||
Earnings from continuing operations | |||||||||||||||
before income taxes | 21,199 | 11,568 | 37,959 | 27,177 | |||||||||||
Income tax expense | 6,695 | 3,975 | 12,891 | 9,639 | |||||||||||
Earnings from continuing operations | 14,504 | 7,593 | 25,068 | 17,538 | |||||||||||
Provision for discontinued operations | 74 | (73 | ) | (80 | ) | (140 | ) | ||||||||
Net Earnings | $ | 14,578 | $ | 7,520 | $ | 24,988 | $ | 17,398 |
GENESCO INC. | |||||||
Consolidated Balance Sheet | |||||||
July 30, | August 1, | ||||||
In Thousands | 2016 | 2015 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 41,466 | $ | 48,997 | |||
Accounts receivable | 46,469 | 58,385 | |||||
Inventories | 663,708 | 734,803 | |||||
Other current assets | 97,527 | 99,836 | |||||
Total current assets | 849,170 | 942,021 | |||||
Property and equipment | 321,231 | 310,415 | |||||
Goodwill and other intangibles | 366,186 | 393,155 | |||||
Other non-current assets | 44,726 | 38,297 | |||||
Total Assets | $ | 1,581,313 | $ | 1,683,888 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 269,371 | $ | 271,021 | |||
Current portion long-term debt | 10,620 | 18,764 | |||||
Other current liabilities | 127,714 | 135,986 | |||||
Total current liabilities | 407,705 | 425,771 | |||||
Long-term debt | 124,981 | 94,281 | |||||
Pension liability | 9,487 | 21,686 | |||||
Deferred rent and other long-term liabilities | 152,221 | 146,135 | |||||
Equity | 886,919 | 996,015 | |||||
Total Liabilities and Equity | $ | 1,581,313 | $ | 1,683,888 |
GENESCO INC. | |||||||||||||||||||||||
Retail Units Operated - Six Months Ended July 30, 2016 | |||||||||||||||||||||||
Balance | Acqui- | Balance | Balance | ||||||||||||||||||||
1/31/2015 | sitions | Open | Close | 1/30/2016 | Open | Close | 7/30/2016 | ||||||||||||||||
Journeys Group | 1,182 | 37 | 29 | 26 | 1,222 | 17 | 9 | 1,230 | |||||||||||||||
Journeys | 834 | — | 13 | 5 | 842 | 9 | 5 | 846 | |||||||||||||||
Underground by Journeys | 110 | — | — | 12 | 98 | — | 2 | 96 | |||||||||||||||
Journeys Kidz | 189 | — | 16 | 5 | 200 | 8 | — | 208 | |||||||||||||||
Shi by Journeys | 49 | — | — | 3 | 46 | — | 2 | 44 | |||||||||||||||
Little Burgundy | — | 37 | — | 1 | 36 | — | — | 36 | |||||||||||||||
Schuh Group | 108 | — | 17 | — | 125 | 4 | 3 | 126 | |||||||||||||||
Lids Sports Group* | 1,364 | — | 27 | 59 | 1,332 | 7 | 64 | 1,275 | |||||||||||||||
Johnston & Murphy Group | 170 | — | 8 | 5 | 173 | 4 | 3 | 174 | |||||||||||||||
Shops | 105 | — | 3 | 5 | 103 | 3 | 2 | 104 | |||||||||||||||
Factory Outlets | 65 | — | 5 | — | 70 | 1 | 1 | 70 | |||||||||||||||
Total Retail Units | 2,824 | 37 | 81 | 90 | 2,852 | 32 | 79 | 2,805 |
Retail Units Operated - Three Months Ended July 30, 2016 | |||||||||||||||
Balance | Acqui- | Balance | |||||||||||||
4/30/2016 | sitions | Open | Close | 7/30/2016 | |||||||||||
Journeys Group | 1,220 | — | 12 | 2 | 1,230 | ||||||||||
Journeys | 841 | — | 5 | — | 846 | ||||||||||
Underground by Journeys | 97 | — | — | 1 | 96 | ||||||||||
Journeys Kidz | 201 | — | 7 | — | 208 | ||||||||||
Shi by Journeys | 45 | — | — | 1 | 44 | ||||||||||
Little Burgundy | 36 | — | — | — | 36 | ||||||||||
Schuh Group | 124 | — | 3 | 1 | 126 | ||||||||||
Lids Sports Group* | 1,317 | — | 4 | 46 | 1,275 | ||||||||||
Johnston & Murphy Group | 172 | — | 3 | 1 | 174 | ||||||||||
Shops | 102 | — | 2 | — | 104 | ||||||||||
Factory Outlets | 70 | — | 1 | 1 | 70 | ||||||||||
Total Retail Units | 2,833 | — | 22 | 50 | 2,805 |
Comparable Sales (including same store and comparable direct sales) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
July 30, | August 1, | July 30, | August 1, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Journeys Group | (4 | )% | 4 | % | (1 | )% | 5 | % | |||
Schuh Group | (1 | )% | 8 | % | (3 | )% | 6 | % | |||
Lids Sports Group | — | % | 8 | % | 1 | % | 6 | % | |||
Johnston & Murphy Group | 3 | % | 10 | % | 4 | % | 6 | % | |||
Total Comparable Sales | (1 | )% | 7 | % | — | % | 6 | % |
Genesco Inc. | ||||||||||||||||||
Adjustments to Reported Earnings from Continuing Operations | ||||||||||||||||||
Three Months Ended July 30, 2016 and August 1, 2015 | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
July 30, 2016 | August 1, 2015 | |||||||||||||||||
Net of | Per Share | Net of | Per share | |||||||||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||||||||||
Earnings from continuing operations, as reported | $ | 14,504 | $ | 0.72 | $ | 7,593 | $ | 0.32 | ||||||||||
Pretax adjustments: | ||||||||||||||||||
Impairment charges | $ | 1,018 | 665 | 0.03 | $ | 931 | 594 | 0.03 | ||||||||||
Deferred payment - Schuh acquisition | — | — | — | 553 | 553 | 0.02 | ||||||||||||
Sale of Lids Team Sports | (2,485 | ) | (1,602 | ) | (0.08 | ) | — | — | — | |||||||||
Other legal matters | — | — | — | 16 | 10 | — | ||||||||||||
Network intrusion expenses | (8,963 | ) | (5,777 | ) | (0.29 | ) | 226 | 147 | 0.01 | |||||||||
Total adjustments | $ | (10,430 | ) | (6,714 | ) | (0.34 | ) | $ | 1,726 | 1,304 | 0.06 | |||||||
Resolution of income tax matters | (872 | ) | (0.04 | ) | (417 | ) | (0.02 | ) | ||||||||||
Adjusted earnings from continuing operations (1) & (2) | $ | 6,918 | $ | 0.34 | $ | 8,480 | $ | 0.36 | ||||||||||
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Three Months Ended July 30, 2016 and August 1, 2015 | |||||||||
Three Months Ended July 30, 2016 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income | Other Adj | Income | ||||||
Journeys Group | $ | 4,481 | $ | — | $ | 4,481 | |||
Schuh Group | 5,693 | — | 5,693 | ||||||
Lids Sports Group | 7,132 | — | 7,132 | ||||||
Johnston & Murphy Group | 2,255 | — | 2,255 | ||||||
Licensed Brands | 234 | — | 234 | ||||||
Corporate and Other | 225 | (7,945 | ) | (7,720 | ) | ||||
Total Operating Income | $ | 20,020 | $ | (7,945 | ) | $ | 12,075 |
Three Months Ended August 1, 2015 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income | Other Adj | Income | ||||||
Journeys Group | $ | 9,228 | $ | — | $ | 9,228 | |||
Schuh Group* | 4,892 | 553 | 5,445 | ||||||
Lids Sports Group | 5,593 | — | 5,593 | ||||||
Johnston & Murphy Group | 846 | — | 846 | ||||||
Licensed Brands | 1,158 | — | 1,158 | ||||||
Corporate and Other | (9,221 | ) | 1,173 | (8,048 | ) | ||||
Total Operating Income | $ | 12,496 | $ | 1,726 | $ | 14,222 |
Genesco Inc. | ||||||||||||||||||
Adjustments to Reported Earnings from Continuing Operations | ||||||||||||||||||
Six Months Ended July 30, 2016 and August 1, 2015 | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
July 30, 2016 | August 1, 2015 | |||||||||||||||||
Net of | Per Share | Net of | Per share | |||||||||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||||||||||
Earnings from continuing operations, as reported | $ | 25,068 | $ | 1.22 | $ | 17,538 | $ | 0.74 | ||||||||||
Pretax adjustments: | ||||||||||||||||||
Impairment charges | $ | 4,453 | 2,870 | 0.14 | $ | 1,697 | 1,081 | 0.05 | ||||||||||
Deferred payment - Schuh acquisition | — | — | — | 1,490 | 1,490 | 0.06 | ||||||||||||
Sale of Lids Team Sports | (2,485 | ) | (1,602 | ) | (0.08 | ) | — | — | — | |||||||||
Other legal matters | 90 | 57 | — | 118 | 75 | — | ||||||||||||
Network intrusion expenses | (8,931 | ) | (5,756 | ) | (0.28 | ) | 2,004 | 1,277 | 0.05 | |||||||||
Total adjustments | $ | (6,873 | ) | (4,431 | ) | (0.22 | ) | $ | 5,309 | 3,923 | 0.16 | |||||||
Resolution of income tax matters | (766 | ) | (0.04 | ) | (812 | ) | (0.03 | ) | ||||||||||
Adjusted earnings from continuing operations (1) & (2) | $ | 19,871 | $ | 0.96 | $ | 20,649 | $ | 0.87 | ||||||||||
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Six Months Ended July 30, 2016 and August 1, 2015 | |||||||||
Six Months Ended July 30, 2016 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income | Other Adj | Income | ||||||
Journeys Group | $ | 24,101 | $ | — | $ | 24,101 | |||
Schuh Group | 3,032 | — | 3,032 | ||||||
Lids Sports Group | 13,169 | — | 13,169 | ||||||
Johnston & Murphy Group | 7,097 | — | 7,097 | ||||||
Licensed Brands | 2,087 | — | 2,087 | ||||||
Corporate and Other | (11,569 | ) | (4,388 | ) | (15,957 | ) | |||
Total Operating Income | $ | 37,917 | $ | (4,388 | ) | $ | 33,529 |
Six Months Ended August 1, 2015 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income | Other Adj | Income | ||||||
Journeys Group | $ | 33,650 | $ | — | $ | 33,650 | |||
Schuh Group* | 2,231 | 1,490 | 3,721 | ||||||
Lids Sports Group | 2,196 | — | 2,196 | ||||||
Johnston & Murphy Group | 4,823 | — | 4,823 | ||||||
Licensed Brands | 4,181 | — | 4,181 | ||||||
Corporate and Other | (18,331 | ) | 3,819 | (14,512 | ) | ||||
Total Operating Income | $ | 28,750 | $ | 5,309 | $ | 34,059 |
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 | $ | 82,259 | $ | 4.04 | $ | 75,686 | $ | 3.71 | ||||
Adjustments: (1) | ||||||||||||
Gain on sale of Lids Team Sports | (1,580 | ) | (0.08 | ) | (1,580 | ) | (0.08 | ) | ||||
Pension settlement | 636 | 0.03 | 2,544 | 0.12 | ||||||||
Asset impairment and other charges* | 211 | 0.01 | 927 | 0.05 | ||||||||
Adjusted forecasted earnings from continuing operations (2) | $ | 81,526 | $ | 4.00 | $ | 77,577 | $ | 3.80 |
Comparable Sales | ||
2nd Qtr | 2nd Qtr | |
Same Store and Comparable Direct Sales: | FY17 | FY16 |
Journeys Group | (4)% | 4% |
Schuh Group | (1)% | 8% |
Lids Sports Group | 0% | 8% |
Johnston & Murphy Group | 3% | 10% |
Total Genesco | (1)% | 7% |
Lids stores (including 112 stores in Canada) | 905 |
Lids Locker Room Stores (including 36 stores in Canada) | 193 |
Lids Clubhouse stores | 27 |
Journeys stores (including 41 stores in Canada) | 846 |
Little Burgundy | 36 |
Journeys Kidz stores | 208 |
Shï by Journeys stores | 44 |
Underground by Journeys stores | 96 |
Schuh Stores | 126 |
Johnston & Murphy Stores and Factory stores (including 7 stores in Canada) | 174 |
Total Stores | 2,655 |
Locker Room by Lids in Macy’s stores | 150 |
Total Stores and Macy’s Locations | 2,805 |
Actual Jan 2016 | Projected New | Projected Closings | Projected Jan 2017 | ||||||||
Journeys Group | 1,222 | 62 | (22) | 1,262 | |||||||
Journeys stores (U.S.) | 803 | 13 | (8) | 808 | |||||||
Journeys stores (Canada) | 39 | 8 | 0 | 47 | |||||||
Little Burgundy | 36 | 0 | 0 | 36 | |||||||
Journeys Kidz stores | 200 | 40 | (5) | 235 | |||||||
Shï by Journeys | 46 | 0 | (4) | 42 | |||||||
Underground by Journeys | 98 | 1 | (5) | 94 | |||||||
Johnston & Murphy Group | 173 | 9 | (3) | 179 | |||||||
Schuh Group | 125 | 9 | (4) | 130 | |||||||
Lids Sports Group | 1,332 | 16 | (90) | 1,258 | |||||||
Lids hat stores (U.S.) | 806 | 7 | (28) | 785 | |||||||
Lids hat stores (Canada) | 113 | 4 | (6) | 111 | |||||||
Locker Room stores (U.S.) | 161 | 2 | (11) | 152 | |||||||
Locker Room stores (Canada) | 38 | 0 | (3) | 35 | |||||||
Clubhouse stores | 29 | 1 | (5) | 25 | |||||||
Locker Room by Lids (Macy’s) | 185 | 2 | (37) | 150 | |||||||
Total Stores | 2,852 | 96 | (119) | 2,829 | |||||||
Actual | Actual | Guidance | Guidance | ||
Q1 | Q2 | Q3 | Q4 | FY17 | |
Journeys Group | 1% | (4)% | (8) - (7)% | (5) - (4)% | (4) - (3)% |
Lids Sports Group | 2% | 0% | (3) - (2)% | (1) - 0% | (1) - 0% |
Schuh Group | (5)% | (1)% | (5) - (4)% | 0 - 1% | (3) - (2)% |
Johnston & Murphy Group | 6% | 3% | 1 - 2% | 1 - 2% | 2 - 3% |
Total Genesco | 1% | (1)% | (5) - (4)% | (3) - (2)% | (3) - (2)% |