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 31, 2017, issued by Genesco Inc. | ||
99.2 | Genesco Inc. Second Fiscal Quarter Ended July 29, 2017 Chief Financial Officer’s Commentary |
GENESCO INC. | ||||
Date: August 31, 2017 | 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 31, 2017 | |||
99.2 | Genesco Inc. Second Fiscal Quarter Ended July 29, 2017 Chief Financial Officer’s Commentary |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 29, | July 30, | July 29, | July 30, | ||||||||||||
In Thousands | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net sales | $ | 616,506 | $ | 625,557 | $ | 1,259,874 | $ | 1,274,350 | |||||||
Cost of sales | 309,999 | 310,820 | 634,454 | 629,916 | |||||||||||
Selling and administrative expenses | 308,459 | 302,662 | 624,459 | 610,905 | |||||||||||
Asset impairments and other, net | 58 | (7,945 | ) | 177 | (4,388 | ) | |||||||||
Earnings from operations | (2,010 | ) | 20,020 | 784 | 37,917 | ||||||||||
Gain on sale of Lids Team Sports | — | (2,485 | ) | — | (2,485 | ) | |||||||||
Interest expense, net | 1,249 | 1,306 | 2,426 | 2,443 | |||||||||||
Earnings (loss) from continuing operations | |||||||||||||||
before income taxes | (3,259 | ) | 21,199 | (1,642 | ) | 37,959 | |||||||||
Income tax expense | 616 | 6,695 | 1,236 | 12,891 | |||||||||||
Earnings (loss) from continuing operations | (3,875 | ) | 14,504 | (2,878 | ) | 25,068 | |||||||||
Provision for discontinued operations | (73 | ) | 74 | (185 | ) | (80 | ) | ||||||||
Net Earnings (Loss) | $ | (3,948 | ) | $ | 14,578 | $ | (3,063 | ) | $ | 24,988 |
Earnings Per Share Information | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 29, | July 30, | July 29, | July 30, | ||||||||||||
In Thousands (except per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Average common shares - Basic EPS | 19,152 | 20,195 | 19,171 | 20,505 | |||||||||||
Basic earnings (loss) per share: | |||||||||||||||
Before discontinued operations | $ | (0.20 | ) | $ | 0.72 | $ | (0.15 | ) | $ | 1.22 | |||||
Net earnings (loss) | $ | (0.21 | ) | $ | 0.72 | $ | (0.16 | ) | $ | 1.22 | |||||
Average common and common | |||||||||||||||
equivalent shares - Diluted EPS | 19,152 | 20,244 | 19,171 | 20,617 | |||||||||||
Diluted earnings (loss) per share: | |||||||||||||||
Before discontinued operations | $ | (0.20 | ) | $ | 0.72 | $ | (0.15 | ) | $ | 1.22 | |||||
Net earnings (loss) | $ | (0.21 | ) | $ | 0.72 | $ | (0.16 | ) | $ | 1.21 |
GENESCO INC. | |||||||||||||||
Consolidated Earnings Summary | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
July 29, | July 30, | July 29, | July 30, | ||||||||||||
In Thousands | 2017 | 2016 | 2017 | 2016 | |||||||||||
Sales: | |||||||||||||||
Journeys Group | $ | 258,953 | $ | 252,134 | $ | 543,072 | $ | 546,355 | |||||||
Schuh Group | 97,625 | 96,960 | 174,081 | 172,630 | |||||||||||
Lids Sports Group | 180,230 | 188,912 | 357,131 | 368,288 | |||||||||||
Johnston & Murphy Group | 64,860 | 65,151 | 137,653 | 135,126 | |||||||||||
Licensed Brands | 14,697 | 22,100 | 47,707 | 51,566 | |||||||||||
Corporate and Other | 141 | 300 | 230 | 385 | |||||||||||
Net Sales | $ | 616,506 | $ | 625,557 | $ | 1,259,874 | $ | 1,274,350 | |||||||
Operating Income (Loss): | |||||||||||||||
Journeys Group(1) | $ | (2,194 | ) | $ | 4,481 | $ | 5,278 | $ | 24,101 | ||||||
Schuh Group | 4,538 | 5,693 | 3,851 | 3,032 | |||||||||||
Lids Sports Group | 3,040 | 7,132 | 1,254 | 13,169 | |||||||||||
Johnston & Murphy Group | 1,547 | 2,255 | 5,367 | 7,097 | |||||||||||
Licensed Brands | (1,051 | ) | 234 | 1,224 | 2,087 | ||||||||||
Corporate and Other (2) | (7,890 | ) | 225 | (16,190 | ) | (11,569 | ) | ||||||||
Earnings (loss) from operations | (2,010 | ) | 20,020 | 784 | 37,917 | ||||||||||
Gain on sale of Lids Team Sports | — | (2,485 | ) | — | (2,485 | ) | |||||||||
Interest, net | 1,249 | 1,306 | 2,426 | 2,443 | |||||||||||
Earnings (loss) from continuing operations | |||||||||||||||
before income taxes | (3,259 | ) | 21,199 | (1,642 | ) | 37,959 | |||||||||
Income tax expense | 616 | 6,695 | 1,236 | 12,891 | |||||||||||
Earnings (loss) from continuing operations | (3,875 | ) | 14,504 | (2,878 | ) | 25,068 | |||||||||
Provision for discontinued operations | (73 | ) | 74 | (185 | ) | (80 | ) | ||||||||
Net Earnings (Loss) | $ | (3,948 | ) | $ | 14,578 | $ | (3,063 | ) | $ | 24,988 |
GENESCO INC. | |||||||
Consolidated Balance Sheet | |||||||
July 29, | July 30, | ||||||
In Thousands | 2017 | 2016 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 43,520 | $ | 41,466 | |||
Accounts receivable | 39,411 | 46,469 | |||||
Inventories | 670,104 | 663,708 | |||||
Other current assets | 83,578 | 69,382 | |||||
Total current assets | 836,613 | 821,025 | |||||
Property and equipment | 362,304 | 321,231 | |||||
Goodwill and other intangibles | 364,488 | 366,186 | |||||
Other non-current assets | 34,108 | 70,216 | |||||
Total Assets | $ | 1,597,513 | $ | 1,578,658 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 242,729 | $ | 269,371 | |||
Current portion long-term debt | 2,051 | 10,620 | |||||
Other current liabilities | 106,252 | 127,714 | |||||
Total current liabilities | 351,032 | 407,705 | |||||
Long-term debt | 188,823 | 124,981 | |||||
Pension liability | 5,989 | 9,487 | |||||
Deferred rent and other long-term liabilities | 134,772 | 149,566 | |||||
Equity | 916,897 | 886,919 | |||||
Total Liabilities and Equity | $ | 1,597,513 | $ | 1,578,658 |
GENESCO INC. | ||||||||||||||||||||
Retail Units Operated - Six Months Ended July 29, 2017 | ||||||||||||||||||||
Balance | Balance | Balance | ||||||||||||||||||
1/30/2016 | Open | Close | 1/28/2017 | Open | Close | 7/29/2017 | ||||||||||||||
Journeys Group | 1,222 | 51 | 24 | 1,249 | 26 | 28 | 1,247 | |||||||||||||
Schuh Group | 125 | 7 | 4 | 128 | 3 | — | 131 | |||||||||||||
Lids Sports Group* | 1,332 | 15 | 107 | 1,240 | 9 | 61 | 1,188 | |||||||||||||
Johnston & Murphy Group | 173 | 8 | 4 | 177 | 2 | — | 179 | |||||||||||||
Total Retail Units | 2,852 | 81 | 139 | 2,794 | 40 | 89 | 2,745 |
Retail Units Operated - Three Months Ended July 29, 2017 | ||||||||||||
Balance | Balance | |||||||||||
4/29/2017 | Open | Close | 7/29/2017 | |||||||||
Journeys Group | 1,250 | 13 | 16 | 1,247 | ||||||||
Schuh Group | 129 | 2 | — | 131 | ||||||||
Lids Sports Group* | 1,199 | 4 | 15 | 1,188 | ||||||||
Johnston & Murphy Group | 178 | 1 | — | 179 | ||||||||
Total Retail Units | 2,756 | 20 | 31 | 2,745 |
Comparable Sales (including same store and comparable direct sales) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
July 29, | July 30, | July 29, | July 30, | ||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Journeys Group | 1 | % | (4 | )% | (2 | )% | (1 | )% | |||
Schuh Group | 3 | % | (1 | )% | 6 | % | (3 | )% | |||
Lids Sports Group | (2 | )% | — | % | (1 | )% | 1 | % | |||
Johnston & Murphy Group | (1 | )% | 3 | % | (2 | )% | 4 | % | |||
Total Comparable Sales | 0 | % | (1 | )% | 0 | % | 0 | % |
Genesco Inc. | ||||||||||||||||||
Adjustments to Reported Earnings (Loss) from Continuing Operations | ||||||||||||||||||
Three Months Ended July 29, 2017 and July 30, 2016 | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
July 29, 2017 | July 30, 2016 | |||||||||||||||||
Net of | Per Share | Net of | Per share | |||||||||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||||||||||
Earnings (loss) from continuing operations, as reported | $ | (3,875 | ) | $ | (0.20 | ) | $ | 14,504 | $ | 0.72 | ||||||||
Pretax adjustments: | ||||||||||||||||||
Impairment charges | $ | 58 | 44 | — | $ | 1,018 | 665 | 0.03 | ||||||||||
Acquisition transition expenses | 288 | 199 | 0.01 | — | — | — | ||||||||||||
Sale of Lids Team Sports | — | — | — | (2,485 | ) | (1,602 | ) | (0.08 | ) | |||||||||
Network intrusion expenses | — | — | — | (8,963 | ) | (5,777 | ) | (0.29 | ) | |||||||||
Total adjustments | $ | 346 | 243 | 0.01 | $ | (10,430 | ) | (6,714 | ) | (0.34 | ) | |||||||
Tax impact for share-based awards | 2,167 | 0.11 | — | — | ||||||||||||||
Resolution of income tax matters | (520 | ) | (0.02 | ) | (872 | ) | (0.04 | ) | ||||||||||
Adjusted earnings (loss) from continuing operations (1) & (2) | $ | (1,985 | ) | $ | (0.10 | ) | $ | 6,918 | $ | 0.34 | ||||||||
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income (Loss) | |||||||||
Three Months Ended July 29, 2017 and July 30, 2016 | |||||||||
Three Months Ended July 29, 2017 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Inc (Loss) | Other Adj | Inc (Loss) | ||||||
Journeys Group | $ | (2,194 | ) | $ | 288 | $ | (1,906 | ) | |
Schuh Group | 4,538 | — | 4,538 | ||||||
Lids Sports Group | 3,040 | — | 3,040 | ||||||
Johnston & Murphy Group | 1,547 | — | 1,547 | ||||||
Licensed Brands | (1,051 | ) | — | (1,051 | ) | ||||
Corporate and Other | (7,890 | ) | 58 | (7,832 | ) | ||||
Total Operating Income (Loss) | $ | (2,010 | ) | $ | 346 | $ | (1,664 | ) |
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 |
Genesco Inc. | ||||||||||||||||||
Adjustments to Reported Earnings (Loss) from Continuing Operations | ||||||||||||||||||
Six Months Ended July 29, 2017 and July 30, 2016 | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
July 29, 2017 | July 30, 2016 | |||||||||||||||||
Net of | Per Share | Net of | Per share | |||||||||||||||
In Thousands (except per share amounts) | Pretax | Tax | Amounts | Pretax | Tax | Amounts | ||||||||||||
Earnings (loss) from continuing operations, as reported | $ | (2,878 | ) | $ | (0.15 | ) | $ | 25,068 | $ | 1.22 | ||||||||
Pretax adjustments: | ||||||||||||||||||
Impairment charges | $ | 177 | 122 | — | $ | 4,453 | 2,870 | 0.14 | ||||||||||
Acquisition transition expenses | 288 | 199 | 0.01 | — | — | — | ||||||||||||
Sale of Lids Team Sports | — | — | — | (2,485 | ) | (1,602 | ) | (0.08 | ) | |||||||||
Other legal matters | — | — | — | 90 | 57 | — | ||||||||||||
Network intrusion expenses | — | — | — | (8,931 | ) | (5,756 | ) | (0.28 | ) | |||||||||
Total adjustments | $ | 465 | 321 | 0.01 | $ | (6,873 | ) | (4,431 | ) | (0.22 | ) | |||||||
Tax impact for share-based awards | 2,167 | 0.11 | — | — | ||||||||||||||
Resolution of income tax matters | (496 | ) | (0.02 | ) | (766 | ) | (0.04 | ) | ||||||||||
Adjusted earnings (loss) from continuing operations (1) & (2) | $ | (886 | ) | $ | (0.05 | ) | $ | 19,871 | $ | 0.96 | ||||||||
Genesco Inc. | |||||||||
Adjustments to Reported Operating Income | |||||||||
Six Months Ended July 29, 2017 and July 30, 2016 | |||||||||
Six Months Ended July 29, 2017 | |||||||||
Operating | Adj Operating | ||||||||
In Thousands | Income | Other Adj | Income | ||||||
Journeys Group | $ | 5,278 | $ | 288 | $ | 5,566 | |||
Schuh Group | 3,851 | — | 3,851 | ||||||
Lids Sports Group | 1,254 | — | 1,254 | ||||||
Johnston & Murphy Group | 5,367 | — | 5,367 | ||||||
Licensed Brands | 1,224 | — | 1,224 | ||||||
Corporate and Other | (16,190 | ) | 177 | (16,013 | ) | ||||
Total Operating Income | $ | 784 | $ | 465 | $ | 1,249 |
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 |
Genesco Inc. | ||||||||||||
Adjustments to Forecasted Earnings from Continuing Operations | ||||||||||||
Fiscal Year Ending February 3, 2018 | ||||||||||||
In Thousands (except per share amounts) | High Guidance | Low Guidance | ||||||||||
Fiscal 2018 | Fiscal 2018 | |||||||||||
Forecasted earnings from continuing operations | $ | 65,152 | $ | 3.38 | $ | 58,629 | $ | 3.04 | ||||
Adjustments: (1) | ||||||||||||
Asset impairment and other charges | 3,061 | 0.16 | 3,774 | 0.20 | ||||||||
Tax impact for share-based awards | 2,167 | 0.11 | 2,167 | 0.11 | ||||||||
Adjusted forecasted earnings from continuing operations (2) | $ | 70,380 | $ | 3.65 | $ | 64,570 | $ | 3.35 |
Comparable Sales | ||
2nd Qtr | 2nd Qtr | |
Same Store and Comparable Direct Sales: | FY18 | FY17 |
Journeys Group | 1% | (4)% |
Schuh Group | 3% | (1)% |
Lids Sports Group | (2)% | 0% |
Johnston & Murphy Group | (1)% | 3% |
Total Genesco | 0% | (1)% |
Lids stores (including 113 stores in Canada) | 866 |
Lids Locker Room Stores (including 32 stores in Canada) | 175 |
Lids Clubhouse stores | 23 |
Journeys stores (including 46 stores in Canada) | 936 |
Little Burgundy | 36 |
Journeys Kidz stores | 240 |
Shï by Journeys stores | 35 |
Schuh Stores | 131 |
Johnston & Murphy Stores and Factory stores (including 7 stores in Canada) | 179 |
Total Stores | 2,621 |
Locker Room by Lids in Macy’s stores | 124 |
Total Stores and Macy’s Locations | 2,745 |
Actual Jan 2017 | Projected New | Projected Conversions | Projected Closings | Projected Jan 2018 | |||||||
Journeys Group | 1,249 | 45 | 0 | (51) | 1,243 | ||||||
Journeys stores (U.S.) | 900 | 14 | 0 | (26) | 888 | ||||||
Journeys stores (Canada) | 44 | 2 | 0 | 0 | 46 | ||||||
Little Burgundy | 36 | 4 | 0 | 0 | 40 | ||||||
Journeys Kidz stores | 230 | 25 | 0 | (5) | 250 | ||||||
Shï by Journeys | 39 | 0 | 0 | (20) | 19 | ||||||
Johnston & Murphy Group | 177 | 6 | — | (5 | ) | 178 | |||||
Schuh Group | 128 | 7 | — | (2 | ) | 133 | |||||
Lids Sports Group | 1,240 | 24 | — | (87 | ) | 1,177 | |||||
Lids hat stores (U.S.) | 770 | 17 | 0 | (27) | 760 | ||||||
Lids hat stores (Canada) | 112 | 6 | 1 | (4) | 115 | ||||||
Locker Room stores (U.S.) | 146 | 1 | 2 | (21) | 128 | ||||||
Locker Room stores (Canada) | 35 | 0 | (1) | (5) | 29 | ||||||
Clubhouse stores | 26 | 0 | (2) | (3) | 21 | ||||||
Locker Room by Lids (Macy’s) | 151 | 0 | 0 | (27) | 124 | ||||||
Total Stores | 2,794 | 82 | 0 | (145) | 2,731 |
Actual | Actual | Guidance | Guidance | ||
Q1 | Q2 | Q3 | Q4 | FY18 | |
Journeys Group | (5)% | 1% | 2 - 3% | 3 - 4% | 0 - 1% |
Lids Sports Group | 1% | (2)% | (5) - (4)% | (6) - (5)% | (4) - (3)% |
Schuh Group | 10% | 3% | 3 - 4% | 4 - 5% | 4 - 5% |
Johnston & Murphy Group | (3)% | (1)% | (1) - 2% | 2 - 3% | 0 - 1% |
Total Genesco | (1)% | 0% | 0 - 1% | 0 - 1% | (1) - 1% |