UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to |
Commission File No.
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Zip Code) |
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(Address of principal executive offices) |
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Registrant's telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer; an accelerated filer; a non-accelerated filer; a smaller reporting company; or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No
As of August 30, 2024, there were
INDEX
2
cautionary notice regarding forward-looking statements
Statements in this Quarterly Report on Form 10-Q include certain forward-looking statements, which include statements regarding our intent, belief or expectations and all statements other than those made solely with respect to historical fact. Actual results could differ materially from those reflected by the forward-looking statements in this Quarterly Report on Form 10-Q and a number of factors may adversely affect the forward-looking statements and our future results, liquidity, capital resources or prospects. These include, but are not limited to, adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements and limitations on our ability to adequately staff and operate stores. Differences from expectations could also result from our ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; the level of consumer spending on our merchandise and interest in our brands and in general; the level and timing of promotional activity necessary to maintain inventories at appropriate levels; our ability to pass on price increases to our customers; the timing and amount of any share repurchases by us; the imposition of tariffs on products imported by us or our vendors as well as the ability and costs to move production of products in response to tariffs; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs; a disruption in shipping or increase in cost of our imported products, and other factors affecting the cost of products; our dependence on third-party vendors and licensors for the products we sell; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and the Republic of Ireland; the effectiveness of our omni-channel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; labor shortages; the effects of inflation; the evolving regulatory landscape related to our use of social media; the establishment and protection of our intellectual property; weakness in the consumer economy and retail industry; competition and fashion trends in our markets, including trends with respect to the popularity of casual and dress footwear; any failure to increase sales at our existing stores, given our high fixed expense cost structure, and in our e-commerce businesses; risks related to the potential for terrorist events; store closures and effects on the business as a result of civil disturbances; changes in buying patterns by significant wholesale customers; changes in consumer preferences; our ability to continue to complete and integrate acquisitions; our ability to expand our business and diversify our product base; impairment of goodwill in connection with acquisitions; payment related risks that could increase our operating cost, expose us to fraud or theft, subject us to potential liability and disrupt our business; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor of certain leases; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; our ability to realize anticipated cost savings, including rent savings; our ability to make our occupancy costs more variable, realize any anticipated tax benefits in both the amount and timeframe anticipated, and achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of our market value relative to our book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for our shares or for the retail sector in general; our ability to meet our sustainability, stewardship, emission and diversity, equity and inclusion related ESG projections, goals and commitments; costs and reputational harm as a result of disruptions in our business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems, and the cost and outcome of litigation, investigations, disputes and environmental matters that involve us. For a full discussion of risk factors, see Item 1A, "Risk Factors".
Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A contained in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024 which should be read in conjunction with the forward-looking statements in this Quarterly Report on Form 10-Q. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.
The events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. As a result, our actual results may differ materially from the results contemplated by these forward-looking statements.
We maintain a website at www.genesco.com where investors and other interested parties may obtain, free of charge, press releases and other information as well as gain access to our periodic filings with the Securities and Exchange Commission (“SEC”). The information contained on this website should not be considered to be a part of this or any other report filed with or furnished to the SEC.
3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Genesco Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
Assets |
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August 3, 2024 |
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February 3, 2024 |
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July 29, 2023 |
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Current Assets: |
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Cash |
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$ |
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$ |
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$ |
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Accounts receivable, net of allowances of $ |
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$ |
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Inventories |
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Prepaids and other current assets |
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Total current assets |
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Property and equipment, net |
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Operating lease right of use assets |
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Non-current prepaid income taxes |
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Goodwill |
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Other intangibles |
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Deferred income taxes |
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Other noncurrent assets |
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Total Assets |
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Liabilities and Equity |
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Current Liabilities: |
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Accounts payable |
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Current portion - operating lease liabilities |
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Other accrued liabilities |
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Total current liabilities |
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Long-term debt |
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Long-term operating lease liabilities |
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Other long-term liabilities |
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Total liabilities |
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— |
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— |
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— |
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Equity |
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Non-redeemable preferred stock |
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Common equity: |
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Common stock, $ |
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Authorized: |
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Issued common stock |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss |
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( |
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( |
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( |
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Treasury shares, at cost ( |
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( |
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( |
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( |
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Total equity |
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Total Liabilities and Equity |
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$ |
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$ |
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$ |
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The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
4
Genesco Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
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Three Months Ended |
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Six Months Ended |
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August 3, 2024 |
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July 29, 2023 |
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August 3, 2024 |
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July 29, 2023 |
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Net sales |
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$ |
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$ |
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$ |
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$ |
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Cost of sales |
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Gross margin |
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Selling and administrative expenses |
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Goodwill impairment |
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Asset impairments and other, net |
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Operating loss |
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( |
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( |
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( |
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( |
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Other components of net periodic benefit cost |
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Interest expense, net |
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Loss from continuing operations before income taxes |
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( |
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( |
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( |
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( |
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Income tax benefit |
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( |
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( |
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( |
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( |
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Loss from continuing operations |
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( |
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( |
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( |
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( |
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Loss from discontinued operations, net of tax |
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( |
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( |
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( |
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( |
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Net Loss |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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Basic loss per common share: |
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Continuing operations |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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$ |
( |
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Discontinued operations |
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( |
) |
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( |
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Net loss |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Diluted loss per common share: |
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Continuing operations |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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$ |
( |
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Discontinued operations |
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( |
) |
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( |
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Net loss |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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Weighted average shares outstanding: |
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Basic |
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Diluted |
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The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
5
Genesco Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Loss
(In thousands)
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Three Months Ended |
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Six Months Ended |
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August 3, 2024 |
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July 29, 2023 |
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August 3, 2024 |
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July 29, 2023 |
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Net loss |
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$ |
( |
) |
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$ |
( |
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$ |
( |
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$ |
( |
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Other comprehensive income: |
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Postretirement liability adjustments, net of tax |
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Foreign currency translation adjustments |
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Total other comprehensive income |
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Comprehensive Loss |
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$ |
( |
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$ |
( |
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$ |
( |
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$ |
( |
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The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
6
Genesco Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
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Six Months Ended |
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August 3, 2024 |
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July 29, 2023 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net loss |
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$ |
( |
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$ |
( |
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Adjustments to reconcile net loss to net cash used in |
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operating activities: |
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Depreciation and amortization |
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Deferred income taxes |
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( |
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Goodwill impairment |
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Impairment of long-lived assets |
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Share-based compensation expense |
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Other |
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Changes in working capital and other assets and liabilities: |
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Accounts receivable |
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( |
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( |
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Inventories |
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( |
) |
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( |
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Prepaids and other current assets |
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( |
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( |
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Accounts payable |
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Other accrued liabilities |
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( |
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Other assets and liabilities |
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( |
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Net cash used in operating activities |
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( |
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( |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Capital expenditures |
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( |
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( |
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Proceeds from asset sales |
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Net cash used in investing activities |
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( |
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( |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Borrowings under revolving credit facility |
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Payments on revolving credit facility |
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( |
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( |
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Shares repurchased related to share repurchase plan |
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( |
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( |
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Shares repurchased related to taxes for share-based awards |
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( |
) |
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( |
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Change in overdraft balances |
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( |
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( |
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Net cash provided by financing activities |
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Effect of foreign exchange rate fluctuations on cash |
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Net increase (decrease) in cash |
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( |
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Cash at beginning of period |
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Cash at end of period |
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$ |
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$ |
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Supplemental information: |
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Interest paid |
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$ |
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$ |
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Income taxes paid |
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The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
7
Genesco Inc. and Subsidiaries
Condensed Consolidated Statements of Equity
(In thousands)
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Non- |
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Common |
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Additional |
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Retained |
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Accumulated |
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Treasury |
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Total |
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Balance January 28, 2023 |
$ |
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$ |
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$ |
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$ |
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$ |
( |
) |
$ |
( |
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$ |
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Net loss |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
Other comprehensive income |
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— |
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— |
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— |
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— |
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— |
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Share-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Restricted stock issuance |
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— |
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( |
) |
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— |
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— |
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— |
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— |
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Restricted shares withheld for taxes |
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— |
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( |
) |
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( |
) |
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— |
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— |
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( |
) |
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Shares repurchased |
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— |
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( |
) |
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— |
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( |
) |
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— |
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— |
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( |
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Excise taxes related to repurchases of common stock |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
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Other |
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( |
) |
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( |
) |
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— |
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— |
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— |
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— |
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Balance April 29, 2023 |
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( |
) |
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( |
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Net loss |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
Other comprehensive income |
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— |
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— |
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— |
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— |
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— |
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Share-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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Restricted stock issuance |
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— |
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( |
) |
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— |
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— |
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— |
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— |
|
|
Shares repurchased |
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Excise taxes related to repurchases of common stock |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Restricted shares withheld for taxes |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
Other |
|
— |
|
|
( |
) |
|
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
Balance July 29, 2023 |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Non- |
|
Common |
|
Additional |
|
Retained |
|
Accumulated |
|
Treasury |
|
Total |
|
|||||||
Balance February 3, 2024 |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
|||||
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Other comprehensive loss |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
Share-based compensation expense |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Restricted stock issuance |
|
— |
|
|
|
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Restricted shares withheld for taxes |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
Other |
|
( |
) |
|
( |
) |
|
|
|
|
|
— |
|
|
— |
|
|
( |
) |
||
Balance May 4, 2024 |
|
|
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|||||
Net loss |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Other comprehensive income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
|
||
Share-based compensation expense |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Restricted stock issuance |
|
— |
|
|
|
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Shares repurchased |
|
— |
|
|
( |
) |
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Excise taxes related to repurchases of common stock |
|
— |
|
|
— |
|
|
— |
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
Restricted shares withheld for taxes |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
— |
|
|
— |
|
|
( |
) |
|
Other |
|
— |
|
|
( |
) |
|
|
|
( |
) |
|
— |
|
|
— |
|
|
— |
|
|
Balance August 3, 2024 |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
$ |
|
|||||
The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.
8
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1
Summary of Significant Accounting Policies
Basis of Presentation
These Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and Notes for Fiscal 2024, which are contained in our Annual Report on Form 10-K as filed with the SEC on March 27, 2024. The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending February 1, 2025 ("Fiscal 2025"), which is a 52-week year, and of the fiscal year ended February 3, 2024 ("Fiscal 2024"), which was a 53-week year. All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. The results of operations for any interim period are not necessarily indicative of results for the full year. The Condensed Consolidated Financial Statements and the related Notes have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. The Condensed Consolidated Balance Sheet as of February 3, 2024 has been derived from the audited financial statements at that date.
Nature of Operations
Genesco Inc. and its subsidiaries (collectively the "Company", "Genesco," "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys®, Journeys Kidz®, Little Burgundy® and Johnston & Murphy® banners and under the Schuh® banner in the United Kingdom (“U.K.”) and the Republic of Ireland (“ROI”); through e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, littleburgundyshoes.com, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, johnstonmurphy.ca, nashvilleshoewarehouse.com and dockersshoes.com as well as catalogs. We also source, design, market and distribute footwear and accessories at wholesale, primarily under our Johnston & Murphy brand, the licensed Levi's® brand, the licensed Dockers® brand, the licensed G.H. Bass® brand and other brands that we license for footwear. At August 3, 2024, we operated
During the three and six months ended August 3, 2024 and July 29, 2023, we operated
Selling and Administrative Expenses
Wholesale costs of distribution are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations in the amount of $
Retail occupancy costs recorded in selling and administrative expenses were $
Advertising Costs
Advertising costs were $
Vendor Allowances
Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $
9
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 1
Summary of Significant Accounting Policies, Continued
New Accounting Pronouncements
We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations and financial reporting. As of August 3, 2024, there were no other new pronouncements or interpretations, other than those disclosed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, that had or were expected to have a significant impact on our financial reporting.
Note 2
Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the Journeys Group segment were as follows:
(In thousands) |
Total |
|
|
Balance, February 3, 2024 |
$ |
|
|
Effect of foreign currency exchange rates |
|
( |
) |
Balance, August 3, 2024 |
$ |
|
|
Other intangibles by major classes were as follows:
|
|
Trademarks |
|
Customer Lists |
|
|
Other |
|
|
Total |
|
||||||||||||||||||||
(In thousands) |
|
Aug. 3, 2024 |
|
|
Feb. 3, 2024 |
|
Aug. 3, 2024 |
|
|
Feb. 3, 2024 |
|
|
Aug. 3, 2024 |
|
|
Feb. 3, 2024 |
|
|
Aug. 3, 2024 |
|
|
Feb. 3, 2024 |
|
||||||||
Gross other intangibles |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Accumulated amortization |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||
Net Other Intangibles |
|
$ |
|
|
$ |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Note 3
Inventories
(In thousands) |
|
August 3, 2024 |
|
|
February 3, 2024 |
|
||
Wholesale finished goods |
|
$ |
|
|
$ |
|
||
Retail merchandise |
|
|
|
|
|
|
||
Total Inventories |
|
$ |
|
|
$ |
|
||
10
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 4
Fair Value
Fair Value of Financial Instruments
The carrying amounts and fair values of our financial instruments at August 3, 2024 and February 3, 2024 are:
|
|
|
||||||||||
(In thousands) |
August 3, 2024 |
|
February 3, 2024 |
|
||||||||
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
|
||||
U.S. Revolver Borrowings |
$ |
|
$ |
|
$ |
|
$ |
|
||||
Total Long-Term Debt |
$ |
|
$ |
|
$ |
|
$ |
|
||||
Debt fair values were determined using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 within the fair value hierarchy. We did not have any debt classified as current portion as of August 3, 2024 or February 3, 2024.
Note 5
Long-Term Debt
Note 6
Earnings Per Share
Weighted-average number of shares used to calculate earnings per share are as follows:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
(Shares in thousands) |
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
||||
Weighted-average number of shares - basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of shares - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stock equivalents of
We repurchased
During the third quarter of Fiscal 2025, through September 11, 2024, we have
11
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 7
Legal Proceedings
Environmental Matters
The Company has legacy obligations including environmental monitoring and reporting costs related to: (i) a 2016 Consent Judgment entered into with the United States Environmental Protection Agency involving the site of a knitting mill operated by a former subsidiary from 1965 to 1969 in Garden City, New York; and (ii) a 2010 Consent Decree with the Michigan Department of Natural Resources and Environment relating to our former Volunteer Leather Company facility in Whitehall, Michigan. We do not expect that future obligations related to either of these sites will have a material effect on our consolidated financial condition or results of operations.
Accrual for Environmental Contingencies
Related to all outstanding environmental contingencies, we had $
In addition to the matters specifically described in this Note, we are a party to other legal and regulatory proceedings and claims arising in the ordinary course of our business. While management does not believe that our liability with respect to any of these other matters is likely to have a material effect on our condensed consolidated financial statements, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could have a material adverse impact on our condensed consolidated financial statements.
Note 8
Business Segment Information
Three Months Ended August 3, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(In thousands) |
Journeys |
|
Schuh |
|
Johnston |
|
Genesco Brands Group |
|
Corporate |
|
Consolidated |
|
||||||
Sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Intercompany sales elimination |
|
|
|
|
|
|
|
( |
) |
|
|
|
( |
) |
||||
Net sales to external customers(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment operating income (loss) |
|
( |
) |
|
|
|
( |
) |
|
|
|
( |
) |
|
( |
) |
||
Asset impairments and other(2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
( |
) |
|
|
|
( |
) |
|
|
|
( |
) |
|
( |
) |
||
Other components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing operations before income taxes |
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
|
$ |
( |
) |
$ |
( |
) |
||
Total assets (3) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1)
(2)
(3)
12
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 8
Business Segment Information, Continued
Three Months Ended July 29, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(In thousands) |
Journeys |
|
Schuh |
|
Johnston |
|
Genesco Brands Group |
|
Corporate |
|
Consolidated |
|
||||||
Sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Intercompany sales elimination |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Net sales to external customers(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|||
Goodwill impairment (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset impairments and other (3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|||
Other components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing operations before income taxes |
$ |
( |
) |
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
|||
Total assets (4) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1)
(2)
(3)
(4)
Six Months Ended August 3, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Journeys |
|
Schuh |
|
Johnston |
|
Genesco Brands Group |
|
Corporate |
|
Consolidated |
|
||||||
Sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Intercompany sales elimination(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net sales to external customers(2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|||
Asset impairments and other(3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|||
Other components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense, net |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing |
$ |
( |
) |
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
|||
Depreciation and amortization |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1)
(2)
(3)
13
Genesco Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
Note 8
Business Segment Information, Continued
Six Months Ended July 29, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Journeys |
|
Schuh |
|
Johnston |
|
Genesco Brands Group |
|
Corporate |
|
Consolidated |
|
||||||
Sales |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Intercompany sales elimination |
|
|
|
|
|
( |
) |
|
( |
) |
|
|
|
( |
) |
|||
Net sales to external customers(1) |
|
|
|
|
|
|
|
|
|
|
$ |
|
||||||
Segment operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
$ |
( |
) |
|||
Goodwill impairment(2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset impairments and other(3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
|
( |
) |
|
|
|
|
|
|
|
( |
) |
|
( |
) |
|||
Other components of net periodic benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from continuing |
$ |
( |
) |
$ |
|
$ |
|
$ |
|
$ |
( |
) |
$ |
( |
) |
|||
Depreciation and amortization |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||
Capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1)
(2)
(3)
14
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
This section discusses management’s view of the financial condition, results of operations and cash flows of the Company. This section should be read in conjunction with the information contained in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024, including the Risk Factors section, and information contained elsewhere in this Quarterly Report on Form 10-Q, including the Condensed Consolidated Financial Statements and notes to those financial statements. The results of operations for any interim period may not necessarily be indicative of the results that may be expected for any future interim period or the entire fiscal year.
Summary of Results of Operations
Our net sales increased 0.4% to $525.2 million in the second quarter of Fiscal 2025 compared to $523.0 million in the second quarter of Fiscal 2024. The sales increase compared to last year's second quarter included approximately $20 million to $25 million due to the move of a strong week of back-to-school sales from the third quarter last year to the second quarter this year related to the 53-week calendar shift along with an 8% increase in e-commerce comparable sales, partially offset by a decline in comparable store sales, the impact of net store closings and decreased wholesale sales. The consumer environment remains choppy with consumers selective about what to buy and not buy and continuing to show a willingness to shop when there's a reason, like back-to-school, and shopping almost exclusively for key footwear items and brands. In addition, ongoing inflationary pressures continue to impact discretionary spending behavior. Journeys Group sales increased 4%, Schuh Group sales increased 1%, Johnston & Murphy Group sales decreased 9% and Genesco Brands Group sales decreased 13%, or an aggregate of $4.4 million for the second quarter of Fiscal 2025 compared to the second quarter of Fiscal 2024. Schuh's sales also increased 1% on a local currency basis for the second quarter of Fiscal 2025. Total comparable sales decreased 2% for the second quarter of Fiscal 2025, with same store sales down 4% and comparable e-commerce sales up 8%.
Gross margin decreased 1.6% to $245.6 million in the second quarter of Fiscal 2025 from $249.5 million in the second quarter of Fiscal 2024 and decreased as a percentage of net sales from 47.7% to 46.8% reflecting decreased gross margin as a percentage of net sales in all of our operating business units except Johnston & Murphy Group. The decreased gross margin as a percentage of net sales reflects primarily a higher mix of sale product at Schuh and a change in product mix at Journeys.
Selling and administrative expenses in the second quarter of Fiscal 2025 decreased 1.7% to $255.1 million from $259.5 million compared to the second quarter of Fiscal 2024, reflecting the impact of our cost savings initiatives, including net store closures. Selling and administrative expenses also decreased as a percentage of net sales in the second quarter of Fiscal 2025 compared to the second quarter of Fiscal 2024 from 49.6% to 48.6%, reflecting decreased expenses as a percentage of net sales in all of our operating business units except Johnston & Murphy Group. The overall decrease in expenses as a percentage of net sales reflects a decrease in occupancy expense, a favorable change in certain non-income taxes, decreased royalty expense and decreased performance-based compensation expense, partially offset by increased selling salaries and depreciation expense.
Operating margin was a loss of 2.0% in the second quarter of Fiscal 2025 compared to a loss of 7.4% in the second quarter of Fiscal 2024 reflecting improved operating margin at Journeys Group and Genesco Brands Group, partially offset by decreased operating margin at Schuh Group and Johnston & Murphy Group. The overall improvement in operating margin for the second quarter this year compared to the second quarter last year primarily reflects a non-cash goodwill impairment charge of $28.5 million in the second quarter of Fiscal 2024 as well as decreased expenses as a percentage of net sales, partially offset by decreased gross margin as a percentage of net sales.
The loss from continuing operations before income taxes (“pretax loss”) for the second quarter of Fiscal 2025 was $11.7 million compared to a pretax loss of $41.2 million for the second quarter of Fiscal 2024. The pretax loss for the second quarter of Fiscal 2025 included a $0.2 million charge for a distribution model transition in the Genesco Brands Group and asset impairment and other charges of $0.8 million for severance and asset impairments. The pretax loss for the second quarter of Fiscal 2024 included a non-cash goodwill impairment charge of $28.5 million and asset impairment and other charges of $0.2 million for asset impairments.
We had an effective income tax rate of 15.2% and 23.1% in the second quarter of Fiscal 2025 and Fiscal 2024, respectively. The lower tax rate for the second quarter this year compared to the second quarter last year reflects a reduction in the tax benefit recorded year to date due to lower projected earnings and taxes from our foreign jurisdictions.
The net loss in the second quarter of Fiscal 2025 was $10.0 million, or $0.91 diluted loss per share, compared to a net loss of $31.7 million, or $2.79 diluted loss per share, in the second quarter of Fiscal 2024.
Critical Accounting Estimates
We discuss our critical accounting estimates in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations", in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024. We describe our significant accounting policies in Note 1, "Summary of Significant Accounting Policies", of the Notes to Consolidated Financial Statements included in our Annual Report on
15
Form 10-K for the fiscal year ended February 3, 2024. There have been no other significant changes in our definition of significant accounting policies or critical accounting estimates since the end of Fiscal 2024.
Key Performance Indicators
In assessing the performance of our business, we consider a variety of performance and financial measures. The key performance indicators we use to evaluate the financial condition and operating performance of our business are comparable sales, net sales, gross margin, operating income and operating margin. These key performance indicators should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the U.S. GAAP financial measures presented herein. These measures may not be comparable to similarly titled performance indicators used by other companies.
Comparable Sales
We consider comparable sales to be an important indicator of our current performance, and investors may find it useful as such. Comparable sales results are important to achieve leveraging of our costs, including occupancy, selling salaries, depreciation, etc. Comparable sales also have a direct impact on our total net revenue, working capital and cash. We define "comparable sales" as sales from stores open longer than one year, beginning with the first day a store has comparable sales (which we refer to as "same store sales"), and sales from websites operated longer than one year and direct mail catalog sales (which we refer to in this report as "comparable e-commerce sales"). Temporarily closed stores are excluded from the comparable sales calculation if closed for more than seven days. Expanded stores are excluded from the comparable sales calculation until the first day an expanded store has comparable prior year sales. Current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison.
Results of Operations – Second Quarter of Fiscal 2025 Compared to Second Quarter of Fiscal 2024
Journeys Group
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
298,846 |
|
|
$ |
287,275 |
|
|
|
4.0 |
% |
Operating loss |
|
$ |
(11,151 |
) |
|
$ |
(14,878 |
) |
|
|
25.1 |
% |
Operating margin |
|
|
(3.7 |
)% |
|
|
(5.2 |
)% |
|
|
|
|
Net sales from Journeys Group increased 4.0% to $298.8 million in the second quarter of Fiscal 2025, compared to $287.3 million in the second quarter of Fiscal 2024. Net sales for the second quarter this year included approximately $19 million to $24 million due to the move of a strong week of back-to-school sales from the third quarter last year to the second quarter this year related to the 53-week calendar shift and an increase in e-commerce comparable sales, partially offset by decreased comparable store sales and a 6% decrease in the average number of stores in the second quarter this year. Total comparable sales for Journeys decreased 1% for the second quarter this year. We believe our teen customers' preference has shifted away from primarily vulcanized product in favor of a more diversified assortment. We added significant fresh product across casual and athletic brands and styles during the quarter. As a result, we saw an increase in store traffic that accelerated throughout the second quarter and drove a sequential improvement in Journeys Group comparable sales. We closed 12 Journeys Group stores in the second quarter of Fiscal 2025 and continue to evaluate up to 50 Journeys store closures in total in Fiscal 2025. Journeys Group operated 1,039 stores at the end of the second quarter of Fiscal 2025, including 220 Journeys Kidz stores, 39 Journeys stores in Canada and 31 Little Burgundy stores in Canada, compared to 1,095 stores at the end of the second quarter of last year, including 229 Journeys Kidz stores, 41 Journeys stores in Canada and 34 Little Burgundy stores in Canada.
Journeys Group had an operating loss of $11.2 million in the second quarter of Fiscal 2025 compared to an operating loss of $14.9 million in the second quarter of Fiscal 2024. The improvement in the operating loss for Journeys Group was due to (i) increased net sales and (ii) decreased selling and administrative expenses as a percentage of net sales reflecting a decrease in occupancy, marketing and compensation expenses as well as a favorable change in certain non-income taxes, partially offset by increased selling salaries. The decrease in selling and administrative expenses as a percentage of net sales demonstrates the impact of our cost savings initiatives and closing underperforming stores. Gross margin as a percentage of net sales decreased for the second quarter of Fiscal 2025, reflecting changes in product mix and increased shipping and warehouse expense as a result of increased e-commerce penetration, partially offset by decreased markdowns.
16
Schuh Group
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
124,561 |
|
|
$ |
122,799 |
|
|
|
1.4 |
% |
Operating income |
|
$ |
7,339 |
|
|
$ |
8,416 |
|
|
|
(12.8 |
)% |
Operating margin |
|
|
5.9 |
% |
|
|
6.9 |
% |
|
|
|
|
Net sales from Schuh Group increased 1.4% to $124.6 million in the second quarter of Fiscal 2025 compared to $122.8 million in the second quarter of Fiscal 2024. Net sales for the second quarter this year included an increase in e-commerce comparable sales, approximately $2 million due to the move of a strong week of back-to-school sales from the third quarter last year to the second quarter this year related to the 53-week calendar shift and a favorable impact of $0.7 million due to changes in foreign exchange rates, partially offset by decreased comparable store sales. Total comparable sales for Schuh decreased 2% for the second quarter this year. Schuh continued to contend with a challenging U.K. macro environment in the second quarter this year and the consumer continued to be selective in their purchases. In addition, Schuh Group sales in the second quarter of Fiscal 2025 compares against strong sales growth in the second quarters of Fiscal 2024 and Fiscal 2023. Schuh's e-commerce business remains a key channel for consumer engagement, accounting for nearly 40% of its sales in the second quarter of Fiscal 2025. Schuh's sales increased 1% on a local currency basis for the second quarter of Fiscal 2025. Schuh Group operated 123 stores at the end of the second quarter of Fiscal 2025, compared to 124 stores at the end of the second quarter of Fiscal 2024.
Schuh Group had operating income of $7.3 million in the second quarter of Fiscal 2025 compared to $8.4 million in the second quarter of Fiscal 2024. The 12.8% decrease in operating income compared to last year reflects decreased gross margin as a percentage of net sales reflecting a more promotional environment at Schuh during the second quarter this year, partially offset by decreased shipping and warehouse expenses. Selling and administrative expenses decreased as a percentage of net sales, reflecting decreased performance-based compensation expense, occupancy expense and professional fees, partially offset by increased compensation expenses, selling salaries and depreciation expense. In addition, operating income included a favorable impact of $0.1 million due to changes in foreign exchange rates compared to last year.
Johnston & Murphy Group
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
71,037 |
|
|
$ |
77,785 |
|
|
|
(8.7 |
)% |
Operating income (loss) |
|
$ |
(403 |
) |
|
$ |
2,666 |
|
|
NM |
|
|
Operating margin |
|
|
(0.6 |
)% |
|
|
3.4 |
% |
|
|
|
|
Johnston & Murphy Group net sales decreased 8.7% to $71.0 million for the second quarter of Fiscal 2025 from $77.8 million for the second quarter of Fiscal 2024, primarily due to a 5% decrease in comparable sales, reflecting decreased comparable store sales and comparable e-commerce sales, and decreased wholesale sales as well as a 4% decrease in the average number of stores in the second quarter this year. In addition, Johnston & Murphy Group sales in the second quarter of Fiscal 2025 compares against strong sales growth in the second quarters of Fiscal 2024 and Fiscal 2023. The softening in men's premium non-athletic footwear market made for a difficult operating environment in the second quarter. Consumers are very selective with their spend on premium priced product. The brand's apparel and accessories continue to resonate well with its consumers and Johnston & Murphy intends to continue to capitalize on opportunities beyond footwear. Retail operations accounted for 80.5% of Johnston & Murphy Group's sales in the second quarter of Fiscal 2025, down from 81.2% in the second quarter of Fiscal 2024. The store count for Johnston & Murphy retail operations at the end of the second quarter of Fiscal 2025 was 152 stores, including five stores in Canada, compared to 156 stores, including six stores in Canada, at the end of the second quarter of Fiscal 2024.
Johnston & Murphy Group had an operating loss of $0.4 million for the second quarter of Fiscal 2025 compared to operating income of $2.7 million in the second quarter of Fiscal 2024. The decrease in operating income compared to last year reflects decreased net sales and increased selling and administrative expenses as a percentage of net sales for the second quarter of Fiscal 2025 reflecting the deleverage of expenses, especially selling salaries and compensation expense in part as a result of decreased revenue in the second quarter of Fiscal 2025 and increased marketing expense as a result of a new marketing campaign, partially offset by decreased performance-based compensation. Gross margin as a percentage of net sales increased for the second quarter of Fiscal 2025, reflecting a comparison against increased inventory reserves last year, partially offset by higher retail markdowns and a lower mix of direct-to-consumer sales volume.
17
Genesco Brands Group
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
30,744 |
|
|
$ |
35,168 |
|
|
|
(12.6 |
)% |
Operating income |
|
$ |
2,672 |
|
|
$ |
1,851 |
|
|
|
44.4 |
% |
Operating margin |
|
|
8.7 |
% |
|
|
5.3 |
% |
|
|
|
|
Genesco Brands' net sales decreased 12.6% to $30.7 million for the second quarter of Fiscal 2025 from $35.2 million for the second quarter of Fiscal 2024 due primarily to the repositioning of the business to a more refined portfolio of licenses, partially offset by increased sales of Dockers footwear.
Genesco Brands' operating income was $2.7 million in the second quarter of Fiscal 2025 compared to $1.9 million in the second quarter of Fiscal 2024. The 44.4% increase in operating income was primarily due to decreased selling and administrative expenses as a percentage of net sales in the second quarter of Fiscal 2025 reflecting decreased royalty and marketing expenses as a result of an amendment to the Levi's license agreement, partially offset by increased performance-based compensation expense, warehouse and freight costs, compensation expense and depreciation expense. Gross margin decreased as a percentage of net sales reflecting primarily a channel sales mix shift.
Corporate, Interest Expenses and Other Charges
Corporate and other expense for the second quarter of Fiscal 2025 was $8.7 million compared to $36.7 million for the second quarter of Fiscal 2024. Corporate expense in the second quarter of Fiscal 2025 included a $0.8 million charge in asset impairment and other charges for severance and asset impairments. Corporate expense in the second quarter of Fiscal 2024 included non-cash impairment charges of $28.5 million related to goodwill and a $0.2 million charge in asset impairment and other charges for asset impairments. Corporate expenses were basically flat for the second quarter of Fiscal 2025 compared to the second quarter of Fiscal 2024, excluding asset impairment and other charges in Fiscal 2025 and Fiscal 2024 and goodwill impairment in Fiscal 2024.
Net interest expense decreased 43.6% to $1.3 million in the second quarter of Fiscal 2025 compared to $2.4 million in the second quarter of Fiscal 2024 primarily reflecting decreased average borrowings in the second quarter this year compared to the second quarter last year.
Results of Operations – First Six Months of Fiscal 2025 Compared to First Six Months of Fiscal 2024
Our net sales decreased 2.3% to $982.8 million in the first six months of Fiscal 2025 compared to $1.006 billion in the first six months of Fiscal 2024. The sales decrease compared to last year's first six months was driven by decreased comparable store sales, decreased wholesale sales and the impact of net store closings, partially offset by the inclusion this year of approximately $30 million to $35 million in sales due to the calendar shift because Fiscal 2024 was a 53-week year, a 6% increase in e-commerce comparable sales and a favorable impact of $2.6 million in sales due to foreign exchange rates. Journeys Group sales and Schuh Group sales were flat for the first six months while Johnston & Murphy Group sales decreased 6% and Genesco Brands Group sales decreased 19%, or an aggregate of $13.2 million for the first six months of Fiscal 2025 compared to the first six months of Fiscal 2024. Schuh's sales decreased 1% on a local currency basis for the first six months of Fiscal 2025. Total comparable sales decreased 3% for the first six months of Fiscal 2025, with same store sales down 6% and comparable e-commerce sales up 6%.
Gross margin decreased 3.4% to $461.9 million in the first six months of Fiscal 2025 from $478.3 million in the first six months of Fiscal 2024 and decreased as a percentage of net sales from 47.5% to 47.0% reflecting decreased gross margin as a percentage of net sales in all business units except Johnston & Murphy Group. The decreased gross margin as a percentage of net sales reflects primarily a higher mix of sale product at Schuh, partially offset by an overall change in sales mix.
Selling and administrative expenses in the first six months of Fiscal 2025 decreased 1.6% to $503.0 million from $511.0 million compared to the first six months of Fiscal 2024, reflecting the impact of our cost savings initiatives, including net store closures. Selling and administrative expenses increased as a percentage of net sales in the first six months of Fiscal 2025 compared to the first six months of Fiscal 2024 from 50.8% to 51.2%, reflecting increased expenses as a percentage of net sales at Schuh Group and Johnston & Murphy Group, partially offset by decreased expenses as a percentage of sales at Journeys Group and Genesco Brands Group. The overall increase in expenses as a percentage of net sales reflects increased selling salaries, depreciation expense and professional fees, partially offset by decreased royalty expense and a favorable change in certain non-income taxes.
Operating margin was a loss of 4.3% in the first six months of Fiscal 2025 compared to a loss of 6.1% in the first six months of Fiscal 2024 reflecting improved operating margin at Journeys Group and Genesco Brands Group, partially offset by decreased operating margin at Schuh Group and Johnston & Murphy Group. The overall improvement in operating margin for the first six months this year compared to the first six months last year is primarily reflects a non-cash goodwill impairment charge of $28.5 million in the second quarter of Fiscal 2024, partially offset
18
by decreased gross margin as a percentage of net sales and increased selling and administrative expenses as a percentage of net sales in the first six months of Fiscal 2025 compared to the first six months of Fiscal 2024.
The pretax loss for the first six months of Fiscal 2025 was $44.8 million compared to a pretax loss of $65.9 million for the first six months of Fiscal 2024. The pretax loss for the first six months of Fiscal 2025 included a $1.8 million charge for a distribution model transition in the Genesco Brands Group and asset impairment and other charges of $1.4 million for severance and asset impairments. The pretax loss for the first six months of Fiscal 2024 included a non-cash goodwill impairment charge of $28.5 million and asset impairment and other charges of $0.5 million for asset impairments.
We had an effective income tax rate of 23.7% and 23.4% in the first six months of Fiscal 2025 and Fiscal 2024, respectively.
The net loss in the first six months of Fiscal 2025 was $34.3 million, or $3.14 diluted loss per share, compared to a net loss of $50.6 million, or $4.37 diluted loss per share, in the first six months of Fiscal 2024.
Journeys Group
|
|
Six Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
558,291 |
|
|
$ |
559,465 |
|
|
|
(0.2 |
)% |
Operating loss |
|
$ |
(29,973 |
) |
|
$ |
(33,240 |
) |
|
|
9.8 |
% |
Operating margin |
|
|
(5.4 |
)% |
|
|
(5.9 |
)% |
|
|
|
|
Net sales from Journeys Group decreased 0.2% to $558.3 million in the first six months of Fiscal 2025, compared to $559.5 million in the first six months of Fiscal 2024. Net sales for the first six months this year included approximately $25 million to $29 million due to the calendar shift because Fiscal 2024 was a 53-week year. Journeys total comparable sales decreased 3%, with a decrease in comparable store sales, partially offset by increased e-commerce comparable sales. In addition, the average number of Journeys stores decreased 6% in the first six months this year. We believe our teen customers' preference has shifted away from primarily vulcanized product in favor of a more diversified assortment. We added a significant amount of fresh product to our assortment in the later part of our first six months and store traffic has increased as a result and drove a sequential improvement in Journeys Group comparable sales. We closed 29 Journeys Group stores in the first six months of Fiscal 2025 and continue to evaluate up to 50 Journeys store closures in total in Fiscal 2025.
Journeys Group had an operating loss of $30.0 million in the first six months of Fiscal 2025 compared to an operating loss of $33.2 million in the first six months of Fiscal 2024. The improvement in the operating loss for Journeys Group was due to decreased selling and administrative expenses as a percentage of net sales reflecting a decrease in occupancy, compensation and marketing expenses, partially offset by increased selling salaries and depreciation expense. The decrease in selling and administrative expenses, in both absolute dollars and as a percentage of sales, demonstrates the impact of our cost savings initiatives and closing underperforming stores. Gross margin as a percentage of net sales decreased for the first six months of Fiscal 2025, reflecting changes in product mix and increased shipping and warehouse expense as a result of increased e-commerce penetration, partially offset by decreased markdowns.
Schuh Group
|
|
Six Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
216,910 |
|
|
$ |
215,904 |
|
|
|
0.5 |
% |
Operating income |
|
$ |
1,443 |
|
|
$ |
6,626 |
|
|
|
(78.2 |
)% |
Operating margin |
|
|
0.7 |
% |
|
|
3.1 |
% |
|
|
|
|
Net sales from Schuh Group increased 0.5% to $216.9 million in the first six months of Fiscal 2025 compared to $215.9 million in the first six months of Fiscal 2024. Net sales for the first six months this year included approximately $4 million to $5 million due to the calendar shift because Fiscal 2024 was a 53-week year, a favorable impact of $3.3 million due to changes in foreign exchange rates and increased e-commerce comparable sales, partially offset by decreased comparable store sales. Total comparable sales for Schuh decreased 4% for the first six months this year. Schuh continued to contend with a challenging U.K. macro environment in the first six months this year and the consumer continues to be selective in their purchases. In addition, Schuh Group sales in the first six months of Fiscal 2025 compares against strong sales growth in
19
the first six months of Fiscal 2024. Schuh's e-commerce business remains a key channel for consumer engagement, accounting for nearly 40% of its sales in the first six months of Fiscal 2025. Schuh's sales decreased 1% on a local currency basis for the first six months of Fiscal 2025.
Schuh Group had operating income of $1.4 million in the first six months of Fiscal 2025 compared to $6.6 million in the first six months of Fiscal 2024. The decrease in operating income compared to last year reflects decreased gross margin as a percentage of net sales reflecting a more promotional environment at Schuh during the first six months this year, partially offset by decreased shipping and warehouse expenses. Selling and administrative expenses increased as a percentage of net sales, reflecting increased compensation expense, selling salaries, marketing and depreciation expenses, partially offset by decreased occupancy and performance-based compensation expenses. In addition, operating income included an unfavorable impact of $0.1 million due to changes in foreign exchange rates compared to last year.
Johnston & Murphy Group
|
|
Six Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
150,244 |
|
|
$ |
160,412 |
|
|
|
(6.3 |
)% |
Operating income |
|
$ |
1,952 |
|
|
$ |
7,472 |
|
|
|
(73.9 |
)% |
Operating margin |
|
|
1.3 |
% |
|
|
4.7 |
% |
|
|
|
|
Johnston & Murphy Group net sales decreased 6.3% to $150.2 million for the first six months of Fiscal 2025 from $160.4 million for the first six months of Fiscal 2024, primarily due to a 4% decrease in comparable sales, reflecting decreased comparable store sales and comparable e-commerce sales, and decreased wholesale sales as well as a 3% decrease in the average number of stores in the first six months this year. In addition, Johnston & Murphy Group sales in the first six months of Fiscal 2025 compares against strong sales growth in the first six months of Fiscal 2024. The softening in men's premium, non-athletic, footwear market made for a difficult operating environment in the first six months this year. Consumers are very selective with their spend on premium priced product. Retail operations accounted for 77.1% of Johnston & Murphy Group's sales in the first six months of Fiscal 2025, up slightly from 77.0% in the first six months of Fiscal 2024.
Johnston & Murphy Group had operating income of $2.0 million for the first six months of Fiscal 2025 compared to $7.5 million in the first six months of Fiscal 2024. The decrease in operating income compared to last year reflects decreased net sales and increased selling and administrative expenses as a percentage of net sales for the first six months of Fiscal 2025, reflecting the deleverage of expenses, especially selling salaries, compensation and occupancy expenses in part as a result of decreased revenue and increased marketing expense as a result of a new marketing campaign in the first six months of Fiscal 2025, partially offset by decreased performance-based compensation expense. Gross margin as a percentage of net sales increased for the first six months of Fiscal 2025, primarily reflecting lower warehouse costs.
Genesco Brands Group
|
|
Six Months Ended |
|
|
|
|
||||||
|
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
% |
|
|||
|
|
(dollars in thousands) |
|
|
|
|
||||||
Net sales |
|
$ |
57,340 |
|
|
$ |
70,578 |
|
|
|
(18.8 |
)% |
Operating income |
|
$ |
1,686 |
|
|
$ |
1,819 |
|
|
|
(7.3 |
)% |
Operating margin |
|
|
2.9 |
% |
|
|
2.6 |
% |
|
|
|
|
Genesco Brands' net sales decreased 18.8% to $57.3 million for the first six months of Fiscal 2025 from $70.6 million for the first six months of Fiscal 2024 due primarily to the repositioning of the business to a more refined portfolio of licenses, partially offset by increased sales of Dockers footwear.
Genesco Brands' operating income was $1.7 million in the first six months of Fiscal 2025 compared to $1.8 million in the first six months of Fiscal 2024. The 7.3% decrease in operating income was primarily due to decreased net sales and decreased gross margin as a percentage of net sales reflecting a $1.8 million inventory provision for a distribution model transition, partially offset by a favorable brand sales mix shift. Selling and administrative expenses decreased as a percentage of net sales in the first six months of Fiscal 2025 reflecting decreased royalty and marketing expenses as a result of an amendment to the Levi's license agreement and decreased bad debt expenses, partially offset by increased performance-based compensation expense, compensation expense and depreciation expense.
20
Corporate, Interest Expenses and Other Charges
Corporate and other expense for the first six months of Fiscal 2025 was $17.5 million compared to $44.3 million for the first six months of Fiscal 2024. Corporate expense in the first six months of Fiscal 2025 included a $1.4 million charge in asset impairment and other charges for severance and asset impairments. Corporate expense in the first six months of Fiscal 2024 included non-cash impairment charges of $28.5 million related to goodwill and a $0.5 million charge in asset impairment and other charges for asset impairments. The corporate expense increase, excluding asset impairment and other charges in Fiscal 2025 and Fiscal 2024 and goodwill impairment in Fiscal 2024, primarily reflects an increase in professional fees and compensation expense, partially offset by decreased performance-based compensation expense in the first six months this year compared to the first six months last year.
Net interest expense decreased 44.6% to $2.2 million in the first six months of Fiscal 2025 compared to $4.0 million in the first six months of Fiscal 2024 primarily reflecting decreased average borrowings in the first six months this year compared to the first six months last year.
Liquidity and Capital Resources
Working Capital
Our business is seasonal, with our investment in working capital normally reaching peaks in the summer and fall of each year in anticipation of the back-to-school and holiday selling seasons. Historically, cash flows from operations typically have been generated principally in the fourth quarter of each fiscal year.
|
|
Six Months Ended |
|
|||||||||
Cash flow changes: |
|
August 3, 2024 |
|
|
July 29, 2023 |
|
|
Increase |
|
|||
(in thousands) |
|
|
|
|||||||||
Net cash used in operating activities |
|
$ |
(6,029 |
) |
|
$ |
(25,135 |
) |
|
$ |
19,106 |
|
Net cash used in investing activities |
|
|
(14,274 |
) |
|
|
(35,211 |
) |
|
|
20,937 |
|
Net cash provided by financing activities |
|
|
30,922 |
|
|
|
49,108 |
|
|
|
(18,186 |
) |
Effect of foreign exchange rate fluctuations on cash |
|
|
81 |
|
|
|
664 |
|
|
|
(583 |
) |
Net increase (decrease) in cash |
|
$ |
10,700 |
|
|
$ |
(10,574 |
) |
|
$ |
21,274 |
|
Reasons for the major variances in cash provided by (used in) the table above are as follows:
Cash used in operating activities was $19.1 million lower in the first six months of Fiscal 2025 compared to the first six months of Fiscal 2024, reflecting primarily the following factors:
Cash used in investing activities was $20.9 million lower for the first six months of Fiscal 2025 as compared to the first six months of Fiscal 2024 reflecting decreased capital expenditures primarily related to omni-channel capabilities and investments in retail stores.
Cash provided by financing activities was $18.2 million lower in the first six months of Fiscal 2025 as compared to the first six months of Fiscal 2024 reflecting decreased net borrowings partially offset by decreased share repurchases this year compared to the same period last year.
Sources of Liquidity and Future Capital Needs
We have three principal sources of liquidity: cash flow from operations, cash on hand and our credit facilities discussed in Item 8, Note 8, "Long-Term Debt", to our Consolidated Financial Statements included in our Annual Report on Form 10-K for Fiscal 2024.
As of August 3, 2024, we have borrowed $75.1 million U.S. revolver borrowings and $2.7 million (C$3.8 million) related to GCO Canada ULC. We were in compliance with all the relevant terms and conditions of the Credit Facility and the Facility Agreement as of August 3, 2024.
We believe that cash on hand, cash provided by operations and borrowings under our Credit Facility and the Facility Agreement will be sufficient to support our liquidity needs in Fiscal 2025 and the foreseeable future.
21
In the fourth quarter of Fiscal 2021, we implemented tax strategies allowed under the 5-year carryback provisions in the CARES Act which we believe will generate approximately $55 million of net tax refunds. We received approximately $26 million of such net tax refunds in Fiscal 2022 and anticipated receipt of the remaining outstanding net tax refund in Fiscal 2023. However, in the third quarter of Fiscal 2023, we were notified the IRS would conduct an audit of the periods related to the outstanding net tax refund. While we do not believe any uncertainty with the technical merits of the positions generating the net tax refunds exists, we do anticipate the timing of the net tax refund will be extended as a result of the audit process. Accordingly, we have recorded the outstanding refund to non-current prepaid income taxes on the Condensed Consolidated Balance Sheets as of August 3, 2024.
Contractual Obligations
Our contractual obligations at August 3, 2024 decreased 1% compared to February 3, 2024, primarily due to decreased lease obligations and purchase obligations, partially offset by increased long-term debt.
Capital Expenditures
Total capital expenditures in Fiscal 2025 are expected to be approximately $52 million to $57 million of which approximately 63% is for new stores and remodels and 37% is for computer hardware, software and warehouse enhancements for initiatives to drive traffic and omni-channel capabilities. We do not currently have any longer-term capital expenditures or other cash requirements other than as set forth above and in the contractual obligations table as disclosed in Item 7 of our Fiscal 2024 Form 10-K. We also do not currently have any off-balance sheet arrangements.
Common Stock Repurchases
We repurchased 381,711 shares during the second quarter and first six months of Fiscal 2025 at a cost of $9.3 million, or $24.49 per share. We have $42.8 million remaining as of August 3, 2024 under our expanded share repurchase authorization announced in June 2023. In addition, we recorded an accrual for excise tax on stock repurchases of less than $0.1 million in other accrued liabilities in our condensed consolidated balance sheets as of August 3, 2024. We repurchased 1,006,295 shares during the second quarter of Fiscal 2024 at a cost of $22.9 million, or $22.71 per share, and repurchased 1,261,295 shares during the first six months of Fiscal 2024 at a cost of $32.0 million, or $25.39 per share.
During the third quarter of Fiscal 2025, through September 11, 2024, we have not repurchased any shares.
Environmental and Other Contingencies
We are subject to certain loss contingencies related to environmental proceedings and other legal matters, including those disclosed in Item 1, Note 7, "Legal Proceedings", to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
New Accounting Pronouncements
Descriptions of recently issued accounting pronouncements, if any, and the accounting pronouncements adopted by us during the second quarter of Fiscal 2025 are included in Note 1 to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
22
Item 3. Quantitative and Qualitative Disclosures about Market Risk
We incorporate by reference the information regarding market risk appearing in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Financial Market Risk” in our Annual Report on Form 10-K for the fiscal year ended February 3, 2024. There have been no material changes to our exposure to market risks from those disclosed in the Form 10-K.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We have established disclosure controls and procedures designed to ensure that information required to be disclosed by us, including our consolidated subsidiaries, in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is made known to the officers who certify our financial reports and to other members of senior management. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving desired objectives.
Based on their evaluation as of August 3, 2024, the principal executive officer and principal financial officer of the Company have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within time periods specified in SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during our second quarter of Fiscal 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
23
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
We incorporate by reference the information regarding legal proceedings in Item 1, Note 7, “Legal Proceedings”, to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Item 1A. Risk Factors
You should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, which could materially affect our business, financial condition or future results. The risks described in this report, and in our Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Repurchases (shown in thousands except share and per share amounts):
ISSUER PURCHASES OF EQUITY SECURITIES |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Period |
|
(a) Total |
|
|
(b) Average |
|
|
(c) Total |
|
|
(d) Maximum |
|
||||
May 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
5-5-24 to 6-1-24(1) |
|
|
7,700 |
|
|
$ |
24.90 |
|
|
|
7,700 |
|
|
$ |
51,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
June 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
6-2-24 to 6-29-24(1) |
|
|
180,853 |
|
|
$ |
24.63 |
|
|
|
180,853 |
|
|
$ |
47,463 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
July 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
6-30-24 to 8-3-24 (1) |
|
|
193,158 |
|
|
$ |
24.35 |
|
|
|
193,158 |
|
|
$ |
42,760 |
|
6-30-24 to 8-3-24 (2) |
|
|
49,199 |
|
|
$ |
26.45 |
|
|
|
— |
|
|
|
— |
|
Total |
|
|
430,910 |
|
|
$ |
24.72 |
|
|
|
381,711 |
|
|
$ |
42,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Share repurchases were made pursuant to a $100.0 million share repurchase program approved by the Board of Directors and announced in February 2022, and in June 2023, the Board of Directors approved an additional $50.0 million for share repurchases. We expect to implement the balance of the repurchase program through purchases made from time to time either in the open market or through private transactions, in accordance with the regulations of the SEC and other applicable legal requirements. |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(2) These shares represent shares withheld from vested restricted stock to satisfy the minimum withholding requirement for federal and state taxes. |
|
|||||||||||||||
Item 5. Other Information
(c) During the second quarter of Fiscal 2025, no director or Section 16 officer of the Company
24
Item 6. Exhibits
Exhibit Index |
|
|
|
|
|
(31.1) |
|
|
|
|
|
(31.2) |
|
|
|
|
|
(32.1) |
|
|
|
|
|
(32.2) |
|
|
|
|
|
101 |
|
The following materials from Genesco Inc.'s Quarterly Report on Form 10-Q for the quarter ended August 3, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 3, 2024, February 3, 2024 and July 29, 2023, (ii) Condensed Consolidated Statements of Operations for each of the three and six months ended August 3, 2024 and July 29, 2023, (iii) Condensed Consolidated Statements of Comprehensive Loss for each of the three and six months ended August 3, 2024 and July 29, 2023, (iv) Condensed Consolidated Statements of Cash Flows for each of the three and six months ended August 3, 2024 and July 29, 2023, (v) Condensed Consolidated Statements of Equity for each of the three and six months ended August 3, 2024 and July 29, 2023, and (vi) Notes to the Condensed Consolidated Financial Statements. |
|
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
25
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
|||
|
|
|
|
|
|
|
Genesco Inc. |
||||
|
|
|
|||
|
By: |
|
/s/ Thomas A. George |
||
|
|
|
Thomas A. George |
||
|
|
|
Senior Vice President - Finance and Chief Financial Officer |
||
Date: September 12, 2024
26
Exhibit 31.1
CERTIFICATIONS
I, Mimi E. Vaughn, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Genesco Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: September 12, 2024
/s/ Mimi E. Vaughn |
Mimi E. Vaughn |
Chief Executive Officer |
Exhibit 31.2
CERTIFICATIONS
I, Thomas A. George, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Genesco Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: September 12, 2024
/s/ Thomas A. George |
Thomas A. George |
Senior Vice President - Finance and Chief Financial Officer |
Exhibit 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Genesco Inc. (the “Company”) on Form 10-Q for the period ending August 3, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mimi E. Vaughn, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Mimi E. Vaughn |
Mimi E. Vaughn |
Chief Executive Officer |
September 12, 2024 |
Exhibit 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Genesco Inc. (the “Company”) on Form 10-Q for the period ending August 3, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas A. George, Senior Vice President - Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Thomas A. George |
Thomas A. George |
Senior Vice President - Finance and Chief Financial Officer |
September 12, 2024 |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Aug. 03, 2024 |
Feb. 03, 2024 |
Jul. 29, 2023 |
||||||
|---|---|---|---|---|---|---|---|---|---|
| Current Assets: | |||||||||
| Cash | $ 45,855 | $ 35,155 | $ 37,416 | ||||||
| Accounts receivable, net of allowances of $2,409 at August 3, 2024, $4,266 at February 3, 2024 and $4,536 at July 29, 2023 | 57,497 | 53,618 | 50,351 | ||||||
| Inventories | 450,187 | 378,967 | 491,118 | ||||||
| Prepaids and other current assets | 53,181 | 39,611 | 45,983 | ||||||
| Total current assets | 606,720 | 507,351 | 624,868 | ||||||
| Property and equipment, net | 229,116 | 240,266 | 244,090 | ||||||
| Operating lease right of use assets | 402,715 | 436,896 | 476,715 | ||||||
| Non-current prepaid income taxes | 58,051 | 56,839 | 55,028 | ||||||
| Goodwill | 9,284 | 9,565 | 9,717 | ||||||
| Other intangibles | 27,162 | 27,250 | 27,952 | ||||||
| Deferred income taxes | 25,287 | 26,230 | 30,623 | ||||||
| Other noncurrent assets | 25,416 | 25,493 | 25,766 | ||||||
| Total Assets | 1,383,751 | [1] | 1,329,890 | 1,494,759 | [2] | ||||
| Current Liabilities: | |||||||||
| Accounts payable | 187,439 | 114,621 | 166,504 | ||||||
| Current portion - operating lease liabilities | 122,527 | 129,189 | 137,369 | ||||||
| Other accrued liabilities | 85,697 | 75,727 | 78,707 | ||||||
| Total current liabilities | 395,663 | 319,537 | 382,580 | ||||||
| Long-term debt | 77,839 | 34,682 | 131,544 | ||||||
| Long-term operating lease liabilities | 329,773 | 359,073 | 403,413 | ||||||
| Other long-term liabilities | 47,854 | 45,396 | 44,203 | ||||||
| Total liabilities | 851,129 | 758,688 | 961,740 | ||||||
| Commitments and contingent liabilities | |||||||||
| Equity | |||||||||
| Non-redeemable preferred stock | 812 | 813 | 812 | ||||||
| Common equity: | |||||||||
| Common stock, $1 par value: Authorized; 80,000,000 shares Issued common stock | 11,707 | 11,961 | 11,996 | ||||||
| Additional paid-in capital | 325,775 | 319,143 | 313,019 | ||||||
| Retained earnings | 251,351 | 296,766 | 263,081 | ||||||
| Accumulated other comprehensive loss | (39,166) | (39,624) | (38,032) | ||||||
| Treasury shares, at cost (488,464 shares) | (17,857) | (17,857) | (17,857) | ||||||
| Total equity | 532,622 | 571,202 | 533,019 | ||||||
| Total Liabilities and Equity | $ 1,383,751 | $ 1,329,890 | $ 1,494,759 | ||||||
| |||||||||
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Aug. 03, 2024 |
Feb. 03, 2024 |
Jul. 29, 2023 |
|---|---|---|---|
| Current Assets: | |||
| Allowances on accounts receivable | $ 2,409 | $ 4,266 | $ 4,536 |
| Common equity: | |||
| Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
| Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
| Treasury Stock, Shares | 488,464 | 488,464 | 488,464 |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|||||||||||||||||||||||
| Income Statement [Abstract] | ||||||||||||||||||||||||||
| Net sales | $ 525,188 | [1] | $ 523,027 | [2] | $ 982,785 | [3] | $ 1,006,359 | [4] | ||||||||||||||||||
| Cost of sales | 279,549 | 273,507 | 520,865 | 528,031 | ||||||||||||||||||||||
| Gross margin | 245,639 | 249,520 | 461,920 | 478,328 | ||||||||||||||||||||||
| Selling and administrative expenses | 255,135 | 259,520 | 502,966 | 511,017 | ||||||||||||||||||||||
| Goodwill impairment | 0 | 28,453 | [5] | 0 | 28,453 | [6] | ||||||||||||||||||||
| Asset impairments and other, net | 778 | [7] | 174 | [7] | 1,356 | [8] | 482 | [9] | ||||||||||||||||||
| Operating loss | (10,274) | (38,627) | (42,402) | (61,624) | ||||||||||||||||||||||
| Other components of net periodic benefit cost | 86 | 148 | 195 | 240 | ||||||||||||||||||||||
| Interest expense, net | 1,345 | 2,383 | 2,235 | 4,034 | ||||||||||||||||||||||
| Loss from continuing operations before income taxes | (11,705) | (41,158) | (44,832) | (65,898) | ||||||||||||||||||||||
| Income tax benefit | (1,776) | (9,526) | (10,615) | (15,391) | ||||||||||||||||||||||
| Loss from continuing operations | (9,929) | (31,632) | (34,217) | (50,507) | ||||||||||||||||||||||
| Loss from discontinued operations, net of tax | (63) | (33) | (122) | (48) | ||||||||||||||||||||||
| Net Loss | $ (9,992) | $ (31,665) | $ (34,339) | $ (50,555) | ||||||||||||||||||||||
| Basic loss per common share: | ||||||||||||||||||||||||||
| Continuing operations (in dollars per share) | $ (0.91) | $ (2.79) | $ (3.13) | $ (4.36) | ||||||||||||||||||||||
| Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | (0.01) | ||||||||||||||||||||||
| Net loss (in dollars per share) | (0.91) | (2.79) | (3.14) | (4.37) | ||||||||||||||||||||||
| Diluted loss per common share: | ||||||||||||||||||||||||||
| Continuing operations (in dollars per share) | (0.91) | (2.79) | (3.13) | (4.36) | ||||||||||||||||||||||
| Discontinued operations (in dollars per share) | 0 | 0 | (0.01) | (0.01) | ||||||||||||||||||||||
| Net loss (in dollars per share) | $ (0.91) | $ (2.79) | $ (3.14) | $ (4.37) | ||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Basic (in shares) | 10,942 | 11,344 | 10,936 | 11,581 | ||||||||||||||||||||||
| Diluted (in shares) | 10,942 | 11,344 | 10,936 | 11,581 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
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| Statement of Comprehensive Income [Abstract] | ||||
| Net Income (Loss) | $ (9,992) | $ (31,665) | $ (34,339) | $ (50,555) |
| Other comprehensive income: | ||||
| Postretirement liability adjustments, net of tax | 21 | 62 | 59 | 91 |
| Foreign currency translation adjustments | 1,372 | 2,643 | 399 | 3,088 |
| Total other comprehensive income | 1,393 | 2,705 | 458 | 3,179 |
| Comprehensive Loss | $ (8,599) | $ (28,960) | $ (33,881) | $ (47,376) |
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands |
Total |
Non-Redeemable Preferred Stock |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Shares |
|---|---|---|---|---|---|---|---|
| Beginning balance at Jan. 28, 2023 | $ 606,966 | $ 815 | $ 13,089 | $ 305,260 | $ 346,870 | $ (41,211) | $ (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (18,890) | (18,890) | |||||
| Other comprehensive income | 474 | 474 | |||||
| Share-based compensation expense | 3,772 | 3,772 | |||||
| Restricted stock issuance | 234 | (234) | |||||
| Restricted shares withheld for taxes | (449) | (13) | 13 | (449) | |||
| Shares repurchased | (9,170) | (255) | (8,915) | ||||
| Excise taxes related to repurchases of common stock | (78) | (78) | |||||
| Other | (3) | (3) | 6 | ||||
| Ending balance at Apr. 29, 2023 | 582,625 | 812 | 13,052 | 308,817 | 318,538 | (40,737) | (17,857) |
| Beginning balance at Jan. 28, 2023 | 606,966 | 815 | 13,089 | 305,260 | 346,870 | (41,211) | (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (50,555) | ||||||
| Other comprehensive income | 3,179 | ||||||
| Shares repurchased | (32,000) | ||||||
| Ending balance at Jul. 29, 2023 | 533,019 | 812 | 11,996 | 313,019 | 263,081 | (38,032) | (17,857) |
| Beginning balance at Apr. 29, 2023 | 582,625 | 812 | 13,052 | 308,817 | 318,538 | (40,737) | (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (31,665) | (31,665) | |||||
| Other comprehensive income | 2,705 | 2,705 | |||||
| Share-based compensation expense | 4,153 | 4,153 | |||||
| Restricted stock issuance | 40 | (40) | |||||
| Restricted shares withheld for taxes | (1,756) | (72) | 72 | (1,756) | |||
| Shares repurchased | (22,857) | (1,006) | (21,851) | ||||
| Excise taxes related to repurchases of common stock | (185) | (185) | |||||
| Other | (1) | (18) | 17 | ||||
| Ending balance at Jul. 29, 2023 | 533,019 | 812 | 11,996 | 313,019 | 263,081 | (38,032) | (17,857) |
| Beginning balance at Feb. 03, 2024 | 571,202 | 813 | 11,961 | 319,143 | 296,766 | (39,624) | (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (24,347) | (24,347) | |||||
| Other comprehensive income | (935) | (935) | |||||
| Share-based compensation expense | 3,307 | 3,307 | |||||
| Restricted stock issuance | 198 | (198) | |||||
| Restricted shares withheld for taxes | (773) | (29) | 29 | (773) | |||
| Other | (1) | (1) | (8) | 7 | 1 | ||
| Ending balance at May. 04, 2024 | 548,453 | 812 | 12,122 | 322,288 | 271,647 | (40,559) | (17,857) |
| Beginning balance at Feb. 03, 2024 | 571,202 | 813 | 11,961 | 319,143 | 296,766 | (39,624) | (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (34,339) | ||||||
| Other comprehensive income | 458 | ||||||
| Shares repurchased | (9,300) | ||||||
| Ending balance at Aug. 03, 2024 | 532,622 | 812 | 11,707 | 325,775 | 251,351 | (39,166) | (17,857) |
| Beginning balance at May. 04, 2024 | 548,453 | 812 | 12,122 | 322,288 | 271,647 | (40,559) | (17,857) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
| Net Income (Loss) | (9,992) | (9,992) | |||||
| Other comprehensive income | 1,393 | 1,393 | |||||
| Share-based compensation expense | 3,453 | 3,453 | |||||
| Restricted stock issuance | 37 | (37) | |||||
| Restricted shares withheld for taxes | (1,301) | (49) | 49 | (1,301) | |||
| Shares repurchased | (9,349) | (382) | (8,967) | ||||
| Excise taxes related to repurchases of common stock | (35) | (35) | |||||
| Other | (21) | 22 | (1) | ||||
| Ending balance at Aug. 03, 2024 | $ 532,622 | $ 812 | $ 11,707 | $ 325,775 | $ 251,351 | $ (39,166) | $ (17,857) |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Aug. 03, 2024 |
May 04, 2024 |
Jul. 29, 2023 |
Apr. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|
| Pay vs Performance Disclosure | ||||||
| Net Income (Loss) | $ (9,992) | $ (24,347) | $ (31,665) | $ (18,890) | $ (34,339) | $ (50,555) |
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Aug. 03, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies |
6 Months Ended |
|---|---|
Aug. 03, 2024 | |
| Accounting Policies [Abstract] | |
| Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Basis of Presentation These Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and Notes for Fiscal 2024, which are contained in our Annual Report on Form 10-K as filed with the SEC on March 27, 2024. The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending February 1, 2025 ("Fiscal 2025"), which is a 52-week year, and of the fiscal year ended February 3, 2024 ("Fiscal 2024"), which was a 53-week year. All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. The results of operations for any interim period are not necessarily indicative of results for the full year. The Condensed Consolidated Financial Statements and the related Notes have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. The Condensed Consolidated Balance Sheet as of February 3, 2024 has been derived from the audited financial statements at that date. Nature of Operations Genesco Inc. and its subsidiaries (collectively the "Company", "Genesco," "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys®, Journeys Kidz®, Little Burgundy® and Johnston & Murphy® banners and under the Schuh® banner in the United Kingdom (“U.K.”) and the Republic of Ireland (“ROI”); through e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, littleburgundyshoes.com, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, johnstonmurphy.ca, nashvilleshoewarehouse.com and dockersshoes.com as well as catalogs. We also source, design, market and distribute footwear and accessories at wholesale, primarily under our Johnston & Murphy brand, the licensed Levi's® brand, the licensed Dockers® brand, the licensed G.H. Bass® brand and other brands that we license for footwear. At August 3, 2024, we operated 1,314 retail stores in the U.S., Puerto Rico, Canada, the U.K. and the ROI. During the three and six months ended August 3, 2024 and July 29, 2023, we operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains and e-commerce operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations and wholesale distribution of products under the Johnston & Murphy brand; and (iv) Genesco Brands Group, comprised of the licensed Dockers, Levi's, and G.H. Bass brands, as well as other brands we license for footwear. Selling and Administrative Expenses Wholesale costs of distribution are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations in the amount of $2.6 million and $2.5 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $5.0 million and $6.0 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. Retail occupancy costs recorded in selling and administrative expenses were $73.5 million and $76.4 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $149.0 million and $152.8 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively.
Advertising Costs Advertising costs were $27.7 million and $28.1 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $51.4 million and $51.7 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. Vendor Allowances Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $2.7 million and $1.9 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $4.6 million and $6.6 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. During the first six months of each of Fiscal 2025 and Fiscal 2024, our cooperative advertising reimbursements received were not in excess of the costs incurred.
Note 1 Summary of Significant Accounting Policies, Continued New Accounting Pronouncements We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations and financial reporting. As of August 3, 2024, there were no other new pronouncements or interpretations, other than those disclosed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, that had or were expected to have a significant impact on our financial reporting. |
Goodwill and Other Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets | Note 2 Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the Journeys Group segment were as follows:
Other intangibles by major classes were as follows:
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Inventories |
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Aug. 03, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Inventories | Note 3 Inventories
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Fair Value |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value | Note 4 Fair Value Fair Value of Financial Instruments The carrying amounts and fair values of our financial instruments at August 3, 2024 and February 3, 2024 are:
Debt fair values were determined using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 within the fair value hierarchy. We did not have any debt classified as current portion as of August 3, 2024 or February 3, 2024. As of August 3, 2024, we have $1.1 million of long-lived assets held and used which were measured using Level 3 inputs within the fair value hierarchy. As of August 3, 2024, we have $6.7 million of investments held and used which were measured using Level 1 inputs within the fair value hierarchy. |
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Long-Term Debt |
6 Months Ended |
|---|---|
Aug. 03, 2024 | |
| Debt Disclosure [Abstract] | |
| Long-Term Debt | Note 5 Long-Term Debt
The revolver borrowings outstanding under the Credit Facility as of August 3, 2024 included $75.1 million U.S. revolver borrowings and $2.7 million (C$3.8 million) related to GCO Canada ULC. We were in compliance with all the relevant terms and conditions of the Credit Facility and Facility Agreement as of August 3, 2024. Excess availability under the Credit Facility was $219.4 million at August 3, 2024. |
Earnings Per Share |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | Note 6 Earnings Per Share Weighted-average number of shares used to calculate earnings per share are as follows:
Common stock equivalents of 0.1 million shares and less than 0.1 million shares are excluded for the three months ended August 3, 2024 and July 29, 2023, respectively, and 0.2 million shares and 0.1 million shares are excluded for the six months ended August 3, 2024 and July 29, 2023, respectively, due to the loss from continuing operations in all periods, because to do so would be anti-dilutive. We repurchased 381,711 shares during the second quarter and first six months of Fiscal 2025 at a cost of $9.3 million, or $24.49 per share. We have $42.8 million remaining as of August 3, 2024 under our expanded share repurchase authorization announced in June 2023. In addition, we recorded an accrual for excise tax on stock repurchases of less than $0.1 million in other accrued liabilities in our condensed consolidated balance sheets as of August 3, 2024. We repurchased 1,006,295 shares during the second quarter of Fiscal 2024 at a cost of $22.9 million, or $22.71 per share, and repurchased 1,261,295 shares during the first six months of fiscal 2024 at a cost of $32.0 million, or $25.39 per share. During the third quarter of Fiscal 2025, through September 11, 2024, we have not repurchased any shares. |
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Legal Proceedings |
6 Months Ended |
|---|---|
Aug. 03, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Legal Proceedings | Note 7 Legal Proceedings Environmental Matters The Company has legacy obligations including environmental monitoring and reporting costs related to: (i) a 2016 Consent Judgment entered into with the United States Environmental Protection Agency involving the site of a knitting mill operated by a former subsidiary from 1965 to 1969 in Garden City, New York; and (ii) a 2010 Consent Decree with the Michigan Department of Natural Resources and Environment relating to our former Volunteer Leather Company facility in Whitehall, Michigan. We do not expect that future obligations related to either of these sites will have a material effect on our consolidated financial condition or results of operations.
Accrual for Environmental Contingencies Related to all outstanding environmental contingencies, we had $2.0 million as of August 3, 2024, $2.0 million as of February 3, 2024 and $1.7 million as of July 29, 2023. All such provisions reflect our estimates of the most likely cost (undiscounted, including both current and noncurrent portions) of resolving the contingencies, based on facts and circumstances as of the time they were made. There is no assurance that relevant facts and circumstances will not change, necessitating future changes to the provisions. Such contingent liabilities for discontinued operations are included in other accrued liabilities and other long-term liabilities on the accompanying Condensed Consolidated Balance Sheets because they relate to former facilities operated by us. We have made pretax accruals for certain of these contingencies which were not material for the second quarter or first six months of Fiscal 2025 or Fiscal 2024. These charges are included in loss from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations and represent changes in estimates. In addition to the matters specifically described in this Note, we are a party to other legal and regulatory proceedings and claims arising in the ordinary course of our business. While management does not believe that our liability with respect to any of these other matters is likely to have a material effect on our condensed consolidated financial statements, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could have a material adverse impact on our condensed consolidated financial statements. |
Business Segment Information |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Segment Information | Note 8 Business Segment Information
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 76% and 24%, respectively, of our net sales in the second quarter of Fiscal 2025. (2) Asset impairments and other includes a $0.1 million charge for asset impairments in Journeys Group and $0.7 million for severance. (3) Of our $631.8 million of long-lived assets, $92.1 million and $11.0 million relate to long-lived assets in the U.K. and Canada, respectively. Note 8 Business Segment Information, Continued
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 77% and 23%, respectively, of our net sales for the second quarter of Fiscal 2024. (2) Goodwill impairment of $28.5 million is related to Genesco Brand Group. (3) Asset impairments and other includes a $0.2 million charge for asset impairments in Journeys Group. (4) Of our $720.8 million of long-lived assets, $94.4 million and $14.7 million relate to long-lived assets in the U.K. and Canada, respectively.
(1) Intercompany sales for the first six months of Fiscal 2025 reflect net intercompany returns. (2) Net sales in North America and in the U.K., which includes the ROI, accounted for 78% and 22%, respectively, of our net sales in the first six months of Fiscal 2025. (3) Asset impairments and other includes a $0.4 million charge for asset impairments in Journeys Group and $1.0 million for severance.
Note 8 Business Segment Information, Continued
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 79% and 21%, respectively, of our net sales for the first six months of Fiscal 2024. (2) Goodwill impairment of $28.5 million is related to Genesco Brand Group. (3) Asset impairments and other includes a $0.5 million charge for asset impairments in Journeys Group. |
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Aug. 03, 2024 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation These Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and Notes for Fiscal 2024, which are contained in our Annual Report on Form 10-K as filed with the SEC on March 27, 2024. The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending February 1, 2025 ("Fiscal 2025"), which is a 52-week year, and of the fiscal year ended February 3, 2024 ("Fiscal 2024"), which was a 53-week year. All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. The results of operations for any interim period are not necessarily indicative of results for the full year. The Condensed Consolidated Financial Statements and the related Notes have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. The Condensed Consolidated Balance Sheet as of February 3, 2024 has been derived from the audited financial statements at that date. |
| Nature of Operations | Nature of Operations Genesco Inc. and its subsidiaries (collectively the "Company", "Genesco," "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys®, Journeys Kidz®, Little Burgundy® and Johnston & Murphy® banners and under the Schuh® banner in the United Kingdom (“U.K.”) and the Republic of Ireland (“ROI”); through e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, littleburgundyshoes.com, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, johnstonmurphy.ca, nashvilleshoewarehouse.com and dockersshoes.com as well as catalogs. We also source, design, market and distribute footwear and accessories at wholesale, primarily under our Johnston & Murphy brand, the licensed Levi's® brand, the licensed Dockers® brand, the licensed G.H. Bass® brand and other brands that we license for footwear. At August 3, 2024, we operated 1,314 retail stores in the U.S., Puerto Rico, Canada, the U.K. and the ROI. During the three and six months ended August 3, 2024 and July 29, 2023, we operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains and e-commerce operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations and wholesale distribution of products under the Johnston & Murphy brand; and (iv) Genesco Brands Group, comprised of the licensed Dockers, Levi's, and G.H. Bass brands, as well as other brands we license for footwear. |
| Selling and Administrative Expenses | Selling and Administrative Expenses Wholesale costs of distribution are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations in the amount of $2.6 million and $2.5 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $5.0 million and $6.0 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. Retail occupancy costs recorded in selling and administrative expenses were $73.5 million and $76.4 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $149.0 million and $152.8 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. |
| Advertising Costs | Advertising Costs Advertising costs were $27.7 million and $28.1 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $51.4 million and $51.7 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. |
| Vendor Allowances | Vendor Allowances Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $2.7 million and $1.9 million for the second quarters of Fiscal 2025 and Fiscal 2024, respectively, and $4.6 million and $6.6 million for the first six months of Fiscal 2025 and Fiscal 2024, respectively. During the first six months of each of Fiscal 2025 and Fiscal 2024, our cooperative advertising reimbursements received were not in excess of the costs incurred. |
| New Accounting Pronouncements | New Accounting Pronouncements We continuously monitor and review all current accounting pronouncements and standards from the FASB of U.S. GAAP for applicability to our operations and financial reporting. As of August 3, 2024, there were no other new pronouncements or interpretations, other than those disclosed in the Annual Report on Form 10-K for the fiscal year ended February 3, 2024, that had or were expected to have a significant impact on our financial reporting. |
Goodwill and Other Intangible Assets (Tables) |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Changes in Carrying Amount for the Journeys Group Segment | The changes in the carrying amount of goodwill for the Journeys Group segment were as follows:
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| Summary of Other Intangible Assets | Other intangibles by major classes were as follows:
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Inventories (Tables) |
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Aug. 03, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventories |
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Fair Value (Tables) |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Values of Financial Instruments | The carrying amounts and fair values of our financial instruments at August 3, 2024 and February 3, 2024 are:
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Earnings Per Share (Tables) |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Weighted-Average Number of Shares | Weighted-average number of shares used to calculate earnings per share are as follows:
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Business Segment Information (Tables) |
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Aug. 03, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Business Segment Information |
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 76% and 24%, respectively, of our net sales in the second quarter of Fiscal 2025. (2) Asset impairments and other includes a $0.1 million charge for asset impairments in Journeys Group and $0.7 million for severance. (3) Of our $631.8 million of long-lived assets, $92.1 million and $11.0 million relate to long-lived assets in the U.K. and Canada, respectively. Note 8 Business Segment Information, Continued
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 77% and 23%, respectively, of our net sales for the second quarter of Fiscal 2024. (2) Goodwill impairment of $28.5 million is related to Genesco Brand Group. (3) Asset impairments and other includes a $0.2 million charge for asset impairments in Journeys Group. (4) Of our $720.8 million of long-lived assets, $94.4 million and $14.7 million relate to long-lived assets in the U.K. and Canada, respectively.
(1) Intercompany sales for the first six months of Fiscal 2025 reflect net intercompany returns. (2) Net sales in North America and in the U.K., which includes the ROI, accounted for 78% and 22%, respectively, of our net sales in the first six months of Fiscal 2025. (3) Asset impairments and other includes a $0.4 million charge for asset impairments in Journeys Group and $1.0 million for severance.
Note 8 Business Segment Information, Continued
(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 79% and 21%, respectively, of our net sales for the first six months of Fiscal 2024. (2) Goodwill impairment of $28.5 million is related to Genesco Brand Group. (3) Asset impairments and other includes a $0.5 million charge for asset impairments in Journeys Group. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
|
Aug. 03, 2024
USD ($)
Segment
Store
|
Jul. 29, 2023
USD ($)
Segment
|
Aug. 03, 2024
USD ($)
Store
Segment
|
Jul. 29, 2023
USD ($)
Segment
|
|
| Summary of Accounting Policies [Line Items] | ||||
| Number of retail stores operated by company | Store | 1,314 | 1,314 | ||
| Number of reportable business segments | Segment | 4 | 4 | 4 | 4 |
| Selling and administrative expenses | $ 255,135 | $ 259,520 | $ 502,966 | $ 511,017 |
| Advertising costs | 27,700 | 28,100 | 51,400 | 51,700 |
| Vendor reimbursements of cooperative advertising costs | 2,700 | 1,900 | 4,600 | 6,600 |
| Wholesale Costs of Distribution | ||||
| Summary of Accounting Policies [Line Items] | ||||
| Selling and administrative expenses | 2,600 | 2,500 | 5,000 | 6,000 |
| Retail Occupancy Costs | ||||
| Summary of Accounting Policies [Line Items] | ||||
| Selling and administrative expenses | $ 73,500 | $ 76,400 | $ 149,000 | $ 152,800 |
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount for the Journeys Group Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|||||||
| Goodwill [Roll Forward] | ||||||||||
| Goodwill, beginning balance | $ 9,565 | |||||||||
| Impairment | $ 0 | $ (28,453) | [1] | 0 | $ (28,453) | [2] | ||||
| Effect of foreign currency exchange rates | (281) | |||||||||
| Goodwill, ending balance | $ 9,284 | $ 9,717 | $ 9,284 | $ 9,717 | ||||||
| ||||||||||
Goodwill and Other Intangible Assets - Summary of Other Intangibles Assets (Details) - USD ($) $ in Thousands |
Aug. 03, 2024 |
Feb. 03, 2024 |
Jul. 29, 2023 |
|---|---|---|---|
| Other intangibles by major classes | |||
| Gross other intangibles | $ 31,575 | $ 31,365 | |
| Accumulated amortization | (4,413) | (4,115) | |
| Net Other Intangibles | 27,162 | 27,250 | $ 27,952 |
| Trademarks | |||
| Other intangibles by major classes | |||
| Gross other intangibles | 24,659 | 24,464 | |
| Accumulated amortization | 0 | 0 | |
| Net Other Intangibles | 24,659 | 24,464 | |
| Customer Lists | |||
| Other intangibles by major classes | |||
| Gross other intangibles | 6,516 | 6,501 | |
| Accumulated amortization | (4,013) | (3,715) | |
| Net Other Intangibles | 2,503 | 2,786 | |
| Other | |||
| Other intangibles by major classes | |||
| Gross other intangibles | 400 | 400 | |
| Accumulated amortization | (400) | (400) | |
| Net Other Intangibles | $ 0 | $ 0 |
Asset Impairments and Other Charges - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|||||||||||
| Restructuring Cost And Reserve [Line Items] | ||||||||||||||
| Asset impairments and other, net | $ (778) | [1] | $ (174) | [1] | $ (1,356) | [2] | $ (482) | [3] | ||||||
| ||||||||||||||
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Aug. 03, 2024 |
Feb. 03, 2024 |
Jul. 29, 2023 |
|---|---|---|---|
| Inventories | |||
| Wholesale finished goods | $ 71,514 | $ 57,678 | |
| Retail merchandise | 378,673 | 321,289 | |
| Total Inventories | $ 450,187 | $ 378,967 | $ 491,118 |
Fair Value - Schedule of Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Aug. 03, 2024 |
Feb. 03, 2024 |
|---|---|---|
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Carrying Amount | $ 77,839 | $ 34,682 |
| Fair Value | 78,291 | 34,638 |
| U.S. Revolver Borrowings | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Carrying Amount | 77,839 | 34,682 |
| Fair Value | $ 78,291 | $ 34,638 |
Fair Value - Additional Information (Details) - USD ($) $ in Millions |
Aug. 03, 2024 |
Jul. 29, 2023 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Long-lived assets | $ 631.8 | $ 720.8 |
| Level 3 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Long-lived assets | 1.1 | |
| Level 1 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Investments held | $ 6.7 |
Long-Term Debt - Additional Information (Details) $ in Thousands, $ in Millions |
6 Months Ended | ||
|---|---|---|---|
|
Aug. 03, 2024
USD ($)
|
Aug. 03, 2024
CAD ($)
|
Feb. 03, 2024
USD ($)
|
|
| Debt Instrument [Line Items] | |||
| Carrying Amount | $ 77,839 | $ 34,682 | |
| Long term debt description | The revolver borrowings outstanding under the Credit Facility as of August 3, 2024 included $75.1 million U.S. revolver borrowings and $2.7 million (C$3.8 million) related to GCO Canada ULC. We were in compliance with all the relevant terms and conditions of the Credit Facility and Facility Agreement as of August 3, 2024. Excess availability under the Credit Facility was $219.4 million at August 3, 2024. | ||
| Revolving Credit Facility | |||
| Debt Instrument [Line Items] | |||
| Excess availability under credit facility | $ 219,400 | ||
| Genesco Canada Ulc | Revolving Credit Facility | |||
| Debt Instrument [Line Items] | |||
| Carrying Amount | 2,700 | $ 3.8 | |
| U.S. Revolver Borrowings | |||
| Debt Instrument [Line Items] | |||
| Carrying Amount | 77,839 | $ 34,682 | |
| U.S. Revolver Borrowings | Revolving Credit Facility | |||
| Debt Instrument [Line Items] | |||
| Carrying Amount | $ 75,100 |
Earnings Per Share - Summary of Weighted-Average Number of Shares (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|
| Earnings Per Share [Abstract] | ||||
| Weighted-average number of shares - basic (in shares) | 10,942 | 11,344 | 10,936 | 11,581 |
| Common stock equivalents (in shares) | 0 | 0 | 0 | 0 |
| Weighted-average number of shares - diluted (in shares) | 10,942 | 11,344 | 10,936 | 11,581 |
Earnings Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|---|
Sep. 11, 2024 |
Aug. 03, 2024 |
Jul. 29, 2023 |
Apr. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
| Common stock equivalents excluded | 100,000 | 100,000 | 200,000 | 100,000 | ||
| Stock repurchased during period (in shares) | 381,711 | 1,006,295 | 381,711 | 1,261,295 | ||
| Shares repurchased | $ 9,349 | $ 22,857 | $ 9,170 | $ 9,300 | $ 32,000 | |
| Share price | $ 24.49 | $ 22.71 | $ 24.49 | $ 25.39 | ||
| Remaining authorized repurchase amount | $ 42,800 | $ 42,800 | ||||
| Subsequent Event [Member] | ||||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
| Stock repurchased during period (in shares) | 0 | |||||
| Maximum | ||||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
| Excise tax on stock repurchases | $ 100 | $ 100 | ||||
Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions |
Aug. 03, 2024 |
Feb. 03, 2024 |
Jul. 29, 2023 |
|---|---|---|---|
| Loss Contingencies [Line Items] | |||
| Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
| Amount related to outstanding environmental contingencies | $ 2.0 | $ 2.0 | $ 1.7 |
Business Segment Information - Schedule of Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
Feb. 03, 2024 |
|||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | $ 525,188 | [1] | $ 523,027 | [2] | $ 982,785 | [3] | $ 1,006,359 | [4] | |||||||||||||||||||||||||||
| Segment operating income (loss) | (9,496) | (10,000) | (41,046) | (32,689) | |||||||||||||||||||||||||||||||
| Goodwill impairment | 0 | 28,453 | [5] | 0 | 28,453 | [6] | |||||||||||||||||||||||||||||
| Asset impairments and other | 778 | [7] | 174 | [7] | 1,356 | [8] | 482 | [9] | |||||||||||||||||||||||||||
| Operating loss | (10,274) | (38,627) | (42,402) | (61,624) | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 86 | 148 | 195 | 240 | |||||||||||||||||||||||||||||||
| Interest expense, net | 1,345 | 2,383 | 2,235 | 4,034 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | (11,705) | (41,158) | (44,832) | (65,898) | |||||||||||||||||||||||||||||||
| Total assets | 1,383,751 | [10] | 1,494,759 | [11] | 1,383,751 | [10] | 1,494,759 | [11] | $ 1,329,890 | ||||||||||||||||||||||||||
| Depreciation and amortization | 13,169 | 11,833 | 26,406 | 23,119 | |||||||||||||||||||||||||||||||
| Capital expenditures | 7,897 | 18,063 | 14,274 | 35,298 | |||||||||||||||||||||||||||||||
| Journeys Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 298,846 | [1] | 287,275 | [2] | 558,291 | [3] | 559,465 | [4] | |||||||||||||||||||||||||||
| Schuh Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 124,561 | [1] | 122,799 | [2] | 216,910 | [3] | 215,904 | [4] | |||||||||||||||||||||||||||
| Johnston & Murphy Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 71,037 | [1] | 77,785 | [2] | 150,244 | [3] | 160,412 | [4] | |||||||||||||||||||||||||||
| Genesco Brands Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 30,744 | [1] | 35,168 | [2] | 57,340 | [3] | 70,578 | [4] | |||||||||||||||||||||||||||
| Goodwill impairment | 28,500 | 28,500 | |||||||||||||||||||||||||||||||||
| Operating Segments | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 525,199 | 523,323 | 980,799 | 1,007,112 | |||||||||||||||||||||||||||||||
| Operating Segments | Journeys Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 298,846 | 287,275 | 558,291 | 559,465 | |||||||||||||||||||||||||||||||
| Segment operating income (loss) | (11,151) | (14,878) | (29,973) | (33,240) | |||||||||||||||||||||||||||||||
| Goodwill impairment | 0 | [5] | 0 | [6] | |||||||||||||||||||||||||||||||
| Asset impairments and other | 0 | [7] | 0 | [12] | 0 | [8] | 0 | [9] | |||||||||||||||||||||||||||
| Operating loss | (11,151) | (14,878) | (29,973) | (33,240) | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Interest expense, net | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | (11,151) | (14,878) | (29,973) | (33,240) | |||||||||||||||||||||||||||||||
| Total assets | 668,528 | [10] | 769,844 | [11] | 668,528 | [10] | 769,844 | [11] | |||||||||||||||||||||||||||
| Depreciation and amortization | 8,540 | 7,810 | 17,160 | 15,157 | |||||||||||||||||||||||||||||||
| Capital expenditures | 4,313 | 11,193 | 7,804 | 24,212 | |||||||||||||||||||||||||||||||
| Operating Segments | Schuh Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 124,561 | 122,799 | 216,910 | 215,904 | |||||||||||||||||||||||||||||||
| Segment operating income (loss) | 7,339 | 8,416 | 1,443 | 6,626 | |||||||||||||||||||||||||||||||
| Goodwill impairment | 0 | [5] | 0 | [6] | |||||||||||||||||||||||||||||||
| Asset impairments and other | 0 | [7] | 0 | [7] | 0 | [8] | 0 | [9] | |||||||||||||||||||||||||||
| Operating loss | 7,339 | 8,416 | 1,443 | 6,626 | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Interest expense, net | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | 7,339 | 8,416 | 1,443 | 6,626 | |||||||||||||||||||||||||||||||
| Total assets | 205,488 | [10] | 218,913 | [11] | 205,488 | [10] | 218,913 | [11] | |||||||||||||||||||||||||||
| Depreciation and amortization | 1,849 | 1,624 | 3,718 | 3,185 | |||||||||||||||||||||||||||||||
| Capital expenditures | 1,764 | 3,845 | 2,497 | 5,996 | |||||||||||||||||||||||||||||||
| Operating Segments | Johnston & Murphy Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 71,037 | 77,788 | 150,244 | 160,418 | |||||||||||||||||||||||||||||||
| Segment operating income (loss) | (403) | 2,666 | 1,952 | 7,472 | |||||||||||||||||||||||||||||||
| Goodwill impairment | 0 | [5] | 0 | [6] | |||||||||||||||||||||||||||||||
| Asset impairments and other | 0 | [7] | 0 | [7] | 0 | [8] | 0 | [9] | |||||||||||||||||||||||||||
| Operating loss | (403) | 2,666 | 1,952 | 7,472 | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Interest expense, net | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | (403) | 2,666 | 1,952 | 7,472 | |||||||||||||||||||||||||||||||
| Total assets | 157,936 | [10] | 187,379 | [11] | 157,936 | [10] | 187,379 | [11] | |||||||||||||||||||||||||||
| Depreciation and amortization | 1,394 | 1,137 | 2,778 | 2,257 | |||||||||||||||||||||||||||||||
| Capital expenditures | 1,461 | 2,097 | 3,176 | 3,302 | |||||||||||||||||||||||||||||||
| Operating Segments | Genesco Brands Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 30,755 | 35,461 | 55,354 | 71,325 | |||||||||||||||||||||||||||||||
| Segment operating income (loss) | 2,672 | 1,851 | 1,686 | 1,819 | |||||||||||||||||||||||||||||||
| Goodwill impairment | 0 | [5] | 0 | [6] | |||||||||||||||||||||||||||||||
| Asset impairments and other | 0 | [7] | 0 | [7] | 0 | [8] | 0 | [9] | |||||||||||||||||||||||||||
| Operating loss | 2,672 | 1,851 | 1,686 | 1,819 | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Interest expense, net | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | 2,672 | 1,851 | 1,686 | 1,819 | |||||||||||||||||||||||||||||||
| Total assets | 80,954 | [10] | 56,977 | [11] | 80,954 | [10] | 56,977 | [11] | |||||||||||||||||||||||||||
| Depreciation and amortization | 331 | 201 | 645 | 404 | |||||||||||||||||||||||||||||||
| Capital expenditures | 304 | 623 | 535 | 1,078 | |||||||||||||||||||||||||||||||
| Corporate & Other | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 0 | [1] | 0 | [2] | 0 | [3],[13] | 0 | [4] | |||||||||||||||||||||||||||
| Segment operating income (loss) | (7,953) | (8,055) | (16,154) | (15,366) | |||||||||||||||||||||||||||||||
| Goodwill impairment | 28,453 | [5] | 28,453 | [6] | |||||||||||||||||||||||||||||||
| Asset impairments and other | 778 | [7] | 174 | [7] | 1,356 | [8] | 482 | [9] | |||||||||||||||||||||||||||
| Operating loss | (8,731) | (36,682) | (17,510) | (44,301) | |||||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | 86 | 148 | 195 | 240 | |||||||||||||||||||||||||||||||
| Interest expense, net | 1,345 | 2,383 | 2,235 | 4,034 | |||||||||||||||||||||||||||||||
| Loss from continuing operations before income taxes | (10,162) | (39,213) | (19,940) | (48,575) | |||||||||||||||||||||||||||||||
| Total assets | 270,845 | [10] | 261,646 | [11] | 270,845 | [10] | 261,646 | [11] | |||||||||||||||||||||||||||
| Depreciation and amortization | 1,055 | 1,061 | 2,105 | 2,116 | |||||||||||||||||||||||||||||||
| Capital expenditures | 55 | 305 | 262 | 710 | |||||||||||||||||||||||||||||||
| Intercompany Sales Elimination | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | (11) | (296) | 1,986 | [13] | (753) | ||||||||||||||||||||||||||||||
| Intercompany Sales Elimination | Journeys Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 0 | 0 | 0 | [13] | 0 | ||||||||||||||||||||||||||||||
| Intercompany Sales Elimination | Schuh Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 0 | 0 | 0 | [13] | 0 | ||||||||||||||||||||||||||||||
| Intercompany Sales Elimination | Johnston & Murphy Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | 0 | (3) | 0 | [13] | (6) | ||||||||||||||||||||||||||||||
| Intercompany Sales Elimination | Genesco Brands Group | |||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||
| Net sales | $ (11) | $ (293) | $ 1,986 | [13] | $ (747) | ||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||
Business Segment Information - Schedule of Business Segment Information (Parenthetical) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2024 |
Jul. 29, 2023 |
Aug. 03, 2024 |
Jul. 29, 2023 |
|||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Asset impairments and other, net | $ 778 | [1] | $ 174 | [1] | $ 1,356 | [2] | $ 482 | [3] | ||||||||||
| Long-lived assets | 631,800 | 720,800 | 631,800 | 720,800 | ||||||||||||||
| Segment operating income (loss) | (9,496) | (10,000) | (41,046) | (32,689) | ||||||||||||||
| Goodwill impairment | 0 | 28,453 | [4] | 0 | 28,453 | [5] | ||||||||||||
| U.K. | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Long-lived assets | 92,100 | 94,400 | 92,100 | 94,400 | ||||||||||||||
| Canada | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Long-lived assets | $ 11,000 | $ 14,700 | $ 11,000 | $ 14,700 | ||||||||||||||
| GeographicConcentrationRiskMember | SalesRevenueNetMember | U.K. | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| ConcentrationRiskPercentage1 | 24.00% | 23.00% | 22.00% | 21.00% | ||||||||||||||
| GeographicConcentrationRiskMember | SalesRevenueNetMember | NorthAmerica | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| ConcentrationRiskPercentage1 | 76.00% | 77.00% | 78.00% | 79.00% | ||||||||||||||
| Genesco Brands Group | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Goodwill impairment | $ 28,500 | $ 28,500 | ||||||||||||||||
| Retail Store Asset Impairments | Journeys Group | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Asset impairments and other, net | $ 100 | $ 200 | $ 400 | $ 500 | ||||||||||||||
| Employee Severance | ||||||||||||||||||
| Segment Reporting Information [Line Items] | ||||||||||||||||||
| Asset impairments and other, net | $ 700 | $ 1,000 | ||||||||||||||||
| ||||||||||||||||||
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