GCO
$45.90
Genesco
$.45
.99%
Earnings Details
4th Quarter January 2018
Thursday, March 15, 2018 6:50:00 AM
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Summary

Genesco Beats but Guides Lower

Genesco (GCO) reported 4th Quarter January 2018 earnings of $2.15 per share on revenue of $930.4 million. The consensus earnings estimate was $2.09 per share on revenue of $892.2 million. The Earnings Whisper number was $2.12 per share. Revenue grew 5.3% on a year-over-year basis.

The company said it expects fiscal year earnings of $3.05 to $3.45 per share. The current consensus earnings estimate is $3.52 per share for the year ending January 31, 2019.

Genesco Inc is engaged in the design and sourcing, marketing and distribution of footwear, apparel and accessories through retail stores.

Results
Reported Earnings
$2.15
Earnings Whisper
$2.12
Consensus Estimate
$2.09
Reported Revenue
$930.4 Mil
Revenue Estimate
$892.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Genesco Reports Fourth Quarter Fiscal 2018 Results

NASHVILLE, Tenn., March 15, 2018 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) today reported earnings from continuing operations for the 14-week period ended February 3, 2018, of $56.3 million, or $2.91 per diluted share, compared to earnings from continuing operations of $46.8 million, or $2.40 per diluted share, for the 13-week period ended January 28, 2017.  Fiscal 2018 fourth quarter results reflect a benefit of $19.8 million, or $1.02 per diluted share from lower tax expense, partially offset by pre-tax charges of $7.5 million, or $0.26 per diluted share including $5.4 million, or $0.19 per diluted share in licensing termination expenses and $2.1 million, or $0.07 per diluted share of store impairment charges, among other items.  Fiscal 2017 fourth quarter results reflect a pretax gain of $9.2 million, or $0.25 per diluted share after tax, including a gain on the sale of SureGrip Footwear of $12.3 million and a gain of $0.8 million on other legal matters, partially offset by $3.9 million of asset impairment charges, pension settlement expenses and other items.

Adjusted for the items described above in both periods, earnings from continuing operations were $41.5 million, or $2.15 per diluted share, for the fourth quarter of Fiscal 2018, compared to earnings from continuing operations of $41.8 million, or $2.15 per diluted share, for the fourth quarter of Fiscal 2017.  For consistency with Fiscal 2018's previously announced earnings expectations and with previously reported adjusted results for the prior year period, the Company believes that the disclosure of the results from continuing operations adjusted for these items will be useful to investors. A reconciliation of earnings and earnings per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles with the adjusted earnings and earnings per share numbers presented in this paragraph is set forth on Schedule B to this press release.

Net sales for the fourth quarter of Fiscal 2018 increased 5%, including the results of a 53rd week, to $930 million from $883 million in the fourth quarter of Fiscal 2017.  Consolidated fourth quarter 2018 comparable sales, including same store sales and comparable e-commerce and catalog sales increased 1% with an 11% increase in the Journeys Group, a 1% increase in the Schuh Group, a 14% decrease in the Lids Sports Group, and a 4% increase in the Johnston & Murphy Group. Comparable sales for the Company included a 1% decrease in same store sales and a 15% increase in e-commerce sales.

The Company also reported net sales for the 53-week year ended February 3, 2018, of $2.91 billion, an increase of 1% from net sales of approximately $2.87 billion for the 52-week year ended January 28, 2017.  The loss from continuing operations for Fiscal 2018 was $111.4 million, or $5.80 per diluted share, compared to earnings from continuing operations of $97.9 million, or $4.85 per diluted share, for Fiscal 2017. Fiscal 2018 earnings reflect charges of $191.6 million, or $8.52 per diluted share after tax including a goodwill impairment charge of $182.2 million, or $8.18 per diluted share after tax, related primarily to the sustained decline in the Company's market value to a level below book value, among other items, plus a tax expense of $7.7 million, or $0.41 per diluted share related to the impact of share-based awards and goodwill impairment. Fiscal 2017 earnings reflect an after-tax gain of $0.52 per diluted share, including a $14.7 million gain on the sale of SureGrip Footwear and Lids Team Sports, an $8.9 million gain on network intrusion expenses as a result of a litigation settlement, and a $0.8 million gain on other legal matters, partially offset by $8.9 million in asset impairments and pension settlement expenses.

Adjusted for the listed items in both years, earnings from continuing operations were $60.3 million, or $3.13 per diluted share, for Fiscal 2018, compared to earnings from continuing operations of $87.2 million, or $4.33 per diluted share, for Fiscal 2017. For consistency with previously announced earnings expectations, which did not reflect the listed items, the Company believes that disclosure of earnings from continuing operations adjusted for those items will be useful to investors. A reconciliation of the adjusted financial measures to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.

Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, "Our fourth quarter earnings per share were in-line with our most recent outlook and flat with last year's level, as strong performance by our U.S. retail footwear businesses was offset by specific challenges in our other operating divisions.  Overall Fiscal 2018 was a difficult year as Journeys managed through a fashion rotation up until the start of back to school, Lids faced a number of specific marketplace headwinds, and consumers shifted their shopping from brick & mortar to online at an accelerated pace. While comparable sales were flat, our profitability suffered due primarily to deleverage from negative store results coupled with higher expenses from our omnichannel initiatives.  On a positive note, the EPS gap to last year improved sequentially each quarter and ultimately closed in the fourth  quarter.

"Looking ahead, we believe our near-term performance will continue to be shaped by the divergence in our two biggest businesses although not to the degree we experienced in the fourth quarter. Like our other businesses, Lids is subject to fashion cycles, and headwear is currently between trends, which we believe positions the business for the type of  recovery that Journeys is now enjoying once a new fashion driver emerges.  Though we don't know the timing of when this will occur, history points to an eventual rebound.  While we believe that Journeys' current product assortment is well positioned in terms of brands and styles to drive continued growth, this timing uncertainty combined with generally weak store traffic across retail causes us to be cautious about the current year. We expect adjusted diluted earnings per share for Fiscal 2019 in the range of $3.05 to $3.45, inclusive of the benefit from lower tax expense following the passage of the Tax Cuts and Jobs Act in December 2017."  These expectations do not include expected non-cash asset impairments and other charges, estimated in the range of $3.9 million to $4.9 million pretax, or $0.15 to $0.18 per share after tax, for the full fiscal year.  It also does not include certain tax effects related to equity grants pursuant to ASU 2016-09, estimated at $0.03 per share after tax or any possible SAB 118 adjustments related to our estimates arising from the 2017 Tax Act.  This guidance assumes comparable sales in the flat to  positive 2% range for the full year.  A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.

Dennis concluded, "We continue to be confident that the work we are doing to strengthen the strategic positioning of our businesses will drive long-term growth. At the same time, we are undertaking a multi-year reshaping of our cost structure in order to improve profitability and deliver greater value to our shareholders and have already identified potential annualized cost savings in the range of $35 million to $40 million."

Conference Call and Management Commentary
The Company has posted detailed financial commentary in writing on its website, www.genesco.com, in the investor relations section. The Company's live conference call on March 15, 2018 at 7:30 a.m. (Central time), may be accessed through the Company's internet website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.

Cautionary Note Concerning Forward-Looking Statements
This release contains forward-looking statements, including those regarding the performance outlook for the Company and its individual businesses (including, without limitation, sales, expenses, margins and earnings) and all other statements not addressing solely historical facts or present conditions. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences.  These include adjustments to estimates and projections reflected in forward-looking statements, including the level and timing of promotional activity necessary to maintain inventories at appropriate levels;  the timing and amount of non-cash asset impairments related to retail store fixed assets and intangible assets of acquired businesses; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; the level of chargebacks from credit card users for fraudulent purchases or other reasons; weakness in the consumer economy and retail industry; competition in the Company's markets, including online and including competition from some of the Company's vendors in both the licensed sports and branded footwear markets; fashion trends that affect the sales or product margins of the Company's retail product offerings; weakness in shopping mall traffic and challenges to the viability of malls where the Company operates stores, related to planned closings of department stores or other factors; the effects of the implementation of federal tax reform on the estimated tax rate reflected in certain forward-looking statements; the imposition of tariffs on imported products or the disallowance of tax deductions on imported products; changes in buying patterns by significant wholesale customers; bankruptcies or deterioration in financial condition of significant wholesale customers or the inability of wholesale customers or consumers to obtain credit; disruptions in product supply or distribution; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; the effects of the British decision to exit the European Union, including potential effects on consumer demand, currency exchange rates, and the supply chain; the Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons; and the performance of athletic teams, the participants in major sporting events such as the Super Bowl and World Series, developments with respect to certain individual athletes, and other sports-related events or changes that may affect period-to-period comparisons in the Company's Lids Sports Group retail businesses. Additional factors that could affect the Company's prospects and cause differences from expectations include the ability to build, open, staff and support additional retail stores and to renew leases in existing stores and control occupancy costs, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets or intangible assets or other adverse financial consequences; unexpected changes to the market for the Company's shares; variations from expected pension-related charges caused by conditions in the financial markets; costs and reputational harm as a result of disruptions in the Company's 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 and environmental matters involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, our SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via our website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.

About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,675 retail stores and leased departments throughout the U.S., Canada, the United Kingdom, the Republic of Ireland and Germany, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Little Burgundy, Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.journeys.ca, www.shibyjourneys.com, www.schuh.co.uk, www.littleburgundyshoes.com, www.johnstonmurphy.com, www.lids.com, www.lids.ca, www.lidslockerroom.com, www.lidsclubhouse.com, www.trask.com, and www.dockersshoes.com.  The Company's Lids Sports Group division operates the Lids headwear stores, the Locker Room by Lids and other team sports fan shops and single team clubhouse stores.   In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.

 

GENESCO INC.













Consolidated Earnings Summary












Fourth Quarter*


Fiscal Year Ended*





Feb. 3,


Jan. 28,


Feb. 3,


Jan. 28,



In Thousands


2018


2017


2018


2017



Net sales


$   930,383


$  883,169


$ 2,907,016


$  2,868,341



Cost of sales


493,679


465,712


1,490,894


1,450,815



Selling and administrative expenses

374,120


350,765


1,321,319


1,276,368



Goodwill impairment

-


-


182,211


-



Asset impairments and other, net

7,218


2,997


8,841


(802)



Earnings (loss) from operations

55,366


63,695


(96,249)


141,960



Gain on sale of SureGrip Footwear

-


(12,297)


-


(12,297)



Gain on sale of Lids Team Sports

-


81


-


(2,404)



Interest expense, net

1,529


1,316


5,412


5,247



Earnings (loss) from continuing operations










    before income taxes

53,837


74,595


(101,661)


151,414














Income tax expense (benefit)

(2,417)


27,752


9,769


53,555



Earnings (loss) from continuing operations

56,254


46,843


(111,430)


97,859














Provision for discontinued operations

(209)


(295)


(409)


(428)



Net Earnings (Loss)

$     56,045


$    46,548


$   (111,839)


$        97,431













*

Fourth quarter for the 14-week period ended February 3, 2018 and 13-week period ended January 28, 2017.


Fiscal 2018 for the 53-week period ended February 3, 2018 and Fiscal 2017 for the 52-week period ended



January 28, 2017.





















Earnings Per Share Information












Fourth Quarter


Fiscal Year Ended





Feb. 3,


Jan. 28,


Feb. 3,


Jan. 28,



In Thousands (except per share amounts)

2018


2017


2018


2017














Average common shares - Basic EPS

19,266


19,383


19,218


20,076














Basic earnings (loss) per share:










     Before discontinued operations

$2.92


$2.42


$(5.80)


$4.87



     Net earnings (loss)

$2.91


$2.40


$(5.82)


$4.85














Average common and common










    equivalent shares - Diluted EPS

19,330


19,493


19,218


20,172














Diluted earnings (loss) per share:










     Before discontinued operations

$2.91


$2.40


$(5.80)


$4.85



     Net earnings (loss)

$2.90


$2.39


$(5.82)


$4.83



































GENESCO INC.













Consolidated Earnings Summary












Fourth Quarter


Fiscal Year Ended





Feb. 3,


Jan. 28,


Feb. 3,


Jan. 28,



In Thousands


2018


2017


2018


2017



Sales:











    Journeys Group

$   452,882


$  391,132


$ 1,329,460


$  1,251,646



    Schuh Group


128,128


110,155


403,698


372,872



    Lids Sports Group

240,991


278,943


779,469


847,510



    Johnston & Murphy Group

92,375


82,083


304,160


289,324



    Licensed Brands

15,894


20,748


89,809


106,372



    Corporate and Other

113


108


420


617



    Net Sales


$   930,383


$  883,169


$ 2,907,016


$  2,868,341



Operating Income (Loss):










    Journeys Group (1)

$     46,533


$    36,118


$       76,094


$        85,875



    Schuh Group


9,199


10,883


20,104


20,530



    Lids Sports Group (2)

8,439


20,221


11,684


41,563



    Johnston & Murphy Group (2)

9,393


7,663


20,047


19,682



    Licensed Brands (2)

(2,540)


(210)


(163)


4,566



    Corporate and Other (3)

(15,658)


(10,980)


(41,804)


(30,256)



    Goodwill impairment charge

-


-


(182,211)


-



Earnings (loss) from operations

55,366


63,695


(96,249)


141,960



Gain on sale of SureGrip Footwear

-


(12,297)


-


(12,297)



Gain on sale of Lids Team Sports

-


81


-


(2,404)



Interest, net


1,529


1,316


5,412


5,247



Earnings (loss) from continuing operations










    before income taxes

53,837


74,595


(101,661)


151,414



Income tax expense (benefit)

(2,417)


27,752


9,769


53,555



Earnings (loss) from continuing operations

56,254


46,843


(111,430)


97,859














Provision for discontinued operations

(209)


(295)


(409)


(428)



Net Earnings (Loss)

$     56,045


$    46,548


$   (111,839)


$        97,431

























(1) Includes a $0.3 million charge for acquisition transition expenses for Fiscal 2018.
















(2) Includes $0.4 million and $0.2 million in reduction in force expenses for Lids Sports Group and Licensed Brands, respectively,


     for the fourth quarter and year of Fiscal 2018.  In addition, Licensed Brands includes $0.1 million of markdowns related to 


     the licensing termination for the fourth quarter and year of Fiscal 2018.  Includes $0.5 million of income in Johnston & Murphy


     Group for a cancelled license for the fourth quarter and year of Fiscal 2018.


















(3) Includes a $7.2 million charge in the fourth quarter of Fiscal 2018 which includes a $5.2 million licensing termination


     expense and $2.0 million for asset impairments.  Includes an $8.8 million charge for Fiscal 2018 which includes a $5.2 million


     licensing termination expense, $2.7 million for asset impairments and $0.9 million for hurricane losses.














     Includes a $3.0 million charge in the fourth quarter of Fiscal 2017 which includes $2.5 million pension settlement expense


     and $1.4 million for asset impairments, partially offset by a $0.9 million gain for other legal matters.  Includes a $0.8 million


     gain for Fiscal 2017 which includes an $8.9 million gain for network intrusion expenses as a result of a litigation settlement


     and a $0.8 million gain for other legal matters, partially offset by $6.4 million for asset impairments and a $2.5 million pension


     settlement expense.































GENESCO INC.
























Consolidated Balance Sheet



























Feb. 3,


Jan. 28,



In Thousands






2018


2017



Assets











Cash and cash equivalents





$       39,937


$        48,301



Accounts receivable





43,292


43,525



Inventories






542,625


563,677



Other current assets





70,526


61,470



Total current assets





696,380


716,973



Property and equipment





382,629


330,611



Goodwill and other intangibles





190,000


357,941



Other non-current assets





49,636


35,474



Total Assets






$ 1,318,645


$  1,440,999



Liabilities and  Equity










Accounts payable





$    140,962


$      170,751



Current portion long-term debt





1,766


9,175



Other current liabilities





115,632


129,460



Total current liabilities





258,360


309,386



Long-term debt






86,619


73,730



Pension liability





-


6,265



Deferred rent and other long-term liabilities





142,962


129,097



Equity






830,704


922,521



Total Liabilities and Equity





$ 1,318,645


$  1,440,999


 

 

GENESCO INC.




































Retail Units Operated - Twelve Months Ended February 3, 2018











Balance






Balance






Balance





01/30/16


Open


Close


01/28/17


Open


Close


02/03/18



Journeys Group


1,222


51


24


1,249


45


74


1,220



Schuh Group


125


7


4


128


7


1


134



Lids Sports Group*


1,332


15


107


1,240


18


99


1,159



Johnston & Murphy Group


173


8


4


177


7


3


181



Total Retail Units


2,852


81


139


2,794


77


177


2,694





































Retail Units Operated - Three Months Ended February 3, 2018











Balance






Balance











10/28/17


Open


Close


02/03/18









Journeys Group


1,237


10


27


1,220









Schuh Group


132


2


0


134









Lids Sports Group*


1,177


7


25


1,159









Johnston & Murphy Group


181


2


2


181









Total Retail Units


2,727


21


54


2,694


























* Includes 122 Locker Room by Lids in Macy's stores as of February 3, 2018.




























Comparable Sales (including same store and comparable direct sales)












Fourth Quarter Ended


Fiscal Year Ended












Feb. 3,


Jan. 28,


Feb. 3,


Jan. 28,











2018


2017


2018


2017









Journeys Group


11%


-6%


4%


-4%









Schuh Group


1%


2%


4%


-1%









Lids Sports Group


-14%


8%


-7%


3%









Johnston & Murphy Group


4%


-1%


0%


2%









Total Comparable Sales


1%


0%


0%


-1%








 

 

Schedule B


Genesco Inc.

Adjustments to Reported Earnings (Loss) from Continuing Operations

Three Months Ended February 3, 2018 and January 28, 2017





















 Three Months Ended 



 February 3, 2018 


 January 28, 2017 




 Net of 

 Per Share 



 Net of 

 Per Share 

In Thousands (except per share amounts)


 Pretax 

 Tax 

 Amounts 


 Pretax 

 Tax 

 Amounts 

Earnings (loss) from continuing operations, as reported



$     56,254

$         2.91



$      46,843

$     2.40










Pretax adjustments:









Store impairment charges


$       1,982

1,340

0.07


$       1,377

871

0.05

Licensing termination (1)


5,374

3,612

0.19


-

-

-

Loss due to Hurricane Maria


7

5

-


-

-

-

Reduction in force expense


607

408

0.02


-

-

-

License cancellation income


(500)

(336)

(0.02)


-

-

-

Other legal matters


-

-

-


(836)

(537)

(0.03)

Sale of SureGrip Footwear


-

-

-


(12,297)

(7,912)

(0.40)

Sale of Lids Team Sports


-

-

-


81

55

-

Pension settlement expense


-

-

-


2,456

1,580

0.08

Total adjustments


$       7,470

5,029

0.26


$      (9,219)

(5,943)

(0.30)










Tax impact of the goodwill impairment and the Tax Cut and Jobs Act

(19,777)

(1.02)



926

0.05

Adjusted earnings from continuing operations (2) and (3)



$     41,506

$         2.15



$      41,826

$     2.15







.












(1) Includes $0.1 million in gross margin.


















(2) The adjusted tax rate for the fourth quarter of Fiscal 2018 is 32.3% excluding a FIN 48 discrete item of less than $0.1 million.  The adjusted tax rate 

      for the fourth quarter of Fiscal 2017 is 36.0% excluding a FIN 48 discrete item of less than $0.1 million.














(3) EPS reflects 19.3 and 19.5 million share count for Fiscal 2018 and 2017, respectively, which includes common stock equivalents in both years.










The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted for the items not reflected in the 

previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.






































Genesco Inc.





Adjustments to Reported Operating Income 





Three Months Ended February 3, 2018 and January 28, 2017
















 Three Months Ended February 3, 2018 







 Operating 


Adj Operating





In Thousands 


 Income 

 Other Adj 

 Income 





Journeys Group


$      46,533

$           -

$      46,533





Schuh Group


9,199

-

9,199





Lids Sports Group


8,439

428

8,867





Johnston & Murphy Group


9,393

(500)

8,893





Licensed Brands


(2,540)

324

(2,216)





Corporate and Other


(15,658)

7,218

(8,440)





Total Operating Income 


$      55,366

$      7,470

$      62,836

























 Three Months Ended January 28, 2017 







 Operating 


Adj Operating





In Thousands 


 Income 

 Other Adj 

Income





Journeys Group


$      36,118

$           -

$      36,118





Schuh Group


10,883

-

10,883





Lids Sports Group


20,221

-

20,221





Johnston & Murphy Group


7,663

-

7,663





Licensed Brands


(210)

-

(210)





Corporate and Other


(10,980)

2,997

(7,983)





Total Operating Income


$      63,695

$      2,997

$      66,692





 

 

Schedule B


Genesco Inc.

Adjustments to Reported Earnings (Loss) from Continuing Operations

Twelve Months Ended February 3, 2018 and January 28, 2017





















 Twelve Months Ended 



 February 3, 2018 


 January 28, 2017 




 Net of 

 Per Share 



 Net of 

 Per Share 

In Thousands (except per share amounts)


 Pretax 

 Tax 

 Amounts 


 Pretax 

 Tax 

 Amounts 

Earnings (loss) from continuing operations, as reported



$ (111,430)

$           (5.80)



$      97,859

$        4.85










Pretax adjustments:









Store impairment charges


$       2,669

1,794

0.09


$       6,409

4,124

0.20

Loss due to Hurricane Maria


943

634

0.03


-

-

-

Acquisition transition expenses


288

194

0.01


-

-

-

Goodwill impairment charge


182,211

157,752

8.18


-

-

-

Licensing termination (1)


5,374

3,612

0.19


-

-

-

Reduction in force expense


607

408

0.02


-

-

-

License cancellation income


(500)

(336)

(0.02)


-

-

-

Impact of additional dilutive shares


-

-

0.02


-

-

-

Sale of SureGrip Footwear


-

-

-


(12,297)

(7,912)

(0.39)

Sale of Lids Team Sports


-

-

-


(2,404)

(1,547)

(0.08)

Pension settlement expense


-

-

-


2,456

1,580

0.08

Other legal matters


-

-

-


(746)

(480)

(0.02)

Network intrusion expenses


-

-

-


(8,921)

(5,740)

(0.28)

Total adjustments


$   191,592

164,058

8.52


$     (15,503)

(9,975)

(0.49)










Tax impact for share-based awards



2,167

0.11



-

-

Tax impact of the Tax Cut and Jobs Act and other tax items


5,526

0.30



(639)

(0.03)

Adjusted earnings from continuing operations (2) and (3)



$    60,321

$            3.13



$      87,245

$        4.33



















(1) Includes $0.1 million in gross margin.


















(2) The adjusted tax rate for Fiscal 2018 is 32.8% excluding a FIN 48 discrete item of $0.1 million.  The adjusted tax rate for Fiscal 2017 is 35.7%

      excluding a FIN 48 discrete item of $0.2 million.


















(3) EPS reflects 19.3 and 20.2 million share count for Fiscal 2018 and 2017, respectively, which includes common stock equivalents in both years.










The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted for the items not reflected in

the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.






































Genesco Inc.





Adjustments to Reported Operating Income (Loss)





Twelve Months Ended February 3, 2018 and January 28, 2017
















 Twelve Months Ended February 3, 2018 







 Operating 


Adj Operating





In Thousands 


 Inc (Loss) 

 Other Adj 

Income





Journeys Group


$     76,094

$        288

$        76,382





Schuh Group


20,104

-

20,104





Lids Sports Group


11,684

428

12,112





Johnston & Murphy Group


20,047

(500)

19,547





Licensed Brands


(163)

324

161





Corporate and Other


(41,804)

8,841

(32,963)





Goodwill impairment charge


(182,211)

182,211

-





Total Operating Income (Loss)


$    (96,249)

$  191,592

$        95,343

























 Twelve Months Ended January 28, 2017 







 Operating 


Adj Operating





In Thousands 


 Income 

 Other Adj 

Income





Journeys Group


$     85,875

$          -

$        85,875





Schuh Group


20,530

-

20,530





Lids Sports Group


41,563

-

41,563





Johnston & Murphy Group


19,682

-

19,682





Licensed Brands


4,566

-

4,566





Corporate and Other


(30,256)

(802)

(31,058)





Total Operating Income


$   141,960

$       (802)

$      141,158





 

 

Schedule B


Genesco Inc.

Adjustments to Forecasted Earnings from Continuing Operations

Fiscal Year Ending February 2, 2019







In Thousands (except per share amounts)


High Guidance

Low Guidance



Fiscal 2019

Fiscal 2019

Forecasted earnings from continuing operations 


$     63,818

$       3.27

$   55,216

$       2.84







Adjustments:  (1)






Store impairment and other charges


2,838

0.15

3,570

0.18

Tax impact for share-based awards


563

0.03

563

0.03







Adjusted forecasted earnings from continuing operations (2)

$     67,219

$       3.45

$   59,349

$       3.05













(1) All adjustments are net of tax where applicable.  The forecasted tax rate for Fiscal 2019 is approximately 26.8%.







(2) EPS reflects 19.5 million share count for Fiscal 2019 which includes common stock equivalents.








This reconciliation reflects estimates and current expectations of future results. Actual results may vary 


materially from these expectations and estimates, for reasons including those included in the discussion 


of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update 


such expectations and estimates.  






 

 

Cision View original content:http://www.prnewswire.com/news-releases/genesco-reports-fourth-quarter-fiscal-2018-results-300614327.html

SOURCE Genesco Inc.