FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) This section details Genesco Inc.'s Form 10-Q filing information, including registrant identification and stock exchange listing [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides Genesco Inc.'s identification details for the Form 10-Q, including legal name, jurisdiction, and stock exchange Registrant Details | Detail | Value | | :--- | :--- | | Exact name of registrant | Genesco Inc. | | State or other jurisdiction of incorporation | Tennessee | | I.R.S. Employer Identification No. | 62-0211340 | | Principal executive offices | 535 Marriott Drive, Nashville, Tennessee 37214 | | Registrant's telephone number | (615) 367-7000 | | Title of each class | Common Stock, $1.00 par value | | Trading Symbol(s) | GCO | | Name of each exchange on which registered | New York Stock Exchange | - Genesco Inc. is an **accelerated filer** and is not a large accelerated filer, non-accelerated filer, smaller reporting company, or emerging growth company[3](index=3&type=chunk)[4](index=4&type=chunk) - As of May 31, 2024, there were **11,626,195 shares** of the registrant's common stock outstanding[4](index=4&type=chunk) Cautionary Notice Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTICE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This notice warns that forward-looking statements are subject to risks and uncertainties, advising reliance on the 10-K Risk Factors [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section advises that forward-looking statements carry risks, directing readers to the 10-K for a full discussion of factors - **Actual results could differ materially** from forward-looking statements due to factors such as weakness in store traffic, operational restrictions, supply chain disruptions (e.g., Red Sea), consumer spending, promotional activity, tariffs, and unfavorable trends in costs[7](index=7&type=chunk) - Additional factors include the effectiveness of omnichannel initiatives, wage pressures, labor shortages, inflation, regulatory changes, intellectual property protection, competition, and risks related to IT systems and litigation[7](index=7&type=chunk) - Readers should **not place undue reliance** on forward-looking statements, which speak only as of their date, and are advised to consult Item 1A, "Risk Factors" in the Annual Report on Form 10-K for a comprehensive discussion of risks[7](index=7&type=chunk) Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This part presents Genesco Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Genesco Inc.'s unaudited condensed consolidated financial statements, including balance sheets and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets and equity from February 3, 2024, to May 4, 2024 Consolidated Balance Sheet Summary (In thousands) | (In thousands) | May 4, 2024 | February 3, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total current assets | $508,040 | $507,351 | $598,942 | | Property and equipment, net | $233,601 | $240,266 | $239,120 | | Operating lease right of use assets | $420,133 | $436,896 | $477,962 | | Goodwill | $9,417 | $9,565 | $37,928 | | Total Assets | $1,307,417 | $1,329,890 | $1,495,312 | | **Liabilities and Equity** | | | | | Total current liabilities | $308,185 | $319,537 | $351,636 | | Long-term debt | $59,444 | $34,682 | $118,151 | | Total liabilities | $758,964 | $758,688 | $912,687 | | Total equity | $548,453 | $571,202 | $582,625 | | Total Liabilities and Equity | $1,307,417 | $1,329,890 | $1,495,312 | - Cash decreased from **$35.155 million** at February 3, 2024, to **$19.247 million** at May 4, 2024. Inventories increased from **$378.967 million** to **$392.671 million** in the same period[11](index=11&type=chunk) - **Long-term debt increased significantly** from **$34.682 million** at February 3, 2024, to **$59.444 million** at May 4, 2024[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Genesco Inc. reported a larger net loss for Q1 Fiscal 2025 due to decreased net sales and increased operating loss Consolidated Statements of Operations Summary (In thousands, except per share amounts) | (In thousands, except per share amounts) | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | Net sales | $457,597 | $483,332 | | Gross margin | $216,281 | $228,808 | | Operating loss | $(32,128) | $(22,997) | | Loss from continuing operations before income taxes | $(33,127) | $(24,740) | | Net Loss | $(24,347) | $(18,890) | | Basic loss per common share | $(2.23) | $(1.60) | | Diluted loss per common share | $(2.23) | $(1.60) | | Weighted average shares outstanding (Basic) | 10,930 | 11,818 | - Net sales decreased by **5.3%** from **$483.332 million** in Q1 Fiscal 2024 to **$457.597 million** in Q1 Fiscal 2025[13](index=13&type=chunk) - Operating loss increased by **39.7%** from **$(22.997) million** to **$(32.128) million** year-over-year[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The company reported an increased comprehensive loss for Q1 Fiscal 2025, driven by higher net loss and negative currency adjustments Consolidated Statements of Comprehensive Loss Summary (In thousands) | (In thousands) | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | Net loss | $(24,347) | $(18,890) | | Postretirement liability adjustments, net of tax | $38 | $29 | | Foreign currency translation adjustments | $(973) | $445 | | Total other comprehensive income (loss) | $(935) | $474 | | Comprehensive Loss | $(25,282) | $(18,416) | - Total other comprehensive income shifted from a gain of **$474 thousand** in Q1 Fiscal 2024 to a loss of **$(935) thousand** in Q1 Fiscal 2025, mainly due to foreign currency translation adjustments[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash used in operating activities decreased, while cash provided by financing activities reduced, leading to a net cash decrease Consolidated Statements of Cash Flows Summary (In thousands) | (In thousands) | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,744) | $(60,445) | | Net cash used in investing activities | $(6,377) | $(17,148) | | Net cash provided by financing activities | $24,242 | $61,783 | | Net decrease in cash | $(15,908) | $(16,204) | | Cash at end of period | $19,247 | $31,786 | - Net cash used in operating activities improved by **$26.7 million**, from **$(60.445) million** in Q1 Fiscal 2024 to **$(33.744) million** in Q1 Fiscal 2025[18](index=18&type=chunk)[77](index=77&type=chunk) - Net cash provided by financing activities decreased by **$37.5 million**, from **$61.783 million** in Q1 Fiscal 2024 to **$24.242 million** in Q1 Fiscal 2025[18](index=18&type=chunk)[77](index=77&type=chunk) [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity decreased due to net loss and other comprehensive loss, partially offset by share-based compensation expense Consolidated Statements of Equity Summary (In thousands) | (In thousands) | February 3, 2024 | May 4, 2024 | | :--- | :--- | :--- | | Total Equity | $571,202 | $548,453 | | Net loss | $(24,347) | | Other comprehensive loss | $(935) | | Share-based compensation expense | $3,307 | | Restricted shares withheld for taxes | $(773) | - The net loss of **$(24.347) million** and other comprehensive loss of **$(935) thousand** were the primary drivers of the decrease in total equity during the quarter[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements (unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide additional detail to the financial statements, covering accounting policies, assets, debt, and segment performance [Note 1 Summary of Significant Accounting Policies](index=10&type=section&id=Note%201%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of presentation, Genesco's business segments, and accounting for expenses and vendor allowances - Genesco Inc. operates **four reportable business segments**: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands Group, encompassing retail stores and e-commerce in the U.S., Puerto Rico, Canada, U.K., and ROI, as well as wholesale distribution[25](index=25&type=chunk)[26](index=26&type=chunk) Selected Selling and Administrative Expenses (In thousands) | Expense Type | Q1 Fiscal 2025 (in thousands) | Q1 Fiscal 2024 (in thousands) | | :--- | :--- | :--- | | Wholesale costs of distribution | $2,400 | $3,500 | | Retail occupancy costs | $75,500 | $76,400 | | Advertising costs | $23,700 | $23,600 | | Vendor reimbursements (reduction of S&A) | $1,900 | $4,700 | - **No new accounting pronouncements** or interpretations are expected to have a significant impact on financial reporting as of May 4, 2024[31](index=31&type=chunk) [Note 2 Goodwill and Other Intangible Assets](index=11&type=section&id=Note%202%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill for Journeys Group slightly decreased due to foreign currency, while other intangibles consist primarily of trademarks Goodwill and Other Intangible Assets (Net) (In thousands) | (In thousands) | Total Goodwill | | :--- | :--- | | Balance, February 3, 2024 | $9,565 | | Effect of foreign currency exchange rates | $(148) | | Balance, May 4, 2024 | $9,417 | Goodwill and Other Intangible Assets (Net) (In thousands) | (In thousands) | Trademarks (Net) | Customer Lists (Net) | Other (Net) | Total Net Other Intangibles | | :--- | :--- | :--- | :--- | :--- | | May 4, 2024 | $24,270 | $2,644 | $0 | $26,914 | | Feb. 3, 2024 | $24,464 | $2,786 | $0 | $27,250 | [Note 3 Inventories](index=11&type=section&id=Note%203%20Inventories) Total inventories increased from February 3, 2024, to May 4, 2024, driven by retail merchandise, offset by wholesale finished goods Inventories Breakdown (In thousands) | (In thousands) | May 4, 2024 | February 3, 2024 | | :--- | :--- | :--- | | Wholesale finished goods | $44,268 | $57,678 | | Retail merchandise | $348,403 | $321,289 | | Total Inventories | $392,671 | $378,967 | - Retail merchandise increased by **$27.114 million**, while wholesale finished goods decreased by **$13.410 million**[35](index=35&type=chunk) [Note 4 Fair Value](index=12&type=section&id=Note%204%20Fair%20Value) The fair value of U.S. Revolver Borrowings was determined using discounted cash flow analysis, classified as Level 2 Fair Value of Long-Term Debt (In thousands) | (In thousands) | May 4, 2024 Carrying Amount | May 4, 2024 Fair Value | February 3, 2024 Carrying Amount | February 3, 2024 Fair Value | | :--- | :--- | :--- | :--- | :--- | | U.S. Revolver Borrowings | $59,444 | $59,595 | $34,682 | $34,638 | | Total Long-Term Debt | $59,444 | $59,595 | $34,682 | $34,638 | - **Debt fair values are classified in Level 2** of the fair value hierarchy[39](index=39&type=chunk) - As of May 4, 2024, the company had **$0.7 million** in long-lived assets measured using Level 3 inputs and **$6.5 million** in investments measured using Level 1 inputs[40](index=40&type=chunk) [Note 5 Long-Term Debt](index=12&type=section&id=Note%205%20Long-Term%20Debt) Genesco Inc. had $59.4 million in revolver borrowings outstanding, in compliance with terms, with $200.1 million excess availability - **Revolver borrowings outstanding totaled $59.4 million** as of May 4, 2024, comprising **$56.3 million** U.S. revolver borrowings and **$3.1 million** (**C$4.3 million**) related to GCO Canada ULC[41](index=41&type=chunk) - The company was **in compliance with all Credit Facility terms and conditions**[41](index=41&type=chunk) - **Excess availability under the Credit Facility was $200.1 million** at May 4, 2024[41](index=41&type=chunk) [Note 6 Earnings Per Share](index=12&type=section&id=Note%206%20Earnings%20Per%20Share) Weighted-average shares for EPS remained consistent, with common stock equivalents excluded due to anti-dilutive effects Weighted-Average Shares Outstanding for EPS (Shares in thousands) | (Shares in thousands) | Three Months Ended May 4, 2024 | Three Months Ended April 29, 2023 | | :--- | :--- | :--- | | Weighted-average number of shares - basic | 10,930 | 11,818 | | Weighted-average number of shares - diluted | 10,930 | 11,818 | - **Common stock equivalents of 0.2 million shares were excluded** from diluted EPS calculations for both periods due to the loss from continuing operations being **anti-dilutive**[43](index=43&type=chunk) - **No shares were repurchased** in Q1 Fiscal 2025, but **255,000 shares** were repurchased in Q1 Fiscal 2024 for **$9.2 million**. As of May 4, 2024, **$52.1 million** remains under the share repurchase authorization[44](index=44&type=chunk) [Note 7 Legal Proceedings](index=14&type=section&id=Note%207%20Legal%20Proceedings) Genesco Inc. has legacy environmental obligations of $2.0 million, not expected to materially affect financial condition - The company has legacy environmental obligations from former sites in Garden City, New York, and Whitehall, Michigan[46](index=46&type=chunk) Accrued Environmental Contingencies (In thousands) | (In thousands) | May 4, 2024 | February 3, 2024 | April 29, 2023 | | :--- | :--- | :--- | :--- | | Accrued environmental contingencies | $2,000 | $2,000 | $1,700 | - **Management does not believe current environmental obligations will have a material effect** on consolidated financial condition or results of operations, but acknowledges inherent uncertainties in legal proceedings[46](index=46&type=chunk)[47](index=47&type=chunk) [Note 8 Commitments](index=14&type=section&id=Note%208%20Commitments) Genesco Brands Group is committed to cover inventory sales below historical cost for Samsung C&T America, Inc - Genesco is committed to pay Samsung C&T America, Inc. the difference if inventory is sold below Samsung's historical cost[48](index=48&type=chunk) - As of May 4, 2024, Samsung-owned inventory had a historical cost of **$7.8 million**[48](index=48&type=chunk) - The company believes it has appropriately accounted for any fair value differences related to this commitment[48](index=48&type=chunk) [Note 9 Business Segment Information](index=15&type=section&id=Note%209%20Business%20Segment%20Information) This note breaks down net sales, operating income, and assets for Genesco's four segments, with North America dominating sales Business Segment Performance (In thousands) | (In thousands) | Journeys Group | Schuh Group | Johnston & Murphy Group | Genesco Brands Group | Corporate & Other | Consolidated | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Q1 Fiscal 2025 (May 4, 2024)** | | | | | | | | Net sales to external customers | $259,445 | $92,349 | $79,207 | $26,596 | $0 | $457,597 | | Segment operating income (loss) | $(18,822) | $(5,896) | $2,355 | $(986) | $(8,201) | $(31,550) | | Total assets | $653,489 | $209,372 | $153,890 | $54,716 | $235,950 | $1,307,417 | | Depreciation and amortization | $8,612 | $1,869 | $1,382 | $314 | $1,060 | $13,237 | | Capital expenditures | $3,491 | $733 | $1,715 | $231 | $207 | $6,377 | | **Q1 Fiscal 2024 (April 29, 2023)** | | | | | | | | Net sales to external customers | $272,190 | $93,105 | $82,627 | $35,410 | $0 | $483,332 | | Segment operating income (loss) | $(18,362) | $(1,790) | $4,806 | $(32) | $(7,311) | $(22,689) | | Total assets | $765,064 | $212,579 | $187,247 | $78,313 | $252,109 | $1,495,312 | | Depreciation and amortization | $7,347 | $1,561 | $1,120 | $203 | $1,055 | $11,286 | | Capital expenditures | $13,019 | $2,151 | $1,205 | $455 | $405 | $17,235 | - North America accounted for **80%** of net sales and the U.K. (including ROI) for **20%** in Q1 Fiscal 2025[51](index=51&type=chunk) - Journeys Group and Schuh Group reported **increased operating losses**, while Johnston & Murphy Group's **operating income decreased significantly**. Genesco Brands Group's **operating loss also increased**[51](index=51&type=chunk)[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 Fiscal 2025 financial performance, highlighting decreased sales, increased loss, and liquidity [Summary of Results of Operations](index=17&type=section&id=Summary%20of%20Results%20of%20Operations) Net sales decreased by 5.3% to $457.6 million, leading to an increased net loss of $24.3 million Key Financial Metrics (In millions) | Metric | Q1 Fiscal 2025 (in millions) | Q1 Fiscal 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $457.6 | $483.3 | (5.3)% | | Gross margin | $216.3 | $228.8 | (5.5)% | | Gross margin as % of net sales | 47.3% | 47.3% | 0.0 ppt | | Selling and administrative expenses | $247.8 | $251.5 | (1.5)% | | Operating loss | $(32.1) | $(23.0) | (39.6)% | | Operating margin | (7.0)% | (4.8)% | (2.2) ppt | | Net Loss | $(24.3) | $(18.9) | (28.6)% | | Diluted loss per share | $(2.23) | $(1.60) | (39.4)% | - The sales decrease was primarily due to declining store sales in all retail businesses and decreased wholesale sales, partially offset by a **3% increase** in comparable e-commerce sales and a **$2.5 million favorable foreign exchange impact**[55](index=55&type=chunk) - The **flat gross margin** as a percentage of net sales reflects **lower markdowns** at Journeys due to disciplined inventory management and a **greater mix of direct-to-consumer sales**, offset by **decreased gross margin at Schuh and Genesco Brands** (due to a **$1.6 million inventory provision**)[56](index=56&type=chunk) [Critical Accounting Estimates](index=17&type=section&id=Critical%20Accounting%20Estimates) This section refers to critical accounting estimates in the Annual Report on Form 10-K, with no significant changes - **Critical accounting estimates and significant accounting policies are discussed** in Item 7 and Note 1 of the Annual Report on Form 10-K for Fiscal 2024[61](index=61&type=chunk)[62](index=62&type=chunk) - There have been **no significant changes** in the definition of significant accounting policies or critical accounting estimates since the end of Fiscal 2024[63](index=63&type=chunk) [Key Performance Indicators](index=19&type=section&id=Key%20Performance%20Indicators) Genesco Inc. uses comparable sales, net sales, gross margin, and operating income as key performance indicators - **Key performance indicators include comparable sales**, net sales, gross margin, operating income, and operating margin[64](index=64&type=chunk) - Comparable sales are defined as sales from stores open longer than one year ("same store sales") and sales from websites/direct mail catalogs operated longer than one year ("comparable e-commerce sales")[65](index=65&type=chunk) - Comparable sales are **crucial for leveraging costs** (occupancy, selling salaries, depreciation) and **directly impact total net revenue, cash, and working capital**[65](index=65&type=chunk) [Results of Operations – First Quarter of Fiscal 2025 Compared to First Quarter of Fiscal 2024](index=19&type=section&id=Results%20of%20Operations%20%E2%80%93%20First%20Quarter%20of%20Fiscal%202025%20Compared%20to%20First%20Quarter%20of%20Fiscal%202024) This section details segment performance, showing declines in sales and operating income across most segments [Journeys Group](index=19&type=section&id=Journeys%20Group) Journeys Group's net sales decreased by 4.7% due to lower comparable sales and store count, increasing operating loss Journeys Group Performance (In thousands) | Metric | Q1 Fiscal 2025 (in thousands) | Q1 Fiscal 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $259,445 | $272,190 | (4.7)% | | Operating loss | $(18,822) | $(18,362) | (2.5)% | | Operating margin | (7.3)% | (6.7)% | | - Total comparable sales decreased by **5%**, driven by decreased store sales, partially offset by **increased e-commerce sales**[67](index=67&type=chunk) - The group closed **17 stores** in Q1 Fiscal 2025 and plans to evaluate **up to 50 Journeys store closures** in Fiscal 2025. Journeys Group operated **1,047 stores** at the end of Q1 Fiscal 2025, down from **1,115 stores** in Q1 Fiscal 2024[67](index=67&type=chunk) [Schuh Group](index=20&type=section&id=Schuh%20Group) Schuh Group's net sales decreased by 0.8% with a 7% comparable sales drop, widening the operating loss significantly Schuh Group Performance (In thousands) | Metric | Q1 Fiscal 2025 (in thousands) | Q1 Fiscal 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $92,349 | $93,105 | (0.8)% | | Operating loss | $(5,896) | $(1,790) | (229.4)% | | Operating margin | (6.4)% | (1.9)% | | - Total comparable sales decreased by **7%**, driven by decreased store and e-commerce sales, partially offset by a **$2.5 million favorable foreign exchange impact**[69](index=69&type=chunk) - Schuh's e-commerce business accounted for approximately **40%** of its sales in Q1 Fiscal 2025[69](index=69&type=chunk) [Johnston & Murphy Group](index=20&type=section&id=Johnston%20%26%20Murphy%20Group) Johnston & Murphy Group's net sales decreased by 4.1%, with operating income falling 51.0% due to lower sales Johnston & Murphy Group Performance (In thousands) | Metric | Q1 Fiscal 2025 (in thousands) | Q1 Fiscal 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $79,207 | $82,627 | (4.1)% | | Operating income | $2,355 | $4,806 | (51.0)% | | Operating margin | 3.0% | 5.8% | | - Comparable sales decreased by **3%**, reflecting lower store and e-commerce sales, and wholesale sales also declined[71](index=71&type=chunk) - Retail operations accounted for **74.0%** of Johnston & Murphy Group's sales in Q1 Fiscal 2025, up from **72.9%** in Q1 Fiscal 2024[71](index=71&type=chunk) [Genesco Brands Group](index=21&type=section&id=Genesco%20Brands%20Group) Genesco Brands Group's net sales decreased by 24.9% due to repositioning, widening the operating loss to $1.0 million Genesco Brands Group Performance (In thousands) | Metric | Q1 Fiscal 2025 (in thousands) | Q1 Fiscal 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Net sales | $26,596 | $35,410 | (24.9)% | | Operating loss | $(986) | $(32) | NM | | Operating margin | (3.7)% | (0.1)% | | - The sales decrease was primarily driven by the **repositioning of the business** to a more refined portfolio of licenses, partially offset by **increased Dockers footwear sales**[73](index=73&type=chunk) - The increased operating loss was due to **decreased net sales** and a **$1.6 million inventory provision** for a distribution model transition, impacting gross margin as a percentage of net sales[74](index=74&type=chunk) [Corporate, Interest Expenses and Other Charges](index=21&type=section&id=Corporate,%20Interest%20Expenses%20and%20Other%20Charges) Corporate and other expenses increased to $8.8 million, while net interest expense decreased by 46.1% due to lower borrowings Corporate and Interest Expenses (In millions) | Metric | Q1 Fiscal 2025 (in millions) | Q1 Fiscal 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Corporate and other expense | $8.8 | $7.6 | 15.8% | | Net interest expense | $0.9 | $1.7 | (46.1)% | - Corporate expense in Q1 Fiscal 2025 included a **$0.6 million** charge for severance and asset impairments, compared to **$0.3 million** for asset impairments in Q1 Fiscal 2024[75](index=75&type=chunk) - The **decrease in net interest expense was primarily due to decreased average borrowings**[75](index=75&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) Genesco's liquidity is supported by cash flow, cash on hand, and credit facilities, with sufficient funds expected for Fiscal 2025 [Working Capital](index=21&type=section&id=Working%20Capital) Genesco's business is seasonal, with working capital peaking in summer and fall, and cash flows generated in Q4 - The business is **seasonal**, with working capital investment peaking in summer and fall for back-to-school and holiday seasons[76](index=76&type=chunk) - Historically, cash flows from operations are **typically generated in the fourth quarter** of each fiscal year[76](index=76&type=chunk) [Cash Flow Changes](index=21&type=section&id=Cash%20Flow%20Changes) Cash used in operating activities decreased by $26.7 million, while financing cash decreased by $37.5 million Cash Flow Summary (In thousands) | (in thousands) | May 4, 2024 | April 29, 2023 | Increase (Decrease) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(33,744) | $(60,445) | $26,701 | | Net cash used in investing activities | $(6,377) | $(17,148) | $10,771 | | Net cash provided by financing activities | $24,242 | $61,783 | $(37,541) | | Net decrease in cash | $(15,908) | $(16,204) | $296 | - The **$26.7 million** decrease in cash used in operating activities was driven by a **$16.9 million** increase from accounts receivable and a **$9.9 million** increase from prepaids and other assets/liabilities, partially offset by a **$6.2 million** decrease from accounts payable and a **$5.5 million** decrease in net earnings[77](index=77&type=chunk)[78](index=78&type=chunk) - Cash used in investing activities was **$10.8 million** lower due to decreased capital expenditures, mainly in retail stores and omni-channel capabilities[78](index=78&type=chunk) [Sources of Liquidity and Future Capital Needs](index=23&type=section&id=Sources%20of%20Liquidity%20and%20Future%20Capital%20Needs) Primary liquidity sources are cash flow, cash on hand, and credit facilities, deemed sufficient for future needs - **Primary liquidity sources are cash flow from operations**, cash on hand, and credit facilities[79](index=79&type=chunk) - As of May 4, 2024, **$56.3 million** U.S. revolver borrowings and **$3.1 million** (**C$4.3 million**) related to GCO Canada ULC were outstanding, with the company **in compliance with all credit facility terms**[79](index=79&type=chunk) - An **anticipated $29 million net tax refund** from CARES Act strategies is currently **under IRS audit**, extending its timing, and has been recorded as **non-current prepaid income taxes**[81](index=81&type=chunk) [Contractual Obligations](index=23&type=section&id=Contractual%20Obligations) Contractual obligations increased by 1% due to higher long-term debt, partially offset by decreased lease obligations - Contractual obligations increased by **1%** at May 4, 2024, compared to February 3, 2024[82](index=82&type=chunk) - The increase was primarily due to **increased long-term debt**, offset by **decreased lease obligations and purchase obligations**[82](index=82&type=chunk) [Capital Expenditures](index=23&type=section&id=Capital%20Expenditures) Total capital expenditures for Fiscal 2025 are projected at $52-57 million, focused on stores and omni-channel capabilities - Total capital expenditures for Fiscal 2025 are expected to be approximately **$52 million to $57 million**[83](index=83&type=chunk) - Approximately **61%** of capital expenditures are for new stores and remodels, and **39%** for computer hardware, software, and warehouse enhancements to drive traffic and omni-channel capabilities[83](index=83&type=chunk) [Common Stock Repurchases](index=23&type=section&id=Common%20Stock%20Repurchases) No shares were repurchased in Q1 Fiscal 2025, with $52.1 million remaining under the share repurchase authorization - **No shares were repurchased** during the first quarter of Fiscal 2025[84](index=84&type=chunk) - The company has **$52.1 million** remaining under its expanded share repurchase authorization as of May 4, 2024[84](index=84&type=chunk) - In Q1 Fiscal 2024, **255,000 shares** were repurchased at a cost of **$9.2 million**, or **$35.96 per share**[84](index=84&type=chunk) [Environmental and Other Contingencies](index=23&type=section&id=Environmental%20and%20Other%20Contingencies) This section refers to environmental proceedings and other legal matters detailed in Note 7 of the financial statements - The company is **subject to loss contingencies** related to environmental proceedings and other legal matters[85](index=85&type=chunk) - Further details are disclosed in Item 1, Note 7, "Legal Proceedings", to the Condensed Consolidated Financial Statements[85](index=85&type=chunk) [New Accounting Pronouncements](index=25&type=section&id=New%20Accounting%20Pronouncements) This section refers to descriptions of new accounting pronouncements in Note 1 of the financial statements - **Descriptions of recently issued and adopted accounting pronouncements are included** in Note 1 to the Condensed Consolidated Financial Statements[86](index=86&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates market risk disclosures from the Form 10-K, noting no material changes to market risk exposure - **Information regarding market risk is incorporated by reference** from Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Financial Market Risk" in the Annual Report on Form 10-K for Fiscal 2024[87](index=87&type=chunk) - There have been **no material changes** to the company's exposure to market risks since the Fiscal 2024 Form 10-K filing[87](index=87&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures, with no material changes to internal control [Evaluation of Disclosure Controls and Procedures](index=25&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of May 4, 2024, ensuring timely reporting of required information - **Disclosure controls and procedures are designed to ensure information** required for SEC reports is made known to certifying officers and senior management[88](index=88&type=chunk) - As of May 4, 2024, the principal executive officer and principal financial officer concluded that disclosure controls and procedures were **effective**[89](index=89&type=chunk) [Changes in Internal Control Over Financial Reporting](index=25&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes occurred in internal control over financial reporting during Q1 Fiscal 2025 - **No changes in internal control over financial reporting occurred** during Q1 Fiscal 2025 that materially affected or are reasonably likely to materially affect internal control over financial reporting[89](index=89&type=chunk) Part II. Other Information](index=26&type=section&id=Part%20II.%20Other%20Information) This part includes legal proceedings, risk factors, equity sales, other information, and exhibits for the Form 10-Q [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings information from Note 7 to the Condensed Consolidated Financial Statements - **Information regarding legal proceedings is incorporated by reference** from Item 1, Note 7, "Legal Proceedings," in the Condensed Consolidated Financial Statements[92](index=92&type=chunk) [Item 1A. Risk Factors](index=26&type=page&id=Item%201A.%20Risk%20Factors) This section refers to risk factors in the Annual Report on Form 10-K, noting potential adverse impacts on the business - Readers should **carefully consider risk factors** discussed in Part I, "Item 1A. Risk Factors" in the Annual Report on Form 10-K for Fiscal 2024[93](index=93&type=chunk) - The **risks described are not exhaustive**, and additional unknown or immaterial risks may also adversely affect the business[93](index=93&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details equity security repurchases, including shares withheld for taxes, with $52.1 million remaining for buybacks Equity Security Repurchases (In thousands) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | | :--- | :--- | :--- | :--- | :--- | | February 2024 (2-4-24 to 3-2-24) | — | $— | — | $52,109 | | March 2024 (3-3-24 to 3-30-24) | 8,357 | $27.33 | — | $52,109 | | April 2024 (3-31-24 to 5-4-24) | 20,730 | $26.27 | — | $52,109 | | Total | 29,087 | $26.57 | — | $52,109 | - **Shares withheld for taxes** (**29,087 shares** in total for March and April 2024) represent shares from vested restricted stock to satisfy **minimum withholding requirements** for federal and state taxes[96](index=96&type=chunk)[97](index=97&type=chunk) - As of May 4, 2024, **$52.1 million** remains under the share repurchase program authorized by the Board of Directors[96](index=96&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 Fiscal 2025 - **No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the first quarter of Fiscal 2025[98](index=98&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including executive compensation plans and SOX certifications - **Exhibits include the Genesco Inc. Executive Severance Plan**, Performance Share Unit Agreement, and **certifications from the CEO and CFO** (Sections 302 and 906 of Sarbanes-Oxley Act)[100](index=100&type=chunk) - The financial statements (Balance Sheets, Statements of Operations, Comprehensive Loss, Cash Flows, Equity, and Notes) are provided in **Inline XBRL format** as Exhibit 101[101](index=101&type=chunk) Signature](index=29&type=section&id=SIGNATURE) This section confirms the official signing of the Form 10-Q report by Genesco Inc.'s Chief Financial Officer [Report Signature](index=29&type=section&id=Report%20Signature) The Form 10-Q report was signed by Thomas A. George, Senior Vice President - Finance and Chief Financial Officer, on June 13, 2024 - The report was **signed by Thomas A. George**, Senior Vice President - Finance and Chief Financial Officer, on **June 13, 2024**[103](index=103&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 was $458 million, down approximately 5% compared to last year, with store closures negatively impacting sales by 1% [29] - Total company comparable sales were down 5%, with store comps down 7% and direct comps up 3%, while digital sales accounted for 23% of total retail sales, up from 21% last year [30] - Adjusted gross margin increased by 30 basis points year-over-year, driven by disciplined inventory management and a greater mix of direct-to-consumer sales [30] - Adjusted operating loss was $30 million compared to a loss of $22.7 million in Q1 last year, resulting in an adjusted diluted loss per share of $2.10 versus a loss of $1.59 last year [34] Business Line Data and Key Metrics Changes - Journeys' sales, gross margin, and expenses exceeded expectations in Q1, with inventory down 20% year-over-year, helping to keep markdowns in check [10][29] - Schuh faced challenges due to a tough UK macro environment and unseasonable weather, but strong Easter sales partially offset weaker periods [13] - Johnston & Murphy saw challenges in Q1 due to strong multi-year comparisons, but apparel and accessories performed well, representing nearly half of its direct-to-consumer business [16] Market Data and Key Metrics Changes - The consumer environment remains choppy, with consumers showing selective shopping behavior due to ongoing inflationary pressures [7] - The UK consumer has become more discriminating, impacting footwear category purchases and frequency [13] Company Strategy and Development Direction - The company is focused on evolving its product assortment and branding to respond to changes in consumer shopping behavior, particularly at Journeys [8][19] - Strategic initiatives include enhancing the omni-channel experience, improving brand presence, and leveraging customer data analytics for targeted marketing [22][60] - The company aims to optimize operational efficiencies and reduce fixed costs through store closures and cost-saving measures [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the back half of the fiscal year, anticipating stronger performance as new product receipts hit stores [26][39] - The company is maintaining a conservative view on sales and margins due to ongoing consumer and macroeconomic uncertainties [41] Other Important Information - The company ended the quarter with a net debt position of approximately $40 million and clean inventories down 17% from last year [35] - Capital expenditures in Q1 were $6 million, primarily directed towards retail stores and digital initiatives [35] Q&A Session Summary Question: Guidance for Journeys business in Q2 and back half - Management expects a cautious view for Q2, with hopes for a positive comp in Q4, but acknowledges challenges in the vulcanized category [46] Question: Margins and SG&A assumptions - Management noted lower markdowns in Q1 contributed to margin outperformance, but mixed shifts in product could pressure margins going forward [48][49] Question: Assortment changes at Journeys - Significant changes in the product assortment are expected, with a focus on diversifying beyond vulcanized products [54][56] Question: Johnston & Murphy marketing campaign - Early feedback on the new campaign has been positive, with efforts to attract younger customers and reposition the brand [65][67] Question: Add-on purchases and customer engagement - Higher average selling prices and successful buy online pick up in store initiatives have contributed to increased add-on sales [73]

FY25 Q1 GENESCO S u m m a r y R e s u l t s M a y 3 1 , 2 0 2 4 Safe Harbor Statement This presentation contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, cost reductions, ESG progress and all other statements not addressing solely historical facts or present conditions. Forward- looking statements are usually identified by or are associa ...

Exhibit 99.1 GENESCO INC. REPORTS FISCAL 2025 FIRST QUARTER RESULTS Top and Bottom-Line Results Exceed Expectations, Led by Journeys Reaffirms Fiscal 2025 Outlook NASHVILLE, Tenn., May 31, 2024 --- Genesco Inc. (NYSE: GCO) today reported first quarter results for the three months ended May 4, 2024. First Quarter Fiscal 2025 Financial Summary • Total net sales decreased 5%; comparable sales decreased 5% • Comparable e-commerce sales increased 3%; comparable store sales decreased 7% • E-commerce sales represe ...

"Through recent consumer research we discovered a unique opportunity to shift perceptions about our brand," said Johnston & Murphy SVP of Marketing and Ecommerce Jason Dasal. "We have made great strides in expanding our product offering into apparel and accessories, developing innovative comfort technology and creating a product line that is relevant for today's customer. With this campaign, we aim to solidify our position in the industry and inspire customers to see us from a fresh perspective." 'Not Your ...

Sales and Store Operations - Journeys Group accounted for 59% of net sales in Fiscal 2024, operating 1,063 stores and closing a net of 67 stores during the year[17][18]. - Schuh Group represented 21% of net sales in Fiscal 2024, operating 122 stores with no closures during the year[19][20]. - Johnston & Murphy Group accounted for 14% of net sales in Fiscal 2024, operating 156 retail shops and closing a net of 2 stores[21][22]. - Genesco Brands Group contributed 6% of net sales in Fiscal 2024, focusing on licensed footwear under brands like Levi's and Dockers[24]. - The company aims to optimize its store footprint, potentially reducing overall square footage and store count while improving productivity[14]. - The business is seasonal, with significant net sales and operating income generated during the fourth quarter[48]. Financial Performance - As of March 2, 2024, the wholesale backlog was approximately $49.0 million, down from $72.7 million as of February 25, 2023[29]. Strategic Initiatives - The company has made strategic acquisitions, including the Schuh Group and Togast, to leverage direct-to-consumer capabilities[15]. - The company anticipates pursuing synergistic acquisitions to drive growth and create shareholder value[14]. Workforce and Employee Engagement - Approximately 18,000 employees were reported as of February 3, 2024, with a workforce primarily consisting of retail-based, customer-facing employees[33]. - Annual employee engagement surveys indicate high participation rates and strong engagement scores, reflecting a commitment to listening to employees[38]. Diversity, Equity, and Inclusion - The company is committed to enhancing its diversity, equity, and inclusion (DEI) efforts, focusing on talent, business practices, and community impact[37]. - The board of directors comprises 67% diverse members as of February 3, 2024, reflecting the company's commitment to expanding board diversity[47]. Sustainability and Social Responsibility - The company is committed to sustainability initiatives and has joined the Leather Working Group to enhance environmental practices in its supply chain[31]. - The company published its inaugural Vendor Code of Conduct policy during Fiscal 2024 to promote responsible sourcing practices in its supply chain[39]. - A comprehensive human rights policy was published in 2021, guided by international standards to ensure integrity and respect in business operations[40]. - Community outreach initiatives support underserved communities, including programs like Cold Feet, Warm Shoes and partnerships with local organizations[46]. Compliance and Security - Significant investments have been made in information security, including hardware-based end-to-end encryption and multifactor authentication protocols[41]. - The company complies with complex regulatory standards such as GDPR and CCPA, ensuring the protection of personal data[44]. - The company is involved in environmental proceedings related to its former facilities, addressing compliance with federal and state regulations[51].

Genesco Inc. (NYSE:GCO) Q4 2024 Earnings Conference Call March 8, 2024 8:30 AM ET Company Participants Darryl MacQuarrie - Senior Director of FP&A Mimi Vaughn - Board Chair, President & Chief Executive Officer Tom George - Chief Financial Officer Conference Call Participants Jeff Lick - B. Riley Securities Corey Tarlowe - Jefferies Mitch Kummetz - Seaport Research Operator Good day, everyone, and welcome to the Genesco Fourth Quarter Fiscal 2024 Conference Call. Just a reminder, today's call is being record ...

Financial Performance - Q4 FY24 - Total sales reached $739 million[18,42], with a 5% growth in comparable digital sales, increasing digital penetration to 27% compared to 25% in Q4 FY23[11,18] - GAAP EPS was $1.84, and Non-GAAP EPS was $2.59[18] - Total company inventory decreased by 17%, and Journeys inventory decreased by over 20%[11] - Adjusted selling and administrative expenses were $303.549 million, representing 41.1% of sales, compared to $285.664 million, or 39.4% of sales, in the previous year[66] - Journeys Group's operating income was $32.3 million, Schuh Group's was $6.1 million, and Johnston & Murphy Group's was $(0.3) million[47] Financial Performance - FY24 - Total sales decreased by 3%[36], with comparable direct sales increasing by 8%[12,36] - Digital penetration expanded to 23% versus 20% a year ago[12] - GAAP Earnings per Diluted Share was $(2.10), and Non-GAAP Earnings per Diluted Share was $0.56[36] - Adjusted selling and administrative expenses were $1.082 billion, representing 46.5% of sales, compared to $1.039 billion, or 43.6% of sales, in the previous year[67] - Journeys Group's operating income was $11.1 million, Schuh Group's was $21.4 million, and Johnston & Murphy Group's was $16.3 million[48] Strategic Initiatives and Outlook - The company closed nearly 100 underperforming Journeys stores and is evaluating up to 50 more closures in fiscal 25[12] - The company is targeting an increased run rate of $45-$50 million in annualized savings by the end of fiscal 25[12] - FY25 outlook projects total sales to be down 2% to 3%, with Non-GAAP EPS between $0.60 and $1.00 per share[57]

NASHVILLE, Tenn.--(BUSINESS WIRE)--Genesco Inc. (NYSE: GCO) today reported fourth quarter and full fiscal year results for the three and twelve months ended February 3, 2024. Fourth Quarter Fiscal 2024 Financial Summary Net sales of $739 million this year (14 weeks) increased 2% compared to Q4FY23 (13 weeks) Comps down 4%, with stores down 7% and direct up 5% E-commerce sales represented 27% of retail sales compared to 25% last year GAAP EPS from continuing operations was $1.84 vs. $3.23 last year ...

[Executive Summary & Key Financial Highlights](index=1&type=section&id=1_Executive_Summary_Highlights) Genesco reported mixed Q4 and FY24 results, with strong performance from Schuh and Johnston & Murphy offset by Journeys' challenges, driving strategic focus on its improvement for FY25 [Fourth Quarter Fiscal 2024 Financial Summary](index=1&type=section&id=1.1_Q4_Financial_Summary) Genesco reported a 2% increase in net sales to $739 million for Q4 FY24 (14 weeks), with comparable sales down 4%. E-commerce sales grew 5% and represented 27% of retail sales. GAAP EPS from continuing operations was $1.84, while non-GAAP EPS was $2.59 | Metric | Q4 FY24 (14 weeks) | Q4 FY23 (13 weeks) | | :-------------------------------- | :----------------- | :----------------- | | Net sales | $739 million | $725 million | | Comparable sales | Down 4% | N/A | | E-commerce sales (% of retail) | 27% | 25% | | GAAP EPS from continuing operations | $1.84 | $3.23 | | Non-GAAP EPS from continuing operations | $2.59 | $3.06 | - Comparable sales were **down 4%**, with stores **down 7%** and direct sales **up 5%**[1](index=1&type=chunk) [Fiscal 2024 Full Year Financial Summary](index=1&type=section&id=1.2_FY24_Financial_Summary) For the full fiscal year 2024 (53 weeks), net sales decreased 2.5% to $2.3 billion, with comparable sales down 4%. E-commerce sales increased 8% and accounted for 23% of retail sales. GAAP EPS from continuing operations was ($2.10), and non-GAAP EPS was $0.56 | Metric | FY24 (53 weeks) | FY23 (52 weeks) | | :-------------------------------- | :-------------- | :-------------- | | Net sales | $2.3 billion | $2.38 billion | | Comparable sales | Down 4% | N/A | | E-commerce sales (% of retail) | 23% | 20% | | GAAP EPS from continuing operations | ($2.10) | $5.69 | | Non-GAAP EPS from continuing operations | $0.56 | $5.59 | - Comparable sales were **down 4%**, with stores **down 7%** and direct sales **up 8%**[2](index=2&type=chunk) [Management Commentary & Strategic Focus](index=1&type=section&id=1.3_Management_Commentary_Strategic_Focus) Management noted Journeys' challenging consumer behavior, offset by record sales at Schuh and Johnston & Murphy, with FY25 focus on Journeys' improvement amid expected headwinds - Fiscal 2024 results reflect a **significant shift** in Journeys consumer shopping behavior, with sequential improvement in Journeys comparable sales every quarter[2](index=2&type=chunk) - Schuh and Johnston & Murphy achieved another year of **record sales** in FY24[2](index=2&type=chunk) - For Fiscal 2025, the company is focused on accelerating Journeys' improvement with new leadership and refined core product assortment, aiming to unlock its earnings potential[3](index=3&type=chunk) - Fourth quarter faced a difficult operating environment due to unusually disruptive winter storms and higher than anticipated expenses at Journeys, impacting bottom line results[3](index=3&type=chunk) - Current sales dynamics are expected to remain a **significant headwind** in the first half of Fiscal 2025[3](index=3&type=chunk) [Detailed Fourth Quarter Fiscal 2024 Review](index=2&type=section&id=2_Detailed_Q4_FY24_Review) Q4 FY24 saw net sales increase 2% to $739 million, but comparable sales declined 4%, with gross margin slightly down and operating income decreasing due to Journeys' performance and higher expenses [Net Sales & Comparable Sales Performance](index=2&type=section&id=2.1_Q4_Net_Sales_Comparable_Sales) Q4 FY24 net sales increased 2% to $739 million, primarily due to an extra week. Excluding the 14th week, sales would have decreased 2%. Total comparable sales were down 4%, with store sales down 7% and direct sales up 5%. Schuh and Johnston & Murphy showed sales increases, while Journeys decreased - Net sales for Q4 FY24 (14 weeks) **increased 2%** to **$739 million** compared to **$725 million** in Q4 FY23 (13 weeks) Excluding the 14th week, sales would have **decreased 2%**[4](index=4&type=chunk) - The sales **decrease** compared to last year was driven by **decreased** store sales, primarily in Journeys Group, partially offset by a **5% increase** in e-commerce comparable sales, **increased** wholesale sales, and a favorable foreign exchange impact[4](index=4&type=chunk) | Category | 4QFY24 | 4QFY23 | | :------------------------------ | :----- | :----- | | Journeys Group | (5)% | (1)% | | Schuh Group | (5)% | 20% | | Johnston & Murphy Group | 8% | 23% | | Total Genesco Comparable Sales | (4)% | 5% | | Same Store Sales | (7)% | 1% | | Comparable Direct Sales | 5% | 21% | - Overall Q4 FY24 sales **increase** of **2%** was driven by a **6% increase** at Schuh, **9%** at Johnston & Murphy, and **24%** at Genesco Brands, partially offset by a **2% decrease** at Journeys[7](index=7&type=chunk) [Gross Margin Analysis](index=3&type=section&id=2.2_Q4_Gross_Margin_Analysis) Q4 FY24 gross margin was 46.3%, a slight decrease of 10 basis points from 46.4% last year. This was mainly due to a change in product mix at Journeys, partially offset by lower freight and logistics costs at Johnston & Murphy and Genesco Brands - Fourth quarter gross margin was **46.3%**, **down 10 basis points** compared with **46.4%** last year[7](index=7&type=chunk) - The **decrease** is primarily due to a change in product mix at Journeys, partially offset by lower freight and logistics costs at both Johnston & Murphy and Genesco Brands[7](index=7&type=chunk) [Selling and Administrative Expenses](index=3&type=section&id=2.3_Q4_Selling_Administrative_Expenses) Selling and administrative expense for Q4 FY24 increased 170 basis points as a percentage of sales compared to last year. Approximately 60 basis points of this increase were attributable to the 53rd week. Adjusted for the extra week, expenses were relatively flat in absolute dollars, demonstrating the impact of cost savings initiatives - Selling and administrative expense for the fourth quarter **increased 170 basis points** as a percentage of sales compared with last year[8](index=8&type=chunk) - Approximately **60 basis points** of the **increase** were attributable to the 53rd week[8](index=8&type=chunk) - Adjusting for the 53rd week, expenses were relatively flat in absolute dollars, demonstrating the impact and benefit of cost savings initiatives[8](index=8&type=chunk) [Operating Income](index=3&type=section&id=2.4_Q4_Operating_Income) GAAP operating income for Q4 FY24 was $37.3 million (5.0% of sales), down from $49.8 million (6.9% of sales) last year. Adjusted operating income was $38.5 million (5.2% of sales), compared to $51.0 million (7.0% of sales) last year. The 53rd week resulted in an estimated operating loss of $2.6 million | Metric | Q4 FY24 | Q4 FY23 | | :-------------------- | :-------- | :-------- | | GAAP Operating Income | $37.3 million | $49.8 million | | GAAP Operating Margin | 5.0% | 6.9% | | Adjusted Operating Income | $38.5 million | $51.0 million | | Adjusted Operating Margin | 5.2% | 7.0% | - For the 53rd week, operating income was an **estimated loss** of **$2.6 million**, or approximately **$0.18 per share**[9](index=9&type=chunk) [Income Tax Expense](index=3&type=section&id=2.5_Q4_Income_Tax_Expense) The effective tax rate for Q4 FY24 was 43.0%, significantly higher than 19.1% last year. The adjusted tax rate was 22.6% in FY24, down from 25.2% last year, primarily due to a reduction in the effective tax rate for jurisdictions in which the Company is profitable | Metric | Q4 FY24 | Q4 FY23 | | :------------------ | :------ | :------ | | Effective Tax Rate | 43.0% | 19.1% | | Adjusted Tax Rate | 22.6% | 25.2% | - The lower adjusted tax rate for Q4 FY24 compared to Q4 FY23 primarily reflects a reduction in the effective tax rate for jurisdictions in which the Company is profitable[10](index=10&type=chunk) [Earnings from Continuing Operations](index=4&type=section&id=2.6_Q4_Earnings_Continuing_Operations) GAAP earnings from continuing operations for Q4 FY24 were $20.3 million, down from $39.2 million last year. Adjusted earnings from continuing operations were $28.5 million, or $2.59 per share, compared to $37.1 million, or $3.06 per share, last year | Metric | Q4 FY24 | Q4 FY23 | | :-------------------------------- | :---------- | :---------- | | GAAP Earnings from Continuing Operations | $20.3 million | $39.2 million | | Adjusted Earnings from Continuing Operations | $28.5 million | $37.1 million | | Adjusted EPS from Continuing Operations | $2.59 | $3.06 | [Segment Sales and Operating Income (Q4)](index=12&type=section&id=2.7_Q4_Segment_Performance) In Q4 FY24, Journeys Group sales decreased by 2% and operating income by 25.2%. Schuh Group sales increased by 6% but operating income decreased by 24.4%. Johnston & Murphy Group sales increased by 9% and operating income decreased by 13.7%. Genesco Brands Group sales increased by 24% and significantly reduced its operating loss | Segment | Q4 FY24 Sales (in thousands) | % of Net Sales | Q4 FY23 Sales (in thousands) | % of Net Sales | YoY Change | | :---------------------- | :--------------------------- | :------------- | :--------------------------- | :------------- | :--------- | | Journeys Group | $455,003 | 61.6% | $465,807 | 64.2% | -2.3% | | Schuh Group | $146,131 | 19.8% | $137,516 | 19.0% | +6.3% | | Johnston & Murphy Group | $97,623 | 13.2% | $89,311 | 12.3% | +9.3% | | Genesco Brands Group | $40,193 | 5.4% | $32,386 | 4.5% | +24.1% | | Net Sales | $738,950 | 100.0% | $725,020 | 100.0% | +1.9% | | Segment | Q4 FY24 Operating Income (in thousands) | % of Sales | Q4 FY23 Operating Income (in thousands) | % of Sales | YoY Change | | :---------------------- | :-------------------------------------- | :--------- | :-------------------------------------- | :--------- | :--------- | | Journeys Group | $32,337 | 7.1% | $43,169 | 9.3% | -25.2% | | Schuh Group | $9,325 | 6.4% | $12,341 | 9.0% | -24.4% | | Johnston & Murphy Group | $6,136 | 6.3% | $7,108 | 8.0% | -13.7% | | Genesco Brands Group | ($267) | -0.7% | ($3,229) | -10.0% | +91.7% | [Detailed Full Year Fiscal 2024 Review](index=4&type=section&id=3_Detailed_FY24_Review) Full year FY24 saw net sales decrease 2.5% to $2.32 billion, with comparable sales down 4%, leading to a GAAP operating loss and significantly reduced adjusted earnings per share [Net Sales & Comparable Sales Performance](index=4&type=section&id=3.1_FY24_Net_Sales_Comparable_Sales) Full year FY24 net sales decreased 2.5% to $2.32 billion (53 weeks). Excluding the 53rd week, sales would have decreased 4%. The decline was driven by decreased store sales, primarily in Journeys Group, and decreased wholesale sales, partially offset by an 8% increase in e-commerce comparable sales. Total comparable sales decreased 4% - Net sales for Fiscal 2024 (53 weeks) **decreased 2.5%** to **$2.32 billion** from **$2.38 billion** in Fiscal 2023 (52 weeks) Excluding the 53rd week, sales would have **decreased 4%**[12](index=12&type=chunk) - The sales **decrease** was driven by **decreased** store sales, primarily in Journeys Group, and **decreased** wholesale sales, partially offset by an **8% increase** in e-commerce comparable sales and a favorable foreign exchange impact[12](index=12&type=chunk) - Total comparable sales for Fiscal 2024 **decreased 4%**, including a same store sales **decrease of 7%** and a comparable direct sales **increase of 8%**[12](index=12&type=chunk) - Overall sales for Fiscal 2024 compared to Fiscal 2023 **decreased 8%** at Journeys and **9%** at Genesco Brands, partially offset by an **increase of 11%** at Schuh and **8%** at Johnston & Murphy[12](index=12&type=chunk) [Gross Margin Analysis](index=4&type=section&id=3.2_FY24_Gross_Margin_Analysis) Full year FY24 gross margin was 47.3%, down 30 basis points from 47.6% last year. This decrease was primarily due to increased promotional activity and product mix shift in the Journeys business, partially offset by improved margins at Schuh, Johnston & Murphy, and Genesco Brands due to decreased freight and logistics costs - Gross margin for Fiscal 2024 was **47.3%**, **down 30 basis points** compared with **47.6%** last year[13](index=13&type=chunk) - The **decrease** is due primarily to **increased** promotional activity and product mix shift in the Journeys business, partially offset by improved margin at Schuh along with improved margins at Johnston & Murphy and Genesco Brands reflecting **decreased** freight and logistics costs[13](index=13&type=chunk) [Selling and Administrative Expenses](index=4&type=section&id=3.3_FY24_Selling_Administrative_Expenses) Selling and administrative expense for full year FY24 increased 280 basis points as a percentage of sales compared to last year. Adjusted SG&A as a percentage of sales was 46.5%, up 290 basis points, reflecting deleverage in expenses (especially compensation, selling salaries, occupancy, and marketing) largely as a result of lower store comparable sales - Selling and administrative expense for Fiscal 2024 **increased 280 basis points** as a percentage of sales compared with last year[13](index=13&type=chunk) - Adjusted selling and administrative expense as a percentage of sales for Fiscal 2024 was **46.5%**, **up 290 basis points**, compared to **43.6%** last year[13](index=13&type=chunk) - The **increase** reflects deleverage in expenses, especially compensation expense, selling salaries, occupancy and marketing expenses, largely as a result of lower store comparable sales[13](index=13&type=chunk) [Operating Income (Loss)](index=5&type=section&id=3.4_FY24_Operating_Income_Loss) GAAP operating loss for full year FY24 was $13.5 million (0.6% of sales), a significant decline from operating income of $93.2 million (3.9% of sales) last year. Adjusted for excluded items and goodwill impairment, operating income was $16.8 million (0.7% of sales), down from $96.8 million (4.1% of sales) last year | Metric | FY24 | FY23 | | :-------------------- | :---------- | :---------- | | GAAP Operating Income (Loss) | ($13.5 million) | $93.2 million | | GAAP Operating Margin | -0.6% | 3.9% | | Adjusted Operating Income | $16.8 million | $96.8 million | | Adjusted Operating Margin | 0.7% | 4.1% | [Income Tax Expense](index=5&type=section&id=3.5_FY24_Income_Tax_Expense) The effective tax rate for full year FY24 was -8.5%, compared to 19.8% last year. The adjusted tax rate, reflecting excluded items and goodwill impairment, was 24.6% in FY24, slightly up from 24.0% last year | Metric | FY24 | FY23 | | :------------------ | :----- | :----- | | Effective Tax Rate | -8.5% | 19.8% | | Adjusted Tax Rate | 24.6% | 24.0% | [Earnings (Loss) from Continuing Operations](index=5&type=section&id=3.6_FY24_Earnings_Loss_Continuing_Operations) GAAP loss from continuing operations for full year FY24 was $23.6 million, compared to earnings of $72.2 million last year. Adjusted for excluded items and goodwill impairment, earnings from continuing operations were $6.4 million, or $0.56 per share, a substantial decrease from $71.1 million, or $5.59 per share, last year | Metric | FY24 | FY23 | | :-------------------------------- | :---------- | :---------- | | GAAP Earnings (Loss) from Continuing Operations | ($23.6 million) | $72.2 million | | Adjusted Earnings from Continuing Operations | $6.4 million | $71.1 million | | Adjusted EPS from Continuing Operations | $0.56 | $5.59 | [Segment Sales and Operating Income (Full Year)](index=13&type=section&id=3.7_FY24_Segment_Performance) For the full year FY24, Journeys Group sales decreased by 8% and operating income by 88.3%. Schuh Group sales increased by 11% and operating income by 21.8%. Johnston & Murphy Group sales increased by 8% and operating income by 13.6%. Genesco Brands Group sales decreased by 9.5% but significantly reduced its operating loss | Segment | FY24 Sales (in thousands) | % of Net Sales | FY23 Sales (in thousands) | % of Net Sales | YoY Change | | :---------------------- | :------------------------ | :------------- | :------------------------ | :------------- | :--------- | | Journeys Group | $1,363,835 | 58.7% | $1,482,203 | 62.1% | -8.0% | | Schuh Group | $480,164 | 20.7% | $432,002 | 18.1% | +11.1% | | Johnston & Murphy Group | $339,446 | 14.6% | $314,759 | 13.2% | +7.8% | | Genesco Brands Group | $141,179 | 6.1% | $155,924 | 6.5% | -9.5% | | Net Sales | $2,324,624 | 100.0% | $2,384,888 | 100.0% | -2.5% | | Segment | FY24 Operating Income (Loss) (in thousands) | % of Sales | FY23 Operating Income (Loss) (in thousands) | % of Sales | YoY Change | | :---------------------- | :------------------------------------------ | :--------- | :------------------------------------------ | :--------- | :--------- | | Journeys Group | $11,072 | 0.8% | $94,404 | 6.4% | -88.3% | | Schuh Group | $21,435 | 4.5% | $17,601 | 4.1% | +21.8% | | Johnston & Murphy Group | $16,314 | 4.8% | $14,364 | 4.6% | +13.6% | | Genesco Brands Group | ($8) | 0.0% | ($678) | -0.4% | +98.8% | | Goodwill Impairment | ($28,453) | -1.2% | — | 0.0% | N/A | [Financial Position, Capital & Operational Updates](index=5&type=section&id=4_Financial_Position_Capital_Operational_Updates) Genesco's financial position shows decreased cash and debt, with a 17% inventory reduction, while operational updates include store closures and an increased target for annualized cost savings [Cash, Borrowings and Inventory](index=5&type=section&id=4.1_Cash_Borrowings_Inventory) As of February 3, 2024, cash decreased to $35.2 million from $48.0 million last year. Total debt decreased to $34.7 million from $44.9 million. Inventories decreased 17% year-over-year, driven by reductions at Journeys and Johnston & Murphy, partially offset by an increase at Schuh | Metric | Feb 3, 2024 | Jan 28, 2023 | | :---------------- | :---------- | :---------- | | Cash | $35.2 million | $48.0 million | | Total Debt | $34.7 million | $44.9 million | | Inventories | Decreased 17% YoY | N/A | - Inventory **decrease** reflects **decreased** inventory for Journeys and Johnston & Murphy, partially offset by an **increase** at Schuh[16](index=16&type=chunk) [Capital Expenditures and Store Activity](index=5&type=section&id=4.2_Capital_Expenditures_Store_Activity) For Q4 FY24, capital expenditures were $10 million, primarily related to retail stores and digital/omnichannel initiatives. The company opened five stores and closed 24 stores during the quarter, ending with 1,341 stores, a 5% decrease year-over-year. Square footage was down 3% - Capital expenditures for Q4 FY24 were **$10 million**, primarily related to retail stores and digital and omnichannel initiatives[17](index=17&type=chunk) - During the quarter, the Company opened five stores and closed 24 stores[17](index=17&type=chunk) - The Company ended the quarter with **1,341 stores** compared with **1,410 stores** at the end of Q4 FY23, a **decrease of 5%** Square footage was **down 3%** year-over-year[17](index=17&type=chunk) [Share Repurchases](index=6&type=section&id=4.3_Share_Repurchases) The company did not repurchase any shares during Q4 FY24. For the full fiscal year 2024, Genesco repurchased 1,261,295 shares, representing 10% of its outstanding shares, for $32.0 million at an average price of $25.39 per share. The company currently has $52.1 million remaining on its expanded share repurchase authorization - The Company did not repurchase any shares during the fourth quarter of Fiscal 2024[18](index=18&type=chunk) - The Company repurchased **1,261,295 shares** (**10%** of its outstanding shares) for **$32.0 million**, or **$25.39 per share** during Fiscal 2024[18](index=18&type=chunk) - The Company currently has **$52.1 million** remaining on its expanded share repurchase authorization announced in June 2023[18](index=18&type=chunk) [Store Closing and Cost Savings Initiatives](index=6&type=section&id=4.4_Store_Closing_Cost_Savings_Initiatives) Genesco closed 94 Journeys stores in Fiscal 2024 and is targeting up to 50 more closures in Fiscal 2025. The company has increased its target for annualized cost reductions to $45-$50 million by the end of Fiscal 2025 - The Company closed **94 Journeys stores** in Fiscal 2024 and is targeting **up to 50 more closures** in Fiscal 2025[19](index=19&type=chunk) - The Company is now targeting an **increased** run rate of **$45-$50 million** in annualized cost reductions by the end of Fiscal 2025[19](index=19&type=chunk) [Fiscal 2025 Outlook](index=6&type=section&id=5_Fiscal_2025_Outlook) Genesco forecasts a 2-3% decrease in total sales for Fiscal 2025, with adjusted diluted EPS projected between $0.60 and $1.00 [Fiscal 2025 Guidance](index=6&type=section&id=5.1_FY25_Guidance) For Fiscal 2025, Genesco expects total sales to decrease 2% to 3% compared to FY24 (or down 1% to 2% excluding the 53rd week in FY24). Adjusted diluted EPS from continuing operations is projected to be in the range of $0.60 to $1.00. This guidance assumes no further share repurchases and a tax rate of 26% - Expects total sales to **decrease 2% to 3%** compared to Fiscal 2024, or **down 1% to 2%** excluding the 53rd week in Fiscal 2024[20](index=20&type=chunk) - Expects adjusted diluted earnings per share from continuing operations in the range of **$0.60 to $1.00**[20](index=20&type=chunk) - Guidance assumes no further share repurchases and a tax rate of **26%**[20](index=20&type=chunk) [Corporate Information & Disclosures](index=6&type=section&id=6_Corporate_Information_Disclosures) This section provides access to investor resources, outlines forward-looking statement risks, details Genesco's business profile, and lists corporate contacts [Conference Call & Investor Presentation](index=6&type=section&id=6.1_Conference_Call_Investor_Presentation) Genesco has provided detailed financial commentary and a supplemental investor presentation on its website. A live conference call was held on March 8, 2024, accessible via the company's website - Detailed financial commentary and a supplemental financial presentation of fourth quarter results are posted on www.genesco.com in the investor relations section[21](index=21&type=chunk) - A live conference call was held on March 8, 2024, at 7:30 a.m. (Central time), accessible through the Company's website[21](index=21&type=chunk) [Safe Harbor Statement](index=7&type=section&id=6.2_Safe_Harbor_Statement) This section contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Factors include market weakness, operational restrictions, supply chain disruptions, economic conditions, competition, and the ability to achieve cost savings and strategic goals. Genesco disclaims any obligation to update these statements - The release contains forward-looking statements regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, tax rates, store activities, and cost reductions[22](index=22&type=chunk) - Actual results could vary materially from expectations due to factors such as weakness in store traffic, operational restrictions, supply chain disruptions (e.g., Red Sea), economic conditions, competition, and the ability to realize anticipated cost savings[22](index=22&type=chunk)[23](index=23&type=chunk) - Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements[23](index=23&type=chunk) [About Genesco Inc.](index=9&type=section&id=6.3_About_Genesco_Inc) Genesco Inc. is a footwear-focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities, operating approximately 1,340 retail stores and branded e-commerce websites. Its brands include Journeys, Little Burgundy, Schuh (serving teens, kids, young adults), Johnston & Murphy (premium footwear, apparel, and accessories), and Genesco Brands Group (selling branded lifestyle footwear under licensed brands). Founded in 1924, it is based in Nashville, Tennessee - Genesco Inc. is a footwear-focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities[24](index=24&type=chunk) - Operates approximately **1,340 retail stores** and branded e-commerce websites[24](index=24&type=chunk) - Key brands include Journeys, Little Burgundy, and Schuh (for teens, kids, young adults), Johnston & Murphy (for affluent men and women), and Genesco Brands Group (licensed brands like Levi's, Dockers, G.H. Bass)[24](index=24&type=chunk) [Contacts](index=9&type=section&id=6.4_Contacts) Provides contact information for Genesco's financial and media inquiries - Financial Contact: Thomas A. George, (615) 367-7465, tgeorge@genesco.com[25](index=25&type=chunk) - Media Contact: Claire S. McCall, (615) 367-8283, cmccall@genesco.com[25](index=25&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=10&type=section&id=7_Condensed_Consolidated_Financial_Statements_GAAP) This section presents the company's condensed consolidated GAAP financial statements, including statements of operations, balance sheets, store count activity, and comparable sales data [Statements of Operations (Q4)](index=10&type=section&id=7.1_Statements_Operations_Q4) Presents the condensed consolidated statements of operations for the fourth quarter of Fiscal 2024 and 2023, detailing net sales, cost of sales, gross margin, operating expenses, operating income, and net earnings | Metric | Q4 FY24 (14 weeks) | % of Net Sales | Q4 FY23 (13 weeks) | % of Net Sales | | :--------------------------------------------------- | :----------------- | :------------- | :----------------- | :------------- | | Net sales | $738,950 | 100.0% | $725,020 | 100.0% | | Cost of sales | $396,883 | 53.7% | $388,395 | 53.6% | | Gross margin | $342,067 | 46.3% | $336,625 | 46.4% | | Selling and administrative expenses | $303,549 | 41.1% | $285,776 | 39.4% | | Operating income | $37,312 | 5.0% | $49,840 | 6.9% | | Earnings from continuing operations | $20,290 | 2.7% | $39,198 | 5.4% | | Net Earnings | $27,189 | 3.7% | $38,949 | 5.4% | | Diluted EPS from continuing operations | $1.84 | | $3.23 | | | Diluted Net EPS | $2.47 | | $3.21 | | [Statements of Operations (Full Year)](index=11&type=section&id=7.2_Statements_Operations_Full_Year) Presents the condensed consolidated statements of operations for the full fiscal years 2024 and 2023, detailing net sales, cost of sales, gross margin, operating expenses, goodwill impairment, operating income (loss), and net earnings (loss) | Metric | FY24 (53 weeks) | % of Net Sales | FY23 (52 weeks) | % of Net Sales | | :--------------------------------------------------- | :---------------- | :------------- | :---------------- | :------------- | | Net sales | $2,324,624 | 100.0% | $2,384,888 | 100.0% | | Cost of sales | $1,225,804 | 52.7% | $1,248,698 | 52.4% | | Gross margin | $1,098,820 | 47.3% | $1,136,190 | 47.6% | | Selling and administrative expenses | $1,082,040 | 46.5% | $1,042,094 | 43.7% | | Goodwill impairment | $28,453 | 1.2% | — | 0.0% | | Operating income (loss) | ($13,460) | -0.6% | $93,241 | 3.9% | | Earnings (loss) from continuing operations | ($23,628) | -1.0% | $72,242 | 3.0% | | Net Earnings (loss) | ($16,827) | -0.7% | $71,915 | 3.0% | | Diluted EPS from continuing operations | ($2.10) | | $5.69 | | | Diluted Net EPS | ($1.50) | | $5.66 | | [Balance Sheets](index=14&type=section&id=7.3_Balance_Sheets) Presents the condensed consolidated balance sheets as of February 3, 2024, and January 28, 2023, detailing assets, liabilities, and equity | Asset/Liability/Equity | Feb 3, 2024 (in thousands) | Jan 28, 2023 (in thousands) | | :------------------------------------ | :------------------------- | :------------------------- | | Cash | $35,155 | $47,990 | | Accounts receivable | $53,618 | $40,818 | | Inventories | $378,967 | $458,017 | | Total current assets | $507,351 | $572,669 | | Property and equipment | $240,266 | $233,733 | | Operating lease right of use assets | $436,896 | $470,991 | | Goodwill and other intangibles | $36,815 | $65,553 | | Total Assets | $1,329,890 | $1,456,426 | | Accounts payable | $114,621 | $144,998 | | Total current liabilities | $319,537 | $360,783 | | Long-term debt | $34,682 | $44,858 | | Long-term operating lease liabilities | $359,073 | $401,113 | | Total Liabilities and Equity | $1,329,890 | $1,456,426 | [Store Count Activity](index=15&type=section&id=7.4_Store_Count_Activity) Details the store count activity for Genesco's retail groups (Journeys, Schuh, Johnston & Murphy) for Fiscal 2024 and 2023, including openings, closures, and ending balances | Group | Balance 01/28/23 | Open (FY24) | Close (FY24) | Balance 02/03/24 | | :---------------------- | :--------------- | :---------- | :----------- | :--------------- | | Journeys Group | 1,130 | 27 | 94 | 1,063 | | Schuh Group | 122 | 3 | 3 | 122 | | Johnston & Murphy Group | 158 | 2 | 4 | 156 | | Total Retail Stores | 1,410 | 32 | 101 | 1,341 | | Group | Balance 10/28/23 | Open (Q4 FY24) | Close (Q4 FY24) | Balance 02/03/24 | | :---------------------- | :--------------- | :------------- | :-------------- | :--------------- | | Journeys Group | 1,080 | 3 | 20 | 1,063 | | Schuh Group | 124 | 1 | 3 | 122 | | Johnston & Murphy Group | 156 | 1 | 1 | 156 | | Total Retail Stores | 1,360 | 5 | 24 | 1,341 | [Comparable Sales by Group](index=15&type=section&id=7.5_Comparable_Sales_by_Group) Provides comparable sales percentages for each Genesco group and total comparable sales, same store sales, and comparable direct sales for Q4 FY24 and Full Year FY24 | Category | Q4 FY24 | Q4 FY23 | FY24 | FY23 | | :------------------------------ | :----- | :----- | :---- | :--- | | Journeys Group | -5% | -1% | -9% | NA | | Schuh Group | -5% | 20% | 6% | NA | | Johnston & Murphy Group | 8% | 23% | 9% | NA | | Total Comparable Sales | -4% | 5% | -4% | NA | | Same Store Sales | -7% | 1% | -7% | NA | | Comparable Direct Sales | 5% | 21% | 8% | 0% | [Non-GAAP Reconciliations (Schedule B)](index=16&type=section&id=8_Non-GAAP_Reconciliations_Schedule_B) This section provides detailed reconciliations of GAAP to non-GAAP financial measures for quarterly, full-year, and forecasted earnings, operating income, and selling and administrative expenses [Q4 FY24 Earnings Adjustments](index=16&type=section&id=8.1_Q4_FY24_Earnings_Adjustments) Reconciles GAAP earnings from continuing operations to adjusted earnings for Q4 FY24 and FY23, detailing adjustments for asset impairments, severance, insurance gain, and income tax effects | Item | Q4 FY24 Net of Tax (in thousands) | Q4 FY24 Per Share | Q4 FY23 Net of Tax (in thousands) | Q4 FY23 Per Share | | :--------------------------------------------------- | :-------------------------------- | :---------------- | :-------------------------------- | :---------------- | | Earnings from continuing operations, as reported | $20,290 | $1.84 | $39,198 | $3.23 | | Asset impairment charges | $272 | $0.03 | $729 | $0.06 | | Severance | $820 | $0.08 | — | $0.00 | | Insurance gain | ($200) | ($0.02) | — | $0.00 | | Other tax items | $7,313 | $0.66 | ($2,939) | ($0.24) | | Adjusted earnings from continuing operations | $28,519 | $2.59 | $37,083 | $3.06 | [Q4 FY24 Operating Income & SG&A Adjustments](index=17&type=section&id=8.2_Q4_FY24_Operating_Income_%26_SG%26A_Adjustments) Reconciles GAAP operating income and selling and administrative expenses to adjusted figures for Q4 FY24 and FY23, primarily adjusting for asset impairments and other items | Item | Q4 FY24 Operating Income (in thousands) | Q4 FY24 Adj Operating Income (in thousands) | Q4 FY23 Operating Income (in thousands) | Q4 FY23 Adj Operating Income (in thousands) | | :---------------------- | :-------------------------------------- | :------------------------------------------ | :-------------------------------------- | :------------------------------------------ | | Total Operating Income | $37,312 | $38,518 | $49,840 | $50,961 | | % of sales | 5.0% | 5.2% | 6.9% | 7.0% | | Item | Q4 FY24 (in thousands) | Q4 FY23 (in thousands) | | :--------------------------------------------------- | :--------------------- | :--------------------- | | Selling and administrative expenses, as reported | $303,549 | $285,776 | | Expenses related to new HQ building | — | ($112) | | Adjusted selling and administrative expenses | $303,549 | $285,664 | | % of sales | 41.1% | 39.4% | [Full Year FY24 Earnings Adjustments](index=18&type=section&id=8.3_Full_Year_FY24_Earnings_Adjustments) Reconciles GAAP earnings (loss) from continuing operations to adjusted earnings for full year FY24 and FY23, detailing adjustments for asset impairments, goodwill impairment, severance, insurance gain, pension termination gain, HQ building expenses, and income tax effects | Item | FY24 Net of Tax (in thousands) | FY24 Per Share | FY23 Net of Tax (in thousands) | FY23 Per Share | | :--------------------------------------------------- | :----------------------------- | :------------- | :----------------------------- | :------------- | | Earnings (loss) from continuing operations, as reported | ($23,628) | ($2.10) | $72,242 | $5.69 | | Asset impairment charges | $718 | $0.07 | $1,183 | $0.09 | | Goodwill impairment | $21,882 | $1.93 | — | $0.00 | | Severance | $820 | $0.07 | — | $0.00 | | Insurance gain | ($200) | ($0.02) | — | $0.00 | | Gain on pension termination | — | $0.00 | ($525) | ($0.04) | | Expenses related to new HQ building | — | $0.00 | $2,005 | $0.16 | | Tax impact share based awards | $1,059 | $0.09 | ($635) | ($0.05) | | Other tax items | $5,735 | $0.50 | ($3,188) | ($0.26) | | Adjusted earnings from continuing operations | $6,386 | $0.56 | $71,082 | $5.59 | [Full Year FY24 Operating Income (Loss) & SG&A Adjustments](index=19&type=section&id=8.4_Full_Year_FY24_Operating_Income_Loss_%26_SG%26A_Adjustments) Reconciles GAAP operating income (loss) and selling and administrative expenses to adjusted figures for full year FY24 and FY23, primarily adjusting for goodwill impairment, asset impairments, and HQ building expenses | Item | FY24 Operating Income (Loss) (in thousands) | FY24 Adj Operating Income (Loss) (in thousands) | FY23 Operating Income (Loss) (in thousands) | FY23 Adj Operating Income (Loss) (in thousands) | | :--------------------------------------------------- | :------------------------------------------ | :---------------------------------------------- | :------------------------------------------ | :---------------------------------------------- | | Total Operating Income (Loss) | ($13,460) | $16,780 | $93,241 | $96,753 | | % of sales | -0.6% | 0.7% | 3.9% | 4.1% | | Item | FY24 (in thousands) | FY23 (in thousands) | | :--------------------------------------------------- | :-------------------- | :-------------------- | | Selling and administrative expenses, as reported | $1,082,040 | $1,042,094 | | Expenses related to new HQ building | — | ($2,657) | | Adjusted selling and administrative expenses | $1,082,040 | $1,039,437 | | % of sales | 46.5% | 43.6% | [FY25 Forecasted Earnings Adjustments](index=20&type=section&id=8.5_FY25_Forecasted_Earnings_Adjustments) Provides a reconciliation of forecasted GAAP earnings from continuing operations to adjusted forecasted earnings for Fiscal Year 2025, including adjustments for asset impairments and other matters | Item | High Guidance Net of Tax (in millions) | High Guidance Per Share | Low Guidance Net of Tax (in millions) | Low Guidance Per Share | | :--------------------------------------------------- | :------------------------------------- | :---------------------- | :------------------------------------ | :--------------------- | | Forecasted earnings from continuing operations | $10.4 | $0.92 | $5.4 | $0.48 | | Asset impairments and other matters | $0.9 | $0.08 | $1.3 | $0.12 | | Adjusted forecasted earnings from continuing operations | $11.3 | $1.00 | $6.7 | $0.60 |