Financial Data and Key Metrics - Consolidated revenue for Q2 was $525 million, exceeding expectations and resulting in better leverage [29] - Total company comps were down 2%, with store comps down 4% and direct comps up 8% [30] - Adjusted gross margin decreased by 90 basis points YoY, with Journeys down 90 bps, Schuh down 210 bps, and J&M up 40 bps [30] - Adjusted operating loss improved to $9.3 million from $10 million YoY, with adjusted diluted loss per share at $0.83 compared to $0.85 last year [33] - Net debt position at the end of Q2 was $32 million, with inventories down 8% YoY [34] Business Line Performance - Journeys saw positive comps in July and August, driven by improved product assortment and strong back-to-school sales [7][13] - Schuh faced challenges due to a tough summer season, with increased promotional activity impacting gross margins [15][16] - Johnston & Murphy (J&M) experienced pressure from robust two-year comps and a softening men's premium non-athletic footwear market, but new product launches like Amherst 2.0 resonated well [17][18] - Genesco Brands Group achieved higher profitability despite lower sales, driven by a simplified license portfolio [20] Market Performance - Journeys' digital business grew double-digits, accounting for 22% of total retail sales [30] - Schuh maintained its position as the 10th largest footwear retailer in the UK, with digital sales representing nearly 40% of total sales [16] - J&M's apparel and accessories now represent almost half of its direct-to-consumer business, with strong performance in woven shirts, blazers, and bags [19] Strategic Direction and Industry Competition - The company is focused on improving Journeys' performance through product leadership, brand building, and enhancing the omnichannel experience [22][23] - Efforts to optimize the store footprint and reduce costs are ongoing, with 29 Journeys stores closed year-to-date and up to 50 potential closures expected this year [37] - The company is investing in store refreshes and new store concepts to enhance the customer experience, with a rollout planned for October [24][58] Management Commentary on Operating Environment and Future Outlook - The consumer remains selective, shopping primarily for key footwear items during peak periods like back-to-school and holidays [10] - The company expects continued challenges in non-peak shopping periods but remains optimistic about the holiday season [27][38] - Full-year guidance remains unchanged, with expected sales down 1% to 2% and adjusted gross margin down 10 to 20 basis points [41] Other Important Information - The company repurchased 382,000 shares for $9.3 million in Q2, with $42.8 million remaining under the current authorization [36] - Capital expenditures in Q2 were $8 million, primarily directed toward retail stores and digital initiatives [35] - The company is targeting $45 million to $50 million in annualized cost savings by the end of fiscal 2025 [36] Q&A Session Question: Third quarter guidance and Journeys comp expectations - The company expects low single-digit consolidated comps, with Journeys also in the low single digits [45] - Positive comps are expected to continue into September and October, driven by improved product assortment and consumer demand [47][48] Question: Holiday season and newness in the boot category - The company has diversified its assortment to include both athletic and casual styles, with strength in multiple brands [50] - While boots are not expected to drive significant growth, there are early signs of traction in some boot brands [51] Question: Serving the teen girl consumer - The company is focusing on refining its assortment, marketing, and store environment to better serve the teen girl demographic [53][54] - Efforts include updated segmentation, premium brand offerings, and enhanced in-store experiences [55] Question: Store refresh and new concept rollout - A store refresh will be completed before the holiday season, with a new store concept rollout starting in October [57][58] - The new concept emphasizes product visibility, flexibility, and a modern aesthetic while maintaining Journeys' youthful energy [59] Question: Johnston & Murphy marketing and brand trends - J&M's marketing campaign highlights the brand's evolution into casual and comfortable styles, with a focus on new product launches and innovation [62][64] - The company is seeing strong interest in diversified footwear styles and higher average selling prices [66][67]

Core Insights - Genesco reported a quarterly loss of $0.83 per share, better than the Zacks Consensus Estimate of a loss of $1.12, and an improvement from a loss of $0.85 per share a year ago [1] - The company achieved a revenue of $525.19 million for the quarter ended July 2024, exceeding the Zacks Consensus Estimate by 2.54% and slightly up from $523.03 million year-over-year [1] - Genesco has surpassed consensus EPS estimates two times in the last four quarters and has topped consensus revenue estimates three times in the same period [1] Earnings Outlook - The sustainability of Genesco's stock price movement will largely depend on management's commentary during the earnings call [2] - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $570 million, while for the current fiscal year, it is $0.81 on revenues of $2.27 billion [4] Industry Context - The Retail - Apparel and Shoes industry, to which Genesco belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [5] - Another company in the same industry, Levi Strauss, is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year increase of 17.9% [5]

FY25 Q2 GENESCO Summary Results September 6, 2024 Affornia U Genesco schuh JOHNSTON & MURPHY. 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 usuall ...

Exhibit 99.1 GENESCO INC. REPORTS FISCAL 2025 SECOND QUARTER RESULTS --Financial Performance Exceeds Expectations, Driven by Journeys-- --Reaffirms Fiscal 2025 EPS Outlook-- NASHVILLE, Tenn., Sept. 6, 2024 --- Genesco Inc. (NYSE: GCO) today reported second quarter results for the three months ended August 3, 2024. Second Quarter Fiscal 2025 Financial Summary • Total net sales increased to $525 million; comparable sales decreased 2% • Comparable e-commerce sales increased 8%; comparable store sales decreased ...

Genesco (GCO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Genesco (GCO) reports results for the quarter ended July 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 6. On the o ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Core Insights - Johnston & Murphy has redesigned its retail locations at The Mall at Short Hills and Twelve Oaks Mall to attract modern customers with a focus on a bright and inviting atmosphere [1][2] - The company is experiencing strong sales growth and is capitalizing on the resurgence of malls post-pandemic, targeting younger shoppers seeking engaging retail experiences [2] - The new store designs feature modern aesthetics with quality finishes, showcasing a broad assortment of products including a growing line of casual athletic footwear [2][3] Company Overview - Johnston & Murphy operates a total of 152 stores across the U.S., including 66 retail stores, 62 factory outlets, and 24 airport locations [3] - The company plans further retail expansion and redesigns, with updates scheduled for locations in Tysons Corner and Scottsdale, as well as three airport stores in Miami, Philadelphia, and Pittsburgh [3] - A new store is set to open at Chicago Midway this Fall, along with the relocation of the Charlotte airport store to a larger space [3] Brand Strategy - The brand's new image campaign, titled 'Not Your Dad's Shoe Company', aims to reshape customer perceptions of the 174-year-old brand, enhancing the modernity and sophistication of the store environments [2] - The casual athletic line is designed to attract younger consumers who prioritize comfort, value, and innovation [2]

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]