Genesco(GCO)2024-12-06 12:14Financial Performance - Total net sales for Q3 Fiscal 2025 increased 3% to $596 million, with comparable sales rising 6%[4] - Comparable e-commerce sales surged 15%, while comparable store sales grew by 4%[4] - The company raised its sales guidance for Fiscal 2025 to a decrease of 1% to flat compared to Fiscal 2024[2] - Adjusted diluted EPS guidance for Fiscal 2025 is now projected to be between $0.80 and $1.00, up from previous guidance of $0.60 to $1.00[12] - The company reported a net loss of $18,932 thousand for the quarter, translating to a loss of $1.76 per share, compared to net earnings of $6,539 thousand and earnings of $0.60 per share in the previous quarter[19] - For the nine months ended Nov. 2, 2024, net sales were $1,579,113 thousand, slightly down from $1,585,674 thousand in the same period last year[22] - The operating loss for the nine months was $32,192 thousand, representing -2.0% of net sales, an improvement from -3.2% in the previous year[22] - Loss from continuing operations for the nine months was $53,065 thousand, or -3.4% of net sales, compared to -2.8% in the previous year[22] Sales and Revenue Breakdown - Journeys Group reported a comparable sales increase of 11%, recovering from an 8% decline in the previous year[5] - The Journeys Group accounted for 60.8% of net sales in the quarter, with sales of $362,517 thousand, up from 60.3% in the previous quarter[24] - The Schuh Group maintained a consistent 20.4% of net sales in both the current and previous quarter, with sales of $121,826 thousand[24] - Total comparable sales increased by 6% for the quarter ending November 2, 2024, compared to a decline of 4% in the same quarter last year[31] - Comparable sales for the Journeys Group increased by 11% for the quarter ending November 2, 2024, compared to a decline of 8% in the same quarter last year[31] Profitability and Margins - GAAP EPS was ($1.76), while Non-GAAP EPS was $0.61, reflecting a significant impact from a U.S. valuation allowance[2][8] - Gross margin decreased by 30 basis points to 47.8% due to changes in product mix at Journeys[7] - Gross margin for the quarter was $285,256 thousand, accounting for 47.8% of net sales, compared to 48.1% in the previous quarter[19] - The adjusted operating income for the total company was $10,210 thousand for the quarter ending November 2, 2024, compared to $10,852 thousand in the same quarter last year[41] - The adjusted gross margin for the period was $748,926,000, which is 47.4% of sales, down from 47.7% in the previous period[44] Assets and Liabilities - Cash as of November 2, 2024, was $33.6 million, up from $21.7 million a year earlier, while total debt decreased to $100.1 million[9] - Total assets decreased to $1,435,521 thousand from $1,492,931 thousand, a decline of approximately 3.8%[28] - Total current liabilities increased to $422,082 thousand from $397,164 thousand, an increase of about 6.3%[28] - The company’s long-term debt decreased to $100,114 thousand from $128,163 thousand, a reduction of approximately 21.9%[28] Store Operations - The company closed 12 Journeys stores in Q3, totaling 41 closures for Fiscal 2025, with plans for up to 10 more closures[12] - The company had a total of 1,341 retail stores as of November 2, 2024, down from 1,410 stores a year earlier[29] Future Projections and Guidance - Forecasted earnings from continuing operations for fiscal year ending February 1, 2025, are projected between $8.8 million and $11.0 million, translating to an EPS of $0.53 to $1.00[47] - The company anticipates a tax rate of approximately 27% for fiscal 2025[47] - The company disclaims any obligation to update future expectations and estimates, which may vary materially from actual results[48] - Charges related to the distribution model transition are estimated at $1.3 million, impacting EPS by $0.12[47] - Total asset impairments and other adjustments are expected to be around $1.3 million, affecting EPS by $0.12[47]