Genesco(US:GCO)2025-03-07 12:01Financial Performance - Fourth quarter net sales increased 1% to $746 million compared to $739 million in Q4 FY24, with comparable sales up 10%[5] - GAAP EPS for the fourth quarter was $3.06, compared to $1.84 last year, while Non-GAAP EPS was $3.26, up from $2.59[5] - Full year net sales for Fiscal 2025 were flat at $2.3 billion, with total comparable sales increasing 3%[16] - Net sales for Q4 2025 reached $745.9 million, a slight increase from $738.9 million in Q4 2024, representing a growth of 1.4%[34] - For the fiscal year 2025, net sales totaled $2.33 billion, slightly up from $2.32 billion in fiscal year 2024[36] - Total net sales for Fiscal Year 2025 reached $2,325,062, a slight increase from $2,324,624 in Fiscal Year 2024[40] Profitability Metrics - Gross margin for the fourth quarter was 46.9%, up 60 basis points from 46.3% last year, driven by lower markdowns at Journeys[11] - Operating income for Q4 2025 was $46.1 million, up 23.5% from $37.3 million in Q4 2024, reflecting a stronger operational performance[34] - Earnings from continuing operations increased to $33.6 million in Q4 2025, compared to $20.3 million in Q4 2024, marking a growth of 65.5%[34] - Adjusted EBITDA for Q4 2025 was $60,866,000, which is 8.2% of sales, compared to $52,510,000 or 7.1% of sales in Q4 2024[56] - For the fiscal year ended February 1, 2025, total operating income was $18,910,000, up from $16,780,000 in the previous fiscal year[59] - The gross margin for the fiscal year ended February 1, 2025, was reported at $1,096,813,000, or 47.2% of sales, slightly down from 47.3% in the prior year[60] Cost Management - Selling and administrative expenses decreased to 40.5% of sales in Q4 FY25 from 41.1% last year, reflecting cost savings initiatives[12] - The company achieved total expense savings of $45 to $50 million through its cost reduction program initiated in Fiscal 2024[26] - The company ended the fourth quarter with zero total debt, down from $34.7 million at the end of the previous year[23] Store Operations - The company closed 28 stores during the fourth quarter, resulting in a total of 1,278 stores, a decrease of 5% year-over-year[24] - The total number of retail stores decreased to 1,278 by February 1, 2025, down from 1,341 a year earlier[44] Segment Performance - The Journeys Group accounted for 64.1% of total sales in Q4 2025, up from 61.6% in Q4 2024, highlighting its dominant market position[38] - The Schuh Group's sales decreased to $141.2 million in Q4 2025 from $146.1 million in Q4 2024, a decline of 3.5%[38] - Genesco Brands Group reported an operating income of $1.4 million in Q4 2025, recovering from an operating loss of $0.3 million in Q4 2024[38] - Operating income for the Journeys Group improved to $26,345, compared to $11,072 in Fiscal Year 2024, marking a significant increase[40] - The Journeys Group reported operating income of $43,152,000 in Q4 2025, an increase from $32,337,000 in Q4 2024[56] - The Schuh Group's operating income increased to $5,637,000 in Q4 2025 from $9,325,000 in Q4 2024[56] - Corporate and Other segment reported an operating loss of $8,873,000 in Q4 2025, compared to a loss of $9,013,000 in Q4 2024[56] Future Outlook - For Fiscal 2026, the company expects total sales to be flat to up 1%, with adjusted diluted EPS projected between $1.30 and $1.70[28] - The company anticipates continued focus on digital gains and market share expansion in the upcoming quarters[30] - The company forecasts earnings from continuing operations for fiscal 2026 to be between $13.2 million and $18.2 million, translating to a per share range of $1.18 to $1.61[62] - Adjusted forecasted earnings from continuing operations for fiscal 2026 are estimated to be between $14.6 million and $19.2 million, or $1.30 to $1.70 per share[62] Impairments and Adjustments - The company recorded a goodwill impairment charge of $28,453 in Fiscal Year 2024, which was not present in Fiscal Year 2025[40] - The company recorded total asset impairments and other adjustments of $1.0 million for high guidance and $1.4 million for low guidance in fiscal 2026[62] E-commerce Performance - E-commerce comparable sales rose 18%, representing 30% of total retail sales, up from 27% last year[5] - The company experienced a significant increase in comparable e-commerce sales, which rose by 12% for the fiscal year, compared to 8% in the previous year[48] - Comparable sales for the total company increased by 10% in Quarter 4 of Fiscal Year 2025, compared to a decline of 4% in the same quarter of the previous year[48]