Genesco(GCO) - 2024 Q4 - Annual Results

Executive Summary & Key Financial 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 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] Fiscal 2024 Full Year 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] 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] - Schuh and Johnston & Murphy achieved another year of record sales in FY24[2] - 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] - 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] - Current sales dynamics are expected to remain a significant headwind in the first half of Fiscal 2025[3] Detailed Fourth Quarter Fiscal 2024 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 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] - 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] | 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] 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] - 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] Selling and 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] - Approximately 60 basis points of the increase were attributable to the 53rd week[8] - Adjusting for the 53rd week, expenses were relatively flat in absolute dollars, demonstrating the impact and benefit of cost savings initiatives[8] 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] 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] Earnings from 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) 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 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 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] - 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] - 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] - 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] 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] - 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] Selling and 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] - 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] - 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] 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 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 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) 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 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 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] Capital Expenditures and 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] - During the quarter, the Company opened five stores and closed 24 stores[17] - 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] 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] - 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] - The Company currently has $52.1 million remaining on its expanded share repurchase authorization announced in June 2023[18] Store Closing and 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] - The Company is now targeting an increased run rate of $45-$50 million in annualized cost reductions by the end of Fiscal 2025[19] 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 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] - Expects adjusted diluted earnings per share from continuing operations in the range of $0.60 to $1.00[20] - Guidance assumes no further share repurchases and a tax rate of 26%[20] 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 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] - A live conference call was held on March 8, 2024, at 7:30 a.m. (Central time), accessible through the Company's website[21] 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] - 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][23] - Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements[23] 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] - Operates approximately 1,340 retail stores and branded e-commerce websites[24] - 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] Contacts Provides contact information for Genesco's financial and media inquiries - Financial Contact: Thomas A. George, (615) 367-7465, tgeorge@genesco.com[25] - Media Contact: Claire S. McCall, (615) 367-8283, cmccall@genesco.com[25] 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) 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) 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 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 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 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) 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 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 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 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 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 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 |