8-K
GENESCO INC (GCO)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): March 7, 2025
GENESCO INC.
(Exact name of registrant as specified in its charter)
| Tennessee | 1-3083 | 62-0211340 | |
|---|---|---|---|
| (State or Other Jurisdiction<br><br>of Incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) | |
| 535 Marriott Drive | Nashville | Tennessee | 37214 |
| (Address of Principal Executive Offices) | (Zip Code) |
(615) 367-7000
Registrant's telephone number, including area code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered |
|---|---|---|
| Common Stock, $1.00 par value | GCO | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On March 7, 2025, Genesco Inc. issued a press release announcing results of operations for the fourth fiscal quarter and year ended February 1, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
On March 7, 2025, the Company also posted on its website, www.genesco.com, a slide presentation with summary results. A copy of the slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the press release furnished herewith contains non-GAAP financial measures, including adjusted gross margin, operating income (loss), pretax earnings (loss), earnings (loss) from continuing operations and earnings (loss) per share from continuing operations, as discussed in the text of the release and as detailed on the reconciliation schedule attached to the press release. For consistency and ease of comparison with the adjusted results for the prior period announced last year, the Company believes that disclosure of the non-GAAP measures will be useful to investors.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The following exhibits are furnished herewith:
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release issued by Genesco Inc. on March 7, 2025 |
| 99.2 | Genesco Inc. Fourth Fiscal Quarter ended February 1, 2025 Summary Results |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GENESCO INC. | ||
|---|---|---|
| Date: March 7, 2025 | By: | /s/ Cassandra E. Harris |
| Name: | Cassandra E. Harris | |
| Title: | Senior Vice President - Finance and<br><br>Chief Financial Officer |
EX-99.1
Exhibit 99.1
GENESCO INC. REPORTS FISCAL 2025 FOURTH QUARTER
AND FULL YEAR RESULTS
--Fourth Quarter Comparable Sales Increased 10%, Driven by Journeys 14% Increase--
--Fourth Quarter E-Commerce Comparable Sales Increased 18% and
Represented 30% of Retail Sales --
--Operating Income Increased 24% for the Fourth Quarter--
NASHVILLE, Tenn., March 7, 2025 --- Genesco Inc. (NYSE: GCO) today reported fourth quarter and full fiscal year results for the three and twelve months ended February 1, 2025.
Fourth Quarter Fiscal 2025 Financial Summary
- Net sales of $746 million (13 weeks) increased 1% compared to Q4FY24 (14 weeks)
- Comparable sales increased 10%, with stores up 6% and e-commerce up 18%
- E-commerce sales represented 30% of retail sales compared to 27% last year
- Gross margin was up 60 basis points compared to last year
- GAAP EPS was $3.06 vs. $1.84 last year and Non-GAAP EPS was $3.26 vs. $2.59 last year1
Fiscal 2025 Financial Summary
- Net sales of $2.3 billion (52 weeks) were flat compared to FY24 (53 weeks)
- Comparable sales increased 3%, with stores flat and e-commerce up 12%
- E-commerce sales represented 25% of retail sales compared to 23% last year
- GAAP EPS was ($1.80) vs. ($2.10) last year and Non-GAAP EPS was $0.94 vs. $0.56 last year1
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, said, “We delivered a strong finish to the year with fourth quarter sales and gross margins exceeding expectations and operating income up meaningfully from the prior year period. Our performance was led by Journeys as the strategic growth initiatives we’ve implemented over the past 12 months fueled strong full priced selling and mid-teens comp growth. At the same time, sales trends at Schuh and Johnston & Murphy further improved with fourth quarter comps for both businesses reaching the highest level of the year.”
__________________________
1Non-GAAP EPS is a non-GAAP measure and excludes a gross margin charge related to a distribution model transition in Genesco Brands Group, net of tax effect, in Fiscal 2025 and charges for severance and asset impairments, net of tax effect in the fourth quarter and year of Fiscal 2025 (“Excluded Items”). Also excludes income tax expense of $26.2 million related to a U.S. valuation allowance in Fiscal 2025. A reconciliation of earnings (loss) and earnings (loss) per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) with the adjusted earnings (loss) and earnings (loss) per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
Vaughn continued, “It is rewarding to look back and see that we accomplished the strategic priorities we outlined at the start of Fiscal 2025 and that our efforts led to improved comparable sales and enhanced profitability as the year progressed. We are in the early innings of returning Journeys and the overall company to historical rates of sales and profits, but we are heading in the right direction. We are excited about the actions we are taking to build on our momentum in Fiscal 2026 centered around our footwear focused strategy and Journeys’ strategic growth plan, and we feel confident we are positioning the business to deliver profitable growth and shareholder value over the long-term.”
Fourth Quarter Review
Net sales for the fourth quarter (13 weeks) increased 1% to $746 million in Fiscal 2025 compared to $739 million in the fourth quarter (14 weeks) of Fiscal 2024. The net sales increase reflects a 10% increase in comparable sales, including an 18% increase in e-commerce comparable sales and a 6% increase in same store sales. This was partially offset by the negative impact of the 53-week calendar shift which included an extra week in the fourth quarter of Fiscal 2024 and shifting of a higher volume week out of the fourth quarter into our third quarter this year and the impact of net store closings. Adjusting for this extra week and shift, net sales would have been up 7%.
| Comparable Sales | ||
|---|---|---|
| Comparable Same Store and Direct Sales: | 4QFY25 | 4QFY24 |
| Journeys Group | 14% | (5)% |
| Schuh Group | 2% | (5)% |
| Johnston & Murphy Group | 0% | 8% |
| Total Genesco Comparable Sales | 10% | (4)% |
| Same Store Sales | 6% | (7)% |
| Comparable Direct Sales | 18% | 5% |
The overall sales increase of 1% for the fourth quarter of Fiscal 2025 compared to the fourth quarter of Fiscal 2024 was driven by an increase of 5% at Journeys, partially offset by a decrease of 3% at Schuh, a decrease of 6% at Johnston & Murphy and a decrease of 12% at Genesco Brands. On a constant currency basis, Schuh sales were down 4% for the fourth quarter.
Fiscal 2025 fourth quarter gross margin was 46.9%, up 60 basis points compared with 46.3% last year. The increase as a percentage of sales compared to Fiscal 2024 is due primarily to lower markdowns at Journeys and improved margins at Genesco Brands and Johnston & Murphy, partially offset by increased promotional activity at Schuh.
Selling and administrative expense for the fourth quarter of Fiscal 2025 decreased 60 basis points as a percentage of sales to 40.5% compared with 41.1% last year. The decrease as a percentage of sales compared to Fiscal 2024 primarily reflects decreased occupancy costs and selling salaries along with other expenses as part of our cost savings initiatives, partially offset by increased marketing and performance-based incentive compensation expenses.
Genesco’s GAAP operating income for the fourth quarter was $46.1 million, or 6.2% of sales in Fiscal 2025, compared with $37.3 million, or 5.0% of sales in the fourth quarter last year. Adjusted for the Excluded Items in the fourth quarters of both Fiscal 2025 and 2024, operating income for the fourth quarter of Fiscal 2025 was $47.9 million compared to $38.5 million last year. Adjusted operating margin was 6.4% of sales in the fourth quarter of Fiscal 2025 and 5.2% in the fourth quarter last year.
The effective tax rate for the quarter was 25.8% in Fiscal 2025 compared to 43.0% in the fourth quarter last year. The adjusted tax rate, reflecting Excluded Items, was 23.8% in Fiscal 2025 compared to 22.6% in the fourth quarter last year. The higher adjusted tax rate for the fourth quarter of Fiscal 2025 compared to the fourth quarter last year primarily reflects a change in the jurisdictional mix of increased Fiscal 2025 fourth quarter earnings.
GAAP earnings from continuing operations were $33.6 million in the fourth quarter of Fiscal 2025 compared to $20.3 million in the fourth quarter last year. Adjusted for the Excluded Items in the fourth quarters of both Fiscal 2025 and 2024, fourth quarter earnings from continuing operations were $35.8 million, or $3.26 per share, in Fiscal 2025, compared to $28.5 million, or $2.59 per share, in the fourth quarter last year.
Full Year Review
Net sales for Fiscal 2025 (52 weeks) were flat at $2.3 billion compared to Fiscal 2024 (53 weeks). The flat sales for Fiscal 2025 reflected an increase in comparable e-commerce sales offset by 63 net store closings, the negative impact of the extra week in Fiscal 2024 due to the 53-week calendar shift of approximately $25 million in retail sales and decreased wholesale sales compared to last year. Adjusting for this extra week, net sales would have been up 1%. Total comparable sales for Fiscal 2025 increased 3% including a comparable e-commerce sales increase of 12%, while same store sales were flat.
Overall sales for Fiscal 2025 compared to Fiscal 2024 increased 3% at Journeys, offset by a decrease of 6% at Johnston & Murphy and an 11% decrease at Genesco Brands, while sales at Schuh were flat. On a constant currency basis, Schuh sales were down 2% for Fiscal 2025.
Gross margin for Fiscal 2025 was 47.2% compared with 47.3% last year. Adjusted gross margin for Fiscal 2025 decreased 10 basis points as a percentage of sales compared to last year. The decrease as a percentage of sales compared to Fiscal 2024 is due primarily to increased promotional activity at Schuh, partially offset by improved margins at Johnston & Murphy and Genesco Brands in Fiscal 2025.
Selling and administrative expense for Fiscal 2025 decreased 10 basis points as a percentage of sales to 46.4% compared to 46.5% last year. The decrease as a percentage of sales compared to Fiscal 2024 reflects decreased occupancy costs, partially offset by increased selling salaries and marketing expenses.
Genesco’s GAAP operating income for Fiscal 2025 was $13.9 million, or 0.6% of sales, compared to an operating loss of $13.5 million, or 0.6% of sales last year. Adjusted for the Excluded Items in Fiscal 2025 and 2024 and goodwill impairment in Fiscal 2024, operating income was $18.9 million in Fiscal 2025 compared to $16.8 million last year. Adjusted operating margin was 0.8% of sales in Fiscal 2025 and 0.7% of sales last year.
The effective tax rate was 309.6% in Fiscal 2025 compared to -8.5% last year. The adjusted tax rate, reflecting the Excluded Items in Fiscal 2025 and 2024 and goodwill impairment in Fiscal 2024, was 27.7% in Fiscal 2025 compared to 24.6% last year. The higher adjusted tax rate for Fiscal 2025 compared to Fiscal 2024 reflects a change in the jurisdictional mix of increased Fiscal 2025 earnings. The divergence between the effective tax rate and the adjusted tax rate is due to recording a $26.2 million U.S. valuation allowance in Fiscal 2025 that is excluded from the adjusted tax rate.
GAAP loss from continuing operations was $19.5 million in Fiscal 2025 compared to $23.6 million last year. Adjusted for the Excluded Items in Fiscal 2025 and 2024, the U.S. valuation allowance in Fiscal 2025 and goodwill impairment in Fiscal 2024, earnings from continuing operations were $10.3 million, or $0.94 per share, in Fiscal 2025, compared to $6.4 million, or $0.56 per share, last year.
Cash, Borrowings and Inventory
Cash as of February 1, 2025 was $34.0 million, compared with $35.2 million as of February 3, 2024. Total debt at the end of the fourth quarter of Fiscal 2025 was zero compared with $34.7 million at the end of last year’s fourth quarter. Inventories increased 12% on a year-over-year basis reflecting increased inventory for Journeys, Johnston & Murphy and Genesco Brands, partially offset by a decrease at Schuh.
Capital Expenditures and Store Activity
For the fourth quarter of Fiscal 2025, capital expenditures were $14 million, related primarily to retail stores and digital and omnichannel initiatives. Depreciation and amortization was $13 million. During the quarter, the Company opened four stores and closed 28 stores. The Company ended the quarter with 1,278 stores compared with 1,341 stores at the end of the fourth quarter last year, or a decrease of 5%. Square footage was down 3% on a year-over-year basis.
Share Repurchases
The Company did not repurchase any shares during the fourth quarter of Fiscal 2025. The Company repurchased 399,633 shares for $9.8 million, or $24.49 per share, during Fiscal 2025. The Company currently has $42.3 million remaining on its expanded share repurchase authorization announced in June 2023.
Cost Savings Update
The Company achieved the higher-end of its target run-rate range of $45 to $50 million in total expense savings through the cost reduction program that began in Fiscal 2024.
Fiscal 2026 Outlook
For Fiscal 2026, the Company:
- Expects total sales to be flat to up 1% compared to Fiscal 2025 including a foreign exchange negative impact of approximately $14 million and closed store impact of approximately $30 million
- Expects adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 2
- Guidance assumes no further share repurchases and a tax rate of 29%
Conference Call, Management Commentary and Investor Presentation
The Company has posted detailed financial commentary and a supplemental financial presentation of fourth quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on March 7, 2025, at 7:30 a.m. (Central time), may be accessed through the Company's website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.
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2A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to GAAP is included in Schedule B to this press release.
Safe Harbor Statement
This release 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, and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as “intend,” “expect,” “feel,” “should,” “believe,” “anticipate,” “optimistic,” “confident” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company’s ability to adequately staff and operate stores. Differences from expectations could also result from store closures and effects on the business as a result of the level and timing of promotional activity necessary to maintain inventories at appropriate levels; our ability to pass on price increases to our customers; the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the Company’s ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; civil disturbances; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset
of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company’s ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company’s ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company’s business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company’s ability to realize any anticipated tax benefits in both the amount and timeframe anticipated; and the cost and outcome of litigation, investigations, environmental matters and other disputes involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company’s SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via the Company’s website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.
About Genesco Inc.
Genesco Inc. (NYSE: GCO) is a footwear focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities offering customers the footwear they desire in engaging shopping environments, including 1,278 retail stores and branded e-commerce websites. Its Journeys, Little Burgundy and Schuh brands serve teens, kids and young adults with on-trend fashion footwear inspired by youth culture in the U.S., Canada and the U.K. Johnston & Murphy serves the successful, affluent man and woman with premium footwear, apparel and accessories in the U.S. and Canada, and Genesco Brands Group sells branded lifestyle footwear to leading retailers under licensed brands including Levi’s, Dockers, Starter and PONY. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit www.genesco.com.
Genesco Financial Contacts Sandra Harris, SVP Finance, Chief Financial Officer (615) 367-7578 / SHarris2@genesco.com
Genesco Media Contact Claire S. McCall, Director, Corporate Relations (615) 367-8283 / cmccall@genesco.com
GENESCO INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
| Quarter 4(1) | Quarter 4(1) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Feb. 1,<br>2025 | % of<br>Net Sales | Feb. 3,<br>2024 | % of<br>Net Sales | |||||||
| Net sales | $ | 745,949 | 100.0 | % | $ | 738,950 | 100.0 | % | ||
| Cost of sales | 396,312 | 53.1 | % | 396,883 | 53.7 | % | ||||
| Gross margin | 349,637 | 46.9 | % | 342,067 | 46.3 | % | ||||
| Selling and administrative expenses | 301,775 | 40.5 | % | 303,549 | 41.1 | % | ||||
| Asset impairments and other, net(2) | 1,745 | 0.2 | % | 1,206 | 0.2 | % | ||||
| Operating income | 46,117 | 6.2 | % | 37,312 | 5.0 | % | ||||
| Other components of net periodic benefit cost | 86 | 0.0 | % | 149 | 0.0 | % | ||||
| Interest expense, net | 802 | 0.1 | % | 1,536 | 0.2 | % | ||||
| Earnings from continuing operations before income taxes | 45,229 | 6.1 | % | 35,627 | 4.8 | % | ||||
| Income tax expense | 11,676 | 1.6 | % | 15,337 | 2.1 | % | ||||
| Earnings from continuing operations | 33,553 | 4.5 | % | 20,290 | 2.7 | % | ||||
| Gain from discontinued operations, net of tax (3) | 828 | 0.1 | % | 6,899 | 0.9 | % | ||||
| Net Earnings | $ | 34,381 | 4.6 | % | $ | 27,189 | 3.7 | % | ||
| Basic earnings per share: | ||||||||||
| Before discontinued operations | $ | 3.13 | $ | 1.86 | ||||||
| Net earnings | $ | 3.20 | $ | 2.49 | ||||||
| Diluted earnings per share: | ||||||||||
| Before discontinued operations | $ | 3.06 | $ | 1.84 | ||||||
| Net earnings | $ | 3.13 | $ | 2.47 | ||||||
| Weighted-average shares outstanding: | ||||||||||
| Basic | 10,736 | 10,911 | ||||||||
| Diluted | 10,981 | 11,025 |
- Quarter 4 for the 13-week period ended February 1, 2025 and the 14-week period ended February 3, 2024.
- Includes a $1.7 million charge in the fourth quarter of Fiscal 2025 which includes $0.9 million for asset impairments and $0.8 million for severance. Includes a $1.2 million charge in the fourth quarter of Fiscal 2024 which includes $1.1 million for severance and $0.4 million for asset impairments, partially offset by a $0.3 million insurance gain.
- The gain from discontinued operations in the fourth quarter of Fiscal 2025 and Fiscal 2024 includes a $1.2 million and $9.4 million pretax gain, respectively, from insurance proceeds related to legacy environmental matters.
GENESCO INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
| Fiscal Year Ended(1) | Fiscal Year Ended(1) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb. 1,<br>2025 | % of<br>Net Sales | Feb. 3,<br>2024 | % of<br>Net Sales | |||||||||
| Net sales | $ | 2,325,062 | 100.0 | % | $ | 2,324,624 | 100.0 | % | ||||
| Cost of sales | 1,228,249 | 52.8 | % | 1,225,804 | 52.7 | % | ||||||
| Gross margin(2) | 1,096,813 | 47.2 | % | 1,098,820 | 47.3 | % | ||||||
| Selling and administrative expenses | 1,079,653 | 46.4 | % | 1,082,040 | 46.5 | % | ||||||
| Goodwill impairment | — | 0.0 | % | 28,453 | 1.2 | % | ||||||
| Asset impairments and other, net(3) | 3,235 | 0.1 | % | 1,787 | 0.1 | % | ||||||
| Operating income (loss) | 13,925 | 0.6 | % | (13,460 | ) | -0.6 | % | |||||
| Other components of net periodic benefit cost | 367 | 0.0 | % | 537 | 0.0 | % | ||||||
| Interest expense, net | 4,250 | 0.2 | % | 7,777 | 0.3 | % | ||||||
| Earnings (loss) from continuing operations before income taxes | 9,308 | 0.4 | % | (21,774 | ) | -0.9 | % | |||||
| Income tax expense(4) | 28,820 | 1.2 | % | 1,854 | 0.1 | % | ||||||
| Loss from continuing operations | (19,512 | ) | -0.8 | % | (23,628 | ) | -1.0 | % | ||||
| Gain from discontinued operations, net of tax(5) | 622 | 0.0 | % | 6,801 | 0.3 | % | ||||||
| Net Loss | $ | (18,890 | ) | -0.8 | % | $ | (16,827 | ) | -0.7 | % | ||
| Basic loss per share: | ||||||||||||
| Before discontinued operations | $ | (1.80 | ) | $ | (2.10 | ) | ||||||
| Net loss | $ | (1.74 | ) | $ | (1.50 | ) | ||||||
| Diluted loss per share: | ||||||||||||
| Before discontinued operations | $ | (1.80 | ) | $ | (2.10 | ) | ||||||
| Net loss | $ | (1.74 | ) | $ | (1.50 | ) | ||||||
| Weighted-average shares outstanding: | ||||||||||||
| Basic | 10,836 | 11,243 | ||||||||||
| Diluted | 10,836 | 11,243 |
- Fiscal 2025 for the 52-week period ended February 1, 2025 and Fiscal 2024 for the 53-week period ended February 3, 2024.
- Includes a $1.8 million gross margin charge in Fiscal 2025 related to a distribution model transition in Genesco Brands Group.
- Includes a $3.2 million charge in Fiscal 2025 which includes $1.8 million for severance and $1.4 million for asset impairments. Includes a $1.8 million charge in Fiscal 2024 which includes $1.1 million for severance and $1.0 million for asset impairments, partially offset by a $0.3 million insurance gain.
- Includes a $26.2 million U.S. valuation allowance in Fiscal 2025.
- The gain from discontinued operations in Fiscal 2025 and Fiscal 2024 includes a $1.2 million and $9.4 million pretax gain, respectively, from insurance proceeds related to legacy environmental matters.
GENESCO INC.
Sales/Earnings Summary by Segment
(in thousands)
(Unaudited)
| Quarter 4(1) | Quarter 4(1) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb. 1,<br>2025 | % of<br>Net Sales | Feb. 3,<br>2024 | % of<br>Net Sales | |||||||||
| Sales: | ||||||||||||
| Journeys Group | $ | 478,114 | 64.1 | % | $ | 455,003 | 61.6 | % | ||||
| Schuh Group | 141,155 | 18.9 | % | 146,131 | 19.8 | % | ||||||
| Johnston & Murphy Group | 91,501 | 12.3 | % | 97,623 | 13.2 | % | ||||||
| Genesco Brands Group | 35,179 | 4.7 | % | 40,193 | 5.4 | % | ||||||
| Net Sales | $ | 745,949 | 100.0 | % | $ | 738,950 | 100.0 | % | ||||
| Operating Income (Loss): | ||||||||||||
| Journeys Group | $ | 43,152 | 9.0 | % | $ | 32,337 | 7.1 | % | ||||
| Schuh Group | 5,637 | 4.0 | % | 9,325 | 6.4 | % | ||||||
| Johnston & Murphy Group | 6,555 | 7.2 | % | 6,136 | 6.3 | % | ||||||
| Genesco Brands Group | 1,391 | 4.0 | % | (267 | ) | -0.7 | % | |||||
| Corporate and Other(2) | (10,618 | ) | -1.4 | % | (10,219 | ) | -1.4 | % | ||||
| Operating income | 46,117 | 6.2 | % | 37,312 | 5.0 | % | ||||||
| Other components of net periodic benefit cost | 86 | 0.0 | % | 149 | 0.0 | % | ||||||
| Interest, net | 802 | 0.1 | % | 1,536 | 0.2 | % | ||||||
| Earnings from continuing operations before income taxes | 45,229 | 6.1 | % | 35,627 | 4.8 | % | ||||||
| Income tax expense | 11,676 | 1.6 | % | 15,337 | 2.1 | % | ||||||
| Earnings from continuing operations | 33,553 | 4.5 | % | 20,290 | 2.7 | % | ||||||
| Gain from discontinued operations, net of tax(3) | 828 | 0.1 | % | 6,899 | 0.9 | % | ||||||
| Net Earnings | $ | 34,381 | 4.6 | % | $ | 27,189 | 3.7 | % |
- Quarter 4 for the 13-week period ended February 1, 2025 and the 14-week period ended February 3, 2024.
- Includes a $1.7 million charge in the fourth quarter of Fiscal 2025 which includes $0.9 million for asset impairments and $0.8 million for severance. Includes a $1.2 million charge in the fourth quarter of Fiscal 2024 which includes $1.1 million for severance and $0.4 million for asset impairments, partially offset by a $0.3 million insurance gain.
- The gain from discontinued operations in the fourth quarter of Fiscal 2025 and Fiscal 2024 includes a $1.2 million and $9.4 million pretax gain, respectively, from insurance proceeds related to legacy environmental matters.
GENESCO INC.
Sales/Earnings Summary by Segment
(in thousands)
(Unaudited)
| Fiscal Year Ended(1) | Fiscal Year Ended(1) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb. 1,<br>2025 | % of<br>Net Sales | Feb. 3,<br>2024 | % of<br>Net Sales | |||||||||
| Sales: | ||||||||||||
| Journeys Group | $ | 1,398,922 | 60.2 | % | $ | 1,363,835 | 58.7 | % | ||||
| Schuh Group | 479,891 | 20.6 | % | 480,164 | 20.7 | % | ||||||
| Johnston & Murphy Group | 320,208 | 13.8 | % | 339,446 | 14.6 | % | ||||||
| Genesco Brands Group | 126,041 | 5.4 | % | 141,179 | 6.1 | % | ||||||
| Net Sales | $ | 2,325,062 | 100.0 | % | $ | 2,324,624 | 100.0 | % | ||||
| Operating Income (Loss): | ||||||||||||
| Journeys Group | $ | 26,345 | 1.9 | % | $ | 11,072 | 0.8 | % | ||||
| Schuh Group | 10,199 | 2.1 | % | 21,435 | 4.5 | % | ||||||
| Johnston & Murphy Group | 8,416 | 2.6 | % | 16,314 | 4.8 | % | ||||||
| Genesco Brands Group(2) | 6,806 | 5.4 | % | (8 | ) | 0.0 | % | |||||
| Corporate and Other(3) | (37,841 | ) | -1.6 | % | (33,820 | ) | -1.5 | % | ||||
| Goodwill Impairment | — | 0.0 | % | (28,453 | ) | -1.2 | % | |||||
| Operating income (loss) | 13,925 | 0.6 | % | (13,460 | ) | -0.6 | % | |||||
| Other components of net periodic benefit cost | 367 | 0.0 | % | 537 | 0.0 | % | ||||||
| Interest, net | 4,250 | 0.2 | % | 7,777 | 0.3 | % | ||||||
| Earnings (loss) from continuing operations before income taxes | 9,308 | 0.4 | % | (21,774 | ) | -0.9 | % | |||||
| Income tax expense(4) | 28,820 | 1.2 | % | 1,854 | 0.1 | % | ||||||
| Loss from continuing operations | (19,512 | ) | -0.8 | % | (23,628 | ) | -1.0 | % | ||||
| Gain from discontinued operations, net of tax(5) | 622 | 0.0 | % | 6,801 | 0.3 | % | ||||||
| Net Loss | $ | (18,890 | ) | -0.8 | % | $ | (16,827 | ) | -0.7 | % |
- Fiscal 2025 for the 52-week period ended February 1, 2025 and Fiscal 2024 for the 53-week period ended February 3, 2024.
- Includes a $1.8 million gross margin charge in Fiscal 2025 related to a distribution model transition in Genesco Brands Group.
- Includes a $3.2 million charge in Fiscal 2025 which includes $1.8 million for severance and $1.4 million for asset impairments. Includes a $1.8 million charge in Fiscal 2024 which includes $1.1 million for severance and $1.0 million for asset impairments, partially offset by a $0.3 million insurance gain.
- Includes a $26.2 million U.S. valuation allowance in Fiscal 2025.
- The gain from discontinued operations in Fiscal 2025 and Fiscal 2024 includes a $1.2 million and $9.4 million pretax gain, respectively, from insurance proceeds related to legacy environmental matters.
GENESCO INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| February 1, 2025 | February 3, 2024 | |||
|---|---|---|---|---|
| Assets | ||||
| Cash | $ | 34,007 | $ | 35,155 |
| Accounts receivable | 48,865 | 53,618 | ||
| Inventories | 425,224 | 378,967 | ||
| Other current assets(1) | 100,660 | 39,611 | ||
| Total current assets | 608,756 | 507,351 | ||
| Property and equipment | 228,022 | 240,266 | ||
| Operating lease right of use assets | 438,273 | 436,896 | ||
| Goodwill and other intangibles | 34,922 | 36,815 | ||
| Non-current prepaid income taxes | — | 56,839 | ||
| Other non-current assets | 25,563 | 51,723 | ||
| Total Assets | $ | 1,335,536 | $ | 1,329,890 |
| Liabilities and Equity | ||||
| Accounts payable | $ | 168,077 | $ | 114,621 |
| Current portion operating lease liabilities | 124,010 | 129,189 | ||
| Other current liabilities | 87,695 | 75,727 | ||
| Total current liabilities | 379,782 | 319,537 | ||
| Long-term debt | — | 34,682 | ||
| Long-term operating lease liabilities | 361,079 | 359,073 | ||
| Other long-term liabilities | 47,705 | 45,396 | ||
| Equity | 546,970 | 571,202 | ||
| Total Liabilities and Equity | $ | 1,335,536 | $ | 1,329,890 |
(1) Includes prepaid income taxes of $66.0 million at February 1, 2025.
GENESCO INC.
Store Count Activity
| Balance<br>01/28/23 | Open | Close | Balance<br>02/03/24 | Open | Close | Balance<br>02/01/25 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Journeys Group | 1,130 | 27 | 94 | 1,063 | 7 | 64 | 1,006 | |||||||
| Schuh Group | 122 | 3 | 3 | 122 | 4 | 2 | 124 | |||||||
| Johnston & Murphy Group | 158 | 2 | 4 | 156 | 1 | 9 | 148 | |||||||
| Total Retail Stores | 1,410 | 32 | 101 | 1,341 | 12 | 75 | 1,278 |
GENESCO INC.
Store Count Activity
| Balance<br>11/02/24 | Open | Close | Balance<br>02/01/25 | |||||
|---|---|---|---|---|---|---|---|---|
| Journeys Group | 1,028 | 1 | 23 | 1,006 | ||||
| Schuh Group | 122 | 2 | 0 | 124 | ||||
| Johnston & Murphy Group | 152 | 1 | 5 | 148 | ||||
| Total Retail Stores | 1,302 | 4 | 28 | 1,278 |
GENESCO INC.
Comparable Sales
| Quarter 4 | Fiscal Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb. 1,<br>2025 | Feb. 3,<br>2024 | Feb. 1,<br>2025 | Feb. 3,<br>2024 | |||||||||
| Journeys Group | 14 | % | -5 | % | 6 | % | -9 | % | ||||
| Schuh Group | 2 | % | -5 | % | -2 | % | 6 | % | ||||
| Johnston & Murphy Group | 0 | % | 8 | % | -2 | % | 9 | % | ||||
| Total Comparable Sales | 10 | % | -4 | % | 3 | % | -4 | % | ||||
| Same Store Sales | 6 | % | -7 | % | 0 | % | -7 | % | ||||
| Comparable E-commerce Sales | 18 | % | 5 | % | 12 | % | 8 | % |
Schedule B
Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Three Months Ended February 1, 2025 and February 3, 2024
The Company believes that disclosure of earnings and earnings per share from continuing operations and operating income adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
| Quarter 4(1) | Quarter 4(1) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| February 1, 2025 | February 3, 2024 | ||||||||||||||||
| In Thousands (except per share amounts) | Pretax | Net of<br>Tax | Per Share<br>Amounts | Pretax | Net of<br>Tax | Per Share<br>Amounts | |||||||||||
| Earnings from continuing operations, as reported | $ | 33,553 | $ | 3.06 | $ | 20,290 | $ | 1.84 | |||||||||
| Gross margin adjustment: | |||||||||||||||||
| Charges related to distribution model transition | $ | — | 12 | 0.00 | $ | — | — | 0.00 | |||||||||
| Asset impairments and other adjustments: | |||||||||||||||||
| Asset impairment charges | $ | 890 | 678 | 0.06 | $ | 378 | 272 | 0.03 | |||||||||
| Severance | 855 | 668 | 0.06 | 1,095 | 820 | 0.08 | |||||||||||
| Goodwill impairment | — | — | 0.00 | — | 24 | 0.00 | |||||||||||
| Insurance gain | — | — | 0.00 | (267 | ) | (200 | ) | (0.02 | ) | ||||||||
| Total asset impairments and other adjustments | $ | 1,745 | 1,346 | 0.12 | $ | 1,206 | 916 | 0.09 | |||||||||
| Income tax expense adjustments: | |||||||||||||||||
| Tax impact share based awards | (134 | ) | (0.01 | ) | — | 0.00 | |||||||||||
| U.S. valuation allowance | (7 | ) | 0.00 | — | 0.00 | ||||||||||||
| Other tax items | 1,038 | 0.09 | 7,313 | 0.66 | |||||||||||||
| Total income tax expense adjustments | 897 | 0.08 | 7,313 | 0.66 | |||||||||||||
| Adjusted earnings from continuing operations (2) and (3) | $ | 35,808 | 3.26 | $ | 28,519 | 2.59 |
- Quarter 4 for the 13-weeks ended February 1, 2025 and the 14-weeks ended February 3, 2024.
- The adjusted tax rate for the fourth quarter of Fiscal 2025 and 2024 is 23.8% and 22.6%, respectively.
- EPS reflects 11.0 million share count for each of the fourth quarters of Fiscal 2025 and 2024 which includes common stock equivalents in both periods.
Schedule B
Genesco Inc.
Adjustments to Reported Earnings (Loss) from Continuing Operations
Fiscal Year Ended February 1, 2025 and February 3, 2024
The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.
| Fiscal Year Ended(1) | Fiscal Year Ended(1) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| February 1, 2025 | February 3, 2024 | ||||||||||||||||
| In Thousands (except per share amounts) | Pretax | Net of Tax | Per Share<br>Amounts | Pretax | Net of Tax | Per Share<br>Amounts | |||||||||||
| Loss from continuing operations, as reported | $ | (19,512 | ) | $ | (1.80 | ) | $ | (23,628 | ) | $ | (2.10 | ) | |||||
| Gross margin adjustment: | |||||||||||||||||
| Charges related to distribution model transition | $ | 1,750 | 1,345 | 0.12 | $ | — | — | 0.00 | |||||||||
| Asset impairments and other adjustments: | |||||||||||||||||
| Asset impairment charges | $ | 1,384 | 1,054 | 0.09 | $ | 959 | 718 | 0.07 | |||||||||
| Severance | 1,851 | 1,426 | 0.13 | 1,095 | 820 | 0.07 | |||||||||||
| Goodwill impairment | — | — | 0.00 | 28,453 | 21,882 | 1.93 | |||||||||||
| Insurance gain | — | — | 0.00 | (267 | ) | (200 | ) | (0.02 | ) | ||||||||
| Impact of additional dilutive shares | — | — | 0.03 | — | — | 0.02 | |||||||||||
| Total asset impairments and other adjustments | $ | 3,235 | 2,480 | 0.25 | $ | 30,240 | 23,220 | 2.07 | |||||||||
| Income tax expense adjustments: | |||||||||||||||||
| Tax impact share based awards | 588 | 0.05 | 1,059 | 0.09 | |||||||||||||
| U.S. valuation allowance | 26,243 | 2.39 | — | 0.00 | |||||||||||||
| Other tax items | (804 | ) | (0.07 | ) | 5,735 | 0.50 | |||||||||||
| Total income tax expense adjustments | 26,027 | 2.37 | 6,794 | 0.59 | |||||||||||||
| Adjusted earnings from continuing operations (2) and (3) | $ | 10,340 | $ | 0.94 | $ | 6,386 | $ | 0.56 |
- Fiscal 2025 for the 52-weeks ended February 1, 2025 and Fiscal 2024 for the 53-weeks ended February 3, 2024.
- The adjusted tax rate for Fiscal 2025 and 2024 is 27.7% and 24.6%, respectively.
- EPS reflects 11.0 million and 11.4 million share count for Fiscal 2025 and 2024, respectively, which includes common stock equivalents in both periods for adjusted earnings from continuing operations. The loss from continuing operations, as reported for both periods, excludes common stock equivalents.
Schedule B
Genesco Inc.
Adjustments to Reported Operating Income
Three Months Ended February 1, 2025 and February 3, 2024
| Quarter 4 - February 1, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| In Thousands | Operating<br>Income (Loss) | Asset Impair <br>& Other Adj | Adj Operating<br>Income (Loss) | |||||
| Journeys Group | $ | 43,152 | $ | — | $ | 43,152 | ||
| Schuh Group | 5,637 | — | 5,637 | |||||
| Johnston & Murphy Group | 6,555 | — | 6,555 | |||||
| Genesco Brands Group | 1,391 | — | 1,391 | |||||
| Corporate and Other | (10,618 | ) | 1,745 | (8,873 | ) | |||
| Total Operating Income | $ | 46,117 | $ | 1,745 | $ | 47,862 | ||
| % of sales | 6.2 | % | 6.4 | % | ||||
| Depreciation and amortization | 13,004 | |||||||
| Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ | 60,866 | ||||||
| % of sales | 8.2 | % | ||||||
| Quarter 4 - February 3, 2024 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In Thousands | Operating<br>Income (Loss) | Asset Impair <br>& Other Adj | Adj Operating<br>Income (Loss) | |||||
| Journeys Group | $ | 32,337 | $ | — | $ | 32,337 | ||
| Schuh Group | 9,325 | — | 9,325 | |||||
| Johnston & Murphy Group | 6,136 | — | 6,136 | |||||
| Genesco Brands Group | (267 | ) | — | (267 | ) | |||
| Corporate and Other | (10,219 | ) | 1,206 | (9,013 | ) | |||
| Total Operating Income | $ | 37,312 | $ | 1,206 | $ | 38,518 | ||
| % of sales | 5.0 | % | 5.2 | % | ||||
| Depreciation and amortization | 13,992 | |||||||
| Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ | 52,510 | ||||||
| % of sales | 7.1 | % |
(1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations.
Schedule B
Genesco Inc.
Adjustments to Reported Operating Income (Loss) and Gross Margin
Fiscal Year Ended February 1, 2025 and February 3, 2024
| Fiscal Year Ended February 1, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| In Thousands | Operating<br>Income (Loss) | Asset Impair <br>& Other Adj | Adj Operating<br>Income (Loss) | |||||
| Journeys Group | $ | 26,345 | $ | — | $ | 26,345 | ||
| Schuh Group | 10,199 | — | 10,199 | |||||
| Johnston & Murphy Group | 8,416 | — | 8,416 | |||||
| Genesco Brands Group | 6,806 | 1,750 | 8,556 | |||||
| Corporate and Other | (37,841 | ) | 3,235 | (34,606 | ) | |||
| Total Operating Income | $ | 13,925 | $ | 4,985 | $ | 18,910 | ||
| % of sales | 0.6 | % | 0.8 | % | ||||
| Depreciation and amortization | 52,464 | |||||||
| Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ | 71,374 | ||||||
| % of sales | 3.1 | % | ||||||
| Fiscal Year Ended February 3, 2024 | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| In Thousands | Operating<br>Income (Loss) | Asset Impair <br>& Other Adj | Adj Operating<br>Income (Loss) | |||||
| Journeys Group | $ | 11,072 | $ | — | $ | 11,072 | ||
| Schuh Group | 21,435 | — | 21,435 | |||||
| Johnston & Murphy Group | 16,314 | — | 16,314 | |||||
| Genesco Brands Group | (8 | ) | — | (8 | ) | |||
| Goodwill Impairment | (28,453 | ) | 28,453 | — | ||||
| Corporate and Other | (33,820 | ) | 1,787 | (32,033 | ) | |||
| Total Operating Income (Loss) | $ | (13,460 | ) | $ | 30,240 | $ | 16,780 | |
| % of sales | -0.6 | % | 0.7 | % | ||||
| Depreciation and amortization | 49,441 | |||||||
| Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ | 66,221 | ||||||
| % of sales | 2.8 | % |
(1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations.
| Fiscal Year Ended | ||||||
|---|---|---|---|---|---|---|
| In Thousands | Feb. 1, 2025 | Feb. 3, 2024 | ||||
| Gross margin, as reported | $ | 1,096,813 | $ | 1,098,820 | ||
| % of sales | 47.2 | % | 47.3 | % | ||
| Charges related to distribution model transition | 1,750 | — | ||||
| Total adjustments | 1,750 | — | ||||
| Adjusted gross margin | $ | 1,098,563 | $ | 1,098,820 | ||
| % of sales | 47.2 | % | 47.3 | % |
Schedule B
Genesco Inc.
Adjustments to Forecasted Earnings from Continuing Operations
Fiscal Year Ending January 31, 2026
| In millions (except per share amounts) | High Guidance Fiscal 2026 | Low Guidance Fiscal 2026 | ||||||
|---|---|---|---|---|---|---|---|---|
| Net of Tax | Per Share | Net of Tax | Per Share | |||||
| Forecasted earnings from continuing operations | $ | 18.2 | $ | 1.61 | $ | 13.2 | $ | 1.18 |
| Asset impairments and other adjustments: | ||||||||
| Asset impairments and other matters | 1.0 | 0.09 | 1.4 | 0.12 | ||||
| Total asset impairments and other adjustments (1) | 1.0 | 0.09 | 1.4 | 0.12 | ||||
| Adjusted forecasted earnings from continuing operations (2) | $ | 19.2 | $ | 1.70 | $ | 14.6 | $ | 1.30 |
- All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2026 is approximately 29%.
- EPS reflects 11.3 million share count for Fiscal 2026 which includes common stock equivalents.
This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates.
FY25 Q4 GENESCO Summary Results • March 7, 2025
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, and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as “intend,” “expect,” “feel,” “should,” “believe,” “anticipate,” “optimistic,” “confident” and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company’s ability to adequately staff and operate stores. Differences from expectations could also result from store closures and effects on the business as a result of the level and timing of promotional activity necessary to maintain inventories at appropriate levels; our ability to pass on price increases to our customers; the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the Company’s ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; civil disturbances; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company’s ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company’s ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company’s business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company’s ability to realize any anticipated tax benefits in both the amount and timeframe anticipated; and the cost and outcome of litigation, investigations, environmental matters and other disputes involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company’s SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via the Company’s website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements. Safe Harbor Statement
We report consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). However, to supplement these consolidated financial results our presentation includes certain non-GAAP financial measures such as earnings (loss) and earnings (loss) per share and operating income (loss). This supplemental information should not be considered in isolation as a substitute for related GAAP measures. We believe that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Reconciliations of the non-GAAP supplemental information to the comparable GAAP measures can be found in the Appendix. Non-GAAP • Financial Measures
Q4 FY25 Highlights Stores +6% Digital +18% Total Comparable Sales Increased +10% +14% Total Comparable Sales GAAP EPS $3.06 NON-GAAP EPS $3.26 Total Sales Change +1% Total Sales Change, Adjusting for 53rd Week +7% Operating Income Increased +24%
Q4 FY25 Snapshot SALES $746M Up 1% vs Q42024 with 30% Digital GROSS MARGIN 46.9% Up 60 BPS vs Q4 2024 SG&A $302M 40.5% of sales and 60 bps leverage vs Q4 FY24 INVENTORY +12% Healthy level to support Journeys sales growth GAAP EPS $3.06 Non-GAAP EPS $3.26 GAAP OI $46.1M Non-GAAP OI $47.9M
12mos FY25 Snapshot SALES $2.3B Flat vs FY24 with 25% Digital GROSS MARGIN 47.2% Down 10 BPS vs FY24 SG&A $1.1B 46.4% of sales and 10 bps leverage vs FY24 SHARE REPURCHASES $9.8M In the year, approximately 400,000 shares GAAP EPS ($1.80) Non-GAAP EPS $0.94 GAAP OI $13.9M Non-GAAP OI $18.9M
FY25 Digital business increased double digits, expanding digital penetration to 25%, effectively doubling the size of this profitable channel over the last five years to over a half a billion dollars Loyalty programs achieved the important milestone of over 10 million members, allowing us to hook our data analytics and CRM programs into this first party data to drive repeat purchases and increased customer value going forward Leveraged the interaction between stores and online, accelerating buy-online-pick-up-in-store since implementing it a year ago to a peak of almost 20% of Journeys’ online sales in December Positioned the business for better productivity and profitability with 64 Journeys store closures, as we reshape our footprint to align with the shopping patterns of today’s consumer Achieved our targeted run rate of annualized cost savings in connection with the work over the last two years realigning our cost base Q4 Revenue of $746 million increased 1%, exceeding our expectations even with one less week of sales this quarter due to the 53-week calendar shift, which would have resulted in a 7% increase Comparable sales increased 10% with both stores up mid-single digits and digital up high teens Journeys comps increased 14%, up double digits for the second consecutive quarter, and comp trends at Schuh and J&M improved sequentially Gross margins expanded 60 basis points compared to last year driven by strong full-price selling Operating income increased 24% compared to last year Adjusted EPS increased 26% to $3.26 per share compared to $2.59 per share last year Q4 & FY25 • Highlights
Our Footwear Focused Vision & Strategy OUR ASPIRATION Create and curate leading footwear brands that represent style, innovation and self-expression; be the destination for our consumers’ favorite fashion footwear HOW WE WILL ACHIEVE IT Build enduring relationships with our target customers, grounded in unparalleled consumer and market insights Deliver exciting, distinctive products and experiences across physical and digital
Our Footwear Focused Vision & Strategy Strategic Initiatives/Pillars SIGNIFICANT ACHIEVEMENTS ACROSS ALL STRATEGIC GROWTH PILLARS 5 2 3 4 ACCELERATE DIGITAL 16% CAGR Digital growth since FY20 1 MAXIMIZE PHYSICAL & DIGITAL ~20% Journeys online sales in December from buy-online-pick-up-in-store DEEPEN CONSUMER INSIGHTS 10M Members added to loyalty programs in less than 3 years INTENSIFY PRODUCT INNOVATION & TREND INSIGHTS Double Digit Comparable Sales Increase Journeys back half FY25 driven by improvement in product offering RESHAPE & REINVEST $45M TO $50M Achieved the higher-end of range in savings from cost initiatives 6 PURSUE SYNERGISTIC ACQUISITIONS Attract, Develop and Retain Consumer-Obsessed Talent People, Values, Organization and Culture
Our Footwear Focused Vision & Strategy Strategic Initiatives/Pillars RETAIL PLATFORM The destination for young adult and teen fashion footwear and partner of choice for leading global brands 5 2 3 4 ACCELERATE DIGITAL 1 MAXIMIZE PHYSICAL & DIGITAL DEEPEN CONSUMER INSIGHTS INTENSIFY PRODUCT INNOVATION RESHAPE & REINVEST Portfolio of leading owned and licensed brands BRANDED PLATFORM OUR PLATFORMS ENABLE THE STRATEGY UNITED BY DTC CAPABILITIES
What is Journeys Strategic Growth Plan? Multi-Brand, multi-category offering to inspire the journey from one you to the next
Unique Consumer Positioning Style-Led Not Sneaker Head There is white space in the market for Journeys to expand its reach with teen female consumers:
Expand Consumer Segmentation Sharpen our consumer focus targeting three consumer segments reaching a wider teen audience. @ANTI-HERO Independent Heritage Journeys consumer Self-expression @STYLECHASER What’s cool & fashionable More mainstream Later trend adopters @DYNAMICEXPLORER Many different styles What’s new & next Seeks latest trend Journeys Today Journeys Future Hold Accelerate Validate 6 to 7 TIMES BIGGER TOTAL ADDRESSABLE MARKET (TAM)
Key Strategies Elevate Our Customer Experience Invest In Our Journeys Brand Diversify Our Footwear Leadership
Long term strategic partnership with power brands to create leadership, flexibility, differentiation, and scale Build athletic as third pillar of assortment with casual & canvas Elevate women’s - market leadership Drive ASP growth through outpaced premium product growth Establish incubation strategy for new brand and new model launches Evolve the assortment to position Journeys as a leading footwear destination & create sustainable growth. Diversify Our Footwear Leadership
House of brands Singular focus on Anti-Hero Over reliance on tactical marketing Product only campaigns Minimal use of social media FROM Branded house Expanded segmentation More balanced, full funnel and brand approach Product AND brand Double down on social Reenergize the Journeys brand, making it the ultimate destination for discovery to reach and excite more consumers TO Invest In Our Journeys Brand
Digital Closures Refreshed concept that fuels discovery Remodels Elevate Our Customer Experience
4.0: Journeys Next Generation Store Concept
Q4 FY25 • Key Earnings Highlights
12mos FY25 • Key Earnings Highlights Quarter 4(1) Feb 3, 2025 Quarter 4(1) Jan 28, 2024
% of Retail Sales (2) 31% 25% 27% 30% 23% 25% 12% 12% FY25 • Strong Digital Growth (1) 52-week period for fiscal year ended February 1, 2025 and 53-week period for fiscal year ended February 3, 2024. (2) Retail sales represent combined store sales and e-commerce sales
Q4 FY25 • Comparable Sales
FY25 (1) Net Sales $2.3 Billion Journeys Schuh Johnston & Murphy Group Genesco Brands Group 12mos FY25 Sales by Segment (1) Fiscal year for the 52-week period ended February 1, 2025 and the 53-week period ended February 3, 2024.
Q4 FY25 Inventory/Sales Change by Segment
Q4 and 12mos FY25 Retail Store Summary
FY26 • Outlook (1) Additional color on anticipated sales growth by business: Journeys: Low-single digit percentage increase schuh: Low-single digit percentage decrease Johnston & Murphy: Low-single digit percentage increase Genesco Brands Group: Low-single digit percentage decrease
FY26 Projected Store Count
FY26 • Projected Capital Spending Omni-channel, IT, DC & Other New Stores & Remodels Projected FY26 CapEx approx. $50 - 65 Million FY26 Projected Depreciation & Amortization = $50 - 55 Million
APPENDIX
Q4 FY25 • Adjusted Operating Income Statement (1)
12mos FY25 • Adjusted Operating Income Statement (1)
Q4 FY25 • Non-GAAP Reconciliation
12mos FY25 • Non-GAAP Reconciliation
12mos FY25 • Adjusted Gross Margin
FY25 Q4 GENESCO Summary Results • March 7, 2025