Genesco Inc 8-K, filed Sep 6, 2024

Genesco Inc (GCO)

8-K 2024-09-06 For: 2024-09-06

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Added on April 08, 2026

About this 8-K

Genesco Inc filed this 8-K on September 6, 2024.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Tennessee	1-3083		62-0211340
(State or Other Jurisdiction of Incorporation)	(Commission File Number)		(I.R.S. Employer Identification No.)

535 Marriott Drive	Nashville	Tennessee	37214
(Address of Principal Executive Offices)			(Zip Code)


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $1.00 par value	GCO	New York Stock Exchange


Exhibit Number		Description

99.1		Press Release issued by Genesco Inc. on September 6, 2024

99.2		Genesco Inc. Second Fiscal Quarter ended August 3, 2024 Summary Results

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	GENESCO INC.

Date: September 6, 2024	By:	/s/ Thomas A. George
	Name:	Thomas A. George
	Title:	Senior Vice President and Chief Financial Officer


Comparable Sales

Comparable Same Store and E-commerce Sales:	2QFY25	2QFY24
Journeys Group	(1)%	(11)%
Schuh Group	(2)%	17%
Johnston & Murphy Group	(5)%	12%
Total Genesco Comparable Sales	(2)%	(2)%
Same Store Sales	(4)%	(6)%
Comparable E-commerce Sales	8%	14%


☐		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))


	Quarter 2						Quarter 2
	Aug. 3, 2024			% of Net Sales			July 29, 2023			% of Net Sales
Net sales	$	525,188			100.0	%	$	523,027			100.0	%
Cost of sales		279,549			53.2	%		273,507			52.3	%
Gross margin(1)		245,639			46.8	%		249,520			47.7	%
Selling and administrative expenses		255,135			48.6	%		259,520			49.6	%
Goodwill impairment		—			0.0	%		28,453			5.4	%
Asset impairments and other, net(2)		778			0.1	%		174			0.0	%
Operating loss		(10,274	)		-2.0	%		(38,627	)		-7.4	%
Other components of net periodic benefit cost		86			0.0	%		148			0.0	%
Interest expense, net		1,345			0.3	%		2,383			0.5	%
Loss from continuing operations before income taxes		(11,705	)		-2.2	%		(41,158	)		-7.9	%
Income tax benefit		(1,776	)		-0.3	%		(9,526	)		-1.8	%
Loss from continuing operations		(9,929	)		-1.9	%		(31,632	)		-6.0	%
Loss from discontinued operations, net of tax		(63	)		0.0	%		(33	)		0.0	%
Net Loss	$	(9,992	)		-1.9	%	$	(31,665	)		-6.1	%
Basic loss per share:
Before discontinued operations	$	(0.91	)				$	(2.79	)
Net loss	$	(0.91	)				$	(2.79	)
Diluted loss per share:
Before discontinued operations	$	(0.91	)				$	(2.79	)
Net loss	$	(0.91	)				$	(2.79	)
Weighted-average shares outstanding:
Basic		10,942						11,344
Diluted		10,942						11,344


	Six Months Ended						Six Months Ended
	Aug. 3, 2024			% of Net Sales			July 29, 2023			% of Net Sales
Net sales	$	982,785			100.0	%	$	1,006,359			100.0	%
Cost of sales		520,865			53.0	%		528,031			52.5	%
Gross margin		461,920			47.0	%		478,328			47.5	%
Selling and administrative expenses		502,966			51.2	%		511,017			50.8	%
Goodwill impairment		—			0.0	%		28,453			2.8	%
Asset impairments and other, net		1,356			0.1	%		482			0.0	%
Operating loss		(42,402	)		-4.3	%		(61,624	)		-6.1	%
Other components of net periodic benefit cost		195			0.0	%		240			0.0	%
Interest expense, net		2,235			0.2	%		4,034			0.4	%
Loss from continuing operations before income taxes		(44,832	)		-4.6	%		(65,898	)		-6.5	%
Income tax benefit		(10,615	)		-1.1	%		(15,391	)		-1.5	%
Loss from continuing operations		(34,217	)		-3.5	%		(50,507	)		-5.0	%
Loss from discontinued operations, net of tax		(122	)		0.0	%		(48	)		0.0	%
Net Loss	$	(34,339	)		-3.5	%	$	(50,555	)		-5.0	%
Basic loss per share:
Before discontinued operations	$	(3.13	)				$	(4.36	)
Net loss	$	(3.14	)				$	(4.37	)
Diluted loss per share:
Before discontinued operations	$	(3.13	)				$	(4.36	)
Net loss	$	(3.14	)				$	(4.37	)
Weighted-average shares outstanding:
Basic		10,936						11,581
Diluted		10,936						11,581


	Aug. 3, 2024		July 29, 2023
Assets
Cash	$	45,855	$	37,416
Accounts receivable		57,497		50,351
Inventories		450,187		491,118
Other current assets		53,181		45,983
Total current assets		606,720		624,868
Property and equipment		229,116		244,090
Operating lease right of use assets		402,715		476,715
Goodwill and other intangibles		36,446		37,669
Non-current prepaid income taxes		58,051		55,028
Other non-current assets		50,703		56,389
Total Assets	$	1,383,751	$	1,494,759

Liabilities and Equity
Accounts payable	$	187,439	$	166,504
Current portion operating lease liabilities		122,527		137,369
Other current liabilities		85,697		78,707
Total current liabilities		395,663		382,580
Long-term debt		77,839		131,544
Long-term operating lease liabilities		329,773		403,413
Other long-term liabilities		47,854		44,203
Equity		532,622		533,019
Total Liabilities and Equity	$	1,383,751	$	1,494,759


	Balance 01/28/23		Open		Close		Balance 02/03/24		Open		Close		Balance 08/03/24
Journeys Group		1,130		27		94		1,063		5		29		1,039
Schuh Group		122		3		3		122		1		0		123
Johnston & Murphy Group		158		2		4		156		0		4		152
Total Retail Stores		1,410		32		101		1,341		6		33		1,314


	Balance 05/04/24		Open		Close		Balance 08/03/24
Journeys Group		1,047		4		12		1,039
Schuh Group		122		1		0		123
Johnston & Murphy Group		152		0		0		152
Total Retail Stores		1,321		5		12		1,314


	Quarter 2						Six Months
	Aug. 3, 2024			July 29, 2023			Aug. 3, 2024			July 29, 2023
Journeys Group		-1	%		-11	%		-3	%		-12	%
Schuh Group		-2	%		17	%		-4	%		15	%
Johnston & Murphy Group		-5	%		12	%		-4	%		15	%
Total Comparable Sales		-2	%		-2	%		-3	%		-4	%
Same Store Sales		-4	%		-6	%		-6	%		-7	%
Comparable E-commerce Sales		8	%		14	%		6	%		11	%


	Quarter 2- August 3, 2024
In Thousands	Operating Income (Loss)			Asset Impair & Other Adj		Adj Operating Income (Loss)
Journeys Group	$	(11,151	)	$	—	$	(11,151	)
Schuh Group		7,339			—		7,339
Johnston & Murphy Group		(403	)		—		(403	)
Genesco Brands Group		2,672			169		2,841
Corporate and Other		(8,731	)		778		(7,953	)
Total Operating Loss	$	(10,274	)	$	947	$	(9,327	)
% of sales		-2.0	%				-1.8	%


	Quarter 2								Quarter 2
	Aug. 3, 2024								July 29, 2023
In Thousands (except per share amounts)	Pretax		Net of Tax			Per Share Amounts			Pretax		Net of Tax			Per Share Amounts
Loss from continuing operations, as reported			$	(9,929	)	$	(0.91	)			$	(31,632	)	$	(2.79	)

Gross margin adjustment:
Charges related to distribution model transition	$	169		176			0.02		$	—		—			0.00

Asset impairments and other adjustments:
Asset impairment charges	$	116		95			0.01		$	174		134			0.01
Severance		662		512			0.05			—		—			0.00
Goodwill Impairment		—		—			0.00			28,453		21,858			1.93
Total asset impairments and other adjustments	$	778		607			0.06		$	28,627		21,992			1.94

Income tax expense adjustments:
Tax impact share based awards				592			0.05					1,058			0.09
Other tax items				(577	)		(0.05	)				(1,014	)		(0.09	)
Total income tax expense adjustments				15			0.00					44			0.00
Adjusted loss from continuing operations (1) and (2)			$	(9,131	)		(0.83	)			$	(9,596	)		(0.85	)


	Six Months								Six Months
	Aug. 3, 2024								July 29, 2023
In Thousands (except per share amounts)	Pretax		Net of Tax			Per Share Amounts			Pretax		Net of Tax			Per Share Amounts
Loss from continuing operations, as reported			$	(34,217	)	$	(3.13	)			$	(50,507	)	$	(4.36	)

Gross margin adjustment:
Charges related to distribution model transition	$	1,750		1,327			0.12		$	—		—			0.00

Asset impairments and other adjustments:
Asset impairment charges	$	360		273			0.02		$	482		367			0.03
Severance		996		755			0.07			—		—			0.00
Goodwill impairment		—		—			0.00			28,453		21,858			1.89
Total asset impairments and other adjustments	$	1,356		1,028			0.09		$	28,935		22,225			1.92
Income tax expense adjustments:
Tax impact share based awards				722			0.07					1,011			0.09
Other tax items				(922	)		(0.08	)				(1,069	)		(0.10	)
Total income tax expense adjustments				(200	)		(0.01	)				(58	)		(0.01	)
Adjusted loss from continuing operations (1) and (2)			$	(32,062	)	$	(2.93	)			$	(28,340	)	$	(2.45	)


In millions (except per share amounts)	High Guidance Fiscal 2025				Low Guidance Fiscal 2025
	Net of Tax		Per Share		Net of Tax		Per Share
Forecasted earnings from continuing operations	$	8.2	$	0.75	$	3.5	$	0.32

Charges related to distribution model transition		1.3		0.12		1.3		0.12

Asset impairments and other adjustments:
Asset impairments and other matters		1.4		0.13		1.8		0.16
Total asset impairments and other adjustments (1)		1.4		0.13		1.8		0.16
Adjusted forecasted earnings from continuing operations (2)	$	10.9	$	1.00	$	6.6	$	0.60


	Quarter 2 - July 29, 2023
In Thousands	Operating Income (Loss)			Asset Impair & Other Adj		Adj Operating Income (Loss)
Journeys Group	$	(14,878	)	$	—	$	(14,878	)
Schuh Group		8,416			—		8,416
Johnston & Murphy Group		2,666			—		2,666
Genesco Brands Group		1,851			—		1,851
Goodwill Impairment		(28,453	)		28,453		—
Corporate and Other		(8,229	)		174		(8,055	)
Total Operating Loss	$	(38,627	)	$	28,627	$	(10,000	)
% of sales		-7.4	%				-1.9	%


	Six Months August 3, 2024
In Thousands	Operating Income (Loss)			Asset Impair & Other Adj		Adj Operating Income (Loss)
Journeys Group	$	(29,973	)	$	—	$	(29,973	)
Schuh Group		1,443			—		1,443
Johnston & Murphy Group		1,952			—		1,952
Genesco Brands Group		1,686			1,750		3,436
Corporate and Other		(17,510	)		1,356		(16,154	)
Total Operating Loss	$	(42,402	)	$	3,106	$	(39,296	)
% of sales		-4.3	%				-4.0	%


	Six Months July 29, 2023
In Thousands	Operating Income (Loss)			Asset Impair & Other Adj		Adj Operating Income (Loss)
Journeys Group	$	(33,240	)	$	—	$	(33,240	)
Schuh Group		6,626			—		6,626
Johnston & Murphy Group		7,472			—		7,472
Genesco Brands Group		1,819			—		1,819
Goodwill Impairment		(28,453	)		28,453		—
Corporate and Other		(15,848	)		482		(15,366	)
Total Operating Loss	$	(61,624	)	$	28,935	$	(32,689	)
% of sales		-6.1	%				-3.2	%