EX-99.3 4 ex993earnings053119.htm EXHIBIT 99.3 Exhibit
Exhibit 99.3

GENESCO INC.
Operating Income and Earnings per Share
Fiscal 2019 by Quarter
Reflects the Sale of Lids Sports Group
(Unaudited)
 
 
 
 
 
 
 
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Fiscal Year
 
May 5, 2018
Aug. 4, 2018
Nov. 3, 2018
Feb. 2, 2019
Feb. 2, 2019
 
 
 
 
 
 
 
Operating Income % (1)
 
 
 
 
 
  GAAP
0.8%
0.2%
4.9%
7.5%
3.7%
  Non-GAAP
1.0%
0.2%
4.9%
8.7%
4.1%
 
 
 
 
 
 
Earnings (Loss) per Diluted Share (1)
 
 
 
 
 
  GAAP
$
0.10

$
0.00

$
1.00

$
1.53

$
2.63

  Non-GAAP
$
0.14

$
(0.01
)
$
0.97

$
2.18

$
3.28

 
 
 
 
 
 
Total Comparable Sales
2%
6%
6%
4%
5%
  Same Store Sales
1%
6%
6%
3%
4%
  Comparable Direct Sales
10%
7%
12%
10%
10%
 
 
 
 
 
 
(1) See GAAP to Non-GAAP adjustments in Schedule B.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Exhibit 99.3

GENESCO INC.
Condensed Consolidated Statements of Operations
Fiscal 2019 by Quarter
Reflects the Sale of Lids Sports Group
(in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Quarter 1
 
Quarter 2
 
Quarter 3
 
May 5, 2018

% of

 
Aug. 4, 2018

% of

 
Nov. 3, 2018

% of

 
Net Sales

 
Net Sales

 
Net Sales

Net sales
$
486,219

100.0
 %
 
$
487,015

100.0
 %
 
$
539,828

100.0
 %
Cost of sales
248,213

51.0
 %
 
255,546

52.5
 %
 
277,910

51.5
 %
   Gross margin
238,006

49.0
 %
 
231,469

47.5
 %
 
261,918

48.5
 %
Selling and administrative expenses
233,176

48.0
 %
 
230,423

47.3
 %
 
235,601

43.6
 %
Asset impairments and other, net
1,118

0.2
 %
 
(29
)
0.0
 %
 
(70
)
0.0
 %
   Operating income
3,712

0.8
 %
 
1,075

0.2
 %
 
26,387

4.9
 %
Other components of net periodic benefit cost
(8
)
0.0
 %
 
(29
)
0.0
 %
 
(30
)
0.0
 %
Interest expense, net
1,028

0.2
 %
 
1,103

0.2
 %
 
837

0.2
 %
   Earnings from continuing operations
 
 
 
 
 
 
 
 
     before income taxes
2,692

0.6
 %
 
1

0.0
 %
 
25,580

4.7
 %
Income tax expense
836

0.2
 %
 
26

0.0
 %
 
5,886

1.1
 %
   Earnings from continuing operations
1,856

0.4
 %
 
(25
)
0.0
 %
 
19,694

3.6
 %
(Loss) earnings from discontinued operations, net of tax
(4,187
)
-0.9
 %
 
10

0.0
 %
 
(5,307
)
-1.0
 %
   Net Earnings (Loss)
$
(2,331
)
-0.5
 %
 
$
(15
)
0.0
 %
 
$
14,387

2.7
 %
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share:
 
 
 
 
 
 
 
 
    Before discontinued operations
$
0.10

 
 
$
0.00

 
 
$
1.01

 
    Net earnings (loss)
$
(0.12
)
 
 
$
0.00

 
 
$
0.74

 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - Basic
19,278

 
 
19,342

 
 
19,462

 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share:
 
 
 
 
 
 
 
 
    Before discontinued operations
$
0.10

 
 
$
0.00

 
 
$
1.00

 
    Net earnings (loss)
$
(0.12
)
 
 
$
0.00

 
 
$
0.73

 
 
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - Diluted
19,455

 
 
19,342

 
 
19,637

 



Exhibit 99.3

GENESCO INC.
Condensed Consolidated Statements of Operations
Fiscal 2019 by Quarter
Reflects the Sale of Lids Sports Group
(in thousands, except per share data)
(Unaudited)
 
 
 
 
 
 
 
Quarter 4
 
Fiscal Year
 
February 2, 2019

% of

 
February 2, 2019

% of

 
Net Sales

 
Net Sales

Net sales
$
675,491

100.0
 %
 
$
2,188,553

100.0
 %
Cost of sales
359,828

53.3
 %
 
1,141,497

52.2
 %
   Gross margin
315,663

46.7
 %
 
1,047,056

47.8
 %
Selling and administrative expenses
262,876

38.9
 %
 
962,076

44.0
 %
Asset impairments and other, net
2,144

0.3
 %
 
3,163

0.1
 %
   Operating income
50,643

7.5
 %
 
81,817

3.7
 %
Loss on early retirement of debt
597

0.1
 %
 
597

0.0
 %
Other components of net periodic benefit cost
(313
)
0.0
 %
 
(380
)
0.0
 %
Interest expense, net
373

0.1
 %
 
3,341

0.2
 %
   Earnings from continuing operations before income taxes
49,986

7.4
 %
 
78,259

3.6
 %
Income tax expense
20,287

3.0
 %
 
27,035

1.2
 %
   Earnings from continuing operations
29,699

4.4
 %
 
51,224

2.3
 %
Loss from discontinued operations, net of tax
(93,670
)
-13.9
 %
 
(103,154
)
-4.7
 %
   Net Loss
$
(63,971
)
-9.5
 %
 
$
(51,930
)
-2.4
 %
 
 
 
 
 
 
Basic earnings (loss) per share:
 
 
 
 
 
    Before discontinued operations
$
1.54

 
 
$
2.65

 
    Net loss
$
(3.31
)
 
 
$
(2.68
)
 
 
 
 
 
 
 
Weighted-average shares outstanding - Basic
19,323

 
 
19,351

 
 
 
 
 
 
 
Diluted earnings (loss) per share:
 
 
 
 
 
    Before discontinued operations
$
1.53

 
 
$
2.63

 
    Net loss
$
(3.29
)
 
 
$
(2.66
)
 
 
 
 
 
 
 
Weighted-average shares outstanding - Diluted
19,445

 
 
19,495

 



Exhibit 99.3

GENESCO INC.
Sales/Earnings Summary by Segment
Fiscal 2019 by Quarter
Reflects the Sale of Lids Sports Group
(in thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
Quarter 1
 
Quarter 2
 
Quarter 3
 
May 5, 2018

% of

 
Aug. 4, 2018

% of

 
Nov. 3, 2018

% of

 
Net Sales

 
Net Sales

 
Net Sales

Sales:
 
 
 
 
 
 
 
 
    Journeys Group
$
306,142

63.0
 %
 
$
304,995

62.6
 %
 
$
345,702

64.0
 %
    Schuh Group
80,266

16.5
 %
 
98,159

20.2
 %
 
95,567

17.7
 %
    Johnston & Murphy Group
75,684

15.6
 %
 
68,441

14.1
 %
 
79,736

14.8
 %
    Licensed Brands
24,065

4.9
 %
 
15,336

3.1
 %
 
18,757

3.5
 %
    Corporate and Other
62

0.0
 %
 
84

0.0
 %
 
66

0.0
 %
    Net Sales
$
486,219

100.0
 %
 
$
487,015

100.0
 %
 
$
539,828

100.0
 %
Operating Income (Loss):
 
 
 
 
 
 
 
 
    Journeys Group
$
12,992

4.2
 %
 
$
7,038

2.3
 %
 
$
24,692

7.1
 %
    Schuh Group
(5,640
)
-7.0
 %
 
1,073

1.1
 %
 
4,207

4.4
 %
    Johnston & Murphy Group
4,867

6.4
 %
 
715

1.0
 %
 
5,072

6.4
 %
    Licensed Brands
276

1.1
 %
 
(437
)
-2.8
 %
 
(218
)
-1.2
 %
    Corporate and Other(1)
(8,783
)
-1.8
 %
 
(7,314
)
-1.5
 %
 
(7,366
)
-1.4
 %
Operating income
3,712

0.8
 %
 
1,075

0.2
 %
 
26,387

4.9
 %
Other components of net periodic benefit cost
(8
)
0.0
 %
 
(29
)
0.0
 %
 
(30
)
0.0
 %
Interest, net
1,028

0.2
 %
 
1,103

0.2
 %
 
837

0.2
 %
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
2,692

0.6
 %
 
1

0.0
 %
 
25,580

4.7
 %
Income tax expense
836

0.2
 %
 
26

0.0
 %
 
5,886

1.1
 %
Earnings from continuing operations
1,856

0.4
 %
 
(25
)
0.0
 %
 
19,694

3.6
 %
(Loss) earnings from discontinued operations, net of tax
(4,187
)
-0.9
 %
 
10

0.0
 %
 
(5,307
)
-1.0
 %
Net Earnings (Loss)
$
(2,331
)
-0.5
 %
 
$
(15
)
0.0
 %
 
$
14,387

2.7
 %
 
 
 
 
 
 
 
 
 
(1) Includes a $1.1 million charge in the first quarter of Fiscal 2019 which includes $1.0 million for asset impairments and $0.2 million in legal and other matters, partially offset by a gain of ($0.1) million related to Hurricane Maria. Includes a ($0.0) million gain in the second quarter of Fiscal 2019 which includes a ($0.4) million gain related to Hurricane Maria, offset by $0.3 million for asset impairments and $0.1 million in legal and other matters. Includes a ($0.1) million gain in the third quarter of Fiscal 2019 which includes a gain of ($0.9) million related to Hurricane Maria, partially offset by $0.7 million for asset impairments and $0.1 million for hurricane losses.










Exhibit 99.3

GENESCO INC.
Sales/Earnings Summary by Segment
Fiscal 2019 by Quarter
Reflects the Sale of Lids Sports Group
(in thousands)
(Unaudited)
 
 
 
 
 
 
 
Quarter 4
 
Fiscal Year
 
February 2, 2019

% of

 
February 2, 2019

% of

 
Net Sales

 
Net Sales

Sales:
 
 
 
 
 
    Journeys Group
$
463,154

68.6
 %
 
$
1,419,993

64.9
 %
    Schuh Group
108,599

16.1
 %
 
382,591

17.5
 %
    Johnston & Murphy Group
89,273

13.2
 %
 
313,134

14.3
 %
    Licensed Brands
14,406

2.1
 %
 
72,564

3.3
 %
    Corporate and Other
59

0.0
 %
 
271

0.0
 %
    Net Sales
$
675,491

100.0
 %
 
$
2,188,553

100.0
 %
Operating Income (Loss):
 
 
 
 
 
    Journeys Group
$
56,077

12.1
 %
 
$
100,799

7.1
 %
    Schuh Group
4,125

3.8
 %
 
3,765

1.0
 %
    Johnston & Murphy Group
9,731

10.9
 %
 
20,385

6.5
 %
    Licensed Brands
(109
)
-0.8
 %
 
(488
)
-0.7
 %
    Corporate and Other(1)
(19,181
)
-2.8
 %
 
(42,644
)
-1.9
 %
Operating income
50,643

7.5
 %
 
81,817

3.7
 %
Loss on early retirement of debt
597

0.1
 %
 
597

0.0
 %
Other components of net periodic benefit cost
(313
)
0.0
 %
 
(380
)
0.0
 %
Interest, net
373

0.1
 %
 
3,341

0.2
 %
Earnings from continuing operations before income taxes
49,986

7.4
 %
 
78,259

3.6
 %
Income tax expense
20,287

3.0
 %
 
27,035

1.2
 %
Earnings from continuing operations
29,699

4.4
 %
 
51,224

2.3
 %
Loss from discontinued operations, net of tax
(93,670
)
-13.9
 %
 
(103,154
)
-4.7
 %
Net Loss
$
(63,971
)
-9.5
 %
 
$
(51,930
)
-2.4
 %
 
 
 
 
 
 
(1) Includes a $2.2 million charge in the fourth quarter of Fiscal 2019 which includes $2.1 million for asset impairments and $0.1 million for hurricane losses and includes a $5.7 million charge for bonus related to the sale of Lids Sports Group. Includes a $3.2 million charge in Fiscal 2019 which includes $4.1 million for asset impairments, $0.3 million in legal and other matters and $0.2 million in hurricane losses, partially offset by a ($1.4) million gain related to Hurricane Maria and includes a $5.7 million charge for bonus related to the sale of Lids Sports Group.













Schedule B

Genesco Inc.
Adjustments to Reported Earnings (Loss) from Continuing Operations
Three Months Ended May 5, 2018 and August 4, 2018
Reflects the Sale of Lids Sports Group
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 1
 
Quarter 2
 
May 5, 2018
 
August 4, 2018
 
 
Net of
Per Share
 
 
Net of
Per Share
In Thousands (except per share amounts)
Pretax
Tax
Amounts
 
Pretax
Tax
Amounts
Earnings (loss) from continuing operations
 
$
1,856

$
0.10

 
 
$
(25
)
$
0.00

 
 
 
 
 
 
 
 
Asset impairments and other adjustments:
 
 
 
 
 
 
 
  Impairment charges
$
1,025

741

0.04

 
$
330

181

0.01

  Legal and other matters
193

140

0.00

 
77

44

0.00

  Gain on Hurricane Maria
(100
)
(72
)
0.00

 
(436
)
(293
)
(0.01
)
  Total asset impairments and other adjustments
1,118

809

0.04

 
(29
)
(68
)
0.00

 
 
 
 
 
 
 
 
Income tax expense adjustments:
 
 
 
 
 
 
 
  Tax impact share based awards
 
—

0.00

 
 
452

0.02

  Other tax items
 
69

0.00

 
 
(561
)
(0.03
)
  Total income tax expense adjustments


69

0.00

 


(109
)
(0.01
)
Adjusted earnings (loss) from continuing operations (1) and (2)
 
$
2,734

$
0.14

 
 
$
(202
)
$
(0.01
)

(1) The adjusted tax rate for the first quarter and second quarter of Fiscal 2019 is 28.2% and -620.9%, respectively, including a FIN 48 discrete item of less than $0.1 million in each period.

(2) EPS reflects 19.5 million and 19.3 million share count for the first quarter and second quarter of Fiscal 2019, respectively, which includes common stock equivalents in each period.




Exhibit 99.3


Genesco Inc.
Adjustments to Reported Operating Income
Three Months Ended May 5, 2018 and August 4, 2018
 
 
 
 
 
Quarter 1
 
Operating
Asset Impair
Adj Operating
In Thousands
Income (Loss)
& Other Adj
Income (Loss)
Journeys Group
$
12,992

$
—

$
12,992

Schuh Group
(5,640
)
—

(5,640
)
Johnston & Murphy Group
4,867

—

4,867

Licensed Brands
276

—

276

Corporate and Other
(8,783
)
1,118

(7,665
)
 
 
 
 
Total Operating Income
$
3,712

$
1,118

$
4,830

  % of sales
0.8
%
 
1.0
%
 
Quarter 2
 
Operating
Asset Impair
Adj Operating
In Thousands
Income (Loss)
& Other Adj
Income (Loss)
Journeys Group
$
7,038

$
—

$
7,038

Schuh Group
1,073

—

1,073

Johnston & Murphy Group
715

—

715

Licensed Brands
(437
)
—

(437
)
Corporate and Other
(7,314
)
(29
)
(7,343
)
 
 
 
 
Total Operating Income
$
1,075

$
(29
)
$
1,046

  % of sales
0.2
%
 
0.2
%
     



Exhibit 99.3

Genesco Inc.
Adjustments to Reported Earnings from Continuing Operations
Three months ended November 3, 2018 and Three and Twelve Months Ended February 2, 2019
Reflects the Sale of Lids Sports Group
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 3
 
Quarter 4
 
Fiscal Year
 
November 3, 2018
 
February 2, 2019
 
February 2, 2019
 
 
Net of
Per Share
 
 
Net of
Per Share
 
 
Net of
Per Share
In Thousands (except per share amounts)
Pretax
Tax
Amts
 
Pretax
Tax
Amts
 
Pretax
Tax
Amts
Earnings from continuing operations
 
$
19,694

$
1.00

 
 
$
29,699

$
1.53

 
 
$
51,224

$
2.63

 
 
 
 
 
 
 
 
 
 
 
 
Selling and administrative expense adjustments:
 
 
 
 
 
 
 
 
 
 
 
  Bonus related to sale of Lids Sports Group
$
—

—

0.00

 
$
5,707

4,136

0.21

 
$
5,707

4,166

0.21

  Total selling and administrative expense adjustments
—

—

0.00

 
5,707

4,136

0.21

 
5,707

4,166

0.21

 
 
 
 
 
 
 
 
 
 
 
 
Asset impairments and other adjustments:
 
 
 
 
 
 
 
 
 
 
 
  Impairment charges
699

599

0.03

 
2,099

1,521

0.08

 
4,153

3,032

0.15

  Legal and other matters
—

16

0.00

 
—

—

0.00

 
270

197

0.01

  Gain on Hurricane Maria
(884
)
(686
)
(0.03
)
 
—

—

0.00

 
(1,420
)
(1,036
)
(0.05
)
  Other hurricane losses
115

85

0.00

 
45

33

0.00

 
160

117

0.01

  Total asset impairments and other adjustments
(70
)
14

0

 
2,144

1,554

0.08

 
3,163

2,310

0.12

 
 
 
 
 
 
 
 
 
 
 
 
Loss on early retirement of debt adjustment
—

—

0.00

 
597

433

0.02

 
597

436

0.02

 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense adjustments:
 
 
 
 
 
 
 
 
 
 
 
  Tax impact share based awards
 
—

0.00

 
 
—

0.00

 
 
452

0.02

  Other tax items
 
(611
)
(0.03
)
 
 
6,537

0.34

 
 
5,399

0.28

  Total income tax expense adjustments
 
(611
)
(0.03
)
 
 
6,537

0.34

 
 
5,851

0.30

Adjusted earnings from continuing operations (1) and (2)
 
$
19,097

$
0.97

 
 
$
42,359

$
2.18

 
 
$
63,987

$
3.28


(1) The adjusted tax rate for the third quarter, fourth quarter and year of Fiscal 2019 is 25.1%, 27.5% and 27.1%, respectively, including a FIN 48 discrete item of less than $0.1 million in each quarter and $0.1 million for the Fiscal year.

(2) EPS reflects 19.6 million, 19.4 million and 19.5 million share count for the third quarter, fourth quarter and year of Fiscal 2019, respectively, which includes common stock equivalents in each period.



Exhibit 99.3

Genesco Inc.
Adjustments to Reported Operating Income
Three Months Ended November 3, 2018 and Three and Twelve Months Ended February 2, 2019
 
 
 
 
 
 
 
 
 
 
 
Quarter 3
 
Operating
Asset Impair
Selling & Admin
Adj Operating
In Thousands
Income (Loss)
& Other Adj
Exp Adjust
Income (Loss)
Journeys Group
$
24,692

$
—

$
—

$
24,692

Schuh Group
4,207

—

—

4,207

Johnston & Murphy Group
5,072

—

—

5,072

Licensed Brands
(218
)
—

—

(218
)
Corporate and Other
(7,366
)
(70
)
—

(7,436
)
 
 
 
 
 
Total Operating Income
$
26,387

$
(70
)
$
—

$
26,317

  % of sales
4.9
%
 
 
4.9
%

 
Quarter 4
 
Operating
Asset Impair
Selling & Admin
Adj Operating
In Thousands
Income (Loss)
& Other Adj
Exp Adjust
Income (Loss)
Journeys Group
$
56,077

$
—

$
—

$
56,077

Schuh Group
4,125

—

—

4,125

Johnston & Murphy Group
9,731

—

—

9,731

Licensed Brands
(109
)
—

—

(109
)
Corporate and Other
(19,181
)
2,144

5,707

(11,330
)
 
 
 
 
 
Total Operating Income
$
50,643

$
2,144

$
5,707

$
58,494

  % of sales
7.5
%
 
 
8.7
%

 
Fiscal Year
 
Operating
Asset Impair
Selling & Admin
Adj Operating
In Thousands
Income (Loss)
& Other Adj
Exp Adjust
Income (Loss)
Journeys Group
$
100,799

$
—

$
—

$
100,799

Schuh Group
3,765

—

—

3,765

Johnston & Murphy Group
20,385

—

—

20,385

Licensed Brands
(488
)
—

—

(488
)
Corporate and Other
(42,644
)
3,163

5,707

(33,774
)
 
 
 
 
 
Total Operating Income
$
81,817

$
3,163

$
5,707

$
90,687

  % of sales
3.7
%
 
 
4.1
%