Genesco Inc. · NYSE:GCO

Genesco — Q2 2024 Earnings Presentation

27 slides from Genesco's earnings presentation, Aug 31, 2023

  1. Slide 1: Second Quarter FY24 Genesco Summary Results

    SECOND QUARTER FY24 GENESCO Summary Results August 31, 2023

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 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, ESG progress and all other statements

  3. Slide 3: Non-GAAP Financial Measures

    Non-GAAP Financial Measures 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 (l

  4. Slide 4: Our Footwear Focused Vision & Strategy

    Our Footwear Focused Vision & Strategy What We Aspire To Do 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 Our Aspiration Build enduring relationships with our target

  5. Slide 5: Our Footwear Focused Vision & Strategy

    Our Footwear Focused Vision & Strategy Strategic Initiatives/Pillars Footwear focused strategy spans six strategic growth pillars aimed at accelerating Genesco’s transformation and leveraging synergies to drive growth and sustainable profitability 1 2 3 4 5 6 Build deeper consumer Accelerate Maximiz

  6. Slide 6: Q2 FY24 Highlights

    Q2 FY24 Highlights ▪ As the second quarter progressed, sales trends modestly improved relative to Q1, enabling us to deliver results ahead of our reset expectations and reaffirm our Fiscal 2024 guidance ▪ Johnston & Murphy and Schuh each delivered another quarter of record sales ▪ We improved gross

  7. Slide 7: Key Earnings Highlights

    Q2 FY24 Key Earnings Highlights $523 +14% GROWTH IN COMPARABLE DIGITAL MILLION IN SALES SALES vs. Q2 FY2023 $(2.79) 21% DIGITAL PENTRATION GAAP EPS vs. 18% Q2 FY2023 $(0.85) NON-GAAP EPS

  8. Slide 8: Q2 FY24 Key Earning Highlights

    Q2 FY24 Key Earning Highlights Quarter 2 Quarter 2 July 29, 2023 July 30, 2022 Total Sales Change -2% -4% Comparable Sales -2% -2% Comparable Direct Sales 14% -3% Gross Margin % 47.7% 47.5% Selling and Admin. Expenses % (1) GAAP 49.6% 45.8% Non-GAAP 49.6% 45.6% Operating Income (Loss) % (1) GAAP -7.

  9. Slide 9: 6mos FY24 Key Earning Highlights

    6mos FY24 Key Earning Highlights Six Months Ended Six Months Ended July 29, 2023 July 30, 2022 Total Sales Change -5% -3% Comparable Sales (1) -4% NA Comparable Direct Sales 11% -16% Gross Margin % 47.5% 47.9% Selling and Admin. Expenses % (2) GAAP 50.8% 46.3% Non-GAAP 50.8% 46.0% Operating Income (

  10. Slide 10: E-Commerce Sales Highlights

    Q2 FY24 E-Commerce Sales Highlights Quarter 2 Trailing 12 Months $500 $500 $454 $416 $400 $400 $ in Millions $ in Millions $300 $300 $200 $200 $98 $100 $84 $100 31% $- 25% $- FY23 FY24 FY23 FY24 % of Retail Sales (1) 18% 21% 19% 21% (1) Retail sales represent combined store sales and e-commerce sale

  11. Slide 11: Comparable Sales

    Q2 FY24 Comparable Sales Quarter 2 July 29, 2023 July 30, 2022 Journeys Group -11% -8% Schuh Group 17% 9% Johnston & Murphy Group 12% 17% Total Comparable Sales -2% -2% Same Store Sales -6% -2% Comparable Direct Sales 14% -3%

  12. Slide 12: Q2 FY24 Sales by Segment

    23% Q2 FY24 Journeys Schuh 15% Sales by Segment Johnston & Murphy Group Genesco Brands Group 7% 55% FY24 Net Sales $523.0 Million 19% 14% 7% 60% FY23 Net Sales $535.3 Million

  13. Slide 13: 6mos FY24 Sales by Segment

    21% 6mos FY24 Journeys Schuh 16% Sales by Segment Johnston & Murphy Group Genesco Brands Group 7% 56% FY24 Net Sales $1.0 Billion 18% 14% 8% 60% FY23 Net Sales $1.1 Billion

  14. Slide 14: Adjusted Operating Income Statement

    Q2 FY24 Adjusted Operating Income Statement (1) Quarter 2 July 29, 2023 July 30, 2022 Oper Inc Adj Oper Oper Inc Adj Oper ($ in millions) (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ (14.9) $ - $ (14.9) $ 9.2 $ - $ 9.2 Schuh Group 8.4 - 8.4 2.1 - 2.1 Johnston & Murphy Group 2.7

  15. Slide 15: 6mos FY24 Adjusted Operating Income Statement

    6mos FY24 Adjusted Operating Income Statement (1) Six Months Ended July 29, 2023 July 30, 2022 Oper Inc Adj Oper Oper Inc Adj Oper ($ in millions) (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ (33.2) $ - $ (33.2) $ 24.2 $ - $ 24.2 Schuh Group 6.6 - 6.6 (0.7) - (0.7) Johnston & M

  16. Slide 16: Inventory/Sales Change by Segment

    Q2 FY24 Inventory/Sales Change by Segment Inv entory Sales (1) Change from July 30, ($ in millions) 2022 Q2 FY23 Journeys Group -15% -11% Schuh Group (2) 15% 17% Johnston & Murphy Group 27% 4% Genesco Brands Group 2% -7% Total for Q2 FY24 $ 491 $ 523 % Change Total GCO -3% -2% (1) Rolling 3-month sa

  17. Slide 17: Retail Stores Summary

    Q2 FY24 Retail Stores Summary Apr. 29, Jul. 29, 2023 Open Close 2023 Journeys Group 1,115 9 29 1,095 Journeys stores (U.S.) 807 9 25 791 Journeys stores (Canada) 42 - 1 41 Journeys Kidz stores 232 - 3 229 Little Burgundy 34 - - 34 Schuh Group 123 1 - 124 Johnston & Murphy Group 158 - 2 156 Total Sto

  18. Slide 18: Retail Square Footage

    Q2 FY24 Retail Square Footage July 30, Net July 29, % (in thousands) 2022 Change 2023 Change Journeys Group 2,259 (27) 2,232 -1.2% Schuh Group 609 2 611 0.4% Johnston & Murphy Group 308 (6) 302 -1.7% Total Square Footage 3,176 (31) 3,145 -1.0% Year ov er year change in retail inv entory per square f

  19. Slide 19: FY24 Outlook

    FY24 Outlook (1) Note: See earnings call transcript for important details regarding guidance assumptions. Non-GAAP EPS $2.00 to $2.50 per share, expectations near mid-point Total Sales dow n 2% to 4%, or v s. FY2023 dow n 3% to 5% excluding the 53rd w eek this year Gross Margin flat to 20 basis poin

  20. Slide 20: FY24 Projected Retail Store Count

    FY24 Projected Retail Store Count Actual Proj Proj Proj 2023 Open Close 2024 Journeys Group 1,130 27 100 1,057 Journeys stores (U.S.) 818 26 74 770 Journeys stores (Canada) 45 - 6 39 Journeys Kidz stores 233 1 20 214 Little Burgundy 34 - - 34 Schuh Group 122 2 2 122 Johnston & Murphy Group 158 3 3 1

  21. Slide 21: FY24 Projected Capital Spending

    FY24 Projected Capital Spending Projected FY24 CapEx approx. $50 - 55 Million Omni-channel, 57% IT, DC & Other New Stores & Remodels 43% FY24 Projected Depreciation & Amortization = $49 Million

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Q2 FY24 Non-GAAP Reconciliation

    Q2 FY24 Non-GAAP Reconciliation Quarter 2 July 29, 2023 July 30, 2022 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, as reported $ (31,632) $ (2.79) $ 7,651 $ 0.59 Asset impairments and other

  24. Slide 24: 6mos FY24 Non-GAAP Reconciliation

    6mos FY24 Non-GAAP Reconciliation Six Months Ended July 29, 2023 July 30, 2022 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, as reported $ (50,507) $ (4.36) $ 12,620 $0.96 Asset impairments

  25. Slide 25: Adjusted Selling & Administrative Expenses

    Q2 FY24 Adjusted Selling & Administrative Expenses Quarter 2 In Thousands July 29, 2023 July 30, 2022 Selling and administrativ e expenses, as reported $ 259,520 $ 245,103 Expenses related to new HQ building - (762) Total adjustments - (762) Adjusted selling and administrativ e expenses $ 259,520 $

  26. Slide 26: 6mos FY24 Adjusted Selling & Administrative Expenses

    6mos FY24 Adjusted Selling & Administrative Expenses Six Months Ended In Thousands July 29, 2023 July 30, 2022 Selling and administrativ e expenses, as reported $ 511,017 $ 488,584 Expenses related to new HQ building - (2,288) Total adjustments - (2,288) Adjusted selling and administrativ e expenses

  27. Slide 27: Second Quarter FY24 Genesco Summary Results

    SECOND QUARTER FY24 GENESCO Summary Results August 31, 2023

Genesco — Q2 2024 Earnings Presentation on 6ix