Genesco Inc. · NYSE:GCO
Genesco — Q2 FY2020 Earnings Presentation
21 slides from Genesco's earnings presentation, Sep 6, 2019
Slide 1: FY20 Second Quarter
FY20 Second Quarter f LITTLE 5 Sears BURGUNDY saa ale as schuh JOHNSTON & MURPHY, GENESCO 5
Slide 2: Genesco Inc. FY20 Q2 Earnings Summary Results and Guidance
Genesco Inc. FY20 Q2 Earnings Summary Results and Guidance September 6, 2019
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, including those regarding the performance outlook for the Company and its individual businesses (including, without limitation, sales, expenses, margins and earnings) and all other statements not addressing solely historica
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). However, to supplement these consolidated financial results the Company’s presentation includes certain non-GAAP financial measures such as earnings an
Slide 5: Key Earnings Highlights Q2 FY20
Key Earnings Highlights Q2 FY20 Quarter 2 Quarter 2 August 3, 2019 August 2, 2018 Total Net Sales Change 0% 12% Comparable Sales 3% 6% Gross Margin % 48.6% 47.5% Selling and Admin. Expenses % 47.6% 47.3% Operating Income % (1) GAAP 0.6% 0.2% Non-GAAP 1.0% 0.2% Earnings (Loss) per Diluted Share (1) G
Slide 6: Key Earnings Highlights YTD FY20
Key Earnings Highlights YTD FY20 Six Months Ended Six Months Ended August 3, 2019 August 2, 2018 Total Net Sales Change 1% 8% Comparable Sales 4% 4% Gross Margin % 49.0% 48.2% Selling and Admin. Expenses % 47.7% 47.6% Operating Income % (1) GAAP 1.2% 0.5% Non-GAAP 1.3% 0.6% Earnings per Diluted Shar
Slide 7: Comparable Sales Q2 FY20
Comparable Sales Q2 FY20 Quarter 2 Aug. 3, Aug. 4, 2019 2018 Journeys Group 4% 10% Schuh Group 0% (7)% Johnston & Murphy Group 1% 8% Total Comparable Sales 3% 6% Same Store Sales 1% 6% Comparable Direct Sales 20% 7% 7
Slide 8: Sales by Segment Q2 FY20 and FY19
Sales by Segment Q2 FY20 and FY19 Net Sales $486.6 million Net Sales $487.0 million FY20 2% FY19 3% 14% 14% Journeys Group Journeys Group Schuh Group Schuh Group 19% Johnston & Murphy 20% Johnston & Murphy Group Group 65% 63% Licensed Brands Licensed Brands 8
Slide 9: Sales by Segment YTD FY20 and FY19
Sales by Segment YTD FY20 and FY19 Net Sales $982.2 million Net Sales $973.2 million 3% 4% FY20 FY19 15% 15% Journeys Group Journeys Group Schuh Group Schuh Group 17% Johnston & Murphy 18% Johnston & Murphy Group Group 65% Licensed Brands 63% Licensed Brands 9
Slide 10: Adjusted Operating Income by Segment Q2 FY20
Adjusted Operating Income by Segment Q2 FY20(1) ($ in millions) Quarter 2 - August 3, 2019 Quarter 2 - August 4, 2018 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 11.3 $ - $ 11.3 $ 7.0 $ - $ 7.0 Schuh Group - - - 1.1 - 1.1 Johnston & Murphy G
Slide 11: Adjusted Operating Income by Segment YTD FY20
Adjusted Operating Income by Segment YTD FY20(1) ($ in millions) Six Months Ended Aug. 3, 2019 Six Months Ended Aug. 4, 2018 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 30.3 $ - $ 30.3 $ 20.0 $ - $ 20.0 Schuh Group (5.4) - (5.4) (4.6) - (4.6
Slide 12: Inventory/Sales Change by Segment Q2 FY20
Inventory/Sales Change by Segment Q2 FY20 ($ in millions) Aug. 3, 2019 Q2 FY20 Segment Inventory/Sales Inventory Sales Journeys Group 6% 3% Schuh Group (1) 2% -1% Johnston & Murphy Group -4% -2% Licensed Brands -21% -24% Total $ 445 $ 487 % Change from prior year 2% 0% (1) On a constant currency bas
Slide 13: Retail Stores Summary Q2 FY20
Retail Stores Summary Q2 FY20 May 4, Aug. 3, 2019 Open Close 2019 Journeys Group 1,188 2 6 1,184 Journeys stores (U.S.) 863 1 4 860 Journeys stores (Canada) 46 - - 46 Journeys Kidz stores 239 1 2 238 Little Burgundy 40 - - 40 Schuh Group 136 - 4 132 Johnston & Murphy Group 180 - 2 178 Total Stores 1
Slide 14: Retail Square Footage Q2 FY20
Retail Square Footage Q2 FY20 Square feet in thousands May 4, Net Aug. 3, Square Footage: 2019 Change 2019 % Change Journeys Group 2,339 (7) 2,332 -0.3% Schuh Group 664 (18) 646 -2.7% Johnston & Murphy Group 344 (4) 340 -1.2% Total Square Footage 3,347 (29) 3,318 -0.9% Year over year change in retai
Slide 15: FY20 Outlook
FY20 Outlook(1) Note: See earnings call transcript for important details regarding guidance assumptions $3.80 - $4.20 per share, expectations Non-GAAP EPS near mid-point Total Sales (1%) to +1% Comparable Sales +2 to +3% Gross Margin 30 to 50 basis point improvement SG&A Expense 30 to 50 basis point
Slide 16: FY20 Comparable Sales Guidance
FY20 Comparable Sales Guidance Actual Actual Guidance Guidance Guidance Q1 Q2 Q3 Q4 FY20 Journeys Group 7% 4% 2 - 3% 1 - 2% 3 - 4% Schuh Group 2% 0% (4) - (1)% (4) - (1)% (2) - 0% Johnston & Murphy Group 0% 1% 0 - 1% 1 - 2% 0 - 1% Total Genesco 5% 3% 1 - 2% 1 - 2% 2 - 3% 16
Slide 17: FY20 Projected Retail Store Count
FY20 Projected Retail Store Count Actual Proj Proj Proj 2019 Open Close 2020 Journeys Group 1,193 20 28 1,185 Journeys stores (U.S.) 867 8 24 851 Journeys stores (Canada) 46 - - 46 Journeys Kidz stores 239 12 3 248 Little Burgundy 41 - 1 40 Schuh Group 136 2 7 131 Johnston & Murphy Group 183 7 6 184
Slide 18: FY20 Projection Capital Spending Projection
FY20 Projection Capital Spending Projection FY20 CapEx $45 million 42% New Stores & Remodels 58% Omni-channel, IT, DC & Other FY20 Projected Depreciation = $50 million 18
Slide 19: Appendix
GENESCO & Appendix LITTLE sis BURGUNDY schuh JOHNSTON & MURPHY.
Slide 20: Non-GAAP Reconciliation – Q2 FY20
Non-GAAP Reconciliation – Q2 FY20 Quarter 2 August 3, 2019 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, as reported $ 793 $ 0.05 $ (25) $0.00 Asset impairments and other adju
Slide 21: Non-GAAP Reconciliation – YTD FY20
Non-GAAP Reconciliation – YTD FY20 Six Months Ended August 3, 2019 August 4, 2018 Net of Per Share Net of Per Share In Thousands (except per share amounts) Pretax Tax Amounts Pretax Tax Amounts Earnings from continuing operations, as reported $ 7,263 $ 0.43 $ 1,831 $ 0.09 Asset impairments and other