Genesco Inc. · NYSE:GCO
Genesco — Q1 2024 Earnings Presentation
22 slides from Genesco's earnings presentation, May 25, 2023
Slide 1: First Quarter FY24 Genesco Summary Results
FIRST QUARTER FY24 GENESCO Summary Results May 25, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement This release contains forward-looking statements, including those regarding future sales, earnings, cost reductions, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, stores openings and closures, share repurchases, ESG p
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
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
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
Slide 6: Q1 FY24 Highlights
Q1 FY24 Highlights • We achieved record top line results for both Schuh and J&M, highlighting the in-depth work we did to evolve their customer value propositions, to set the strategy in both the retail and branded sides of our business and execute well to it • We grew our comparable digital sales b
Slide 7: Key Earnings Highlights
Q1 FY24 Key Earnings Highlights $483 +7% MILLION IN SALES GROWTH IN COMPARABLE DIGITAL SALES vs. Q1 FY2023 $(1.60) 21% DIGITAL PENTRATION GAAP EPS vs. 19% Q1 FY2023 $(1.59) NON-GAAP EPS
Slide 8: Key Earning Highlights
Q1 FY24 Key Earning Highlights Quarter 1 Quarter 1 April 29, 2023 April 30, 2022 Total Sales Change -7% -3% Comparable Sales (1) -5% NA Comparable Direct Sales 7% -26% Gross Margin % 47.3% 48.3% Selling and Admin. Expenses % (2) GAAP 52.0% 46.8% Non-GAAP 52.0% 46.5% Operating Income (Loss) % (2) GAA
Slide 9: E-Commerce Sales Highlights
Q1 FY24 E-Commerce Sales Highlights Quarter 1 Trailing 12 Months $300 $500 $441 $426 $400 $200 $ in Millions $ in Millions $300 $200 $100 $84 $89 $100 31% $- 25% $- FY23 FY24 FY23 FY24 % of Retail Sales (1) 19% 21% 20% 21% (1) Retail sales represent combined store sales and e-commerce sales
Slide 10: Comparable Sales
Q1 FY24 Comparable Sales Quarter 1 April 29, 2023 April 30, 2022 (1) Journeys Group -14% NA Schuh Group 13% NA Johnston & Murphy Group 18% NA Total Comparable Sales -5% NA Same Store Sales -8% NA Comparable Direct Sales 7% -26% (1) As a result of store closures in response to the COVID-19 pandemic d
Slide 11: Q1 FY24 Sales by Segment
19% Q1 FY24 Journeys Schuh 17% Sales by Segment Johnston & Murphy Group Genesco Brands Group 7% 57% FY24 Net Sales $483.3 Million 17% 14% 9% 60% FY23 Net Sales $520.7 Million
Slide 12: Adjusted Operating Income (Loss) by Segment
Q1 FY24 Adjusted Operating Income (Loss) by Segment (1) Quarter 1 April 29, 2023 April 30, 2022 Oper Inc Adj Oper Oper Inc Adj Oper ($ in millions) (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ (18.4) $ - $ (18.4) $ 14.9 $ - $ 14.9 Schuh Group (1.8) - (1.8) (2.7) - (2.7) Johnsto
Slide 13: Inventory/Sales Change by Segment
Q1 FY24 Inventory/Sales Change by Segment Inv entory Sales (1) Change from April 30, ($ in millions) 2022 Q1 FY23 Journeys Group 0% -13% Schuh Group (2) 37% 13% Johnston & Murphy Group 80% 16% Genesco Brands Group 57% -25% Total for Q1 FY24 $ 471 $ 483 % Change Total GCO 17% -7% (1) Rolling 3-month
Slide 14: Retail Stores Summary
Q1 FY24 Retail Stores Summary Jan. 28, Apr. 29, 2023 Open Close 2023 Journeys Group 1,130 10 25 1,115 Journeys stores (U.S.) 818 9 20 807 Journeys stores (Canada) 45 - 3 42 Journeys Kidz stores 233 1 2 232 Little Burgundy 34 - - 34 Schuh Group 122 1 - 123 Johnston & Murphy Group 158 1 1 158 Total St
Slide 15: Retail Square Footage
Q1 FY24 Retail Square Footage April 30, Net April 29, (in thousands) 2022 Change 2023 % Change Journeys Group 2,255 2 2,257 0.1% Schuh Group 602 3 605 0.5% Johnston & Murphy Group 314 (8) 306 -2.5% Total Square Footage 3,171 (3) 3,168 -0.1% Year ov er year change in retail inv entory per square foot
Slide 16: 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 Total Sales dow n 4% to 5%, or v s. FY2023 dow n 5% to 6% excluding the 53rd w eek this year Gross Margin 30 to 40 basis point decrease v s. FY2023 SG&A Exp
Slide 17: FY24 Projected Retail Store Count
FY24 Projected Retail Store Count Actual Proj Proj Proj 2023 Open Close 2024 Journeys Group 1,130 29 107 1,052 Journeys stores (U.S.) 818 26 80 764 Journeys stores (Canada) 45 - 3 42 Journeys Kidz stores 233 3 24 212 Little Burgundy 34 - - 34 Schuh Group 122 1 2 121 Johnston & Murphy Group 158 3 4 1
Slide 18: FY24 Projected Capital Spending
FY24 Projected Capital Spending Projected FY24 CapEx approx. $50 - 55 Million Omni-channel, 47% IT, DC & Other New Stores & Remodels 53% FY24 Projected Depreciation & Amortization = $47 Million
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliation
Q1 FY24 Non-GAAP Reconciliation Quarter 1 April 29, 2023 April 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 $ (18,875) $ (1.60) $ 4,969 $ 0.37 Asset impairments and oth
Slide 21: Adjusted Selling & Administrative Expenses
Q1 FY24 Adjusted Selling & Administrative Expenses Quarter 1 In Thousands April 29, 2023 April 30, 2022 Selling and administrativ e expenses, as reported $ 251,497 $ 243,481 Expenses related to new HQ building - (1,526) Total adjustments - (1,526) Adjusted selling and administrativ e expenses $ 251,
Slide 22: First Quarter FY24 Genesco Summary Results
FIRST QUARTER FY24 GENESCO Summary Results May 25, 2023