Genesco Inc. · NYSE:GCO
Genesco — Q3 2024 Earnings Presentation
28 slides from Genesco's earnings presentation, Dec 1, 2023
Slide 1: Third Quarter FY24 Genesco Summary Results
Exhibit 00.0 THIRD QUARTER FY24 GENESCO Summary Results December 1, 2023
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, cost reductions, ESG progress and all
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 Our Aspiration 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 It Build enduring relationships with our target customers, grounde
Slide 5: Our Footwear Focused Vision & Strategy: Strategic Pillars
Our Footwear Focused Vision & Strategy Strategic Initiatives/Pillars Genesco’s strategy spans six strategic growth pillars 1 2 3 Deepen 4 5 6 consumer Maximize the Intensify Accelerate insights to Reshape the Pursue relationship product digital to grow strengthen cost base to synergistic between inn
Slide 6: Strong Strategic Positioning
Our Footwear Focused Vision & Strategy Strategic Initiatives/Pillars Strong Strategic Positioning Retail Platform Branded Platform The destination for young adult and teen fashion Portfolio of leading owned footwear and partner of choice for leading global brands and licensed brands #1 omnichannel r
Slide 7: Q3 FY24 Highlights
Q3 FY24 Highlights ▪ We advanced several strategic initiatives in Q3 including growing our overall comparable digital business by 8%, and expanding digital penetration to 21% versus 18% a year ago ▪ Q4 comparable sales running positive quarter to date after a strong Black Friday weekend ▪ Journeys’
Slide 8: Key Earnings Highlights
Q3 FY24 Key Earnings Highlights $579 +8% MILLION IN SALES GROWTH IN COMPARABLE DIGITAL SALES vs. Q3 FY2023 $0.60 21% DIGITAL PENTRATION GAAP EPS vs. 18% Q3 FY2023 $0.57 NON-GAAP EPS
Slide 9: Q3 FY24 Key Earning Highlights
Q3 FY24 Key Earning Highlights Quarter 3 Quarter 3 October 28, 2023 October 29, 2022 Total Sales Change -4% 1% Comparable Sales -4% 3% Comparable Direct Sales 8% 6% Gross Margin % 48.1% 48.7% Selling and Admin. Expenses % (1) GAAP 46.2% 44.3% Non-GAAP 46.2% 44.3% Operating Income % (1) GAAP 1.9% 4.3
Slide 10: 9mos FY24 Key Earning Highlights
9mos FY24 Key Earning Highlights Nine Months Ended Nine Months Ended October 28, 2023 October 29, 2022 Total Sales Change -4% -2% Comparable Sales (1) -4% NA Comparable Direct Sales 10% -9% Gross Margin % 47.7% 48.2% Selling and Admin. Expenses % (2) GAAP 49.1% 45.6% Non-GAAP 49.1% 45.4% Operating I
Slide 11: E-Commerce Sales Highlights
Q3 FY24 E-Commerce Sales Highlights Quarter 3 Trailing 12 Months $300 $500 $467 $414 +13% $400 $200 $ in Millions $ in Millions $300 $111 $200 $99 +12% $100 $100 31% $- 25% $- FY23 FY24 FY23 FY24 % of Retail Sales (1) 18% 21% 19% 22% (1) Retail sales represent combined store sales and e-commerce sal
Slide 12: Comparable Sales
Q3 FY24 Comparable Sales Quarter 3 October 28, 2023 October 29, 2022 Journeys Group -8% 1% Schuh Group 5% 3% Johnston & Murphy Group 1% 20% Total Comparable Sales -4% 3% Same Store Sales -7% 2% Comparable Direct Sales 8% 6%
Slide 13: Q3 FY24 Sales by Segment
21% Q3 FY24 Journeys Schuh Sales by Segment Johnston & Murphy Group 14% Genesco Brands Group 5% 60% FY24 Net Sales $579.3 Million 17% 13% 7% 63% FY23 Net Sales $603.8 Million
Slide 14: 9mos FY24 Sales by Segment
21% 9mos FY24 Journeys Schuh 15% Sales by Segment Johnston & Murphy Group Genesco Brands Group 7% 57% FY24 Net Sales $1.6 Billion 18% 14% 7% 61% FY23 Net Sales $1.7 Billion
Slide 15: Q3 FY24 Adjusted Operating Income Statement
Q3 FY24 Adjusted Operating Income Statement (1) Quarter 3 October 28, 2023 October 29, 2022 Oper Inc Adj Oper Oper Inc Adj Oper ($ in millions) (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 12.0 $ - $ 12.0 $ 27.1 $ - $ 27.1 Schuh Group 5.5 - 5.5 5.9 - 5.9 Johnston & Murphy Group
Slide 16: 9mos FY24 Adjusted Operating Income Statement
9mos FY24 Adjusted Operating Income Statement (1) Nine Months Ended October 28, 2023 October 29, 2022 Oper Inc Adj Oper Oper Inc Adj Oper ($ in millions) (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ (21.3) $ - $ (21.3) $ 51.2 $ - $ 51.2 Schuh Group 12.1 - 12.1 5.3 - 5.3 Johnsto
Slide 17: Inventory/Sales Change by Segment
Q3 FY24 Inventory/Sales Change by Segment Inv entory Sales (1) Change from Oct 29, ($ in millions) 2022 Q3 FY23 Journeys Group -14% -8% Schuh Group (2) 7% 5% Johnston & Murphy Group -4% 2% Genesco Brands Group 0% -22% Total for Q3 FY24 $ 517 $ 579 % Change Total GCO -8% -4% (1) Rolling 3-month sales
Slide 18: Retail Stores Summary
Q3 FY24 Retail Stores Summary Jul. 29, Oct. 28, 2023 Open Close 2023 Journeys Group 1,095 5 20 1,080 Journeys stores (U.S.) 791 5 15 781 Journeys stores (Canada) 41 - - 41 Journeys Kidz stores 229 - 5 224 Little Burgundy 34 - - 34 Schuh Group 124 - - 124 Johnston & Murphy Group 156 - - 156 Total Sto
Slide 19: Retail Square Footage
Q3 FY24 Retail Square Footage Oct. 29, Net Oct 28, % (in thousands) 2022 Change 2023 Change Journeys Group 2,249 (37) 2,212 -1.7% Schuh Group 606 5 611 0.8% Johnston & Murphy Group 308 (6) 302 -1.7% Total Square Footage 3,163 (38) 3,125 -1.2% Year ov er year change in retail inv entory per square fo
Slide 20: FY24 Outlook
FY24 Outlook (1) Note: See earnings call transcript for important details regarding guidance assumptions. Non-GAAP EPS $1.50 to $2.00 per share, expectations near mid-point Total Sales down 1% to 2%, or vs. FY2023 down 2% to 3% excluding the 53rd week this year Gross M argin 40 to 50 basis point dec
Slide 21: FY24 Projected Retail Store Count
FY24 Projected Retail Store Count Actual Proj Proj Proj 2023 Open Close 2024 Journeys Group 1,130 28 98 1,060 Journeys stores (U.S.) 818 27 79 766 Journeys stores (Canada) 45 - 4 41 Journeys Kidz stores 233 1 15 219 Little Burgundy 34 - - 34 Schuh Group 122 3 3 122 Johnston & Murphy Group 158 3 3 15
Slide 22: FY24 Projected Capital Spending
FY24 Projected Capital Spending Projected FY24 CapEx approx. $55 - 60 Million Omni-channel, 57% IT, DC & Other New Stores & Remodels 43% FY24 Projected Depreciation & Amortization = $48 Million
Slide 23: Appendix
Appendix
Slide 24: Q3 FY24 Non-GAAP Reconciliation
Q3 FY24 Non-GAAP Reconciliation Quarter 3 October 28, 2023 October 29, 2022 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 $ 6,589 $ 0.60 $ 20,424 $ 1.66 Asset impairments and other adju
Slide 25: 9mos FY24 Non-GAAP Reconciliation
9mos FY24 Non-GAAP Reconciliation Nine Months Ended October 28, 2023 October 29, 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 $ (43,918) $ (3.87) $ 33,044 $2.56 Asset impai
Slide 26: Adjusted Selling & Administrative Expenses
Q3 FY24 Adjusted Selling & Administrative Expenses Quarter 3 In Thousands October 28, 2023 October 29, 2022 Selling and administrativ e expenses, as reported $ 267,474 $ 267,734 Expenses related to new HQ building - (257) Total adjustments - (257) Adjusted selling and administrativ e expenses $ 267,
Slide 27: 9mos FY24 Adjusted Selling & Administrative Expenses
9mos FY24 Adjusted Selling & Administrative Expenses Nine Months Ended In Thousands October 28, 2023 October 29, 2022 Selling and administrativ e expenses, as reported $ 778,491 $ 756,318 Expenses related to new HQ building - (2,545) Total adjustments - (2,545) Adjusted selling and administrativ e e
Slide 28: Third Quarter FY24 Genesco Summary Results
Exhibit 00.0 THIRD QUARTER FY24 GENESCO Summary Results December 1, 2023