Genesco Inc. · NYSE:GCO
Genesco — Q3 FY2019 Earnings Presentation
21 slides from Genesco's earnings presentation, Dec 6, 2018
Slide 1: Genesco FY19 Third Quarter
GENESCO yess shun J Lids sports Group re JOHNSTON & MURPHY. FY19 Third Quarter
Slide 2: FY19 Q3 Earnings Summary Results and Guidance
Genesco Inc. FY19 Q3 Earnings Summary Results and Guidance December 6, 2018
Slide 3: Safe Harbor Statement
Safe Harbor Statement Thispresentationcontainsforward-lookingstatements,includingthoseregardingtheperformanceoutlookfortheCompanyanditsindividualbusinesses(including,without limitation,sales,expenses,marginsandearnings)andallotherstatementsnotaddressingsolelyhistoricalfactsorpresentconditions.Actual
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures TheCompanyreportsconsolidatedfinancialresultsinaccordancewithgenerally acceptedaccountingprinciples(“GAAP”).However,tosupplementtheseconsolidated financialresultstheCompany’spresentationincludescertainnon-GAAPfinancial measuressuchasearningsandearningspershare.Thissupplem
Slide 5: Key Earnings Highlights Q3 FY19
Key Earnings Highlights Q3 FY19 Three Months Ended Three Months Ended November 3, 2018 October 28, 2017 GCO Net Sales Change (1)% 1% Comparable Sales 4% 1% Gross Margin % 49.5% 49.4% Selling and Admin. Expenses % 45.9% 45.0% Operating Income (Loss) % (1) GAAP 2.7% (21.3)% Non-GAAP 3.7% 4.4% Earnings
Slide 6: Key Earnings Highlights FY19 YTD
Key Earnings Highlights FY19 YTD Nine Months Ended Nine Months Ended November 3, 2018 October 28, 2017 GCO Net Sales Change 2% 0% Comparable Sales 2% 0% Gross Margin % 49.5% 49.5% Selling and Admin. Expenses % 48.1% 47.9% Operating Income (Loss) % (1) GAAP 0.9% (7.7)% Non-GAAP 1.4% 1.6% Earnings (Lo
Slide 7: Comparable Sales Q3 FY19
Comparable Sales Q3 FY19 Three Months Ended Nov. 3, Oct. 28, 2018 2017 Journeys Group 9% 4% Schuh Group (4)% 4% Lids Sports Group (2)% (6)% Johnston & Murphy Group 10% (1)% Total Comparable Sales 4% 1% Same Store Sales 4% (2)% Comparable Direct Sales 9% 24% 7
Slide 8: Sales by Segment Q3 FY19 and FY18
Sales by Segment Q3 FY19 and FY18 Net Sales $713.1 million Net Sales $716.8 million 3% FY19 FY18 4% Journeys Group 11% 10% Journeys Group Schuh Group Schuh Group 47% 49% Lids Sports Group Lids Sports Group 24% 25% Johnston & Murphy Johnston & Murphy Group Group Licensed Brands Licensed Brands 13% 14
Slide 9: Sales by Segment YTD FY19 and FY18
Sales by Segment YTD FY19 and FY18 Net Sales $2.012 billion Net Sales $1.977 billion 3% FY 19 FY 18 4% Journeys Group 11% 11% Journeys Group Schuh Group Schuh Group 44% 47% Lids Sports Group Lids Sports Group 25% 27% Johnston & Murphy Johnston & Murphy Group Group Licensed Brands Licensed Brands 14%
Slide 10: Adjusted Operating Income by Segment Q3 FY19
Adjusted Operating Income by Segment Q3 FY19 (1) $ in millions Three Months Ended Nov. 3, 2018 Three Months Ended Oct. 28, 2017 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 25.2 $ - $ 25.2 $ 24.3 $ - $ 24.3 Schuh Group 4.2 - 4.2 7.1 - 7.1 Lid
Slide 11: Adjusted Operating Income by Segment YTD FY19
Adjusted Operating Income by Segment YTD FY19 (1) $ in millions Nine Months Ended Nov. 3, 2018 Nine Months Ended Oct. 28, 2017 Oper Inc Adj Oper Oper Inc Adj Oper (Loss) Adjust Inc (Loss) (Loss) Adjust Inc (Loss) Journeys Group $ 46.5 $ - $ 46.5 $ 29.6 $ 0.3 $ 29.8 Schuh Group (0.4) - (0.4) 10.9 - 1
Slide 12: Inventory/Sales Change by Segment Q3 FY19
Inventory/Sales Change by Segment Q3 FY19 $ in millions Nov. 3, 2018 Q3 FY19 Segment Inventory/Sales Inventory Sales Journeys Group -5% 4% Schuh Group (1) -8% -4% Lids Sports Group -5% -4% Johnston & Murphy Group 7% 8% Licensed Brands -26% -28% Total $ 666 $ 713 % Change from prior year -5% -1% (1)
Slide 13: Retail Stores Summary Q3 FY19
Retail Stores Summary Q3 FY19 Aug. 4, Nov. 3, 2018 Open Close 2018 Journeys Group 1,215 8 4 1,219 Journeys stores (U.S.) 889 3 3 889 Journeys stores (Canada) 46 - - 46 Journeys Kidz stores 241 3 1 243 Little Burgundy 39 2 - 41 Schuh Group 135 - 1 134 Lids Sports Group 1,125 7 16 1,116 Lids hat store
Slide 14: Retail Square Footage Q3 FY19
Retail Square Footage Q3 FY19 Square feet in thousands Oct. 28, Net Nov. 3, Square Footage: 2017 Change 2018% Change Journeys Group 2,424 (25) 2,399 -1.0% Schuh Group 650 2 652 0.3% Lids Sports Group 1,392 (79) 1,313 -5.7% Johnston & Murphy Group 343 7 350 2.0% Total Square Footage 4,809 (95) 4,714
Slide 15: FY19 Outlook
FY19 Outlook(1) Note: See earnings call transcript for important details regarding changes in guidance assumptions Non-GAAP EPS $3.10 -$3.40 per share (1%) to +1% TotalSales (52 weeks TY vs. 53 LY) Comparable Sales +2 to +3% FY19 Note 13 weeks TY in Q4 vs. 14 weeks LY Gross Margin ~20 basis point im
Slide 16: FY19 Comparable Sales Guidance
FY19 Comparable Sales Guidance Actual Actual Actual GuidanceGuidance Q1 Q2 Q3 Q4 FY19 Journeys Group 6% 10% 9% 5 - 7% 7 - 8% Lids Sports Group (7)% (5)% (2)% (1) - 4% (4) - (2)% Schuh Group (13)% (7)% (4)% (9) - (7)% (8) - (7)% Johnston & Murphy Group 7% 8% 10% 4 - 5% 6 - 7% Total Genesco (1)% 3% 4%
Slide 17: FY19 Projected Retail Store Count
FY19 Projected Retail Store Count Actual Proj Proj Proj 2018 Open Close 2019 Journeys Group 1,220 25 30 1,215 Journeys stores (U.S.) 893 12 22 883 Journeys stores (Canada) 46 - - 46 Journeys Kidz stores 242 10 7 245 Little Burgundy 39 3 1 41 Schuh Group 134 6 4 136 Lids Sports Group 1,159 19 77 1,10
Slide 18: FY19 Projected Capital Spending
FY19 Projected Capital Spending Projected FY19 CapExapprox. $60 million 37% New Stores & Remodels Omni-channel, IT, 63% DC & Other 18
Slide 19: Appendix
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Slide 20: Non-GAAP Reconciliation – Q3 FY19
Non-GAAP Reconciliation –Q3 FY19 Three Months Ended November 3, 2018 October 28, 2017 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 $ 14,519 $ 0.74 $ (164,806) $ (8.55) Pretax ad
Slide 21: Non-GAAP Reconciliation – YTD FY19
Non-GAAP Reconciliation –YTD FY19 Nine Months Ended November 3, 2018 October 28, 2017 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 $ 12,378 $ 0.63 $ (167,684) $ (8.73) Pretax ad