Genesco Inc. Reports Fiscal 2024 Third Quarter Results

NASHVILLE, Tenn- Genesco Inc. (NYSE: GCO) today reported third quarter results for the three months ended October 28, 2023.

Third Quarter Fiscal 2024 Financial Summary

Net sales of $579 million decreased 4% compared to Q3FY23

Comps down 4%, with stores down 7% and direct up 8%

E-commerce sales represented 21% of retail sales compared to 18% last year

GAAP EPS from continuing operations was $0.60 vs. $1.66 last year

Non-GAAP EPS from continuing operations was $0.571 vs. $1.65 last year

Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, 'Following a good Back-to-School season, demand in October softened in an ongoing challenging operating environment, along with a delayed start to the fall selling season. Disruptions related to implementation of a new ERP system for our branded businesses added to the pressure, all leading to results that were below our expectations. Despite these headwinds, we were pleased to see sales trends within our Journeys business continue to sequentially improve, and Schuh and Johnston & Murphy deliver record third-quarter sales. In the meantime, we continued to inject Journeys' product assortment with more of the newness and must-have items our customer desires, while also executing on our cost reduction and store closure plans.'

Vaughn continued, 'Fourth quarter-to-date, I'm pleased to say our total comps are currently running positive and we experienced a strong start to the holiday season. However, as consumer shopping behavior remains choppy, we plan to increase our promotional activity, especially at Journeys, for the remainder of the holiday season to be more competitive and drive sales in this environment. Our revised Fiscal 2024 outlook reflects this, partially offset by a somewhat more conservative view for our other businesses. Looking ahead, I have confidence that our strategic initiatives and specific efforts to elevate Journeys in the marketplace will help us continue to drive progress in the near term while positioning us even more strongly to create value for the longer term.'

1Excludes a charge for asset impairments, net of tax effect in the third quarter of Fiscal 2024 ('Excluded Items'). A reconciliation of earnings (loss) and earnings (loss) per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ('GAAP') with the adjusted earnings (loss) and earnings (loss) per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results.

Third Quarter Review

Net sales for the third quarter of Fiscal 2024 of $579 million decreased 4% compared to $604 million in the third quarter of Fiscal 2023. The sales decrease compared to last year was driven by decreased store sales in Journeys Group and decreased wholesale sales in Genesco Brands Group, partially offset by an 8% increase in e-commerce comparable sales and a favorable foreign exchange impact.

Genesco Financial Contacts

Thomas A. George

[phone]

[e-mail]

Darryl MacQuarrie

[phone]

[e-mail]

Genesco Media Contact

Claire S. McCall

[phone]

[e-mail]

(C) 2023 Electronic News Publishing, source ENP Newswire