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Apr 29, 2023

Genesco Q1 2024 Earnings Report

Genesco reported a challenging first quarter, with consumer demand at Journeys dropping significantly, offsetting record sales at Schuh and Johnston & Murphy. The company is taking actions to mitigate the consumer shift and revised its outlook for Fiscal 2024.

Key Takeaways

Genesco Inc. reported a 7% decrease in net sales to $483 million compared to Q1FY23. GAAP EPS was ($1.60) and non-GAAP EPS was ($1.59). The company is revising its outlook for the remainder of Fiscal 2024 due to ongoing uncertainty around near-term consumer behavior.

Net sales decreased 7% compared to Q1FY23, totaling $483 million.

Comparable sales were down 5%, with stores down 8% and direct sales up 7%.

E-commerce sales represented 21% of retail sales, compared to 19% last year.

GAAP EPS from continuing operations was ($1.60) vs. $0.37 last year, and Non-GAAP EPS from continuing operations was ($1.59) vs. $0.44 last year.

Total Revenue
$483M
Previous year: $521M
-7.2%
EPS
-$1.59
Previous year: $0.44
-461.4%
Gross Margin
47.3%
Previous year: 48.3%
-2.1%
Direct-to-consumer sales
21%
Previous year: 19%
+10.5%
Operating Margin
-4.8%
Gross Profit
$229M
Previous year: $251M
-9.0%
Cash and Equivalents
$31.8M
Previous year: $201M
-84.2%
Free Cash Flow
-$77.7M
Previous year: -$107M
-27.7%
Total Assets
$1.5B
Previous year: $1.55B
-3.4%

Genesco

Genesco

Genesco Revenue by Segment

Forward Guidance

For Fiscal 2024, the Company now expects sales to be down 4% to 5%, or down 5% to 6% excluding the 53rd week this year, compared to Fiscal 23. Adjusted diluted earnings per share from continuing operations are expected to be in the range of $2.00 to $2.50.

Positive Outlook

  • Guidance assumes no further share repurchases
  • Guidance assumes a tax rate of 25%

Challenges Ahead

  • Sales to be down 4% to 5%, or down 5% to 6% excluding the 53rd week this year, compared to Fiscal 23
  • Adjusted diluted earnings per share from continuing operations in the range of $2.00 to $2.50

Revenue & Expenses

Visualization of income flow from segment revenue to net income