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Jul 30, 2022

Genesco Q2 2023 Earnings Report

Reported a decrease in revenue compared to the previous year, but exceeded pre-pandemic levels, with EPS surpassing expectations.

Key Takeaways

Genesco Inc. reported a decrease in net sales by 4% to $535 million compared to the previous year, but an increase of 10% over Q2FY20. GAAP EPS and non-GAAP EPS from continuing operations were both $0.59. The company has revised its full year guidance, expecting adjusted EPS to be between $6.25 and $7.00.

Net sales decreased 4% year-over-year to $535 million, but increased 10% over Q2FY20.

E-commerce sales represented 18% of retail sales, compared to 19% last year.

GAAP EPS from continuing operations was $0.59, down from $0.74 last year.

The company repurchased $45.4 million of stock during Q2FY23.

Total Revenue
$535M
Previous year: $555M
-3.6%
EPS
$0.59
Previous year: $1.05
-43.8%
Gross Margin
47.5%
Previous year: 49.1%
-3.3%
Direct-to-consumer sales
18%
Operating Margin
1.7%
Gross Profit
$254M
Previous year: $273M
-6.7%
Cash and Equivalents
$44.9M
Previous year: $304M
-85.2%
Free Cash Flow
-$146M
Previous year: $74.1M
-296.6%
Total Assets
$1.5B
Previous year: $1.66B
-9.6%

Genesco

Genesco

Genesco Revenue by Segment

Forward Guidance

The Company revises its Fiscal 2023 full year guidance: Sales are now expected to be down 3% to flat, compared to FY22, versus prior guidance of up 1% to 3%. Adjusted diluted earnings per share from continuing operations in the range of $6.25 to $7.00, with an expectation that adjusted diluted earnings per share for the year will be near the mid-point of the range, versus the prior expectation for adjusted diluted earnings per share to be near the mid-point of $7.00 to $7.75.

Revenue & Expenses

Visualization of income flow from segment revenue to net income