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Jul 29, 2023

Genesco Q2 2024 Earnings Report

Genesco reported a challenging operating environment in the second quarter, with some improvement in Journeys business trend, Schuh and Johnston & Murphy outperforming, and progress on Journeys store closures and cost reductions.

Key Takeaways

Genesco Inc. reported a 2% decrease in net sales to $523 million compared to Q2FY23. Comparable sales were down 2%, with stores down 6% and direct up 14%. GAAP EPS from continuing operations was ($2.79) vs. $0.59 last year, and non-GAAP EPS from continuing operations was ($0.85) vs. $0.59 last year. The company repurchased $22.9 million of stock, representing 8% of outstanding shares.

Net sales decreased by 2% to $523 million compared to the previous year.

Comparable sales declined by 2%, with store sales down 6% but direct sales up 14%.

E-commerce sales accounted for 21% of retail sales, an increase from 18% in the previous year.

Gross margin improved by 20 basis points.

Total Revenue
$523M
Previous year: $535M
-2.3%
EPS
-$0.85
Previous year: $0.59
-244.1%
Gross Margin
47.7%
Previous year: 47.5%
+0.4%
Direct-to-consumer sales
21%
Previous year: 18%
+16.7%
Gross Profit
$250M
Previous year: $254M
-1.9%
Cash and Equivalents
$37.4M
Previous year: $44.9M
-16.7%
Free Cash Flow
$17.2M
Previous year: -$146M
-111.8%
Total Assets
$1.49B
Previous year: $1.5B
-0.3%

Genesco

Genesco

Genesco Revenue by Segment

Forward Guidance

The Company now expects sales to be down 2% to 4%, or down 3% to 5% excluding the 53rd week this year, compared to Fiscal 2023. Continues to expect adjusted diluted earnings per share from continuing operations in the range of $2.00 to $2.50, with an expectation that EPS will be near the mid-point of the range. Guidance assumes no further share repurchases and a tax rate of 24%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income