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Oct 29, 2022

Genesco Q3 2023 Earnings Report

Reported a slight increase in net sales and mixed results in EPS compared to the previous year.

Key Takeaways

Genesco Inc. reported a 1% increase in net sales to $604 million compared to the previous year, with a GAAP EPS of $1.66 and non-GAAP EPS of $1.65. The company is taking a conservative approach for the fourth quarter with revised expectations for adjusted EPS of $5.50 to $5.90.

Net sales increased by 1% compared to last year, reaching $604 million.

Excluding the impact of lower exchange rates, net sales increased 4% compared to the previous year.

Comparable sales were up 3%, with gains in every business segment.

E-commerce sales represented 18% of retail sales, flat compared to last year but significantly higher than pre-pandemic levels.

Total Revenue
$604M
Previous year: $601M
+0.5%
EPS
$1.65
Previous year: $2.36
-30.1%
Gross Margin
48.7%
Previous year: 49.2%
-1.0%
Gross Profit
$294M
Previous year: $295M
-0.5%
Cash and Equivalents
$32.1M
Previous year: $283M
-88.6%
Free Cash Flow
-$30.6M
Previous year: $11.4M
-369.0%
Total Assets
$1.54B
Previous year: $1.62B
-4.9%

Genesco

Genesco

Genesco Revenue by Segment

Forward Guidance

The Company revises its Fiscal 2023 full year guidance with Sales are now expected to be down 1% to 2%, compared to Fiscal 2022 and Adjusted diluted earnings per share from continuing operations in the range of $5.50 to $5.90.

Positive Outlook

  • Sales are now expected to be down 1% to 2%, compared to Fiscal 2022, versus prior guidance of down 3% to flat.

Challenges Ahead

  • Adjusted diluted earnings per share from continuing operations in the range of $5.50 to $5.90, 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 $6.25 to $7.00.

Revenue & Expenses

Visualization of income flow from segment revenue to net income