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Oct 28, 2023
Genesco Q3 2024 Earnings Report
Genesco's Q3 2024 performance was impacted by softened demand in October, ERP system implementation disruptions, and a delayed fall selling season, leading to results below expectations.
Key Takeaways
Genesco Inc. reported a 4% decrease in net sales to $579 million for the third quarter of fiscal 2024. GAAP EPS was $0.60, and non-GAAP EPS was $0.57. The company faced challenges including softened demand and ERP implementation disruptions, but saw sequential improvement in Journeys and record sales in Schuh and Johnston & Murphy.
Net sales decreased by 4% to $579 million compared to Q3FY23.
Comparable sales were down 4%, with store sales down 7% and direct sales up 8%.
E-commerce sales accounted for 21% of retail sales, up from 18% in the previous year.
GAAP EPS from continuing operations was $0.60, compared to $1.66 last year.
Genesco
Genesco
Genesco Revenue by Segment
Revenue by Segment
Journeys Group Revenue
CapyFin.comSchuh Group Revenue
CapyFin.comJohnston & Murphy Group Revenue
CapyFin.com Forward Guidance
Genesco expects sales to be down 1% to 2% and adjusted diluted earnings per share from continuing operations in the range of $1.50 to $2.00 for fiscal year 2024.
Positive Outlook
- Total comps are currently running positive.
- Experienced a strong start to the holiday season.
- Strategic initiatives and specific efforts to elevate Journeys in the marketplace.
- Cost reduction and store closure plans.
- Revised Fiscal 2024 outlook reflects a somewhat more conservative view for other businesses.
Challenges Ahead
- Consumer shopping behavior remains choppy.
- Plan to increase promotional activity, especially at Journeys, for the remainder of the holiday season to be more competitive and drive sales in this environment.
- Revised Fiscal 2024 outlook reflects increased promotional activity.
- Sales expected to be down 1% to 2%, or down 2% to 3% excluding the 53rd week this year, compared to Fiscal 2023
- Adjusted diluted earnings per share from continuing operations in the range of $1.50 to $2.00, with an expectation that EPS will be near the mid-point of the range
Revenue & Expenses
Visualization of income flow from segment revenue to net income