GCO Hits New High - Earnings Announced - Release Below:Genesco Reports 44% Increase in Third Quarter EPS From Continuing Operations on 26% Sales Growth
NASHVILLE, Tenn., Nov 16, 2000 /PRNewswire via COMTEX/ -- Genesco Inc. (NYSE: GCO chart, msgs) today reported earnings from continuing operations of $8.8 million, or $0.36 per diluted share, for the third quarter ended October 28, 2000, compared with $5.9 million, or $0.25 per diluted share, for the third quarter last year. Net sales for the quarter increased 26% to $175.6 million from $139.9 million in the third quarter a year ago.
Genesco Chairman and Chief Executive Officer Ben T. Harris said, "These strong results again confirm the power of our commitment to understand our customers' lifestyles and to provide the right shoes in the right shopping environments for those lifestyles.
"The Journeys division's net sales increased by 40% during the quarter, and same store sales rose 14% against a 19% comparison for the same period last year. Journeys' consistently strong performance, even in a challenging retail environment, is a testament to its ongoing popularity as the destination footwear store for teenagers. We opened 83 Journeys stores so far this year and anticipate opening another 17 in the fourth quarter, which will give us 424 Journeys stores by year end."
Harris continued, "Johnston & Murphy's 10% increase in net sales reflected growth in both wholesale operations and the Johnston & Murphy retail shops, which posted a 3% same store sales increase over last year's third quarter. We continue to have success extending the Johnston & Murphy brand to additional categories such as apparel and accessories, further strengthening its position as a lifestyle brand.
"In the Jarman division, net sales increased 32% and same store sales rose 9%. The division was led by a strong performance in the Underground Station stores, our latest lifestyle retail success story.
"The Licensed Brands segment's net sales grew by 22%, driven by an excellent quarter at Dockers Footwear. We believe that by understanding what its customer wants, Dockers provides appropriate style and superior value, gaining market share in return."
For the nine months ended October 28, 2000, earnings from continuing operations were $20.5 million, or $0.86 per diluted share, compared with $14.0 million, or $0.59 per diluted share last year. Net earnings of $17.3 million, or $0.74 per diluted share for the nine months this year, included net charges of $3.0 million, or $0.11 per diluted share, in connection with the discontinuation of the Company's leather business in the second quarter. Net sales for the nine months increased 21% to $464.4 million from $384.3 million for the same period a year ago.
During the first nine months of its fiscal year, the Company purchased 639,300 shares of its common stock at a cost of $8.7 million under a one million-share buyback authorized in February 2000.
The forward-looking statements in this release involve a number of risks and uncertainties. Actual results could be materially different. The factors that could cause materially different results include changes in consumer demand or tastes that affect sales at retail or wholesale, particularly with respect to fourth quarter prospects in case of unexpected demand weakness in the holiday shopping season, changes in buying patterns by significant wholesale customers, disruptions in product supply, changes in business strategies by the Company's competitors, the Company's ability to open, staff and support additional retail stores on schedule and at acceptable expense levels, and the outcome of litigation and environmental matters involving the Company. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such Company statements.
The Company's live conference call on November 16, 2000, at 10:30 a.m. (Central time) may be accessed through the Company's internet website, genesco.com , or through V-Call's website at vcall.com . The Company expects to discuss results from the third quarter and its current expectations for the fourth quarter and fiscal year ending February 3, 2001, during the call. To listen live, please go to either website at least 15 minutes early to register, download and install any necessary software. A replay will be available shortly after the call for 15 days.
Genesco, based in Nashville, sells footwear and accessories in 759 retail stores in the U.S., principally under the names Journeys, Johnston & Murphy, Jarman and Underground Station, and on internet websites journeys.com and johnstonmurphy.com . The Company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers and Nautica brands. Additional information on Genesco and its operating divisions may be accessed at its website genesco.com
GENESCO INC.
Consolidated Earnings Summary
Three Months Ended Nine Months Ended
October 28, October 30, October 28, October 30,
In Thousands 2000 1999 2000 1999
Net sales $ 175,593 $ 139,902 $ 464,350 $ 384,270
Cost of sales 93,425 75,143 246,041 206,229
Selling and
administrative
expenses 65,748 53,398 179,144 150,305
Earnings from
operations before
interest 16,420 11,361 39,165 27,736
Interest expense, net 2,080 1,654 5,594 4,450
Earnings before income
taxes and
discontinued
operations 14,340 9,707 33,571 23,286
Income tax expense 5,555 3,850 13,062 9,261
Earnings before
discontinued
operations 8,785 5,857 20,509 14,025
Discontinued operations
(net of tax):
Operating income (loss) -- 347 (226) 422
Provision for
discontinued operations -- -- (2,975) --
Net Earnings $ 8,785 $ 6,204 $ 17,308 $ 14,447
Earnings Per Share Information
In Thousands (except per share amounts)
Three Months Ended Nine Months Ended
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
Preferred dividend
requirements $ 75 $ 75 $ 225 $ 225
Average common
shares - Basic EPS 21,470 21,786 21,518 22,603
Basic earnings per share:
Before discontinued
operations $ 0.41 $ 0.27 $ 0.94 $ 0.61
Net earnings $ 0.41 $ 0.28 $ 0.79 $ 0.63
Average common and common
equivalent shares -
Diluted EPS 26,977 27,471 26,995 28,286
Diluted earnings per share:
Before discontinued
operations $ 0.36 $ 0.25 $ 0.86 $ 0.59
Net earnings $ 0.36 $ 0.26 $ 0.74 $ 0.60
GENESCO INC.
Consolidated Earnings Summary
Three Months Ended Nine Months Ended
October 28, October 30, October 28, October 30,
In Thousands 2000 1999 2000 1999
Sales:
Journeys $ 78,680 $ 56,068 $196,423 $140,455
Jarman 27,531 20,861 69,049 57,603
Johnston & Murphy 46,858 42,463 135,133 120,501
Licensed Brands 22,524 18,524 63,745 58,326
Ongoing Sales 175,593 137,916 464,350 376,885
Other Retail(A) -- 1,986 -- 7,385
Net Sales 175,593 139,902 464,350 384,270
Pretax Earnings (Loss):
Journeys $ 10,886 $ 7,903 $ 23,967 $ 17,479
Jarman 1,870 1,280 3,063 1,019
Johnston & Murphy 5,720 4,832 17,025 14,843
Licensed Brands 1,535 488 4,142 2,908
Corporate and Other (3,591) (2,948) (9,032) (8,268)
Other Retail -- (194) -- (245)
Operating income 16,420 11,361 39,165 27,736
Interest, net 2,080 1,654 5,594 4,450
Total Pretax Earnings 14,340 9,707 33,571 23,286
Income tax expense 5,555 3,850 13,062 9,261
Earnings before
discontinued
operations 8,785 5,857 20,509 14,025
Discontinued operations
(net of tax):
Operating income (loss) -- 347 (226) 422
Provision for
discontinued operations -- -- (2,975) --
Net Earnings $ 8,785 $ 6,204 $ 17,308 $ 14,447
(A) Includes Jarman Leased departments and General Shoe Warehouse. The
sale of the remaining Jarman Leased departments was completed in the
first quarter of Fiscal 2000 while all but 5 General Shoe Warehouse
outlets were closed in the fourth quarter of Fiscal 2000.
GENESCO INC.
Consolidated Balance Sheet
October 28, October 30,
In Thousands 2000 1999
Assets
Cash and short-term investments $ 16,060 $ 38,543
Accounts receivable 30,493 23,087
Inventories 154,102 126,282
Other current assets 24,802 16,759
Current assets of discontinued operations 3,834 6,414
Total current assets 229,291 211,085
Plant, equipment and capital leases 85,386 61,745
Other non-current assets 18,486 20,487
Non-current assets of discontinued operations 563 3,105
Total Assets $ 333,726 $ 296,422
Liabilities and Shareholders' Equity
Total current liabilities 96,544 75,900
Long-term debt and capital leases 103,526 103,532
Other long-term liabilities 10,852 12,956
Shareholders' equity 122,804 104,034
Total Liabilities and Shareholders' Equity $ 333,726 $ 296,422
GENESCO INC.
Ongoing Retail Units Operated - Nine Months Ended October 28, 2000
Balance Balance
1/29/00 Open Conversions Close 10/28/00
Journeys 323 83 1 0 407
Jarman 161 45 3 4 205
Johnston & Murphy 143 12 1 9 147
Shops 114 9 0 8 115
Factory Outlets 29 3 1 1 32
Total Ongoing Retail
Units 627 140 5 13 759
General Shoe
Warehouse 5 0 (5) 0 0
Total Retail Units 632 140 0 13 759
Retail Units Operated - Three Months Ended October 28, 2000
Balance Balance
7/29/00 Open Conversions Close 10/28/00
Journeys 377 30 0 0 407
Jarman 186 20 0 1 205
Johnston & Murphy 152 2 0 7 147
Shops 119 2 0 6 115
Factory Outlets 33 0 0 1 32
Total Retail Units 715 52 0 8 759
Ongoing Constant Store Sales
Three Months Ended Nine Months Ended
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
Journeys 14% 19% 14% 11%
Jarman 9% 11% 7% 6%
Johnston & Murphy 2% 3% 4% 4%
Shops 3% 3% 5% 5%
Factory Outlets 0% 1% 1% -1%
Total Ongoing Constant
Store Sales 10% 13% 10% 8%
Source: Genesco Inc.
Contact:
financial, James S. Gulmi, 615-367-8325, or media, Claire S.
McCall, 615-367-8283, both of Genesco Inc.
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 352750
URL: journeys.com
johnstonmurphy.com
genesco.com
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