Genesco (GCO) Tops Q4 EPS by 80c, Revenues Beat

Genesco (NYSE: GCO) reported Q4 EPS of $2.76, $0.80 better than the analyst estimate of $1.96. Revenue for the quarter came in at $637 million versus the consensus estimate of $617.55 million.

Fourth Quarter Fiscal 2021 Financial Summary

• Net sales decreased 6% from last year to $637 million with stores open about 90% of days
• Comparable sales increased 1%
• Highlighted by strong 55% e-commerce comp growth
• Journeys achieves record operating income
• Inventory down 20%
• GAAP EPS from continuing operations was $6.20
• Non-GAAP EPS from continuing operations was $2.761

Mimi E. Vaughn, Genesco board chair, president and chief executive officer, said, "We concluded an incredibly challenging year with a fourth quarter that exceeded our expectations across the board highlighted by strength at Journeys. Our improving performance throughout Fiscal 2021 under difficult circumstances reflects the strength of our retail concepts prior to COVID-19 and our success capitalizing on the opportunities that emerged during the pandemic to fortify the leadership positions of our teen and young adult footwear businesses. The numerous digital investments we've made over the past several years allowed us to take advantage of the accelerated shift to online spending to achieve record digital revenue of nearly $450 million, an increase of almost 75% year-over-year, while also fueling record profitability for this channel.

"While we expect the environment to remain fluid in the near-term, we are optimistic about our ability to solidify our recent digital gains and further expand our market share. The events of the past year have provided us the opportunity to transform our business at a faster pace. We believe this, along with a solid balance sheet, have put us in a strong position to emerge from the pandemic, invest for growth, and build great value for our shareholders."

Thomas A. George, Genesco interim chief financial officer, commented, "We were pleased with our fourth quarter performance, as all facets of operating results exceeded our internal expectations. Building upon our strong return to profitability in the third quarter, sequential improvements compared to the prior quarters in revenue, gross margin, and operating expenses, inclusive of rent abatements, drove operating income above last year's level. In terms of earnings, we far exceeded our initial expectations; however, a higher tax rate offset the higher operating income, resulting in adjusted EPS of $2.76 compared to $3.09 last year."

Fiscal 2022 Outlook

Due to the continued uncertainty in the overall economy driven by COVID-19, the Company is not providing guidance at this time.

For earnings history and earnings-related data on Genesco (GCO) click here.

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