World Footwear

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Flat net sales at Genesco

Mar 19, 2020 United States
Flat net sales at Genesco
In the last three months of the year, Genesco announced net sales of 678 million US dollars. The total for the complete year reached 2.2 billion US dollars
"Fiscal 2020, which marked our first year as a footwear focused company, was filled with many notable successes and important accomplishments. We delivered strong results, building on the turnaround in profitability that began in fiscal 2019.  This included positive consolidated comparable sales growth in every quarter, even as we faced more challenging comparisons, and positive store comps for the year. Positive comps combined with gross margin expansion, cost reduction efforts and share repurchase activity, helped fuel a 40% year-over-year increase in adjusted earnings per share. The first quarter has started slowly for our US footwear businesses which have experienced challenging traffic trends early in the new fiscal year due in part to unseasonably warm weather in many parts of the country. We have also seen store traffic affected in tourist destinations both in the U.K. and U.S. and in our airport locations due to the impact on travel from the Coronavirus. Despite these near-term headwinds, we are confident in the strategic course we have set for Genesco. With a very healthy balance sheet, we have the flexibility to invest for growth and new capabilities in our current businesses, pursue new growth opportunities and return cash to our shareholders", commented Mimi E. Vaughn, Genesco President and Chief Executive Officer".

Fourth Quarter Review

Net sales for the fourth quarter of fiscal 2020 were flat at 678 million US dollars compared to the fourth quarter of fiscal 2019. Excluding the impact of lower exchange rates this year, revenue was still flat for the quarter. Comparable sales increased by 1%, with stores down by 2% and direct up by 19%. Direct-to-consumer sales were 16.6% of total retail sales for the quarter, compared to 13.7% last year.

Full Year Review

Net sales for fiscal 2020 were flat at 2.2 billion US dollars compared to fiscal 2019. Excluding the impact of lower exchange rates this year, revenue increased by 1% for the year. Comparable sales increased by 3%, with stores up by 1% and direct up by 18%. Direct-to-consumer sales were 12.6% of total retail sales for the year compared to 10.8% last year.

Fiscal 2021 Outlook 

Total sales are estimated to increase 3% to 6% including sales from the recent Togast acquisition. Genesco expects comparable sales to be down 1% to up 2%, and adjusted diluted earnings per share from continuing operations to be in the range of 4.90 US dollars to 5.40 US dollars.

Image credits: Mika Baumeister on Unsplash

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