Genesco Corrects Previously Announced Results and Reaffirms Earnings Guidance
The Company became aware of these timing issues after it released its results of operations for the third quarter. The Company began an inquiry into these timing issues upon receiving the response of an employee of its Johnston & Murphy division to the Company's annual requirement that employees certify compliance with written policies regarding ethical business conduct. The employee indicated that a number of wholesale shipments recorded as sales late in a fiscal quarter were actually shipped to customers early in the following quarter. The Company believes that the resulting violations of its corporate and accounting policies were caused by a small number of employees of its Johnston & Murphy division. The Company has implemented further measures designed to detect and prevent future similar violations.
Ben T. Harris, Chairman and Chief Executive Officer of Genesco, said, "We are dealing decisively with this situation and are confident that such conduct will not recur." Harris also reaffirmed the Company's most recent earnings guidance for fiscal 2002, stating, "While we are approaching the most important retailing weekend of the year, we have come through the holiday selling season thus far in line with our previously announced earnings expectations."
Genesco, based in Nashville, sells footwear and accessories in more than 875 retail stores in the U.S., principally under the names Journeys, Journeys Kidz, Johnston & Murphy, Jarman and Underground Station, and on internet websites www.journeys.com and www.johnstonmurphy.com. The Company also sells footwear at wholesale under its Johnston & Murphy brand and under the licensed Dockers brand.
Cautionary Note Regarding Forward-Looking Statements
This release and the attached appendix contain forward-looking statements (all statements other than those made solely with respect to historical fact) and other expressions of management's belief or opinion which reflect its current understanding or belief with respect to such matters. Actual results could differ materially and adversely from such statements due to known and unknown factors, including the results of the Company's ongoing internal inquiry, uncertainties associated with potential regulatory or other actions and the application of certain accounting principles, lower than expected consumer demand for the Company's products, which could be caused by further weakening in the overall economy or adverse consumer reaction to developments in the current anti-terrorist campaign or by changes in fashions or tastes that the Company fails to anticipate or respond appropriately to, as well as other factors detailed in the Company's filings with the Securities and Exchange Commission from time to time. Forward-looking statements reflect the expectations of the Company at the time they are made and investors should not place undue reliance on them. The Company undertakes no obligation to update any such forward-looking or other statement.
Fiscal 2002
As Reported Adjusted
Three Months Three Months
Ended Ended
May 5, Adjust- May 5,
2001 ments 2001
Net sales $ 171,918 $ 2,558 $ 174,476
Gross margin 82,097 832 82,929
Pretax earnings 13,350 652 14,002
Earnings before discontinued
operations 8,338 415 8,753
Net earnings 8,338 415 8,753
Diluted earnings per common share:
Before discontinued operations $ 0.34 $ 0.01 $ 0.35
Net earnings $ 0.34 $ 0.01 $ 0.35
Fiscal 2002
As Reported Adjusted
Three Months Three Months
Ended Ended
August 4, Adjust- August 4,
2001 ments 2001
Net sales $ 166,543 $ (1,214) $ 165,329
Gross margin 78,365 (364) 78,001
Pretax earnings 9,878 (340) 9,538
Earnings before discontinued
operations 6,183 (213) 5,970
Net earnings 6,183 (213) 5,970
Diluted earnings per common share:
Before discontinued operations $ 0.26 $ (0.01) $ 0.25
Net earnings $ 0.26 $ (0.01) $ 0.25
Fiscal 2002
As Reported* Adjusted
Three Months Three Months
Ended Ended
November 3, Adjust- November 3,
2001 ments 2001
Net sales $ 185,955 $ 1,314 $ 187,269
Gross margin 86,018 399 86,417
Pretax earnings 12,924 373 13,297
Earnings before discontinued
operations 8,026 233 8,259
Net earnings 7,318 233 7,551
Diluted earnings per common share:
Before discontinued operations $ 0.33 $ 0.01 $ 0.34
Net earnings $ 0.30 $ 0.01 $ 0.31
Fiscal 2002
As Reported* Adjusted
Nine Months Nine Months
Ended Ended
November 3, Adjust- November 3,
2001 ments 2001
Net sales $ 524,416 $ 2,658 $ 527,074
Gross margin 246,480 867 247,347
Pretax earnings 36,152 685 36,837
Earnings before discontinued
operations 22,547 435 22,982
Net earnings 21,839 435 22,274
Diluted earnings per common share:
Before discontinued operations $ 0.92 $ 0.02 $ 0.94
Net earnings $ 0.90 $ 0.01 $ 0.91
Genesco Inc.
Quarterly Financial Information (Unaudited)
In Thousands, except per share amounts
Fiscal 2001
As Reported Adjusted
Three Months Three Months
Ended Ended
April 29, Adjust- April 29,
2000 ments 2000
Net sales $ 146,644 $ (1,293) $ 145,351
Gross margin 68,306 (327) 67,979
Pretax earnings 10,190 (284) 9,906
Earnings before discontinued
operations 6,193 (173) 6,020
Net earnings 5,961 (173) 5,788
Diluted earnings per common share:
Before discontinued operations $ 0.26 $ 0.26
Net earnings $ 0.25 $ 0.25
Genesco Inc.
Quarterly Financial Information (Unaudited)
In Thousands, except per share amounts
Fiscal 2001
As Reported Adjusted
Three Months Three Months
Ended Ended
July 29, Adjust- July 29,
2000 ments 2000
Net sales $ 143,243 $ (1,461) $ 141,782
Gross margin 68,966 (664) 68,302
Pretax earnings 9,041 (638) 8,403
Earnings before discontinued
operations 5,531 (391) 5,140
Net earnings 2,562 (391) 2,171
Diluted earnings per common share:
Before discontinued operations $ 0.24 $ (0.02) $ 0.22
Net earnings $ 0.13 $ (0.02) $ 0.11
Genesco Inc.
Quarterly Financial Information (Unaudited)
In Thousands, except per share amounts
Fiscal 2001
As Reported Adjusted
Three Months Three Months
Ended Ended
October 28, Adjust- October 28,
2000 ments 2000
Net sales $ 176,086 $ 2,171 $ 178,257
Gross margin 82,662 751 83,413
Pretax earnings 14,340 694 15,034
Earnings before discontinued
operations 8,785 424 9,209
Net earnings 8,785 424 9,209
Diluted earnings per common share:
Before discontinued operations $ 0.36 $ 0.01 $ 0.37
Net earnings $ 0.36 $ 0.01 $ 0.37
Fiscal 2001
As Reported Adjusted
Three Months Three Months
Ended Ended
February 3, Adjust- February 3,
2001 ments 2001
Net sales $ 214,193 $ (2,258) $ 211,935
Gross margin 102,579 (687) 101,892
Pretax earnings 19,416 (513) 18,903
Earnings before discontinued
operations 12,322 (330) 11,992
Net earnings 12,290 (330) 11,960
Diluted earnings per common share:
Before discontinued operations $ 0.49 $ (0.01) $ 0.48
Net earnings $ 0.49 $ (0.02) $ 0.47
Fiscal 2001
As Reported Adjusted
Twelve Months Twelve Months
Ended Ended
February 3, Adjust- February 3,
2001 ments 2001
Net sales $ 680,166 $ (2,841) $ 677,325
Gross margin 322,513 (927) 321,586
Pretax earnings 52,987 (741) 52,246
Earnings before discontinued
operations 32,831 (470) 32,361
Net earnings 29,598 (470) 29,128
Diluted earnings per common share:
Before discontinued operations $ 1.35 $ (0.02) $ 1.33
Net earnings $ 1.23 $ (0.02) $ 1.21
*As reported in the Company's press release dated November 27, 2001
SOURCE Genesco Inc.
CONTACT: financial, James S. Gulmi, +1-615-367-8325, or media, Claire S.
McCall, +1-615-367-8283, both of Genesco Inc.
/Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/352750.html
URL: http://www.journeys.com
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