Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
May 04, 2019 | May 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GENESCO INC | |
Entity Central Index Key | 0000018498 | |
Document Type | 10-Q | |
Document Period End Date | May 4, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --02-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 16,534,398 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Current Assets: | |||
Cash and cash equivalents | $ 156,655 | $ 167,355 | $ 30,880 |
Accounts receivable, net of allowances of $2,874 at May 4, 2019, $2,894 at Feb. 2, 2019 and $5,584 at May 5, 2018 | 33,275 | 132,390 | 42,158 |
Inventories | 367,998 | 366,667 | 383,115 |
Prepaids and other current assets | 43,116 | 64,634 | 57,198 |
Current assets - discontinued operations | 0 | 0 | 193,145 |
Total current assets | 601,044 | 731,046 | 706,496 |
Property and equipment: | |||
Land | 7,970 | 7,953 | 7,937 |
Buildings and building equipment | 82,717 | 82,621 | 81,416 |
Computer hardware, software and equipment | 138,574 | 138,147 | 126,673 |
Furniture and fixtures | 129,232 | 129,625 | 127,351 |
Construction in progress | 9,015 | 5,920 | 22,012 |
Improvements to leased property | 340,824 | 341,134 | 337,617 |
Property and equipment, at cost | 708,332 | 705,400 | 703,006 |
Accumulated depreciation | (437,012) | (428,025) | (406,910) |
Property and equipment, net | 271,320 | 277,375 | 296,096 |
Operating lease right of use asset | 769,922 | ||
Goodwill | 93,455 | 93,081 | 96,086 |
Trademarks, net of accumulated amortization of zero at May 4, 2019, Feb 2, 2019 and May 5, 2018 | 30,855 | 30,904 | 31,811 |
Other intangibles, net of accumulated amortization of $1,790 at May 4, 2019, $4,680 at Feb. 2 2019 and $4,586 at May 5, 2018 | 313 | 943 | 1,205 |
Deferred income taxes | 24,043 | 21,335 | 24,842 |
Other noncurrent assets | 25,121 | 26,397 | 24,756 |
Non-current assets - discontinued operations | 0 | 0 | 136,133 |
Total Assets | 1,816,073 | 1,181,081 | 1,317,425 |
Current Liabilities: | |||
Accounts payable | 121,655 | 158,603 | 106,732 |
Accrued employee compensation | 31,701 | 43,246 | 21,077 |
Accrued other taxes | 12,881 | 17,389 | 14,008 |
Accrued income taxes | 71 | 2,133 | 67 |
Current portion – long-term debt | 13,914 | 8,992 | 1,690 |
Current portion - operating lease liability | 138,758 | ||
Other accrued liabilities | 44,400 | 45,313 | 36,542 |
Provision for discontinued operations | 484 | 553 | 1,804 |
Current liabilities - discontinued operations | 0 | 0 | 59,083 |
Total current liabilities | 363,864 | 276,229 | 241,003 |
Long-term debt | 59,762 | 56,751 | 103,994 |
Long-term operating lease liability | 690,432 | ||
Other long-term liabilities | 37,178 | 108,704 | 117,080 |
Provision for discontinued operations | 1,911 | 1,846 | 1,707 |
Non-current liabilities - discontinued operations | 0 | 0 | 24,802 |
Total liabilities | 1,153,147 | 443,530 | 488,586 |
Commitments and contingent liabilities | |||
Equity: | |||
Non-redeemable preferred stock | 1,012 | 1,060 | 1,040 |
Common equity: | |||
Common stock, $1 par value: Authorized: 80,000,000 shares Issued/Outstanding: May 4, 2019 – 17,752,527/17,264,063, February 2, 2019 – 19,591,048/19,102,584, May 5, 2018 – 20,404,230/19,915,766 | 17,753 | 19,591 | 20,404 |
Additional paid-in capital | 266,455 | 264,138 | 254,230 |
Retained earnings | 432,531 | 508,555 | 605,984 |
Accumulated other comprehensive loss | (36,968) | (37,936) | (36,890) |
Treasury shares, at cost (488,464 shares) | (17,857) | (17,857) | (17,857) |
Total Genesco equity | 662,926 | 737,551 | 826,911 |
Noncontrolling interest – non-redeemable | 0 | 0 | 1,928 |
Total equity | 662,926 | 737,551 | 828,839 |
Total Liabilities and Equity | $ 1,816,073 | $ 1,181,081 | $ 1,317,425 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Current assets: | |||
Allowances on accounts receivable | $ 2,874 | $ 2,894 | $ 5,584 |
Accumulated amortization on trademarks | 0 | 0 | 0 |
Accumulated amortization on other intangibles | $ 1,790 | $ 4,680 | $ 4,586 |
Common Shareholders Equity | |||
Common stock par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common stock authorized (in shares) | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock issued (in shares) | 17,752,527 | 19,591,048 | 20,404,230 |
Common stock outstanding (in shares) | 17,264,063 | 19,102,584 | 19,915,766 |
Treasury shares, at cost (in shares) | 488,464 | 488,464 | 488,464 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 495,651 | $ 486,219 |
Cost of sales | 250,743 | 248,213 |
Selling and administrative expenses | 236,555 | 233,176 |
Asset impairments and other, net | (731) | 1,118 |
Operating income | 9,084 | 3,712 |
Other components net periodic benefit cost | (86) | (8) |
Interest expense, net: | ||
Interest expense | 848 | 1,047 |
Interest income | (1,014) | (19) |
Total interest expense, net | (166) | 1,028 |
Earnings from continuing operations before income taxes | 9,336 | 2,692 |
Income tax expense | 2,866 | 836 |
Earnings from continuing operations | 6,470 | 1,856 |
Loss from discontinued operations, net of tax | (124) | (4,187) |
Net Earnings (Loss) | $ 6,346 | $ (2,331) |
Basic earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 0.37 | $ 0.10 |
Discontinued operations (in dollars per share) | (0.01) | (0.22) |
Net earnings (loss) (in dollars per share) | 0.36 | (0.12) |
Diluted earnings (loss) per common share: | ||
Continuing operations (in dollars per share) | 0.36 | 0.10 |
Discontinued operations (in dollars per share) | 0 | (0.22) |
Net earnings (loss) (in dollars per share) | $ 0.36 | $ (0.12) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 6,346 | $ (2,331) |
Other comprehensive income (loss): | ||
Pension liability adjustments, net of tax of $0.0 million for each of the three months ended May 4, 2019 and May 5, 2018 | 55 | 140 |
Postretirement liability adjustments, net of tax of $0.1 million and $0.0 million for the three months ended May 4, 2019 and May 5, 2018, respectively | (167) | 26 |
Foreign currency translation adjustments | 1,080 | (7,864) |
Total other comprehensive income (loss) | 968 | (7,698) |
Comprehensive income (loss) | $ 7,314 | $ (10,029) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Other comprehensive income (loss): | ||
Pension liability adjustments, tax | $ 0 | $ 0 |
Postretirement liability adjustments, tax | $ 0.1 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net earnings (loss) | $ 6,346 | $ (2,331) | ||
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities | ||||
Depreciation and amortization | 12,803 | 19,693 | ||
Amortization of deferred note expense and debt discount | 109 | 153 | ||
Deferred income taxes | (2,026) | (1,546) | ||
Provision on accounts receivable | 61 | 17 | ||
Gain on sale of business | 86 | 0 | ||
Impairment of long-lived assets | 307 | 1,274 | ||
Restricted stock expense | 2,239 | 3,354 | ||
Provision for discontinued operations | 88 | 31 | ||
Other | 466 | 612 | ||
Effect on cash from changes in working capital and other assets and liabilities, net of acquisitions: | ||||
Accounts receivable | (3,699) | (9,395) | ||
Inventories | (1,607) | (15,263) | ||
Prepaids and other current assets | 4,156 | (2,708) | ||
Accounts payable | (32,805) | 14,249 | ||
Other accrued liabilities | (22,288) | (8,172) | ||
Other assets and liabilities | 1,028 | 838 | ||
Net cash provided by (used in) operating activities | (34,736) | 806 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Capital expenditures | (6,741) | (19,533) | ||
Other investing activities | 0 | 633 | ||
Proceeds from sale of business and asset sales | 105,878 | 56 | ||
Net cash provided by (used in) investing activities | 99,137 | (18,844) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Payments of long-term debt | (407) | (430) | ||
Borrowings under revolving credit facility | 28,357 | 119,217 | ||
Payments on revolving credit facility | (19,119) | (98,367) | ||
Share repurchases related to share repurchase program | (80,064) | 0 | ||
Change in overdraft balances | (4,038) | (7,522) | ||
Additions to deferred note cost | 0 | (330) | ||
Other | 0 | (3,165) | ||
Net cash provided by (used in) financing activities | (75,271) | 9,403 | ||
Effect of foreign exchange rate fluctuations on cash | 170 | (422) | ||
Net Decrease in Cash and Cash Equivalents | (10,700) | (9,057) | ||
Cash and cash equivalents at beginning of period(1) | [1] | 167,355 | 39,937 | $ 39,937 |
Cash and cash equivalents at end of period(1) | [1] | 156,655 | 30,880 | $ 167,355 |
Net cash paid for: | ||||
Interest | 691 | 619 | ||
Income taxes | $ 267 | $ 530 | ||
[1] | (1) The cash flows related to discontinued operations have been segregated and are included in the Condensed Consolidated Cash Flows for the three months ended May 5, 2018. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Non-Redeemable Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Shares | Non Controlling Interest Non-Redeemable |
Beginning Balance at Feb. 03, 2018 | $ 830,704 | $ 1,052 | $ 20,392 | $ 250,877 | $ 603,902 | $ (29,192) | $ (17,857) | $ 1,530 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | (2,331) | (2,331) | ||||||
Other comprehensive income (loss) | (7,698) | (7,698) | ||||||
Employee and non-employee restricted stock | 3,354 | 3,354 | ||||||
Restricted stock issuance | 0 | 14 | (14) | |||||
Other | (1) | (12) | (2) | 13 | ||||
Noncontrolling interest – earnings | 398 | 398 | ||||||
Ending Balance at May. 05, 2018 | 828,839 | 1,040 | 20,404 | 254,230 | 605,984 | (36,890) | (17,857) | 1,928 |
Beginning Balance at Feb. 02, 2019 | 737,551 | 1,060 | 19,591 | 264,138 | 508,555 | (37,936) | (17,857) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) | 6,346 | 6,346 | ||||||
Other comprehensive income (loss) | 968 | 968 | ||||||
Employee and non-employee restricted stock | 2,239 | 2,239 | ||||||
Shares repurchased | (79,971) | (1,809) | (78,162) | |||||
Other | 1 | (48) | (29) | 78 | ||||
Ending Balance at May. 04, 2019 | $ 662,926 | $ 1,012 | $ 17,753 | $ 266,455 | $ 432,531 | $ (36,968) | $ (17,857) | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending February 1, 2020 ("Fiscal 2020") and of the fiscal year ended February 2, 2019 ("Fiscal 2019"). The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") have been condensed or omitted. The Condensed Consolidated Balance Sheet as of February 2, 2019 has been derived from the audited financial statements at that date. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's Consolidated Financial Statements and notes thereto for Fiscal 2019, which are contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission ("SEC") on April 3, 2019. Nature of Operations Genesco Inc. and its subsidiaries (collectively, the "Company") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys, Journeys Kidz, Little Burgundy and Johnston & Murphy banners and under the Schuh banner in the United Kingdom, the Republic of Ireland and Germany; through catalogs and e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, littleburgundyshoes.com, johnstonmurphy.com, johnstonmurphy.ca and trask.com, and at wholesale, primarily under the Company's Johnston & Murphy brand, the Trask brand, the licensed Dockers brand and other brands that the Company licenses for footwear. At May 4, 2019, the Company operated 1,504 retail stores in the U.S., Puerto Rico, Canada, the United Kingdom, the Republic of Ireland and Germany. On February 2, 2019, the Company completed the sale of its Lids Sports Group business. As a result, the Company reported the operating results of this business in loss from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for the three months ended May 5, 2018. In addition, the related assets and liabilities as of May 5, 2018 have been reported as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets. The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows for the three months ended May 5, 2018. Unless otherwise noted, discussion within these notes to the condensed consolidated financial statements relates to continuing operations. See Note 3 for additional information related to discontinued operations. During the three months ended May 4, 2019 and May 5, 2018, the Company operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy ® and H.S. Trask ® brands; and (iv) Licensed Brands, comprised of Dockers ® Footwear, sourced and marketed under a license from Levi Strauss & Company; and other brands. Note 1 Summary of Significant Accounting Policies, Continued Principles of Consolidation All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. Revenue Recognition In accordance with ASC 606, revenue shall be recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods. The majority of the Company's sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product at the point of sale. Revenue from retail sales is recognized at the point of sale, is net of estimated returns, and excludes sales and value added taxes. Revenue from catalog and internet sales is recognized at estimated time of delivery to the customer, is net of estimated returns, and excludes sales and value added taxes. Wholesale revenue is recorded net of estimated returns and allowances for markdowns, damages and miscellaneous claims when the related goods have been shipped and legal title has passed to the customer. Actual amounts of markdowns have not differed materially from estimates. Shipping and handling costs charged to customers are included in net sales. The Company elected the practical expedient within ASC 606 related to taxes that are assessed by a governmental authority, which allows for the exclusion of sales and value added tax from transaction price. A provision for estimated returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Estimated returns are based on historical returns and claims. Actual returns and claims in any future period may differ from historical experience. Revenue from gift cards is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Condensed Consolidated Statements of Operations within net sales in proportion to the pattern of rights exercised by the customer in future periods. The Company performs an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. The Condensed Consolidated Balance Sheets include an accrued liability for gift cards of $4.3 million , $5.1 million and $4.2 million at May 4, 2019, February 2, 2019 and May 5, 2018, respectively. Gift card breakage recognized as revenue was $0.2 million and $0.1 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. During the three months ended May 4, 2019, the Company recognized $1.6 million of gift card redemptions and gift card breakage revenue that were included in the gift card liability as of February 2, 2019. Cash and Cash Equivalents The Company had total available cash and cash equivalents of $156.7 million , $167.4 million and $30.9 million as of May 4, 2019, February 2, 2019 and May 5, 2018, respectively, of which approximately $7.7 million , $20.8 million and $8.6 million was held by the Company's foreign subsidiaries as of May 4, 2019, February 2, 2019 and May 5, 2018, respectively. The Company's strategic plan does not require the repatriation of foreign cash in order to fund its operations in the Note 1 Summary of Significant Accounting Policies, Continued U.S., and it is the Company's current intention to indefinitely reinvest its foreign cash and cash equivalents outside of the U.S. If the Company were to repatriate foreign cash to the U.S., it would be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation. There were $133.2 million and $127.2 million in cash equivalents at May 4, 2019 and February 2, 2019, respectively, and no cash equivalents included in cash and cash equivalents at May 5, 2018. Cash equivalents are primarily institutional money market funds. The Company's cash equivalents at May 4, 2019 and February 2, 2019 were invested in institutional money market funds which invest exclusively in highly rated, short-term securities that are issued, guaranteed or collateralized by the U.S. government or by U.S. government agencies and instrumentalities. At May 4, 2019, substantially all of the Company’s domestic cash was invested in institutional money market funds. The majority of payments due from banks for domestic customer credit card transactions process within 24 - 48 hours and are accordingly classified as cash and cash equivalents in the Condensed Consolidated Balance Sheets. At May 4, 2019, February 2, 2019 and May 5, 2018, outstanding checks drawn on zero-balance accounts at certain domestic banks exceeded book cash balances at those banks by approximately $25.6 million , $29.6 million and $6.6 million , respectively. These amounts are included in accounts payable in the Condensed Consolidated Balance Sheets. Concentration of Credit Risk and Allowances on Accounts Receivable The Company’s footwear wholesale businesses sell primarily to department stores and independent retailers across the United States. Receivables arising from these sales are not collateralized. Customer credit risk is affected by conditions or occurrences within the economy and the retail industry as well as by customer specific factors. In the footwear wholesale businesses, one customer accounted for 19% , one customer accounted for 9% , one customer accounted for 8% and one customer accounted for 7% of the Company’s total trade receivables balance as of May 4, 2019. Asset Retirement Obligations The Condensed Consolidated Balance Sheets include asset retirement obligations related to leases of $11.0 million , $10.9 million and $10.9 million as of May 4, 2019, February 2, 2019 and May 5, 2018, respectively. Note 1 Summary of Significant Accounting Policies, Continued Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments at May 4, 2019 and February 2, 2019 are as follows: Fair Values In Thousands May 4, 2019 February 2, 2019 Carrying Amount Fair Value Carrying Amount Fair Value U.S. Credit Facility Borrowings $ 59,776 $ 60,693 $ 56,773 $ 56,861 UK Term Loans 8,631 8,694 8,970 9,063 UK Revolver Borrowings 5,269 5,309 — — Debt fair values were estimated using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 as defined in Note 5. Carrying amounts reported on the Condensed Consolidated Balance Sheets for cash, cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturity of these instruments. Selling and Administrative Expenses Selling and administrative expenses include all operating costs of the Company excluding (i) those related to the transportation of products from the supplier to the warehouse, (ii) for its retail operations, those related to the transportation of products from the warehouse to the store and from the warehouse to the customer and (iii) costs of its distribution facilities which are allocated to its retail operations. Wholesale costs of distribution are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations in the amount of $1.4 million and $1.5 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. Buying, Merchandising and Occupancy Costs The Company records buying, merchandising and occupancy costs in selling and administrative expense on the Condensed Consolidated Statements of Operations. Because the Company does not include these costs in cost of sales, the Company’s gross margin may not be comparable to other retailers that include these costs in the calculation of gross margin. Retail occupancy costs recorded in selling and administrative expense were $83.2 million and $84.5 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. Advertising Costs Advertising costs are predominantly expensed as incurred. Advertising costs were $13.7 million and $14.5 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. Note 1 Summary of Significant Accounting Policies, Continued Cooperative Advertising Cooperative advertising costs recognized in selling and administrative expenses on the Condensed Consolidated Statements of Operations were $0.7 million and $0.8 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. During the first three months of Fiscal 2020 and Fiscal 2019, the Company’s cooperative advertising reimbursements paid did not exceed the fair value of the benefits received under those agreements. Vendor Allowances Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $1.9 million and $1.7 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. During the first three months of Fiscal 2020 and Fiscal 2019, the Company’s cooperative advertising reimbursements received were not in excess of the costs incurred. Foreign Currency Translation The functional currency of the Company's foreign operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date. Income and expense accounts are translated at monthly average exchange rates. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss within shareholders' equity. Gains and losses from certain foreign currency transactions are reported as an item of income and resulted in a net loss of $0.3 million for each of the first quarters of Fiscal 2020 and Fiscal 2019. Other Comprehensive Income ASC 220 requires, among other things, the Company’s pension liability adjustment, postretirement liability adjustment and foreign currency translation adjustment to be included in other comprehensive income net of tax. Accumulated other comprehensive loss at May 4, 2019 consisted of $6.0 million of cumulative pension liability adjustments, net of tax, a cumulative post-retirement liability adjustment of $(1.7) million , net of tax, and a cumulative foreign currency translation adjustment of $32.7 million . Note 1 Summary of Significant Accounting Policies, Continued The following table summarizes the components of accumulated other comprehensive loss ("AOCI") for the three months ended May 4, 2019: In Thousands Foreign Currency Translation Unrecognized Pension Postretirement Benefit Costs Total Accumulated Other Comprehensive Income (Loss) Balance February 2, 2019 $(33,752) $(4,184) $(37,936) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment 1,439 — 1,439 Loss on intra-entity foreign currency transactions (long-term investment nature) (359 ) — (359 ) Amounts reclassified from AOCI: Amortization of net actuarial loss and prior service cost (1) — (151 ) (151 ) Income tax expense — (39 ) (39 ) Current period other comprehensive income (loss), net of tax 1,080 (112 ) 968 Balance May 4, 2019 $(32,672) $(4,296) $(36,968) ( 1) Amount is included in other components of net periodic benefit cost on the Condensed Consolidated Statements of Operations. Income Taxes The Company recorded an effective income tax rate of 30.7% and 31.1% in the first quarters of Fiscal 2020 and Fiscal 2019, respectively. The tax rate for the first quarter of Fiscal 2020 and 2019 each benefitted from the lower U.S. federal income tax rate following the passage of the Tax Cut and Jobs Act in December 2017, partially offset by the inability to recognize a tax benefit for certain foreign losses. New Accounting Pronouncements New Accounting Pronouncements Recently Adopted The Company adopted ASU 2016-02, " Leases (Topic 842)", ("ASC 842"), as of February 3, 2019, using the optional transition method provided by ASU 2018-11, "Leases (Topic 842): Targeted Improvements". The optional transition approach provides a method for recording existing leases at adoption by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to the modified or full retrospective transition methods that require restating prior comparative periods. Additionally, the Company elected the “package of practical expedients”, which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the practical expedient to not separate lease and non-lease components for its store and equipment leases. Note 1 Summary of Significant Accounting Policies, Continued Adoption of the new standard resulted in the recording of additional net operating lease right of use assets and operating lease liabilities of approximately $795.6 million and $855.3 million, respectively, as of February 3, 2019. The operating lease right of use asset is inclusive of the impairments recorded upon adoption for store operating lease right of use assets, which totaled $4.8 million and resulted in a decrease to retained earnings of $4.2 million, net of tax. Right of use assets are recorded based upon the present value of remaining operating lease liabilities adjusted for deferred rent, including tenant allowances from landlords. The standard did not materially impact net earnings or liquidity. The standard did not have an impact on debt covenant compliance under the Company’s current debt agreements. Financial results for reporting periods beginning after February 3, 2019 are presented in accordance with ASC 842, while prior periods will continue to be reported in accordance with the Company’s historical accounting for leases under ASC Topic 840: "Leases (Topic 840)" and therefore have not been adjusted to conform to Topic 842. For additional information regarding leases, see Note 6. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for the Company in the first quarter of the year ending January 30, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, to improve the effectiveness of disclosures in the notes to financial statements for employers that sponsor defined benefit pension plans. ASU 2018-14 is effective for financial statements issued for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the impact of this update on its notes to its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15. The standard requires that issuers follow the internal-use software guidance in ASC 350-40 to determine which costs to capitalize as assets or expense as incurred. The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2018-15. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
May 04, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment were as follows: In Thousands Schuh Group Journeys Group Total Goodwill Balance, February 2, 2019 $ 83,243 $ 9,838 $ 93,081 Effect of foreign currency exchange rates 615 (241 ) 374 Balance, May 4, 2019 $ 83,858 $ 9,597 $ 93,455 As required under ASC 350, the Company annually assesses its goodwill and indefinite lived trade names for impairment and on an interim basis if indicators of impairment are present. The Company’s annual assessment date of goodwill and indefinite lived trade names is the first day of the fourth quarter. During the fourth quarter of Fiscal 2019, because the Schuh Group business has continued to perform below the Company's projected operating results, the Company performed impairment testing as of February 2, 2019. The Company found that the result of the impairment test, which valued the business at approximately $10.8 million in excess of its carrying value, indicated no impairment at that time. The Company may determine in connection with future impairment tests that some or all of the carrying value of the goodwill may be impaired. Such a finding would require a write-off of the amount of the carrying value that is impaired, which would reduce the Company's profitability in the period of the impairment charge. Holding all other assumptions constant as of the measurement date, the Company noted that an increase in the weighted average cost of capital of 100 basis points would reduce the fair value of the Schuh Group business by $11.4 million . Furthermore, the Company noted that a decrease in projected annual revenue growth by one percent would reduce the fair value of the Schuh Group business by $7.4 million . However, if other assumptions do not remain constant, the fair value of the Schuh Group business may decrease by a greater amount. There were no impairment indicators for the three months ended May 4, 2019. Other Intangible Assets Other intangibles by major classes were as follows: Leases (1) Customer Lists Other (2) Total In Thousands May 4, Feb 2, May 4, Feb 2, May 4, Feb 2, May 4, Feb 2, Gross other intangibles $ — $ 3,532 $ 1,457 $ 1,450 $ 646 $ 641 $ 2,103 $ 5,623 Accumulated amortization — (2,916 ) (1,457 ) (1,450 ) (333 ) (314 ) (1,790 ) (4,680 ) Net Other Intangibles $ — $ 616 $ — $ — $ 313 $ 327 $ 313 $ 943 (1) Intangible lease assets now recorded as part of operating lease right of use asset under ASC 842. (2) Includes vendor contract. Note 2 Goodwill and Other Intangible Assets, Continued The amortization of intangibles was less than $0.1 million for each of the first quarters of Fiscal 2020 and 2019. The amortization of intangibles will be less than $0.1 million per year for the next five years. |
Asset Impairments and Other Cha
Asset Impairments and Other Charges and Discontinued Operations | 3 Months Ended |
May 04, 2019 | |
Asset Impairments and Other Charges and Discontinued Operations [Abstract] | |
Asset Impairments and Other Charges and Discontinued Operations | Asset Impairments and Other Charges and Discontinued Operations Asset Impairments and Other Charges In accordance with Company policy, assets are determined to be impaired when the revised estimated future cash flows are insufficient to recover the carrying costs. Impairment charges represent the excess of the carrying value over the fair value of those assets. Asset impairment charges are reflected as a reduction of the net carrying value of property and equipment in the accompanying Condensed Consolidated Balance Sheets, and in asset impairments and other, net in the accompanying Condensed Consolidated Statements of Operations. The Company recorded a pretax gain of $(0.7) million in the first quarter of Fiscal 2020, including a $(1.0) million gain for lease terminations, partially offset by a $0.3 million charge for retail store asset impairments. The Company recorded pretax charges of $1.1 million in the first quarter of Fiscal 2019, including $1.0 million for retail store asset impairments and $0.2 million for legal and other matters, partially offset by a gain of $(0.1) million related to Hurricane Maria. Discontinued Operations On December 14, 2018, the Company entered into a definitive agreement for the sale of Lids Sports Group to FanzzLids Holdings, LLC (the "Purchaser"), a holding company controlled and operated by affiliates of Ames Watson Capital, LLC. The sale was completed on February 2, 2019 for $93.8 million cash which consisted of a sale price of $100.0 million and working capital adjustments of $6.2 million. Because the effective date of closing was a Saturday and the cash proceeds were not received by the Company until February 4, 2019, the purchase price is reflected in accounts receivable at February 2, 2019. As a result of the sale, the Company met the requirements of ASC 360 to report the results of Lids Sports Group as discontinued operations. The Company has presented operating results of Lids Sports Group in loss from discontinued operations, net on the Condensed Consolidated Statements of Operations for the three months ended May 5, 2018. Certain corporate overhead costs and other allocated costs previously allocated to the Lids Sports Group business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations whereas bank fees and certain legal fees related to the Lids Sports Group business segment previously excluded from segment earnings were reclassified to discontinued operations. The costs of the Lids Sports Group headquarters building, which was not included in the sale, was reclassified to corporate and other in segment earnings. The related assets and liabilities of Lids Sports Group are presented as current and non-current assets and liabilities of discontinued Note 3 Asset Impairments and Other Charges and Discontinued Operations, Continued operations in the Condensed Consolidated Balance Sheets as of May 5, 2018. The Company will provide various transition services to the Purchaser for a period of up to six months under a separate agreement after the closing. As part of the Lids Sports Group sale transaction, the Purchaser has agreed to indemnify and hold the Company harmless in connection with continuing obligations and any guarantees of the Company in place as of February 2, 2019 in respect of post-closing or assumed liabilities or obligations of the Lids Sports Group business. The Purchaser has agreed to use commercially reasonable efforts to have any guarantees by, or continuing obligations of, the Company released. However, absent a release of the Company by the counterparty, the Company is contingently liable in the event of a breach by the Purchaser of any such obligation to a third-party. The foregoing guarantees of the Company include 68 of Lids Sports Group leases with lease expirations through October of 2027 and estimated maximum future payments totaling $27.8 million as of May 4, 2019. The Company does not believe the fair value of the guarantees is material to the Company's Condensed Consolidated Financial Statements. The Purchaser has also agreed to assume the defense of and indemnify the Company in the Shumate v. Genesco Inc., et al., Ward v. Hat World, Inc., and Stewart vs. Hat World, Inc., et al. litigation matters previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended February 2, 2019. In the event that the Purchaser fails to satisfy its defense and indemnification obligations, the Company could be liable for any of the liabilities or obligations ultimately determined to be due in connection with these matters. Components of amounts reflected in loss from discontinued operations, net of tax on the Condensed Consolidated Statements of Operations for the three months ended May 5, 2018 are as follows: Three Months Ended In Thousands May 5, 2018 Net sales $158,740 Cost of sales 74,918 Selling and administrative expenses 88,948 Asset impairments and other, net 434 Other components of net periodic benefit cost (28 ) Provision for discontinued operations (1) (31 ) Loss from discontinued operations before taxes (5,619 ) Income tax benefit (1,432 ) Loss from discontinued operations, net of tax $(4,187) (1) Expenses primarily for anticipated costs of environmental remedial alternatives related to former facilities operated by the Company (see additional disclosures below and in Note 9). Note 3 Asset Impairments and Other Charges and Discontinued Operations, Continued During the fourth quarter of Fiscal 2019, the Company recorded a loss on the sale of Lids Sports Group of $98.3 million , net of tax, on the sale of these assets, representing the sales price less the value of the Lids Sports Group assets sold and other miscellaneous charges, including divestiture transaction costs, offset by a tax benefit on the loss. Included in the loss on the sale is a $48.7 million write-off of trademarks. The tax benefit associated with discontinued operations differs from the effective rate due to the mix of earnings and loss in the various jurisdictions, the impact of permanent items and other factors. Assets and liabilities of discontinued operations presented in the Condensed Consolidated Balance Sheets at May 5, 2018 are included in the following table. In Thousands May 5, 2018 Assets Accounts Receivable $ 9,263 Inventories 169,360 Prepaids and other current assets 14,522 Current assets - discontinued operations $ 193,145 Property and equipment, net $ 81,267 Trademarks 54,492 Other intangibles 374 Non-Current assets - discontinued operations $ 136,133 Liabilities Accounts payable $ 39,643 Accrued employee compensation 2,480 Other accrued liabilities 16,960 Current liabilities - discontinued operations $ 59,083 Other long-term liabilities $ 24,802 Non-Current liabilities - discontinued operations $ 24,802 The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows. The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for the three months ended May 5, 2018: Three Months Ended In Thousands May 5, 2018 Depreciation and amortization $6,444 Capital expenditures 4,490 Impairment of long-lived assets 249 Note 3 Asset Impairments and Other Charges and Discontinued Operations, Continued Discontinued Operations related to Environmental Matters Accrued Provision for Discontinued Operations In Thousands Facility Shutdown Costs Balance February 3, 2018 $ 3,609 Additional provision Fiscal 2019 743 Charges and adjustments, net (1,953 ) Balance February 2, 2019 2,399 Additional provision Fiscal 2020 88 Charges and adjustments, net (92 ) Balance May 4, 2019 (1) 2,395 Current provision for discontinued operations 484 Total Noncurrent Provision for Discontinued Operations $ 1,911 (1) Includes a $1.8 million environmental provision, including $0.5 million in current provision for discontinued operations (see Note 9). |
Inventories
Inventories | 3 Months Ended |
May 04, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories In Thousands May 4, February 2, Wholesale finished goods $ 30,302 $ 45,679 Retail merchandise 337,696 320,988 Total Inventories $ 367,998 $ 366,667 |
Fair Value
Fair Value | 3 Months Ended |
May 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The Fair Value Measurements and Disclosures Topic of the Codification defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP and expands disclosures about fair value measurements. This topic defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table presents the Company's assets and liabilities measured at fair value on a nonrecurring basis as of May 4, 2019 aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Long-Lived Assets Held and Used Level 1 Level 2 Level 3 Total Losses Measured as of May 4, 2019 $ 906 $ — $ — $ 906 $ 307 In accordance with the Property, Plant and Equipment Topic of the Codification, the Company recorded $0.3 million of impairment charges as a result of the fair value measurement of its long-lived assets held and used during the three months ended May 4, 2019. These charges are reflected in asset impairments and other, net on the Condensed Consolidated Statements of Operations. The Company used a discounted cash flow model to estimate the fair value of these long-lived assets. Discount rate and growth rate assumptions are derived from current economic conditions, expectations of management and projected trends of current operating results. As a result, the Company has determined that the majority of the inputs used to value its long-lived assets held and used are unobservable inputs that fall within Level 3 of the fair value hierarchy. |
Leases
Leases | 3 Months Ended |
May 04, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases its office space and all of its retail store locations, transportation equipment and other equipment under various noncancelable operating leases. The leases have varying terms and expire at various dates through 2034. The store leases in the United States, Puerto Rico and Canada typically have initial terms of approximately 10 years . The store leases in the United Kingdom, the Republic of Ireland and Germany typically have initial terms of between 10 and 15 years . The Company's lease portfolio includes leases with fixed base rental payments and rental payments based on a percentage of retail sales over contractual amounts. Generally, most of the leases require the Company to pay taxes, insurance, maintenance costs and contingent rentals based on sales. The Company evaluates renewal options and break options at lease inception and on an ongoing basis, and includes renewal options and break options that it is reasonably certain to exercise in its expected lease terms for calculations of its right-of-use assets and liabilities. Approximately 2% of the Company’s leases contain renewal options. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Under ASC 842, for store and equipment leases beginning in Fiscal 2020 and later, the Company has elected to not separate fixed lease components and non-lease components. Accordingly, the Company includes fixed rental payments, common area maintenance costs, promotional advertising costs and other fixed costs in its measurement of lease liabilities for leases beginning in Fiscal 2020 and later. The Company's leases do not provide an implicit rate, so the incremental borrowing rate, based on the information available at commencement or modification date, is used in determining the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. For operating leases that commenced prior to the date of adoption of the new lease accounting guidance, the Company used the incremental borrowing rate that corresponded to the initial lease term as of the date of adoption. Net lease costs are included within selling and administrative expenses on the Condensed Consolidated Statements of Operations. The table below presents the components of lease cost for operating leases for the three months ended May 4, 2019. Three Months Ended In Thousands May 4, 2019 Operating lease cost $46,306 Variable lease cost 3,223 Less: Sublease income (128 ) Net Lease Cost $49,401 Note 6 Leases, Continued The following table reconciles the maturities of undiscounted cash flows to the Company's operating lease liabilities recorded on the Condensed Consolidated Balance Sheets at May 4, 2019: Fiscal Years In Thousands May 4, 2019 through February 1, 2020 $134,196 2021 170,158 2022 158,015 2023 139,865 2024 118,827 Thereafter 263,762 Total undiscounted future minimum lease payments 984,823 Less: Amounts representing interest (155,633) Total Present Value of Operating Lease Liabilities $829,190 The Company's weighted-average remaining lease term and weighted-average discount rate for operating leases as of May 4, 2019 are: May 4, 2019 Weighted-average remaining lease term (years) 6.5 Weighted - average discount rate 5.3% As of May 4, 2019, the Company's total present value of operating lease liabilities excludes $5.5 million for additional leases that have not yet commenced. These leases will commence between Fiscal 2020 and Fiscal 2021 with lease terms of 1 year to 11 years . Supplemental cash flow information and non-cash activity related to the Company's operating leases are as follows: Three Months Ended In Thousands May 4, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $45,877 Non-cash activity: Operating lease right-of-use assets obtained in exchange for operating lease liabilities $13,632 Note 6 Leases, Continued Prior Period Comparative Disclosures Under the optional transition method, for leases that existed prior to and at the adoption of the new standard, the Company continues to present comparative prior period lease amounts in accordance with ASC 840, "Leases " . As of February 2, 2019 future minimum rental commitments were: Fiscal Years In Thousands 2020 $183,432 2021 171,584 2022 159,155 2023 140,889 2024 119,023 Thereafter 323,638 Total Minimum Rental Commitments $1,097,721 For leases that contain predetermined fixed escalations of the minimum rentals, the related rental expense is recognized on a straight-line basis and the cumulative expense recognized on the straight-line basis in excess of the cumulative payments is included in other long-term liabilities on the Condensed Consolidated Balance Sheets for comparative periods. The Company occasionally receives reimbursements from landlords to be used towards construction of the store the Company intends to lease. Leasehold improvements are recorded at their gross costs including items reimbursed by landlords. The reimbursements are recorded as deferred rent and amortized as a reduction of rent expense over the initial lease term. Tenant allowances of $22.5 million and deferred rent of $48.6 million at February 2, 2019 and tenant allowances of $23.5 million and deferred rent of $45.9 million at May 5, 2018 are included in other long-term liabilities on the Condensed Consolidated Balance Sheets. |
Defined Benefit Pension Plans a
Defined Benefit Pension Plans and Other Benefit Plans | 3 Months Ended |
May 04, 2019 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans and Other Benefit Plans | Defined Benefit Pension Plans and Other Postretirement Benefit Plans The following table summarizes the components of net periodic benefit cost related to the Company's pension and postretirement health care and life insurance plans: Components of Net Periodic Benefit Cost Pension Benefits Other Benefits Three Months Ended Three Months Ended In Thousands May 4, 2019 May 5, 2018 May 4, 2019 May 5, 2018 Service cost $ 162 $ 113 $ 22 $ 155 Interest cost $ 758 $ 754 $ 38 $ 68 Expected return on plan assets (731 ) (1,051 ) — — Amortization: Prior service cost — — (230 ) — Amortization of losses 74 189 5 32 Total other components of net periodic benefit cost $ 101 $ (108 ) $ (187 ) $ 100 Net Periodic Benefit Cost $ 263 $ 5 $ (165 ) $ 255 The service cost component of net periodic benefit cost is recorded in selling and administrative expenses in the Condensed Consolidated Statements of Operations, while the other components are recorded in other components of net periodic benefit cost in the Condensed Consolidated Statements of Operations. There is no cash contribution required for the pension plan in calendar 2019. In March 2019, the Company's board of directors approved the termination of the pension plan effective June 30, 2019. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the Three Months Ended For the Three Months Ended May 4, 2019 May 5, 2018 (In thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Earnings from continuing operations $ 6,470 $ 1,856 Basic EPS from continuing operations Income available to common shareholders 6,470 17,645 $0.37 1,856 19,278 $0.10 Effect of Dilutive Securities from Dilutive share-based awards 171 140 Employees' preferred stock (1) 34 37 Diluted EPS from continuing operations Income available to common shareholders plus assumed conversions $ 6,470 17,850 $0.36 $ 1,856 19,455 $0.10 (1) The Company's Employees' Subordinated Convertible Preferred Stock is convertible one for one to the Company's common stock. Because no dividends are paid on this stock, these shares are assumed to be converted for all periods presented. |
Legal Proceedings and Other Mat
Legal Proceedings and Other Matters | 3 Months Ended |
May 04, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings and Other Matters | Legal Proceedings and Other Matters Environmental Matters New York State Environmental Matters In August 1997, the New York State Department of Environmental Conservation (“NYSDEC”) and the Company entered into a consent order whereby the Company assumed responsibility for conducting a remedial investigation and feasibility study and implementing an interim remedial measure with regard to the site of a knitting mill operated by a former subsidiary of the Company from 1965 to 1969. The United States Environmental Protection Agency (“EPA”), which assumed primary regulatory responsibility for the site from NYSDEC, issued a Record of Decision in September 2007. The Record of Decision specified a remedy of a combination of groundwater extraction and treatment and in-situ chemical oxidation. In September 2015, the EPA adopted an amendment to the Record of Decision eliminating the separate ground-water extraction and treatment systems and the use of in-situ oxidation from the remedy adopted in the Record of Decision. The amendment provides for the continued operation and maintenance of the existing wellhead treatment systems on wells operated by the Village of Garden City, New York (the "Village"). It also requires the Company to perform certain ongoing monitoring, operation and maintenance activities and to reimburse EPA's future oversight cost, involving future costs to the Company estimated to be between $1.7 million and $2.0 million , and to reimburse EPA for approximately $1.25 million of interim oversight costs. On August 15, 2016, the Court entered a Consent Judgment implementing the remedy provided for by the amendment. The Village additionally asserted that the Company is liable for the costs associated with enhanced treatment required by the impact of the groundwater plume from the site on two public water supply wells, including historical total costs ranging from approximately $1.8 million to in excess of $2.5 million , and future operation and maintenance costs which the Village estimated at $126,400 annually while the enhanced treatment continues. On December 14, 2007, the Village filed a complaint (the "Village Lawsuit") against the Company and the owner of the property under the Resource Conservation and Recovery Act (“RCRA”), the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) as well as a number of state law theories in the U.S. District Court for the Eastern District of New York, seeking an injunction requiring the defendants to remediate contamination from the site and to establish their liability for future costs that may be incurred in connection with it. In June 2016 the Company and the Village reached an agreement providing for the Village to continue to operate and maintain the well head treatment systems in accordance with the Record of Decision and to release its claims against the Company asserted in the Village Lawsuit in exchange for a lump-sum payment of $10.0 million by the Company. On August 25, 2016, the Village Lawsuit was dismissed with prejudice. The cost of the settlement with the Village and the estimated costs associated with the Company's compliance with the Consent Judgment were covered by the Company's existing provision for the site. The settlement with the Village did not have, and the Company expects that the Consent Judgment will not have, a material effect on its financial condition or results of operations. Note 9 Legal Proceedings and Other Matters, Continued In April 2015, the Company received from the EPA a Notice of Potential Liability and Demand for Costs (the "Notice") pursuant to CERCLA regarding the site in Gloversville, New York of a former leather tannery operated by the Company and by other, unrelated parties. The Notice demanded payment of approximately $2.2 million of response costs claimed by EPA to have been incurred to conduct assessments and removal activities at the site. In February 2017, the Company and EPA entered into a settlement agreement resolving EPA's claim for past response costs in exchange for a payment by the Company of $1.5 million which was paid in May 2017. The Company's environmental insurance carrier has reimbursed the Company for 75% of the settlement amount, subject to a $500,000 self-insured retention. The Company does not expect any additional cost related to the matter. Whitehall Environmental Matters The Company has performed sampling and analysis of soil, sediments, surface water, groundwater and waste management areas at the Company's former Volunteer Leather Company facility in Whitehall, Michigan. In October 2010, the Company and the Michigan Department of Natural Resources and Environment entered into a Consent Decree providing for implementation of a remedial Work Plan for the facility site designed to bring the site into compliance with applicable regulatory standards. The Work Plan's implementation is substantially complete and the Company expects, based on its present understanding of the condition of the site, that its future obligations with respect to the site will be limited to periodic monitoring and that future costs related to the site should not have a material effect on its financial condition or results of operations. Accrual for Environmental Contingencies Related to all outstanding environmental contingencies, the Company had accrued $1.8 million as of May 4, 2019, $1.8 million as of February 2, 2019 and $2.9 million as of May 5, 2018. All such provisions reflect the Company's estimates of the most likely cost (undiscounted, including both current and noncurrent portions) of resolving the contingencies, based on facts and circumstances as of the time they were made. There is no assurance that relevant facts and circumstances will not change, necessitating future changes to the provisions. Such contingent liabilities are included in the liability arising from provision for discontinued operations on the accompanying Condensed Consolidated Balance Sheets because they relate to former facilities operated by the Company. The Company has made pretax accruals for certain of these contingencies, including approximately $0.1 million and $0.0 million in the first quarters of Fiscal 2020 and Fiscal 2019, respectively. These charges are included in loss from discontinued operations, net in the Condensed Consolidated Statements of Operations and represent changes in estimates. Other Legal Matters On May 19, 2017, two former employees of the Company's former Hat World subsidiary filed a putative class and collective action, Chen and Salas v. Genesco Inc., et al. , in the U.S. District Court for the Northern District of Illinois alleging violations of the FLSA and certain Illinois and New York wages and hours laws, including, among others, failure to pay overtime to store managers, and also seeking back pay, damages, statutory penalties, and declaratory and injunctive relief. On March 8, 2018, the court granted the Company's motion to transfer venue to the U.S. District Court for the Southern District Note 9 Legal Proceedings and Other Matters, Continued of Indiana. On March 9, 2018, a former employee of the Company's former Hat World subsidiary filed a putative class action in the Superior Court of the Commonwealth of Massachusetts claiming violations of the Massachusetts Overtime Law, M.G.L.C. 151§1A, by failing to pay overtime to employees classified as store managers, and seeking restitution, an incentive award, treble damages, interest, attorneys' fees and costs. The Company has reached an agreement in principle to settle the Chen and Salas and Massachusetts matters for payment of attorneys' fees and administrative costs totaling $0.4 million plus total payments to members of the plaintiff class who opt to participate in the settlement of up to $0.8 million . The proposed settlement is subject to approval by the court. The Company does not expect that the proposed settlement will have a material adverse effect on its financial condition or results of operations. In addition to the matters specifically described in this Note, the Company is a party to other legal and regulatory proceedings and claims arising in the ordinary course of its business. While management does not believe that the Company's liability with respect to any of these other matters is likely to have a material effect on its financial statements, legal proceedings are subject to inherent uncertainties and unfavorable rulings could have a material adverse impact on the Company's financial statements. Other Matters Subsequent to February 2, 2019, the IRS notified the Company on Letter 226-J, that the Company may be liable for an Employer Shared Responsibility Payment (“ESRP”) in the amount of $12.3 million for the year ended December 31, 2016. The ESRP is applicable to employers that had 50 or more full-time equivalent employees, did not offer minimum essential coverage (“MEC”) to at least 95% of full-time employees (and their dependents) or did offer MEC to at least 95% of full time-employees (and their dependents), which did not meet the affordable or minimum value criteria and had one or more employees who claimed the Employee Premium Tax Credit (“PTC”) pursuant to the Affordable Care Act (the “ACA”). The IRS determines which employers receive Letter 226-J and the amount of the proposed ESRP from information that the employers complete on their information returns (IRS Forms 1094-C and 1095-C) and from the income tax returns of their employees. Since the inception of the ACA, it has been the Company’s policy to offer MEC to all full-time employees and their dependents. Based on its analysis, the Company responded to the IRS on May 1, 2019 asserting that it did offer MEC to at least 95% of its full-time employees for each month of 2016 and noting that the discrepancy was caused by errors in the electronic files uploaded through the ACA information return system. Accordingly, the Company currently does not believe the ESRP set forth in Letter 226-J is a probable liability, and no accrual has been recorded at May 4, 2019. |
Business Segment Information
Business Segment Information | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information During the three months ended May 4, 2019 and May 5, 2018, the Company operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy ® and H.S. Trask ® brands; and (iv) Licensed Brands, comprised of Dockers ® Footwear, sourced and marketed under a license from Levi Strauss & Company; and other brands. The Company completed the sale of Lids Sports Group on February 2, 2019. As a result of the sale, the Company met the requirements to report the results of Lids Sports Group as a discontinued operation. Certain corporate overhead costs and other allocated costs previously allocated to the Lids Sports Group business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations whereas bank fees and certain legal fees related to the Lids Sports Group business segment previously excluded from segment earnings were reclassified to discontinued operations. The costs of Lids Sports Group headquarters building, which was not included in the sale, was reclassified to corporate and other in segment earnings. As a result, the Company's segment information has been adjusted to exclude discontinued operations for the three months ended May 5, 2018. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1, under Item 8 in the Company's Annual Report on Form10-K for the fiscal year ended February 2, 2019). The Company's reportable segments are based on management's organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group and Schuh Group sell primarily branded products from other companies while Johnston & Murphy Group and Licensed Brands sell primarily the Company's owned and licensed brands. Corporate assets include cash, domestic prepaid rent expense, prepaid income taxes, pension asset, deferred income taxes, deferred note expense on revolver debt and corporate fixed assets, including the former Lids Sports Group headquarters building, and miscellaneous investments. The Company charges allocated retail costs of distribution to each segment. The Company does not allocate certain costs to each segment in order to make decisions and assess performance. These costs include corporate overhead, bank fees, interest expense, interest income, asset impairment charges and other, including major litigation and major lease terminations. Note 10 Business Segment Information, Continued Three Months Ended May 4, 2019 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated In Thousands Sales $ 323,972 $ 76,844 $ 74,734 $ 20,086 $ 18 $ 495,654 Intercompany sales — — — (3 ) — (3 ) Net sales to external customers $ 323,972 $ 76,844 $ 74,734 $ 20,083 $ 18 $ 495,651 Segment operating income (loss) $ 18,976 $ (5,428 ) $ 5,106 $ 429 $ (10,730 ) $ 8,353 Asset impairments and other (1) — — — — 731 731 Operating income (loss) 18,976 (5,428 ) 5,106 429 (9,999 ) 9,084 Other components of net periodic benefit cost — — — — 86 86 Interest expense — — — — (848 ) (848 ) Interest income — — — — 1,014 1,014 Earnings (loss) from continuing operations before income taxes $ 18,976 $ (5,428 ) $ 5,106 $ 429 $ (9,747 ) $ 9,336 Total assets (2) $ 934,349 $ 388,989 — $ 209,735 $ 20,918 $ 262,082 $ 1,816,073 Depreciation and amortization (3) 7,320 3,099 1,626 148 610 12,803 Capital expenditures 3,967 1,673 862 62 177 6,741 (1 ) Asset impairments and other includes a $(1.0) million gain for lease terminations in Schuh Group, partially offset by a $0.3 million charge for asset impairments in Schuh Group. (2) Total assets for the Schuh Group and Journeys Group include $83.9 million and $9.6 million of goodwill, respectively. Goodwill for the Schuh Group increased by $0.6 million and goodwill for Journeys Group decreased by $0.2 million from February 2, 2019, due to foreign currency translation adjustments. Of the Company's $271.3 million of property and equipment, $44.5 million and $12.0 million relate to property and equipment in the United Kingdom and Canada, respectively. (3) Includes $12.8 million in depreciation expense for the three months ended May 4, 2019. Note 10 Business Segment Information, Continued Three Months Ended May 5, 2018 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated In Thousands Sales $ 306,142 80,266 $ 75,684 $ 24,066 $ 62 $ 486,220 Intercompany sales — — — (1 ) — (1 ) Net sales to external customers $ 306,142 $ 80,266 $ 75,684 $ 24,065 $ 62 $ 486,219 Segment operating income (loss) $ 12,992 $ (5,640 ) $ 4,867 $ 276 $ (7,665 ) $ 4,830 Asset impairments and other (1) — — — — (1,118 ) (1,118 ) Operating income (loss) 12,992 (5,640 ) 4,867 276 (8,783 ) 3,712 Other components of net periodic benefit cost — — — — 8 8 Interest expense — — — — (1,047 ) (1,047 ) Interest income — — — — 19 19 Earnings (loss) from continuing operations before income taxes $ 12,992 $ (5,640 ) $ 4,867 $ 276 $ (9,803 ) $ 2,692 Total assets ongoing operations $ 446,001 243,921 $ 119,854 $ 29,520 $ 148,851 $ 988,147 Assets from discontinued operations 329,278 Total assets (2) $ 1,317,425 Depreciation and amortization (3) 6,795 3,927 1,568 155 804 13,249 Capital expenditures (4) 10,543 2,907 1,470 60 63 15,043 (1) Asset impairments and other includes a $1.0 million charge for asset impairments, which includes $0.2 million for Journeys Group and $0.8 million for Schuh Group, and a $0.2 million charge for legal and other matters, partially offset by a gain of $(0.1) million related to Hurricane Maria. (2) Total assets for the Schuh Group and Journeys Group include $86.1 million and $10.0 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased by $3.9 million and $0.4 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $296.1 million of property and equipment, $54.8 million and $14.3 million relate to property and equipment in the United Kingdom and Canada, respectively. (3) Includes $13.2 million in depreciation expense for the three months ended May 5, 2018. Excludes $6.4 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations. (4) Excludes $4.5 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending February 1, 2020 ("Fiscal 2020") and of the fiscal year ended February 2, 2019 ("Fiscal 2019"). The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") have been condensed or omitted. The Condensed Consolidated Balance Sheet as of February 2, 2019 has been derived from the audited financial statements at that date. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's Consolidated Financial Statements and notes thereto for Fiscal 2019, which are contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission ("SEC") on April 3, 2019. |
Nature of Operations | Nature of Operations Genesco Inc. and its subsidiaries (collectively, the "Company") business includes the sourcing and design, marketing and distribution of footwear and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys, Journeys Kidz, Little Burgundy and Johnston & Murphy banners and under the Schuh banner in the United Kingdom, the Republic of Ireland and Germany; through catalogs and e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, littleburgundyshoes.com, johnstonmurphy.com, johnstonmurphy.ca and trask.com, and at wholesale, primarily under the Company's Johnston & Murphy brand, the Trask brand, the licensed Dockers brand and other brands that the Company licenses for footwear. At May 4, 2019, the Company operated 1,504 retail stores in the U.S., Puerto Rico, Canada, the United Kingdom, the Republic of Ireland and Germany. On February 2, 2019, the Company completed the sale of its Lids Sports Group business. As a result, the Company reported the operating results of this business in loss from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations for the three months ended May 5, 2018. In addition, the related assets and liabilities as of May 5, 2018 have been reported as assets and liabilities of discontinued operations in the Condensed Consolidated Balance Sheets. The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows for the three months ended May 5, 2018. Unless otherwise noted, discussion within these notes to the condensed consolidated financial statements relates to continuing operations. See Note 3 for additional information related to discontinued operations. During the three months ended May 4, 2019 and May 5, 2018, the Company operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy ® and H.S. Trask ® brands; and (iv) Licensed Brands, comprised of Dockers ® Footwear, sourced and marketed under a license from Levi Strauss & Company; and other brands. |
Principles of Consolidation | Principles of Consolidation All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, revenue shall be recognized upon satisfaction of all contractual performance obligations and transfer of control to the customer. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for corresponding goods. The majority of the Company's sales are single performance obligation arrangements for retail sale transactions for which the transaction price is equivalent to the stated price of the product, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product at the point of sale. Revenue from retail sales is recognized at the point of sale, is net of estimated returns, and excludes sales and value added taxes. Revenue from catalog and internet sales is recognized at estimated time of delivery to the customer, is net of estimated returns, and excludes sales and value added taxes. Wholesale revenue is recorded net of estimated returns and allowances for markdowns, damages and miscellaneous claims when the related goods have been shipped and legal title has passed to the customer. Actual amounts of markdowns have not differed materially from estimates. Shipping and handling costs charged to customers are included in net sales. The Company elected the practical expedient within ASC 606 related to taxes that are assessed by a governmental authority, which allows for the exclusion of sales and value added tax from transaction price. A provision for estimated returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded. Estimated returns are based on historical returns and claims. Actual returns and claims in any future period may differ from historical experience. Revenue from gift cards is deferred and recognized upon the redemption of the cards. These cards have no expiration date. Income from unredeemed cards is recognized on the Condensed Consolidated Statements of Operations within net sales in proportion to the pattern of rights exercised by the customer in future periods. The Company performs an evaluation of historical redemption patterns from the date of original issuance to estimate future period redemption activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company had total available cash and cash equivalents of $156.7 million , $167.4 million and $30.9 million as of May 4, 2019, February 2, 2019 and May 5, 2018, respectively, of which approximately $7.7 million , $20.8 million and $8.6 million was held by the Company's foreign subsidiaries as of May 4, 2019, February 2, 2019 and May 5, 2018, respectively. The Company's strategic plan does not require the repatriation of foreign cash in order to fund its operations in the Note 1 Summary of Significant Accounting Policies, Continued U.S., and it is the Company's current intention to indefinitely reinvest its foreign cash and cash equivalents outside of the U.S. If the Company were to repatriate foreign cash to the U.S., it would be required to accrue and pay U.S. taxes in accordance with applicable U.S. tax rules and regulations as a result of the repatriation. There were $133.2 million and $127.2 million in cash equivalents at May 4, 2019 and February 2, 2019, respectively, and no cash equivalents included in cash and cash equivalents at May 5, 2018. Cash equivalents are primarily institutional money market funds. The Company's cash equivalents at May 4, 2019 and February 2, 2019 were invested in institutional money market funds which invest exclusively in highly rated, short-term securities that are issued, guaranteed or collateralized by the U.S. government or by U.S. government agencies and instrumentalities. At May 4, 2019, substantially all of the Company’s domestic cash was invested in institutional money market funds. The majority of payments due from banks for domestic customer credit card transactions process within 24 - 48 hours and are accordingly classified as cash and cash equivalents in the Condensed Consolidated Balance Sheets. |
Concentration of Credit Risk and Allowances on Accounts Receivable | Concentration of Credit Risk and Allowances on Accounts Receivable The Company’s footwear wholesale businesses sell primarily to department stores and independent retailers across the United States. Receivables arising from these sales are not collateralized. Customer credit risk is affected by conditions or occurrences within the economy and the retail industry as well as by customer specific factors. In the footwear wholesale businesses, one customer accounted for 19% , one customer accounted for 9% , one customer accounted for 8% and one customer accounted for 7% of the Company’s total trade receivables balance as of May 4, 2019. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts and fair values of the Company’s financial instruments at May 4, 2019 and February 2, 2019 are as follows: Fair Values In Thousands May 4, 2019 February 2, 2019 Carrying Amount Fair Value Carrying Amount Fair Value U.S. Credit Facility Borrowings $ 59,776 $ 60,693 $ 56,773 $ 56,861 UK Term Loans 8,631 8,694 8,970 9,063 UK Revolver Borrowings 5,269 5,309 — — Debt fair values were estimated using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 as defined in Note 5. Carrying amounts reported on the Condensed Consolidated Balance Sheets for cash, cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturity of these instruments. |
Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses include all operating costs of the Company excluding (i) those related to the transportation of products from the supplier to the warehouse, (ii) for its retail operations, those related to the transportation of products from the warehouse to the store and from the warehouse to the customer and (iii) costs of its distribution facilities which are allocated to its retail operations. Wholesale costs of distribution are included in selling and administrative expenses |
Buying, Merchandising and Occupancy Costs | Buying, Merchandising and Occupancy Costs The Company records buying, merchandising and occupancy costs in selling and administrative expense on the Condensed Consolidated Statements of Operations. Because the Company does not include these costs in cost of sales, the Company’s gross margin may not be comparable to other retailers that include these costs in the calculation of gross margin. |
Advertising Costs | Advertising Costs Advertising costs are predominantly expensed as incurred. Advertising costs were $13.7 million and $14.5 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. Note 1 Summary of Significant Accounting Policies, Continued Cooperative Advertising Cooperative advertising costs recognized in selling and administrative expenses on the Condensed Consolidated Statements of Operations were $0.7 million and $0.8 million for the first quarters of Fiscal 2020 and Fiscal 2019, respectively. During the first three months of Fiscal 2020 and Fiscal 2019, the Company’s cooperative advertising reimbursements paid did not exceed the fair value of the benefits received under those agreements. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company's foreign operations is the applicable local currency. The translation of the applicable foreign currency into U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date. Income and expense accounts are translated at monthly average exchange rates. The unearned gains and losses resulting from such translation are included as a separate component of accumulated other comprehensive loss within shareholders' equity. |
Other Comprehensive Income | Other Comprehensive Income ASC 220 requires, among other things, the Company’s pension liability adjustment, postretirement liability adjustment and foreign currency translation adjustment to be included in other comprehensive income net of tax. |
Income Taxes | Income Taxes The Company recorded an effective income tax rate of 30.7% and 31.1% in the first quarters of Fiscal 2020 and Fiscal 2019, respectively. The tax rate for the first quarter of Fiscal 2020 and 2019 each benefitted from the lower U.S. federal income tax rate following the passage of the Tax Cut and Jobs Act in December 2017, partially offset by the inability to recognize a tax benefit for certain foreign losses. |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Pronouncements Recently Adopted The Company adopted ASU 2016-02, " Leases (Topic 842)", ("ASC 842"), as of February 3, 2019, using the optional transition method provided by ASU 2018-11, "Leases (Topic 842): Targeted Improvements". The optional transition approach provides a method for recording existing leases at adoption by allowing a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption, as opposed to the modified or full retrospective transition methods that require restating prior comparative periods. Additionally, the Company elected the “package of practical expedients”, which permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the practical expedient to not separate lease and non-lease components for its store and equipment leases. Note 1 Summary of Significant Accounting Policies, Continued Adoption of the new standard resulted in the recording of additional net operating lease right of use assets and operating lease liabilities of approximately $795.6 million and $855.3 million, respectively, as of February 3, 2019. The operating lease right of use asset is inclusive of the impairments recorded upon adoption for store operating lease right of use assets, which totaled $4.8 million and resulted in a decrease to retained earnings of $4.2 million, net of tax. Right of use assets are recorded based upon the present value of remaining operating lease liabilities adjusted for deferred rent, including tenant allowances from landlords. The standard did not materially impact net earnings or liquidity. The standard did not have an impact on debt covenant compliance under the Company’s current debt agreements. Financial results for reporting periods beginning after February 3, 2019 are presented in accordance with ASC 842, while prior periods will continue to be reported in accordance with the Company’s historical accounting for leases under ASC Topic 840: "Leases (Topic 840)" and therefore have not been adjusted to conform to Topic 842. For additional information regarding leases, see Note 6. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, " Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments " , which requires entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. This guidance will be effective for the Company in the first quarter of the year ending January 30, 2021 ("Fiscal 2021") with early adoption permitted. The Company is evaluating the impact that adopting this guidance will have on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, to improve the effectiveness of disclosures in the notes to financial statements for employers that sponsor defined benefit pension plans. ASU 2018-14 is effective for financial statements issued for fiscal years ending after December 15, 2020, and early adoption is permitted. The Company is currently assessing the impact of this update on its notes to its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15. The standard requires that issuers follow the internal-use software guidance in ASC 350-40 to determine which costs to capitalize as assets or expense as incurred. The ASC 350-40 guidance requires that certain costs incurred during the application development stage be capitalized and other costs incurred during the preliminary project and post-implementation stages be expensed as they are incurred. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2018-15. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
May 04, 2019 | |
Accounting Policies [Abstract] | |
Carrying amounts and fair values of the Company's financial instruments | The carrying amounts and fair values of the Company’s financial instruments at May 4, 2019 and February 2, 2019 are as follows: Fair Values In Thousands May 4, 2019 February 2, 2019 Carrying Amount Fair Value Carrying Amount Fair Value U.S. Credit Facility Borrowings $ 59,776 $ 60,693 $ 56,773 $ 56,861 UK Term Loans 8,631 8,694 8,970 9,063 UK Revolver Borrowings 5,269 5,309 — — |
Components of accumulated other comprehensive loss | The following table summarizes the components of accumulated other comprehensive loss ("AOCI") for the three months ended May 4, 2019: In Thousands Foreign Currency Translation Unrecognized Pension Postretirement Benefit Costs Total Accumulated Other Comprehensive Income (Loss) Balance February 2, 2019 $(33,752) $(4,184) $(37,936) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment 1,439 — 1,439 Loss on intra-entity foreign currency transactions (long-term investment nature) (359 ) — (359 ) Amounts reclassified from AOCI: Amortization of net actuarial loss and prior service cost (1) — (151 ) (151 ) Income tax expense — (39 ) (39 ) Current period other comprehensive income (loss), net of tax 1,080 (112 ) 968 Balance May 4, 2019 $(32,672) $(4,296) $(36,968) ( 1) Amount is included in other components of net periodic benefit cost on the Condensed Consolidated Statements of Operations. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
May 04, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill by segment | The changes in the carrying amount of goodwill by segment were as follows: In Thousands Schuh Group Journeys Group Total Goodwill Balance, February 2, 2019 $ 83,243 $ 9,838 $ 93,081 Effect of foreign currency exchange rates 615 (241 ) 374 Balance, May 4, 2019 $ 83,858 $ 9,597 $ 93,455 |
Other intangible assets by major classes | Other intangibles by major classes were as follows: Leases (1) Customer Lists Other (2) Total In Thousands May 4, Feb 2, May 4, Feb 2, May 4, Feb 2, May 4, Feb 2, Gross other intangibles $ — $ 3,532 $ 1,457 $ 1,450 $ 646 $ 641 $ 2,103 $ 5,623 Accumulated amortization — (2,916 ) (1,457 ) (1,450 ) (333 ) (314 ) (1,790 ) (4,680 ) Net Other Intangibles $ — $ 616 $ — $ — $ 313 $ 327 $ 313 $ 943 (1) Intangible lease assets now recorded as part of operating lease right of use asset under ASC 842. (2) Includes vendor contract. |
Asset Impairments and Other C_2
Asset Impairments and Other Charges and Discontinued Operations (Tables) | 3 Months Ended |
May 04, 2019 | |
Asset Impairments and Other Charges and Discontinued Operations [Abstract] | |
Impact of Discontinued Operations on Financial Statements | The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows. The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for the three months ended May 5, 2018: Three Months Ended In Thousands May 5, 2018 Depreciation and amortization $6,444 Capital expenditures 4,490 Impairment of long-lived assets 249 Assets and liabilities of discontinued operations presented in the Condensed Consolidated Balance Sheets at May 5, 2018 are included in the following table. In Thousands May 5, 2018 Assets Accounts Receivable $ 9,263 Inventories 169,360 Prepaids and other current assets 14,522 Current assets - discontinued operations $ 193,145 Property and equipment, net $ 81,267 Trademarks 54,492 Other intangibles 374 Non-Current assets - discontinued operations $ 136,133 Liabilities Accounts payable $ 39,643 Accrued employee compensation 2,480 Other accrued liabilities 16,960 Current liabilities - discontinued operations $ 59,083 Other long-term liabilities $ 24,802 Non-Current liabilities - discontinued operations $ 24,802 Components of amounts reflected in loss from discontinued operations, net of tax on the Condensed Consolidated Statements of Operations for the three months ended May 5, 2018 are as follows: Three Months Ended In Thousands May 5, 2018 Net sales $158,740 Cost of sales 74,918 Selling and administrative expenses 88,948 Asset impairments and other, net 434 Other components of net periodic benefit cost (28 ) Provision for discontinued operations (1) (31 ) Loss from discontinued operations before taxes (5,619 ) Income tax benefit (1,432 ) Loss from discontinued operations, net of tax $(4,187) (1) Expenses primarily for anticipated costs of environmental remedial alternatives related to former facilities operated by the Company (see additional disclosures below and in Note 9). |
Schedule of Accrued Provision for Discontinued Operations | Accrued Provision for Discontinued Operations In Thousands Facility Shutdown Costs Balance February 3, 2018 $ 3,609 Additional provision Fiscal 2019 743 Charges and adjustments, net (1,953 ) Balance February 2, 2019 2,399 Additional provision Fiscal 2020 88 Charges and adjustments, net (92 ) Balance May 4, 2019 (1) 2,395 Current provision for discontinued operations 484 Total Noncurrent Provision for Discontinued Operations $ 1,911 (1) Includes a $1.8 million environmental provision, including $0.5 million in current provision for discontinued operations (see Note 9). |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
May 04, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | In Thousands May 4, February 2, Wholesale finished goods $ 30,302 $ 45,679 Retail merchandise 337,696 320,988 Total Inventories $ 367,998 $ 366,667 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
May 04, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on nonrecurring basis | The following table presents the Company's assets and liabilities measured at fair value on a nonrecurring basis as of May 4, 2019 aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Long-Lived Assets Held and Used Level 1 Level 2 Level 3 Total Losses Measured as of May 4, 2019 $ 906 $ — $ — $ 906 $ 307 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 04, 2019 | |
Leases [Abstract] | |
Lease Cost and Cash Flow Information Related to Operating Leases | Supplemental cash flow information and non-cash activity related to the Company's operating leases are as follows: Three Months Ended In Thousands May 4, 2019 Operating cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $45,877 Non-cash activity: Operating lease right-of-use assets obtained in exchange for operating lease liabilities $13,632 The table below presents the components of lease cost for operating leases for the three months ended May 4, 2019. Three Months Ended In Thousands May 4, 2019 Operating lease cost $46,306 Variable lease cost 3,223 Less: Sublease income (128 ) Net Lease Cost $49,401 |
Schedule of Lease Maturity Under Topic 842 | The following table reconciles the maturities of undiscounted cash flows to the Company's operating lease liabilities recorded on the Condensed Consolidated Balance Sheets at May 4, 2019: Fiscal Years In Thousands May 4, 2019 through February 1, 2020 $134,196 2021 170,158 2022 158,015 2023 139,865 2024 118,827 Thereafter 263,762 Total undiscounted future minimum lease payments 984,823 Less: Amounts representing interest (155,633) Total Present Value of Operating Lease Liabilities $829,190 |
Supplemental Information Related to Operating Leases | The Company's weighted-average remaining lease term and weighted-average discount rate for operating leases as of May 4, 2019 are: May 4, 2019 Weighted-average remaining lease term (years) 6.5 Weighted - average discount rate 5.3% |
Schedule of Future Minimum Rental Payments for Operating Leases Under Topic 840 | Under the optional transition method, for leases that existed prior to and at the adoption of the new standard, the Company continues to present comparative prior period lease amounts in accordance with ASC 840, "Leases " . As of February 2, 2019 future minimum rental commitments were: Fiscal Years In Thousands 2020 $183,432 2021 171,584 2022 159,155 2023 140,889 2024 119,023 Thereafter 323,638 Total Minimum Rental Commitments $1,097,721 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans and Other Benefit Plans (Tables) | 3 Months Ended |
May 04, 2019 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The following table summarizes the components of net periodic benefit cost related to the Company's pension and postretirement health care and life insurance plans: Components of Net Periodic Benefit Cost Pension Benefits Other Benefits Three Months Ended Three Months Ended In Thousands May 4, 2019 May 5, 2018 May 4, 2019 May 5, 2018 Service cost $ 162 $ 113 $ 22 $ 155 Interest cost $ 758 $ 754 $ 38 $ 68 Expected return on plan assets (731 ) (1,051 ) — — Amortization: Prior service cost — — (230 ) — Amortization of losses 74 189 5 32 Total other components of net periodic benefit cost $ 101 $ (108 ) $ (187 ) $ 100 Net Periodic Benefit Cost $ 263 $ 5 $ (165 ) $ 255 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 04, 2019 | |
Earnings Per Share [Abstract] | |
Summary of basic and diluted earnings per share | For the Three Months Ended For the Three Months Ended May 4, 2019 May 5, 2018 (In thousands, except per share amounts) Income Shares Per Share Income Shares Per Share Earnings from continuing operations $ 6,470 $ 1,856 Basic EPS from continuing operations Income available to common shareholders 6,470 17,645 $0.37 1,856 19,278 $0.10 Effect of Dilutive Securities from Dilutive share-based awards 171 140 Employees' preferred stock (1) 34 37 Diluted EPS from continuing operations Income available to common shareholders plus assumed conversions $ 6,470 17,850 $0.36 $ 1,856 19,455 $0.10 (1) The Company's Employees' Subordinated Convertible Preferred Stock is convertible one for one to the Company's common stock. Because no dividends are paid on this stock, these shares are assumed to be converted for all periods presented. The weighted shares outstanding reflects the effect of the Company's Board-approved share repurchase programs. The Company repurchased 1,809,112 shares for $80.0 million for the three months ended May 4, 2019 as part of a $125.0 million share repurchase program approved by the Board of Directors in December 2018. With the completion of the $125.0 million share repurchase program, the Board of Directors approved a new $100.0 million share repurchase program in May 2019. Share repurchases of $0.9 million made on the last day of the first quarter of Fiscal 2020, which are included in the $80.0 million above, were made under the new $100.0 million share repurchase program. For the second quarter of Fiscal 2020 through June 12, 2019, the Company has repurchased 862,331 shares for $37.7 million, leaving $61.4 million remaining under its current $100.0 million share repurchase authorization. The Company did no t repurchase any shares of common stock for the three months ended May 5, 2018. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
May 04, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting information by segment | Three Months Ended May 4, 2019 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated In Thousands Sales $ 323,972 $ 76,844 $ 74,734 $ 20,086 $ 18 $ 495,654 Intercompany sales — — — (3 ) — (3 ) Net sales to external customers $ 323,972 $ 76,844 $ 74,734 $ 20,083 $ 18 $ 495,651 Segment operating income (loss) $ 18,976 $ (5,428 ) $ 5,106 $ 429 $ (10,730 ) $ 8,353 Asset impairments and other (1) — — — — 731 731 Operating income (loss) 18,976 (5,428 ) 5,106 429 (9,999 ) 9,084 Other components of net periodic benefit cost — — — — 86 86 Interest expense — — — — (848 ) (848 ) Interest income — — — — 1,014 1,014 Earnings (loss) from continuing operations before income taxes $ 18,976 $ (5,428 ) $ 5,106 $ 429 $ (9,747 ) $ 9,336 Total assets (2) $ 934,349 $ 388,989 — $ 209,735 $ 20,918 $ 262,082 $ 1,816,073 Depreciation and amortization (3) 7,320 3,099 1,626 148 610 12,803 Capital expenditures 3,967 1,673 862 62 177 6,741 (1 ) Asset impairments and other includes a $(1.0) million gain for lease terminations in Schuh Group, partially offset by a $0.3 million charge for asset impairments in Schuh Group. (2) Total assets for the Schuh Group and Journeys Group include $83.9 million and $9.6 million of goodwill, respectively. Goodwill for the Schuh Group increased by $0.6 million and goodwill for Journeys Group decreased by $0.2 million from February 2, 2019, due to foreign currency translation adjustments. Of the Company's $271.3 million of property and equipment, $44.5 million and $12.0 million relate to property and equipment in the United Kingdom and Canada, respectively. (3) Includes $12.8 million in depreciation expense for the three months ended May 4, 2019. Note 10 Business Segment Information, Continued Three Months Ended May 5, 2018 Journeys Group Schuh Group Johnston & Murphy Group Licensed Brands Corporate & Other Consolidated In Thousands Sales $ 306,142 80,266 $ 75,684 $ 24,066 $ 62 $ 486,220 Intercompany sales — — — (1 ) — (1 ) Net sales to external customers $ 306,142 $ 80,266 $ 75,684 $ 24,065 $ 62 $ 486,219 Segment operating income (loss) $ 12,992 $ (5,640 ) $ 4,867 $ 276 $ (7,665 ) $ 4,830 Asset impairments and other (1) — — — — (1,118 ) (1,118 ) Operating income (loss) 12,992 (5,640 ) 4,867 276 (8,783 ) 3,712 Other components of net periodic benefit cost — — — — 8 8 Interest expense — — — — (1,047 ) (1,047 ) Interest income — — — — 19 19 Earnings (loss) from continuing operations before income taxes $ 12,992 $ (5,640 ) $ 4,867 $ 276 $ (9,803 ) $ 2,692 Total assets ongoing operations $ 446,001 243,921 $ 119,854 $ 29,520 $ 148,851 $ 988,147 Assets from discontinued operations 329,278 Total assets (2) $ 1,317,425 Depreciation and amortization (3) 6,795 3,927 1,568 155 804 13,249 Capital expenditures (4) 10,543 2,907 1,470 60 63 15,043 (1) Asset impairments and other includes a $1.0 million charge for asset impairments, which includes $0.2 million for Journeys Group and $0.8 million for Schuh Group, and a $0.2 million charge for legal and other matters, partially offset by a gain of $(0.1) million related to Hurricane Maria. (2) Total assets for the Schuh Group and Journeys Group include $86.1 million and $10.0 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased by $3.9 million and $0.4 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $296.1 million of property and equipment, $54.8 million and $14.3 million relate to property and equipment in the United Kingdom and Canada, respectively. (3) Includes $13.2 million in depreciation expense for the three months ended May 5, 2018. Excludes $6.4 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations. (4) Excludes $4.5 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||||
May 04, 2019USD ($)segmentstore | May 05, 2018USD ($)segment | Feb. 03, 2019USD ($) | Feb. 02, 2019USD ($) | Feb. 03, 2018USD ($) | |
Summary of Accounting Policies [Line Items] | |||||
Total number of retail stores operated by company | store | 1,504 | ||||
Number of reportable business segments | segment | 4 | 4 | |||
Accrued liability for gift cards | $ 4,300,000 | $ 4,200,000 | $ 5,100,000 | ||
Gift card breakage recognized as revenue | 200,000 | 100,000 | |||
Gift card redemptions and gift card breakage revenue | 1,600,000 | ||||
Cash and cash equivalents | 156,655,000 | 30,880,000 | 167,355,000 | ||
Cash equivalents | $ 133,200,000 | 0 | 127,200,000 | ||
Payment processing duration, minimum | 24 hours | ||||
Payment processing duration, maximum | 48 hours | ||||
Excess of outstanding checks drawn on zero balance accounts at domestic banks exceeded book cash balance | $ 25,600,000 | 6,600,000 | 29,600,000 | ||
Asset retirement obligations | 11,000,000 | 10,900,000 | 10,900,000 | ||
Cost of sales | 250,743,000 | 248,213,000 | |||
Advertising costs | 13,700,000 | 14,500,000 | |||
Vendor reimbursements of cooperative advertising costs | 1,900,000 | 1,700,000 | |||
Net gain (loss) from foreign currency transactions | 300,000 | 300,000 | |||
Stockholders' equity, including portion attributable to noncontrolling interest | (662,926,000) | (828,839,000) | (737,551,000) | $ (830,704,000) | |
Operating lease right of use asset | 769,922,000 | ||||
Operating lease liability | 829,190,000 | ||||
Retained earnings | $ 432,531,000 | $ 605,984,000 | 508,555,000 | ||
Effective income tax rate | 30.70% | 31.10% | |||
Amortization of net actuarial loss and prior service cost | $ 151,000 | ||||
Selling and Administrative Expenses | |||||
Summary of Accounting Policies [Line Items] | |||||
Wholesale costs of distribution | 1,400,000 | $ 1,500,000 | |||
Cost of sales | 83,200,000 | 84,500,000 | |||
Cooperative advertising costs | 700,000 | 800,000 | |||
Accounting Standards Update 2016-02 | |||||
Summary of Accounting Policies [Line Items] | |||||
Operating lease right of use asset | $ 795,600,000 | ||||
Operating lease liability | 855,300,000 | ||||
Impairment of store operating lease right of use assets | 4,800,000 | ||||
Retained earnings | $ 4,200,000 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent, Excluding Intra-Entity Transactions [Member] | |||||
Summary of Accounting Policies [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | 1,439,000 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent, Intra-Entity Transactions [Member] | |||||
Summary of Accounting Policies [Line Items] | |||||
Other comprehensive income (loss) before reclassifications | (359,000) | ||||
Foreign Currency Translation | |||||
Summary of Accounting Policies [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | 32,672,000 | 33,752,000 | |||
Amortization of net actuarial loss and prior service cost | 0 | ||||
Unrecognized Pension Postretirement Benefit Costs | |||||
Summary of Accounting Policies [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | 4,296,000 | 4,184,000 | |||
Other comprehensive income (loss) before reclassifications | 0 | ||||
Amortization of net actuarial loss and prior service cost | 151,000 | ||||
Accumulated Other Comprehensive Loss | |||||
Summary of Accounting Policies [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | 36,968,000 | 36,890,000 | 37,936,000 | $ 29,192,000 | |
Cumulative Pension Liability Adjustment | Unrecognized Pension Postretirement Benefit Costs | |||||
Summary of Accounting Policies [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | 6,000,000 | ||||
Cumulative Post-Retirement Liability Adjustment | Unrecognized Pension Postretirement Benefit Costs | |||||
Summary of Accounting Policies [Line Items] | |||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (1,700,000) | ||||
Customer Concentration Risk | Major Customer One | Trade Accounts Receivable | |||||
Summary of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 19.00% | ||||
Customer Concentration Risk | Major Customer Two | Trade Accounts Receivable | |||||
Summary of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 9.00% | ||||
Customer Concentration Risk | Major Customer Three | Trade Accounts Receivable | |||||
Summary of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 8.00% | ||||
Customer Concentration Risk | Major Customer Four | Trade Accounts Receivable | |||||
Summary of Accounting Policies [Line Items] | |||||
Concentration risk percentage | 7.00% | ||||
Foreign Subsidiaries | |||||
Summary of Accounting Policies [Line Items] | |||||
Cash and cash equivalents | $ 7,700,000 | $ 8,600,000 | $ 20,800,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 |
Term Loans | UK Term Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 8,631 | $ 8,970 |
Fair Value | 8,694 | 9,063 |
Borrowings | U.S. Credit Facility Borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 59,776 | 56,773 |
Fair Value | 60,693 | 56,861 |
Borrowings | UK Revolver Borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 5,269 | 0 |
Fair Value | $ 5,309 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 737,551 |
Amounts reclassified from AOCI: | |
Amortization of net actuarial loss and prior service cost | (151) |
Income tax expense | (39) |
Current period other comprehensive income (loss), net of tax | 968 |
Ending Balance | 662,926 |
Foreign Currency Translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (33,752) |
Amounts reclassified from AOCI: | |
Amortization of net actuarial loss and prior service cost | 0 |
Income tax expense | 0 |
Current period other comprehensive income (loss), net of tax | 1,080 |
Ending Balance | (32,672) |
Foreign currency translation adjustment | |
Other comprehensive income (loss) before reclassifications: | |
Other comprehensive income (loss) before reclassifications | 1,439 |
Loss on intra-entity foreign currency transactions | |
Other comprehensive income (loss) before reclassifications: | |
Other comprehensive income (loss) before reclassifications | (359) |
Unrecognized Pension Postretirement Benefit Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (4,184) |
Other comprehensive income (loss) before reclassifications: | |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from AOCI: | |
Amortization of net actuarial loss and prior service cost | (151) |
Income tax expense | (39) |
Current period other comprehensive income (loss), net of tax | (112) |
Ending Balance | (4,296) |
Total Accumulated Other Comprehensive Income (Loss) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (37,936) |
Amounts reclassified from AOCI: | |
Ending Balance | $ (36,968) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 93,081 | |
Effect of foreign currency exchange rates | 374 | |
Goodwill, ending balance | 93,455 | $ 96,086 |
Schuh Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 83,243 | |
Effect of foreign currency exchange rates | 615 | (3,900) |
Goodwill, ending balance | 83,858 | 86,100 |
Journeys Group | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 9,838 | |
Effect of foreign currency exchange rates | (241) | (400) |
Goodwill, ending balance | $ 9,597 | $ 10,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangibles (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross other intangibles | $ 2,103 | $ 5,623 | |
Accumulated amortization | (1,790) | (4,680) | $ (4,586) |
Net Other Intangibles | 313 | 943 | $ 1,205 |
Leases(1) | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross other intangibles | 0 | 3,532 | |
Accumulated amortization | 0 | (2,916) | |
Net Other Intangibles | 0 | 616 | |
Customer Lists | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross other intangibles | 1,457 | 1,450 | |
Accumulated amortization | (1,457) | (1,450) | |
Net Other Intangibles | 0 | 0 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross other intangibles | 646 | 641 | |
Accumulated amortization | (333) | (314) | |
Net Other Intangibles | $ 313 | $ 327 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 93,455 | $ 96,086 | $ 93,081 |
Amortization of intangibles assets | 100 | 100 | |
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Future amortization expense, fiscal 2021 (less than) | 100 | ||
Future amortization expense, fiscal 2022 (less than) | 100 | ||
Future amortization expense, fiscal 2023 (less than) | 100 | ||
Future amortization expense, fiscal 2024 (less than) | 100 | ||
Future amortization expense, fiscal 2025 (less than) | 100 | ||
Schuh Group | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 83,858 | $ 86,100 | 83,243 |
Amount of fair value in excess of carrying amount | 10,800 | ||
Decrease in fair value based on effect of 100 basis point increase in weighted average cost of capital | 11,400 | ||
Decrease in fair value based on effect of 1% decrease of projected annual revenue growth | $ 7,400 |
Asset Impairments and Other C_3
Asset Impairments and Other Charges and Discontinued Operations - Textuals (Details) $ in Thousands | Feb. 02, 2019USD ($) | May 04, 2019USD ($)store | Feb. 02, 2019USD ($) | May 05, 2018USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments and other, net | $ (731) | $ 1,118 | ||
Estimated maximum future payments | $ 1,097,721 | $ 1,097,721 | ||
Provision for discontinued operations | 88 | 31 | ||
Lease Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments and other, net | (1,000) | |||
Legal and Other Matters | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments and other, net | 200 | |||
Retail Store Asset Impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments and other, net | $ 300 | 1,000 | ||
Hurricane Maria | ||||
Restructuring Cost and Reserve [Line Items] | ||||
(Gain) loss related to hurricane | (100) | |||
Discontinued Operations, Disposed of by Sale | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Provision for discontinued operations | $ 31 | |||
Discontinued Operations, Disposed of by Sale | Lids Sports Group | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Proceeds from sale of Lids Sports Group | 93,800 | |||
Cash received in sale, subject to adjustment | 100,000 | 100,000 | ||
Working capital adjustment | $ 6,200 | 6,200 | ||
Number of leases for which the company is a guarantor | store | 68 | |||
Estimated maximum future payments | $ 27,800 | |||
Loss on sale | 98,300 | |||
Discontinued Operations, Disposed of by Sale | Lids Sports Group | Trademarks | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of intangible assets | $ 48,700 |
Asset Impairments and Other C_4
Asset Impairments and Other Charges and Discontinued Operations - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Statement of Operations, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Provision for discontinued operations | $ 88 | $ 31 |
Discontinued Operations, Disposed of by Sale | ||
Statement of Operations, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 158,740 | |
Cost of sales | 74,918 | |
Selling and administrative expenses | 88,948 | |
Asset impairments and other, net | 434 | |
Other components of net periodic benefit cost | (28) | |
Provision for discontinued operations | 31 | |
Loss from discontinued operations before taxes | (5,619) | |
Income tax benefit | (1,432) | |
Loss from discontinued operations, net of tax | $ (4,187) |
Asset Impairments and Other C_5
Asset Impairments and Other Charges and Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Current assets - discontinued operations | |||
Current assets - discontinued operations | $ 0 | $ 0 | $ 193,145 |
Long-term assets - discontinued operations | |||
Non-Current assets - discontinued operations | 0 | 0 | 136,133 |
Current liabilities - discontinued operations | |||
Current liabilities - discontinued operations | 0 | 0 | 59,083 |
Long-term liabilities - discontinued operations | |||
Non-Current liabilities - discontinued operations | $ 0 | $ 0 | 24,802 |
Discontinued Operations, Disposed of by Sale | |||
Current assets - discontinued operations | |||
Accounts Receivable | 9,263 | ||
Inventories | 169,360 | ||
Prepaids and other current assets | 14,522 | ||
Current assets - discontinued operations | 193,145 | ||
Long-term assets - discontinued operations | |||
Property and equipment, net | 81,267 | ||
Trademarks | 54,492 | ||
Other intangibles | 374 | ||
Non-Current assets - discontinued operations | 136,133 | ||
Current liabilities - discontinued operations | |||
Accounts payable | 39,643 | ||
Accrued employee compensation | 2,480 | ||
Other accrued liabilities | 16,960 | ||
Current liabilities - discontinued operations | 59,083 | ||
Long-term liabilities - discontinued operations | |||
Other long-term liabilities | 24,802 | ||
Non-Current liabilities - discontinued operations | $ 24,802 |
Asset Impairments and Other C_6
Asset Impairments and Other Charges and Discontinued Operations - Statement of Cash Flow (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands | 3 Months Ended |
May 05, 2018USD ($) | |
Statement of Operations, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Depreciation and amortization | $ 6,444 |
Capital expenditures | 4,490 |
Impairment of long-lived assets | $ 249 |
Asset Impairments and Other C_7
Asset Impairments and Other Charges and Discontinued Operations - Accrued Provision For Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Accrued Provision for Discontinued Operations | |||
Additional provision | $ 88 | $ 31 | |
Current provision for discontinued operations | 0 | 59,083 | $ 0 |
Total Noncurrent Provision for Discontinued Operations | 0 | 24,802 | 0 |
Facility Shutdown Costs | |||
Accrued Provision for Discontinued Operations | |||
Balance at beginning of period | 2,399 | $ 3,609 | 3,609 |
Additional provision | 88 | 743 | |
Charges and adjustments, net | (92) | (1,953) | |
Balance at end of period | 2,395 | $ 2,399 | |
Current provision for discontinued operations | 484 | ||
Total Noncurrent Provision for Discontinued Operations | 1,911 | ||
Environmental provision for discontinued operations | 1,800 | ||
Current environmental provision for discontinued operations | $ 500 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | May 04, 2019 | Feb. 02, 2019 | May 05, 2018 |
Inventory Disclosure [Abstract] | |||
Wholesale finished goods | $ 30,302 | $ 45,679 | |
Retail merchandise | 337,696 | 320,988 | |
Total Inventories | $ 367,998 | $ 366,667 | $ 383,115 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Company's assets and liabilities measured at fair value on a nonrecurring basis | ||
Total Losses | $ 307 | $ 1,274 |
Fair Value Measurements Nonrecurring | ||
Company's assets and liabilities measured at fair value on a nonrecurring basis | ||
Long-Lived Assets Held and Used | 906 | |
Total Losses | 307 | |
Fair Value Measurements Nonrecurring | Level 1 | ||
Company's assets and liabilities measured at fair value on a nonrecurring basis | ||
Long-Lived Assets Held and Used | 0 | |
Fair Value Measurements Nonrecurring | Level 2 | ||
Company's assets and liabilities measured at fair value on a nonrecurring basis | ||
Long-Lived Assets Held and Used | 0 | |
Fair Value Measurements Nonrecurring | Level 3 | ||
Company's assets and liabilities measured at fair value on a nonrecurring basis | ||
Long-Lived Assets Held and Used | $ 906 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
May 04, 2019 | Feb. 02, 2019 | May 05, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Percent of leases that contain renewal options | 2.00% | ||
Leases not yet commenced | $ 5.5 | ||
Tenant allowances | $ 22.5 | $ 23.5 | |
Deferred rent | $ 48.6 | $ 45.9 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Leases not yet commenced, lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Leases not yet commenced, lease term | 11 years | ||
United States, Puerto Rico and Canada | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease terms | 10 years | ||
United Kingdom, The Republic of Ireland and Germany | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease terms | 10 years | ||
United Kingdom, The Republic of Ireland and Germany | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease terms | 15 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 46,306 |
Variable lease cost | 3,223 |
Less: Sublease income | (128) |
Net Lease Cost | $ 49,401 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity Under Topic 842 (Details) $ in Thousands | May 04, 2019USD ($) |
Leases [Abstract] | |
May 4, 2019 through February 1, 2020 | $ 134,196 |
2021 | 170,158 |
2022 | 158,015 |
2023 | 139,865 |
2024 | 118,827 |
Thereafter | 263,762 |
Total undiscounted future minimum lease payments | 984,823 |
Less: Amounts representing interest | (155,633) |
Total Present Value of Operating Lease Liabilities | $ 829,190 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) | May 04, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 6 years 6 months |
Weighted - average discount rate | 5.30% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
May 04, 2019USD ($) | |
Operating cash flow information: | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 45,877 |
Non-cash activity: | |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 13,632 |
Leases - Prior Period Comparati
Leases - Prior Period Comparative Disclosures (Details) $ in Thousands | Feb. 02, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 183,432 |
2021 | 171,584 |
2022 | 159,155 |
2023 | 140,889 |
2024 | 119,023 |
Thereafter | 323,638 |
Total Minimum Rental Commitments | $ 1,097,721 |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans and Other Benefit Plans (Details) - USD ($) | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Amortization: | |||
Total other components of net periodic benefit cost | $ (86,000) | $ (8,000) | |
Pension Benefits | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 162,000 | 113,000 | |
Interest cost | 758,000 | 754,000 | |
Expected return on plan assets | (731,000) | (1,051,000) | |
Amortization: | |||
Prior service cost | 0 | 0 | |
Amortization of losses | 74,000 | 189,000 | |
Total other components of net periodic benefit cost | 101,000 | (108,000) | |
Net Periodic Benefit Cost | 263,000 | 5,000 | |
Contribution required | $ 0 | ||
Other Benefits | |||
Components of Net Periodic Benefit Cost | |||
Service cost | 22,000 | 155,000 | |
Interest cost | 38,000 | 68,000 | |
Expected return on plan assets | 0 | 0 | |
Amortization: | |||
Prior service cost | (230,000) | 0 | |
Amortization of losses | 5,000 | 32,000 | |
Total other components of net periodic benefit cost | (187,000) | 100,000 | |
Net Periodic Benefit Cost | $ (165,000) | $ 255,000 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
May 04, 2019 | May 05, 2018 | |
Earnings Per Share [Abstract] | ||
Earnings from continuing operations | $ 6,470 | $ 1,856 |
Basic EPS from continuing operations | ||
Income available to common shareholders, income (numerator) | $ 6,470 | $ 1,856 |
Income available to common shareholders, shares (denominator) (in shares) | 17,645,000 | 19,278,000 |
Income available to common shareholders, per share amount (in dollars per share) | $ 0.37 | $ 0.10 |
Effect of Dilutive Securities from continuing operations | ||
Dilutive share-based awards, shares (denominator) (in shares) | 171,000 | 140,000 |
Employees' preferred stock, shares (denominator) (in shares) | 34,000 | 37,000 |
Diluted EPS from continuing operations | ||
Income available to common shareholders plus assumed conversions, income (numerator) | $ 6,470 | $ 1,856 |
Income available to common shareholders plus assumed conversions, shares (denominator) (in shares) | 17,850,000 | 19,455,000 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.36 | $ 0.10 |
Common convertible ratio (in shares) | 1 | 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | Feb. 02, 2019 | Jun. 12, 2019 | May 04, 2019 | May 05, 2018 | Dec. 31, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Stock repurchased during period (in shares) | 1,809,112 | 0 | |||
Stock repurchased during period, value | $ 900,000 | $ 79,971,000 | |||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 125,000,000 | |||
Subsequent Event | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Stock repurchased during period (in shares) | 862,331 | ||||
Stock repurchased during period, value | $ 37,700,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 61,400,000 |
Legal Proceedings and Other M_2
Legal Proceedings and Other Matters (Details) | May 19, 2017employee | Feb. 28, 2017USD ($) | Jun. 30, 2016USD ($) | May 04, 2019USD ($)Well | May 05, 2018USD ($) | Feb. 02, 2019USD ($) | Apr. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |||||||
Number of water supply wells | Well | 2 | ||||||
Minimum historical cost associated with enhanced treatment required by the impact of groundwater plume | $ 1,800,000 | ||||||
Maximum historical cost associated with enhanced treatment required by the impact of groundwater plume | 2,500,000 | ||||||
Amount related to outstanding environmental contingencies | 1,800,000 | $ 2,900,000 | $ 1,800,000 | ||||
Pretax accrual charges (gains) for environmental contingencies included in provision for discontinued operations | 100,000 | $ 0 | |||||
Number of claimants | employee | 2 | ||||||
Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Payment of attorneys fees and administrative costs | 400,000 | ||||||
Village of Garden City, New York | |||||||
Loss Contingencies [Line Items] | |||||||
Future operation and maintenance costs | 126,400 | ||||||
Amount awarded to other party | $ 10,000,000 | ||||||
Chen and Salas vs. Genesco Inc | Pending Litigation | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Amount awarded to other party | 800,000 | ||||||
Environmental Monitoring, Operation and Maintenance Activities | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated possible loss | 1,700,000 | ||||||
Environmental Monitoring, Operation and Maintenance Activities | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated possible loss | 2,000,000 | ||||||
EPA Interim Oversight Costs | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated possible loss | 1,250,000 | ||||||
Response Costs Claimed by the EPA | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated possible loss | $ 2,200,000 | ||||||
Amount awarded to other party | $ 1,500,000 | ||||||
Estimated recovery percent from settlement | 75.00% | ||||||
Estimated recovery amount from a third party | $ 500,000 | ||||||
Internal Revenue Service (IRS) [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Income Tax Examination, Estimate of Possible Loss | $ 12,300,000 |
Business Segment Information -
Business Segment Information - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
May 04, 2019USD ($)segment | May 05, 2018USD ($)segment | Feb. 02, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable business segments | segment | 4 | 4 | |
Impairment of long-lived assets | $ 307 | $ 1,274 | |
Asset impairments and other, net | (731) | 1,118 | |
Goodwill | 93,455 | 96,086 | $ 93,081 |
Increase (decrease) in goodwill | 374 | ||
Long-lived assets | 271,300 | 296,100 | |
Property and equipment | 271,320 | 296,096 | 277,375 |
Depreciation expense | 12,800 | 13,200 | |
Capital expenditures | 6,741 | 19,533 | |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 44,500 | 54,800 | |
Canada | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 12,000 | 14,300 | |
Journeys Group | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 9,597 | 10,000 | 9,838 |
Increase (decrease) in goodwill | (241) | (400) | |
Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 83,858 | 86,100 | $ 83,243 |
Increase (decrease) in goodwill | 615 | (3,900) | |
Lids Sports Group | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 6,400 | ||
Capital expenditures | 4,500 | ||
Operating Segments | Journeys Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | 0 | 0 | |
Capital expenditures | 3,967 | ||
Operating Segments | Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | 0 | 0 | |
Capital expenditures | 1,673 | ||
Lease Termination | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | (1,000) | ||
Lease Termination | Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | (1,000) | ||
Retail Store Asset Impairments | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | 300 | 1,000 | |
Retail Store Asset Impairments | Journeys Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | 200 | ||
Retail Store Asset Impairments | Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | $ 300 | 800 | |
Legal and Other Matters | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other, net | 200 | ||
Hurricane Maria | |||
Segment Reporting Information [Line Items] | |||
Hurricane gains (losses) | $ 100 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 04, 2019 | May 05, 2018 | Feb. 02, 2019 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 495,654 | $ 486,220 | |
Intercompany Sales | (3) | (1) | |
Net sales to external customers | 495,651 | 486,219 | |
Segment operating income (loss) | 8,353 | 4,830 | |
Asset impairments and other | 731 | (1,118) | |
Operating income | 9,084 | 3,712 | |
Other components of net periodic benefit cost | 86 | 8 | |
Interest expense | (848) | (1,047) | |
Interest income | 1,014 | 19 | |
Earnings from continuing operations before income taxes | 9,336 | 2,692 | |
Total assets | 1,816,073 | 1,317,425 | $ 1,181,081 |
Depreciation and amortization | 12,803 | 19,693 | |
Capital expenditures | 6,741 | 19,533 | |
Total assets ongoing operations | 988,147 | ||
Depreciation and amortization from continuing operations | 13,249 | ||
Capital expenditures from continuing operations | 15,043 | ||
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,317,425 | ||
Assets from discontinued operations | 329,278 | ||
Operating Segments | Journeys Group | |||
Segment Reporting Information [Line Items] | |||
Sales | 323,972 | 306,142 | |
Intercompany Sales | 0 | 0 | |
Net sales to external customers | 323,972 | 306,142 | |
Segment operating income (loss) | 18,976 | 12,992 | |
Asset impairments and other | 0 | 0 | |
Operating income | 18,976 | 12,992 | |
Other components of net periodic benefit cost | 0 | 0 | |
Interest expense | 0 | 0 | |
Interest income | 0 | 0 | |
Earnings from continuing operations before income taxes | 18,976 | 12,992 | |
Total assets | 934,349 | ||
Depreciation and amortization | 7,320 | ||
Capital expenditures | 3,967 | ||
Total assets ongoing operations | 446,001 | ||
Depreciation and amortization from continuing operations | 6,795 | ||
Capital expenditures from continuing operations | 10,543 | ||
Operating Segments | Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Sales | 76,844 | 80,266 | |
Intercompany Sales | 0 | 0 | |
Net sales to external customers | 76,844 | 80,266 | |
Segment operating income (loss) | (5,428) | (5,640) | |
Asset impairments and other | 0 | 0 | |
Operating income | (5,428) | (5,640) | |
Other components of net periodic benefit cost | 0 | 0 | |
Interest expense | 0 | 0 | |
Interest income | 0 | 0 | |
Earnings from continuing operations before income taxes | (5,428) | (5,640) | |
Total assets | 388,989 | ||
Depreciation and amortization | 3,099 | ||
Capital expenditures | 1,673 | ||
Total assets ongoing operations | 243,921 | ||
Depreciation and amortization from continuing operations | 3,927 | ||
Capital expenditures from continuing operations | 2,907 | ||
Operating Segments | Johnston & Murphy Group | |||
Segment Reporting Information [Line Items] | |||
Sales | 74,734 | 75,684 | |
Intercompany Sales | 0 | 0 | |
Net sales to external customers | 74,734 | 75,684 | |
Segment operating income (loss) | 5,106 | 4,867 | |
Asset impairments and other | 0 | 0 | |
Operating income | 5,106 | 4,867 | |
Other components of net periodic benefit cost | 0 | 0 | |
Interest expense | 0 | 0 | |
Interest income | 0 | 0 | |
Earnings from continuing operations before income taxes | 5,106 | 4,867 | |
Total assets | 209,735 | ||
Depreciation and amortization | 1,626 | ||
Capital expenditures | 862 | ||
Total assets ongoing operations | 119,854 | ||
Depreciation and amortization from continuing operations | 1,568 | ||
Capital expenditures from continuing operations | 1,470 | ||
Operating Segments | Licensed Brands | |||
Segment Reporting Information [Line Items] | |||
Sales | 20,086 | 24,066 | |
Intercompany Sales | (3) | (1) | |
Net sales to external customers | 20,083 | 24,065 | |
Segment operating income (loss) | 429 | 276 | |
Asset impairments and other | 0 | 0 | |
Operating income | 429 | 276 | |
Other components of net periodic benefit cost | 0 | 0 | |
Interest expense | 0 | 0 | |
Interest income | 0 | 0 | |
Earnings from continuing operations before income taxes | 429 | 276 | |
Total assets | 20,918 | ||
Depreciation and amortization | 148 | ||
Capital expenditures | 62 | ||
Total assets ongoing operations | 29,520 | ||
Depreciation and amortization from continuing operations | 155 | ||
Capital expenditures from continuing operations | 60 | ||
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Sales | 18 | 62 | |
Intercompany Sales | 0 | 0 | |
Net sales to external customers | 18 | 62 | |
Segment operating income (loss) | (10,730) | (7,665) | |
Asset impairments and other | 731 | (1,118) | |
Operating income | (9,999) | (8,783) | |
Other components of net periodic benefit cost | 86 | 8 | |
Interest expense | (848) | (1,047) | |
Interest income | 1,014 | 19 | |
Earnings from continuing operations before income taxes | (9,747) | (9,803) | |
Total assets | 262,082 | ||
Depreciation and amortization | 610 | ||
Capital expenditures | 177 | ||
Total assets ongoing operations | 148,851 | ||
Depreciation and amortization from continuing operations | 804 | ||
Capital expenditures from continuing operations | 63 | ||
Retail Store Asset Impairments | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other | (300) | (1,000) | |
Retail Store Asset Impairments | Journeys Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other | (200) | ||
Retail Store Asset Impairments | Schuh Group | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other | $ (300) | (800) | |
Legal and Other Matters | |||
Segment Reporting Information [Line Items] | |||
Asset impairments and other | $ (200) |
Uncategorized Items - gco-20190
Label | Element | Value |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,208,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,208,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,413,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,413,000 |