NASHVILLE, Tenn., Dec. 5, 2014 /PRNewswire/ -- Genesco Inc. (NYSE: GCO) today reported results for the third quarter ended November 1, 2014. In a separate press release issued today, the Company announced that James S. Gulmi plans to retire from the role of chief financial officer at the end of the fiscal year and that he will be succeeded as chief financial officer by Mimi E. Vaughn, currently the Company's Senior Vice President-Strategy and Shared Services.

Earnings from continuing operations for the third quarter of Fiscal 2015 were $28.8 million, or $1.21 per diluted share, compared to earnings from continuing operations of $27.8 million, or $1.18 per diluted share, for the third quarter ended November 2, 2013. Fiscal 2015 third quarter results reflect pretax items of $2.0 million, or $0.07 per diluted share after tax, including $1.0 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited; and $1.0 million in network intrusion expenses and asset impairment charges. They also reflect the favorable resolution of formerly uncertain tax positions taken by Schuh at the time of the acquisition, resulting in the write-off of an indemnification asset of $7.1 million and the reversal of a corresponding FIN 48 provision, with essentially no net after-tax effect on earnings for the quarter. Fiscal 2014 third quarter results reflect pretax items of $8.5 million, or $0.25 per diluted share after tax, including $4.0 million of expenses related to the change in accounting for deferred bonuses, $3.0 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited; and $1.5 million for network intrusion expenses, asset impairment charges and other legal matters.

Adjusted for the items described above in both periods, earnings from continuing operations were $30.3 million, or $1.28 per diluted share, for the third quarter of Fiscal 2015, compared to earnings from continuing operations of $33.8 million, or $1.43 per diluted share, for the third quarter of Fiscal 2014. For consistency with Fiscal 2015's previously announced earnings expectations and with previously reported adjusted results for the prior year period, the Company believes that the disclosure of the results from continuing operations adjusted for these items will be useful to investors. A reconciliation of earnings and earnings per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles with the adjusted earnings and earnings per share numbers presented in this paragraph is set forth on Schedule B to this press release.

Net sales for the third quarter of Fiscal 2015 increased 8% to $723 million from $666 million in the third quarter of Fiscal 2014. Consolidated third quarter 2015 comparable sales, including same store sales and comparable e-commerce and catalog sales, increased 3%, with a 6% increase in the Journeys Group, a 1% increase in the Lids Sports Group, and flat comparable sales in the Schuh and Johnston & Murphy Groups.

Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, "We delivered solid top-line growth in the third quarter, driven by better than expected sales in the Journeys Group. Sales in our other divisions, except for the Lids Sports Group, were essentially on plan. At the Lids Sports Group, lower than planned sales caused negative expense leverage and lower gross margins, resulting in a shortfall in earnings that was not offset by the other divisions' performance.

"The fourth quarter has started off well, with consolidated comparable sales up 9% through December 2, 2014."

Dennis also discussed the Company's updated outlook. "Based on our third quarter performance and expectations for additional margin pressure in the Lids Sports Group in the fourth quarter, we are revising our full year outlook. We now expect adjusted diluted earnings per share to be in the range of $4.75 to $4.85, compared to Fiscal 2014's adjusted earnings per share of $5.09, down from our previously issued guidance of $5.10 to $5.20. Consistent with our previous guidance, these expectations do not include non-cash asset impairments and other charges, partially offset by a gain on a lease termination in the first quarter this year, which we estimate will be in the range of $2.9 million to $3.4 million pretax, or $0.08 to $0.09 per share, after tax, in Fiscal 2015. These expectations also do not reflect a $5.7 million, or $0.15 per diluted share, change in the first quarter related to the change in accounting for bonus awards. Finally, the expected earnings per share do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately $7.3 million, or $0.31 per diluted share, for the full year. This guidance assumes a comparable sales increase in the low single digit range for the full fiscal year." A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.

Dennis concluded, "We continue to be confident in the long-term outlook for our Company and believe the actions we are taking to improve our earnings power will begin to yield positive results next year."

Conference Call and Management Commentary

The Company has posted detailed financial commentary in writing on its website, www.genesco.com, in the investor relations section. The Company's live conference call on December 5, 2014 at 7:30 a.m. (Central time), may be accessed through the Company's internet website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.

Cautionary Note Concerning Forward-Looking Statements

This release contains forward-looking statements, including those regarding the performance outlook for the Company and its individual businesses (including, without limitation, sales, expenses, margins and earnings) and all other statements not addressing solely historical facts or present conditions. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to estimates reflected in forward-looking statements, including the amount of required accruals related to the earn-out bonus potentially payable to Schuh management based on the achievement of certain performance objectives; the timing and amount of non-cash asset impairments related to retail store fixed assets or to intangible assets of acquired businesses; the effectiveness of our omnichannel initiatives, weakness in the consumer economy; competition in the Company's markets; inability of customers to obtain credit; fashion trends that affect the sales or product margins of the Company's retail product offerings; changes in buying patterns by significant wholesale customers; bankruptcies or deterioration in financial condition of significant wholesale customers; disruptions in product supply or distribution; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; the Company's ability to continue to complete and integrate acquisitions, expand its business and diversify its product base; changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons; and the performance of athletic teams, the participants in major sporting events such as the Super Bowl and World Series, developments with respect to certain individual athletes, and other sports-related events or changes that may affect period-to-period comparisons in the Company's Lids Sports Group retail business. Additional factors that could affect the Company's prospects and cause differences from expectations include the ability to build, open, staff and support additional retail stores and to renew leases in existing stores and control occupancy costs, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets or intangible assets or other adverse financial consequences; unexpected changes to the market for the Company's shares; variations from expected pension-related charges caused by conditions in the financial markets; and the cost and outcome of litigation, investigations and environmental matters involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, our SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via our website, www.genesco.com. Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.

About Genesco Inc.

Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,830 retail stores and leased departments throughout the U.S., Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Schuh Kids, Lids, Locker Room by Lids, Lids Clubhouse, Johnston & Murphy, and on internet websites www.journeys.com, www.journeyskidz.com, www.shibyjourneys.com, www.schuh.co.uk, www.johnstonmurphy.com, www.lids.com, www.lids.ca, www.lidslockerroom.com, www.lidsteamsports.com, www.lidsclubhouse.com, www.trask.com, www.suregripfootwear.com and www.dockersshoes.com . The Company's Lids Sports Group division operates the Lids headwear stores, the Locker Room by Lids and other team sports fan shops and single team clubhouse stores, and the Lids Team Sports team dealer business. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the Trask brand, the licensed Dockers brand, SureGrip, and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.



                                                                                                                                        GENESCO INC.


       Consolidated Earnings Summary
       =============================

                                                                                                                     Three Months Ended                     Nine Months Ended
                                                                                                                     ------------------                     -----------------

                                                                                                                                Nov. 1,                                     Nov. 2,             Nov. 1,            Nov. 2,

       In Thousands                                                                                                                2014                                         2013                 2014                2013
       ------------                                                                                                                ----                                         ----                 ----                ----

       Net sales                                                                                                               $722,915                                     $666,332           $1,967,214          $1,832,466

       Cost of sales                                                                                                            364,426                                      334,171              991,036             919,060

       Selling and administrative expenses*                                                  310,893                                                283,702                            894,469             829,506

       Asset impairments and other, net                                                        1,036                                                  1,480                              1,347             (4,331)
       --------------------------------                                                        -----                                                  -----                              -----              ------

       Earnings from operations                                                               46,560                                                 46,979                             80,362              88,231

       Indemnification asset write-off                                                         7,050                                                      -                             7,050                   -

       Interest expense, net                                                                     891                                                  1,190                              2,374               3,369
       ---------------------                                                                     ---                                                  -----                              -----               -----

       Earnings from continuing operations

           before income taxes                                                                38,619                                                 45,789                             70,938              84,862


       Income tax expense                                                                      9,869                                                 17,993                             23,322              34,092
       ------------------                                                                      -----                                                 ------                             ------              ------

       Earnings from continuing operations                                                    28,750                                                 27,796                             47,616              50,770


        Provision for discontinued
        operations                                                                              (88)                                                  (46)                             (287)              (270)
       ---------------------------                                                               ---                                                    ---                               ----                ----

       Net Earnings                                                                                                             $28,662                                      $27,750              $47,329             $50,500
       ============                                                                                                             =======                                      =======              =======             =======


     *  Includes $1.0 million and $6.3 million in deferred payments related to the Schuh acquisition in the third
        quarter and first

        nine months ended November 1, 2014, respectively, and $3.0 million and $8.7 million for the third quarter
        and first nine

       months ended November 2, 2013, respectively.


       Earnings Per Share Information
       ==============================

                                                                                                              Three Months Ended                            Nine Months Ended
                                                                                                              ------------------                            -----------------

                                                                                                                                Nov. 1,                                     Nov. 2,             Nov. 1,            Nov. 2,

        In Thousands (except per share
        amounts)                                                                                2014                                                   2013                               2014                2013
       -------------------------------                                                          ----                                                   ----                               ----                ----

       Preferred dividend requirements                                             $               -                                     $               -                           $     -                $33


       Average common shares - Basic EPS                                                      23,602                                                 23,329                             23,489              23,299


       Basic earnings per share:

            Before discontinued operations                                                     $1.22                                                  $1.19                              $2.03               $2.18

            Net earnings                                                                       $1.21                                                  $1.19                              $2.01               $2.17


       Average common and common

           equivalent shares - Diluted EPS                                                    23,760                                                 23,604                             23,691              23,619


       Diluted earnings per share:

            Before discontinued operations                                                     $1.21                                                  $1.18                              $2.01               $2.15

            Net earnings                                                                       $1.21                                                  $1.18                              $2.00               $2.14



                                                                                                                                  GENESCO INC.


     Consolidated Earnings Summary
     =============================

                                                                                                            Three Months Ended                     Nine Months Ended
                                                                                                            ------------------                     -----------------

                                                                                                                              Nov. 1,                              Nov. 2,              Nov. 1,               Nov. 2,

     In Thousands                                                                                                                2014                                  2013                  2014                   2013
     ------------                                                                                                                ----                                  ----                  ----                   ----

     Sales:

         Journeys Group                                                                   $303,781                                        $281,093                            $802,742               $760,707

         Schuh Group                                                                                                          101,959                                92,556               283,005                242,988

         Lids Sports Group                                                                 220,038                                         199,154                             608,621                569,515

         Johnston & Murphy Group                                                            65,965                                          61,689                             184,357                173,372

         Licensed Brands                                                                    30,981                                          31,630                              87,735                 84,854

         Corporate and Other                                                                   191                                             210                                 754                  1,030
     -------------------                                                                       ---                                             ---                                 ---                  -----

         Net Sales                                                                                                           $722,915                              $666,332            $1,967,214             $1,832,466
     =========                                                                                                               ========                              ========            ==========             ==========

     Operating Income (Loss):

         Journeys Group                                                                    $35,047                                         $32,268                             $61,544                $56,198

         Schuh Group (1)                                                                     3,949                                           1,945                             (1,389)               (4,131)

         Lids Sports Group                                                                   8,606                                          11,996                              25,217                 35,517

         Johnston & Murphy Group                                                             4,505                                           4,833                               8,577                 10,432

         Licensed Brands                                                                     3,082                                           4,112                               8,476                  8,504

         Corporate and Other (2)                                                           (8,629)                                        (8,175)                           (22,063)              (18,289)
     ----------------------                                                                 ------                                          ------                             -------                -------

        Earnings from operations                                                            46,560                                          46,979                              80,362                 88,231

        Indemnification asset write-off                                                      7,050                                               -                              7,050                      -

        Interest, net                                                                                                             891                                 1,190                 2,374                  3,369
     -------------                                                                                                                ---                                 -----                 -----                  -----

     Earnings from continuing operations

         before income taxes                                                                38,619                                          45,789                              70,938                 84,862

     Income tax expense                                                                      9,869                                          17,993                              23,322                 34,092
     ------------------                                                                      -----                                          ------                              ------                 ------

     Earnings from continuing operations                                                    28,750                                          27,796                              47,616                 50,770


      Provision for discontinued
      operations                                                                              (88)                                           (46)                              (287)                 (270)
     ---------------------------                                                               ---                                             ---                                ----                   ----

     Net Earnings                                                                                                             $28,662                               $27,750               $47,329                $50,500
     ============                                                                                                             =======                               =======               =======                =======


      (1) Includes $1.0 million and $6.3 million in deferred payments related to the Schuh acquisition in the
      third quarter and first

      nine months ended November 1, 2014, respectively, and $3.0 million and $8.7 million for the third quarter
      and first nine

     months ended November 2, 2013, respectively.


      (2) Includes a $1.0 million charge in the third quarter of Fiscal 2015 which includes $0.6 million for
      network intrusion

      expenses and $0.4 million for asset impairments.  Includes a $1.3 million charge for the first nine months
      of Fiscal 2015

      which includes a $3.3 million gain on a lease termination, partially offset by $2.4 million for network
      intrusion expenses, $1.6

      million for asset impairments and $0.6 million for other legal matters.  Includes a $1.5 million charge in the
      third quarter of Fiscal

      2014 which includes $0.8 million for network intrusion expenses, $0.4 million for asset impairments and $0.3
      million for other

      legal matters.  Includes $4.3 million income for the first nine months of Fiscal 2014 which includes an $8.3
      million gain on a lease

      termination, partially offset by $1.8 million for asset impairments, $1.4 million for network intrusion
      expenses and $0.8 million

     for other legal matters.

                                  GENESCO INC.



     Consolidated Balance Sheet
     ==========================


                                                             Nov. 1,              Nov. 2,

     In Thousands                                               2014                  2013
     ------------                                               ----                  ----

     Assets

     Cash and cash equivalents                    $38,026               $32,250

     Accounts receivable                           71,796                64,235

     Inventories                                             737,577               694,256

     Other current assets                          83,653                78,820
     --------------------                          ------                ------

     Total current assets                         931,052               869,561
     --------------------                         -------               -------

     Property and equipment                       314,664               268,985

     Other non-current assets                     423,529               407,257
     ------------------------                     -------               -------

     Total Assets                                         $1,669,245            $1,545,803
     ============                                         ==========            ==========

     Liabilities and  Equity

     Accounts payable                            $248,782              $265,067

      Current portion long-term
      debt                                         35,347                 5,596

     Other current liabilities                    200,593               139,324
     -------------------------                    -------               -------

     Total current liabilities                    484,722               409,987
     -------------------------                    -------               -------

     Long-term debt                                           79,688                92,361

     Other long-term liabilities                  134,177               181,857

     Equity                                                  970,658               861,598
     ------                                                  -------               -------

     Total Liabilities and Equity              $1,669,245            $1,545,803
     ============================              ==========            ==========

                                                      GENESCO INC.



     Retail Units Operated - Nine Months Ended November 1, 2014
     ==========================================================

                                                                    Balance Acquisi-                   Balance     Acquisi-                         Balance

                                                                   02/02/13    tions  Open   Close    02/01/14        tions     Open     Close     11/01/14
                                                                   --------    -----  ----   -----    --------        -----     ----     -----     --------

     Journeys Group                                                   1,157         0     39       28        1,168            0       26        11          1,183

         Journeys                                                       820         0     20       13          827            0       14         4            837

         Underground by Journeys                                        130         0      0       13          117            0        0         4            113

         Journeys Kidz                                                  156         0     19        1          174            0       12         2            184

         Shi by Journeys                                                 51         0      0        1           50            0        0         1             49

     Schuh Group                                                         92         0     29       22           99            0       11         4            106

          Schuh UK*                                                      70         0     29        9           90            0       10         4             96

          Schuh ROI                                                       9         0      0        0            9            0        1         0             10

          Schuh Concessions*                                             13         0      0       13            0            0        0         0              0

     Lids Sports Group**                                              1,053        15    102       37        1,133           56      215        27          1,377

     Johnston & Murphy Group                                            157         0     13        2          168            0        8         5            171

         Shops                                                          102         0      6        2          106            0        3         3            106

         Factory Outlets                                                 55         0      7        0           62            0        5         2             65

     Total Retail Units                                               2,459        15    183       89        2,568           56      260        47          2,837
     ==================                                               =====       ===    ===      ===        =====          ===      ===       ===          =====

     Permanent Units*                                                 2,446        15    173       69        2,565           56      260        44          2,837
     ===============                                                  =====       ===    ===      ===        =====          ===      ===       ===          =====

     Retail Units Operated - Three Months Ended November 1, 2014
     ===========================================================

                                                                  Balance Acquisi-                   Balance

                                                                 08/02/14    tions  Open   Close    11/01/14
                                                                 --------    -----  ----   -----    --------

     Journeys Group                                                 1,172         0     14        3        1,183

         Journeys                                                     829         0      9        1          837

         Underground by Journeys                                      115         0      0        2          113

         Journeys Kidz                                                179         0      5        0          184

         Shi by Journeys                                               49         0      0        0           49

     Schuh Group                                                       99         0      7        0          106

          Schuh UK                                                     90         0      6        0           96

          Schuh ROI                                                     9         0      1        0           10

     Lids Sports Group**                                            1,233        37    114        7        1,377

     Johnston & Murphy Group                                          170         0      2        1          171

         Shops                                                        106         0      1        1          106

         Factory Outlets                                               64         0      1        0           65

     Total Retail Units                                             2,674        37    137       11        2,837
     ==================                                             =====       ===    ===      ===        =====

     Permanent Units*                                               2,674        37    137       11        2,837
     ===============                                                =====       ===    ===      ===        =====


      * Excludes Schuh Concessions and temporary "pop-up"
      locations.

      **Includes 190 Locker Room by Lids in Macy's stores as of
      November 1, 2014.

     Comparable Sales (including same store and comparable direct sales)
     ==================================================================

                                                                         Three Months Ended Nine Months Ended
                                                                         ------------------ -----------------

                                                                                    Nov. 1,           Nov. 2,  Nov. 1,   Nov. 2,

                                                                                       2014               2013      2014       2013
                                                                                       ----               ----      ----       ----

     Journeys Group                                                                      6%               -2%       4%       -2%

     Schuh Group                                                                         0%              -10%       0%       -9%

     Lids Sports Group                                                                   1%                5%       0%       -1%

     Johnston & Murphy Group                                                             0%                7%       0%        7%

     Total Comparable Sales                                                              3%               -1%       2%       -2%
     ======================                                                             ===                ===       ===        ===

                                                                                                                                                                                                                               Schedule B


                                                                                                                                        Genesco Inc.

                                                                                                                 Adjustments to Reported Earnings from Continuing Operations

                                                                                                                  Three Months Ended November 1, 2014 and November 2, 2013


                                                                                                                                      Three                            Impact on           Three           Impact on

                                                                                                                                      Months                            Diluted            Months            Diluted

    In Thousands (except per share amounts)                                                                                          Oct 2014                             EPS             Oct 2013            EPS
                                                                                                                                    --------                             ---             --------             ---

    Earnings from continuing operations, as reported                                                                                             $28,750                           $1.21           $27,796               $1.18


    Adjustments:  (1)

    Impairment charges                                                                                                                               244                            0.01               215                0.01

    Deferred payment - Schuh acquisition                                                                                                           1,017                            0.04             2,949                0.12

    Indemnification asset write-off                                                                                                                7,050                            0.30                 -                  -

    Change in accounting for bonus awards                                                                                                              -                              -            2,541                0.11

    Other legal matters                                                                                                                               38                               -              169                0.01

    Network intrusion expenses                                                                                                                       388                            0.02               536                0.02

    Higher (lower) effective tax rate                                                                                                            (7,185)                         (0.30)            (382)             (0.02)


    Adjusted earnings from continuing operations (2)                                                                                             $30,302                           $1.28           $33,824               $1.43
                                                                                                                                                 -------                           -----           -------               -----



    (1) All adjustments are net of tax where applicable.  The tax rate for the third quarter of Fiscal 2015 is 36.4% excluding a

        FIN 48 discrete item of less than $0.1 million.  The tax rate for the third quarter of Fiscal 2014 is 37.6% excluding a

        FIN 48 discrete item of less than $0.1 million.


    (2) EPS reflects 23.8 and 23.6 million share count for Fiscal 2015 and 2014, respectively, which includes common stock

         equivalents in both years.


    The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted

    for the items not reflected in the previously announced expectations will be meaningful to investors, especially

    in light of the impact of such items on the results.

                                                                   Genesco Inc.

                                                     Adjustments to Reported Operating Income

                                             Three Months Ended November 1, 2014 and November 2, 2013


                                               Three Months Ended November 1, 2014
                                              -----------------------------------

                                                            Operating                           Bonus Adj        Adj Operating

    In Thousands                                              Income                            and Other           Income
                                                             ------                            ---------            ------

    Journeys Group                                                         $35,047                    $        -               $35,047

    Schuh Group*                                                             3,949                         1,017                  4,966

    Lids Sports Group                                                        8,606                             -                 8,606

    Johnston & Murphy Group                                                  4,505                             -                 4,505

    Licensed Brands                                                          3,082                             -                 3,082

    Corporate and Other                                                    (8,629)                        1,036                (7,593)
                                                                            ------                         -----                 ------

    Total Operating Income                                                 $46,560                        $2,053                $48,613
                                                                           -------                        ------                -------


    *Schuh Group adjustments include $1.0 million in deferred purchase price payments.


                                               Three Months Ended November 2, 2013
                                              -----------------------------------

                                                            Operating                           Bonus Adj        Adj Operating

    In Thousands                                              Income                            and Other           Income
                                                             ------                            ---------            ------

    Journeys Group                                                         $32,268                          $968                $33,236

    Schuh Group*                                                             1,945                         3,903                  5,848

    Lids Sports Group                                                       11,996                             -                11,996

    Johnston & Murphy Group                                                  4,833                            10                  4,843

    Licensed Brands                                                          4,112                             4                  4,116

    Corporate and Other                                                    (8,175)                        3,598                (4,577)
                                                                            ------                         -----                 ------

    Total Operating Income                                                 $46,979                        $8,483                $55,462
                                                                           -------                        ------                -------


    *Schuh Group adjustments include $3.0 million in deferred purchase price payments.



                                                                                                                                                                                                                                   Schedule B


                                                                                                                                         Genesco Inc.

                                                                                                                  Adjustments to Reported Earnings from Continuing Operations

                                                                                                                    Nine Months Ended November 1, 2014 and November 2, 2013


                                                                                                                                         Nine                            Impact on            Nine             Impact on

                                                                                                                                        Months                            Diluted            Months              Diluted

    In Thousands (except per share amounts)                                                                                            Oct 2014                             EPS             Oct 2013              EPS
                                                                                                                                      --------                             ---             --------               ---

    Earnings from continuing operations, as reported                                                                                               $47,616                           $2.01             $50,770               $2.15


    Adjustments:  (1)

    Impairment charges                                                                                                                               1,023                            0.04               1,108                0.05

    Deferred payment - Schuh acquisition                                                                                                             6,346                            0.27               8,651                0.36

    Gain on lease termination                                                                                                                      (2,104)                         (0.09)            (2,077)             (0.09)

    Indemnification asset write-off                                                                                                                  7,050                            0.30                   -                  -

    Change in accounting for bonus awards                                                                                                            3,575                            0.15              10,319                0.44

    Other legal matters                                                                                                                                437                            0.02                 471                0.02

    Network intrusion expenses                                                                                                                       1,509                            0.06                 896                0.04

    Higher (lower) effective tax rate                                                                                                              (7,838)                         (0.33)              (877)             (0.04)


    Adjusted earnings from continuing operations (2)                                                                                               $57,614                           $2.43             $69,261               $2.93
                                                                                                                                                   -------                           -----             -------               -----



    (1) All adjustments are net of tax where applicable.  The tax rate for the first nine months of Fiscal 2015 is 36.9% excluding a

        FIN 48 discrete item of less than $0.1 million.  The tax rate for the first nine months of Fiscal 2014 is 37.3% excluding a

        FIN 48 discrete item of $0.1 million.


    (2) EPS reflects 23.7 and 23.6 million share count for Fiscal 2015 and 2014, respectively, which includes common stock

         equivalents in both years.


    The Company believes that disclosure of earnings and earnings per share from continuing operations adjusted

    for the items not reflected in the previously announced expectations will be meaningful to investors, especially

    in light of the impact of such items on the results.

                                                                   Genesco Inc.

                                                     Adjustments to Reported Operating Income

                                             Nine Months Ended November 1, 2014 and November 2, 2013


                                               Nine Months Ended November 1, 2014
                                              ----------------------------------

                                                            Operating                          Bonus Adj         Adj Operating

    In Thousands                                              Income                           and Other            Income
                                                             ------                           ---------             ------

    Journeys Group                                                        $61,544                         $4,919                 $66,463

    Schuh Group*                                                          (1,389)                         6,346                   4,957

    Lids Sports Group                                                      25,217                              -                 25,217

    Johnston & Murphy Group                                                 8,577                             25                   8,602

    Licensed Brands                                                         8,476                              -                  8,476

    Corporate and Other                                                  (22,063)                         2,082                (19,981)
                                                                          -------                          -----                 -------

    Total Operating Income                                                $80,362                        $13,372                 $93,734
                                                                          -------                        -------                 -------


    *Schuh Group adjustments include $6.3 million in deferred purchase price payments.


                                               Nine Months Ended November 2, 2013
                                              ----------------------------------

                                                            Operating                          Bonus Adj         Adj Operating

    In Thousands                                              Income                           and Other            Income
                                                             ------                           ---------             ------

    Journeys Group                                                        $56,198                         $7,028                 $63,226

    Schuh Group*                                                          (4,131)                        12,595                   8,464

    Lids Sports Group                                                      35,517                          1,676                  37,193

    Johnston & Murphy Group                                                10,432                             23                  10,455

    Licensed Brands                                                         8,504                              -                  8,504

    Corporate and Other                                                  (18,289)                         4,441                (13,848)
                                                                          -------                          -----                 -------

    Total Operating Income                                                $88,231                        $25,763                $113,994
                                                                          -------                        -------                --------


    *Schuh Group adjustments include $8.7 million in deferred purchase price payments.

                                                                                                                                                                                                       Schedule B


                                                                                                                             Genesco Inc.

                                                                                                    Adjustments to Forecasted Earnings from Continuing Operations

                                                                                                                 Fiscal Year Ending January 31, 2015


    In Thousands (except per share amounts)                                                                                                         High Guidance          Low Guidance

                                                                                                                                                     Fiscal 2015           Fiscal 2015
                                                                                                                                                     -----------           -----------

    Forecasted earnings from continuing operations                                                                                                                $102,079              $4.31  $99,397            $4.20


    Adjustments:  (1)

    Asset impairment and other charges                                                                                                                               1,830               0.08    2,146             0.09

    Change in accounting for bonus awards                                                                                                                            3,575               0.15    3,575             0.15

    Deferred payment - Schuh acquisition                                                                                                                             7,346               0.31    7,346             0.31
                                                                                                                                                                     -----               ----    -----             ----


    Adjusted forecasted earnings from continuing operations (2)                                                                                                   $114,830              $4.85 $112,464            $4.75
                                                                                                                                                                  --------              ----- --------            -----


    (1) All adjustments are net of tax where applicable.  The forecasted tax rate for Fiscal 2015 is approximately 36.9%

        excluding a FIN 48 discrete item of $0.1 million.


    (2) EPS reflects 23.7 million share count for Fiscal 2015 which includes common stock equivalents.


    This reconciliation reflects estimates and current expectations of future results. Actual results may vary

    materially from these expectations and estimates, for reasons including those included in the discussion

    of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update

    such expectations and estimates.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/genesco-reports-third-quarter-fiscal-2015-results-300005432.html

SOURCE Genesco Inc.