Genesco's sole concern is nicely capped off, to boot (so to speak). It sells casual and dress footwear, headwear, and sports apparel through more than 2,400 shoe and cap stores in the US, Canada, Puerto Rico, the UK, and Ireland. Genesco's shoe operations include Journeys, Underground Station (targeting young urbanites), upscale Johnston & Murphy, Schuh, and Licensed Brands (Levi Strauss' Dockers footwear, Keuka). Its Lids Sports division operates the Lids Locker Room retail chain and website, as well as the Lids Team Sports team dealer business. Founded in 1924 as a shoe retailer, Genesco has diversified by adding hats and sports apparel. It expanded overseas with the purchase of Scotland's Schuh.
Genesco is a leading footwear and accessories retailer and wholesaler that operates through six business segments: Journeys Group (about 40% of sales) operates the teen-focused Journeys, Journeys Kidz, and Shi by Journeys shoe chains, catalog, and online business; Underground Station operates footwear and accessories stores, primarily in urban markets, that cater to men and women between the ages of 20 and 35, as well as a corresponding online business; Lids Sports Group (33% of sales) sells headwear and accessories under the Lids and other banners at mall-based stores, airports, and kiosks throughout North America and Puerto Rico; Schuh (acquired in mid-2011) is a leading fashion footwear chain based in Scotland with stores in England and Ireland with about 75 stores; the Johnston & Murphy Group operates more than 150 Johnston & Murphy upscale shoe stores, a catalog and online division, and wholesale distribution business; lastly, Licensed Brands is comprised primarily of Dockers Footwear licensed from Levi Strauss.
While Genesco doesn't report international sales, its recently-acquired, UK-based Schuh business rang up more than $212 million in fiscal 2012 (ends January), accounting for about 9% of Genesco's net sales.The purchase of Schuh established Genesco's retail presence outside of North America.
After several years of tepid sales growth, Genesco's fiscal 2012 (ends January) sales jumped 28% vs. the prior year to $2.3 billion. (Net income climbed by 54% over the same period.) The steep rise in sales and profits was due to acquired businesses, primarily Schuh, and same-store sales gains at the company's Lids Sports (up 26%), Journeys (up 15%), and Johnston & Murphy (9%) groups. (Licensed Brands and Underground Station businesses posted sales declines in fiscal 2012 vs. the prior year.)
Genesco's long-term strategy is to grow organically and through acquisitions. To that end, it paid £100 million (roughly $160 million) in June 2011 for casual and athletic footwear retailer Schuh, whose operations include about 60 stores in the UK and Ireland, more than 15 locations inside Republic clothing shops, and an e-commerce site. (Genesco agreed to dole out up to £50 million more to Schuh if it meets performance targets in coming years.) Genesco retained Schuh's store banner, and plans to introduce the UK retailer's private-label shoe brands to the US, and have the unit design footwear exclusively for Journeys stores. Overall, Genesco has added more than 200 stores over the past four years, about 70% of which came from acquisitions, including Schuh in fiscal 2012 and Sports Avenue's 48 stores in fiscal 2011. Going forward, Genesco plans to open about 40 new Lids shops, 10 Johnston & Murphy locations, and about Schuh stores in fiscal 2013. To trim its loses at its Underground Station business, Genesco has been closing its stores and in fiscal 2013 will combine its operations with those of Journeys in fiscal 2013. Genesco aims to grow its annual sales to $3.1 billion by fiscal 2016.
Eagle Asset Management is Genesco's largest shareholder with more than 13% of its shares.