Good day, everyone and welcome to the Genesco Fourth Quarter Fiscal Year 2013 Conference Call. Just a reminder, today's call is being recorded. Participants on the call expect to make forward-looking statements. These statements reflect the participants' expectations as of today, but actual results could be different. Genesco refers you to this morning's earnings release and to the company's SEC filings, including the most recent 10-Q filing for some of the factors that could cause differences from the expectations reflected in the forward-looking statements made during the call today. Participants also expect to refer to certain adjusted financial measures during the call. All non-GAAP financial measures referred to in the prepared remarks are reconciled to their GAAP counterparts in the attachments to this morning's press release and in schedules available on the company's homepage under Investor Relations. I will now turn the conference over to Bob Dennis, Genesco's Chairman, President and Chief Executive Officer. Please go ahead, sir.

Good morning, and thank you for being with us. Joining me today is Jim Gulmi, our Chief Financial Officer. As usual, Jim's detailed review of the results has been posted to our website, along with the press release from earlier this morning. I'll begin today's call with remarks about our full year and fourth quarter results, our start to fiscal 2014 and our outlook for the year. Then I'll turn the call over to Jim for a review of the numbers and guidance. I will then return to provide some color on our operating segments before we open up the call to your questions. As you saw from our press release this morning, our fiscal 2013 performance was solid, with adjusted earnings per share up 24% to $5.06. This was achieved by a top line gain of 14% and meaningful expense leverage. As a reminder, we are now reporting a combined comparable sales number that includes stores and e-commerce, and that is the number we will be citing throughout our remarks today. For a more detailed breakdown of our comp performance, please see Jim's online review. For our fiscal 2013, comps were up 3%. From a strategic standpoint, we are very pleased with where the company is heading. During fiscal 2013, we executed well on the growth drivers we identified at this point last year. First, we accelerated Schuh's store opening schedule to take advantage of the business's momentum over the past year and the attractive real estate opportunities afforded by the weak economic environment in the U.K. Schuh's freestanding store count at year end was 79, up 23% over last year, including the third quarter addition of 3 Schuh Kids stores. Schuh's success comes despite challenging market conditions in the U.K. and gives us confidence that accelerating Schuh's store…

Thank you, Bob. As a reminder, detailed information for the quarter has been posted online, so I will try to highlight a few important points in the reported results and focus in more detail on guidance for the new year. The fourth quarter came in slightly better than we expected when we last updated in January. Consolidated net sales were up 10% for the quarter to $797 million. The extra week in the quarter accounted for about 1/2 of that increase, but as I will mention later, it was a hard week for comps. Comps for Lids were down 10% for the quarter, reflecting a number of specific issues in headwear market that Bob will talk about in detail, as well as the general economic climate. Journeys' quarterly comp were negative due to the very soft 53rd week coming in at negative 1% for the quarter. The final week was a difficult one, especially for retailers that are sensitive to disposable income or mall traffic because of the tax refund delay that we call out in the January press release, which hurt both Journeys and Lids. Johnston & Murphy posted a 2% comp increase, and Schuh led the company with a 7% comp increase. The Internet and catalog business in each segment was strong, with comp increases ranging from 10% for Johnston & Murphy, all the way up to 27% in Lids. And each one outperformed its brick-and-mortar counterpart. Overall, our direct businesses were up 17% in the fourth quarter this year compared to a 4% increase last year. Operating income adjusted as described in the press release rose 10% to $82 million and was flat with last year at 10.3% of sales, thanks to 80 basis points of expense leverage. This improvement was achieved despite $0.11 per share of…

Thanks, Jim. I'm going to begin my review with the Lids Sports Group, which was the most challenging area of our business in the fourth quarter. The group's fourth quarter comps were down 10%, and we see 3 factors as the main drivers of the decline. First, NHL sales declined significantly because of the strike, and were off more than 40% for the quarter representing about 1.5 points of comp. Since games resumed in January, we have seen a nice recovery in the category. Second, we experienced the negative effects of the anniversary of 2011's St. Louis Cardinals' World Series victory. We were impacted heavily because we operate 7 St. Louis Cardinals Clubhouse stores. Cardinals sales were off a total of 50% in the fourth quarter compared to last year. And net of the pickup in San Francisco Giants' product, we estimate this reduced Lids comps by another 50 basis points for the quarter. The third and largest of Lids' primary challenges, the snapback hat remains. As we have discussed before, the tremendous popularity of these styles, plus the fact that they are much more easily merchandised than the fitted hats, in which we specialize, have led to increased headwear competition and effectively cannibalized other parts of our hat business. To date, snapback sales remain strong for us and for others. But like all fashion trends, we believe that snapback demand will moderate in time and with our market-leading position and a proactive merchandising approach, we feel good about our ability to capitalize on the next trend. We are using our merchandising strengths and our leadership in the market to showcase compelling new merchandise, especially within the fitted category, and initial reactions have been positive. Several of these new collections are exclusive to us. February comps for the Lids Group…

[Operator Instructions] We'll first go to Steph Wissink, Piper Jaffray.

A couple of questions here. If we look at quarter-to-date trend, if you could just quantify for us, maybe give us an insight into the sales mix shift that you saw at Journeys? And the effect of that on gross margin, how should we think about that here over the next couple of quarters? And then second question, Jim, I think you had talked about kind of the SG&A component that's related to incentives or bonus expense. As you're looking at the other core G&A expenses, is there any shifting happening in that line item that we should think about for the next 12 months?

I'll go first. On Journeys, I'm not sure what you mean by mix. The Journeys business continues to be driven by fashion trends that have been in place for a while. And so what we like about is it's a broad set of vendors that are important to us. It's a number of different styles, the athletic and surf-inspired styles. And then both shoes obviously important. Boots were important for winter again this year. As we move into spring, we landed spring goods, as we said, a little later than we did last year. And to be honest, Steph, with the weather we've had in February, it's a little hard to give an early read.

And on the expense side, you mentioned the other items in SG&A. The 2 item -- 2 big items I called out, 1 was on the bonus accrual, which has provided us with a good deal of leverage, certainly in the full year, and especially in the fourth quarter. And we would expect some of that going forward. And there's nothing else major going on in the SG&A other -- nothing that we haven't talked about before. We're doing a great job, I think, in managing our selling expenses in our store. But a lot the question of whether leverage is a question of the comp sales. And we said before, that 2% to 3%, in that range, we think we can leverage sale. So if we fall below that level, which we did in the fourth quarter, then it's hard for us to leverage the other categories. But we made up for it in the fourth quarter because our bonus accrual was down. And so really, on the other -- other than the 2 items I mentioned, contingent bonus and Schuh contingent bonus, in the bonus accrual, there's really not much different going on -- nothing much different going on in the rest of the categories.

Bob, if I could just ask a clarification. I think as I read through Jim's remarks from the online script, it is referencing product mix several times in relation to the gross margin for the Journeys Group. And maybe you could just provide some insight there, I think it'll be helpful for us to think about product mix margin if that's what this thing referenced.

Yes, that's what it is. And it was just the mix of the product that was being sold. Some of the categories were -- carry a slightly lower gross margin. It probably will continue for a short while for the next couple of quarters, it's nothing major. We're talking about very small movements in gross margin, 10 basis points or so. So, yes, it could continue for a while but again, it's driven by demand for individual brands and it just so happened in the fourth quarter, the mix was such that it did affect the IMO.

And we'll take our next question from Scott Krasik, BB&T Capital Markets. Scott D. Krasik - BB&T Capital Markets, Research Division: Just a couple of questions. First, the $10 million that you referenced on small deals in the Lids Group, that sounds like a -- maybe a little bit more than what it typically is. And is that in fact the case? And if so, are you accelerating the strategy to roll up independent operators and could it be even more meaningful next year?

Scott, it's Bob. Hard to say. Yes, it spiked a little bit in the quarter. And I would expect it to continue to be spiky because if we find a regional group where it makes sense for us to get together with them, we will do it. We will be opportunistic. We're not working off of a quarterly plan because we don't want to force ourselves to do deals that we think don't make sense, and our other alternative is to just simply open stores. So we're going to add stores this year, and the market will tell us whether the mix is more heavily steered towards acquisitions or to open stores. And so we had a couple of ideas in the fourth quarter that caused it to be spiky. But don't read into that, that trend is going to continue. Scott D. Krasik - BB&T Capital Markets, Research Division: What would be a situation where it doesn't make sense to acquire versus build organically, I guess?

The asking price is too high.

That's fair. Okay. Then -- and usually, I guess, history showed with the hat business that sellers are probably better off than trying to keep a high price, is that fair?

Yes, I think, our ambition, as we've been very clear about, is to really create a national footprint and be the major player in this space. And so over time, we would expect that savvy -- and its happening, savvy operators recognize that and see that life might be better inside of the Lids brands. And so the great thing about it is that not only have we picked up some great properties, but we picked up some great people who are really good operators. But we make their ability to succeed easier. We give them distribution, we give them a web platform that they otherwise probably couldn't put together at their scale. We give them buying power in the marketplace. We give them access to product that's exclusive, that they otherwise may not get. And all those factors add up to an opportunity. So savvy operators see that and they call Ken Kocher and they say, "We would love to talk about how we might work together." Some of those come together in a deal, and some of them don't, some of them take time. Scott D. Krasik - BB&T Capital Markets, Research Division: Okay. That's helpful. Jim, you called out Lids inventory, in particular, being a little bit high. You did take a hit there because of promotional activity. But you're not really guiding to a significant of a decline in 2013. So is it going to be lumpy and are you going to have some pretty big gross margin declines in the first half of the year as you close out that excess merchandise or what's your thought?

Well, one thing -- this is Bob first, then I will give it to Jim. In that business, one of the things that happened is the demand on snapback hats narrowed down to very specific SKUs, and so we both got clear in the parts of snapbacks that had actually slowed down. So that was just clearing slow-moving goods. And then to some extent, we had to get competitive with the rest of the market, so there was a bit of a reset in that category. And that's why you are starting to see some changes. Jim, you want to add more color?

No. I think that as we get in the year, obviously, the promotions will be less, I would expect, as sales pick up in the back half of the year. But I don't see the trend getting worse than it was in the fourth quarter. Hopefully, we'll see some improvement going forward, but there will be some pressure on margins early in the year. Scott D. Krasik - BB&T Capital Markets, Research Division: Were you on BOGO longer where you wanted to be in Q4? And is that the strategy then for the first half of the year to clear the inventory?

No, we weren't that much more promotional in terms of all-store promotions. We were targeted.

[Operator Instructions] We'll now go to Sam Poser, Sterne Agee. Ben Shamsian - Sterne Agee & Leach Inc., Research Division: It's Ben Shamsian for Sam. Had a question on the inventory. What was the inventory on a like-for-like versus 1 week later. What was the inventory up on sort of the week-to-week?

We don't have that number as of the end of the 52nd week. And that is a consideration and that could be part -- that is probably part of the reason why inventories were up greater than our sales. However, we still think that more of the increase is due to the reasons I laid out earlier, but we don't have it at the end of the 52nd week.

And the more important thing is we're comfortable with the inventory that we have. We're -- we got a little bit of Lids, which we've managed down for most of the store outside the fashion category, we managed that down with the receipts. Because, as we always said, the Yankee hat doesn't go out of style, you just rightsize the inventory. And across the rest of the chain, we're properly valued and we feel good about the inventory position that we're in. Ben Shamsian - Sterne Agee & Leach Inc., Research Division: And can you help us understand sort of the revenue, on a quarter-by-quarter basis, sort of the ebbs and flows there because of the 53rd week and how -- you said you're going to have a later Q2 and a bunch of other things. So how can we kind of be able to streamline the quarters' revenues?

Well, I think that, I can tell you, as we said, the 53rd week this year was not very strong. But ballpark, we said it added maybe a 1% to 1.5% to our sales for the full year. So then, obviously, you can break that out of the fourth quarter. I think that's an easy one. You can kind of get your arms around that. The one that we did call out was, again, that there's a later July close this year, so we pick up early August, the first week of August, which is Back-to-School sales, and potentially some tax holidays. So I think that there will be a switch between the first and second quarter, some sales switch from first to second.

Second and third.

No, second and third, excuse me. Second and third, now -- excuse me now, second and third -- between second and third. And really, what I was getting at was that the relationship between the first and second, second is going to be stronger because we're picking up additional sales from the third quarter. So the second quarter is going to be stronger in relation to the first quarter. Ben Shamsian - Sterne Agee & Leach Inc., Research Division: Got it. Okay. And then I'm sorry if I missed your commentary on Schuh. Why are the February sales there sort of weak there? I mean, the tax holidays, I'm assuming, don't have any effect there?

Yes, that's a good assumption. The 2 things that we called out on Schuh is first, the U.K. environment -- really 3 things, the U.K. environment has just been very difficult. And now there's whispers about a triple dip kind of recession. And so that's challenge #1. Challenge #2 for them is just simply the compares. Now if they didn't go comp with us in our comp numbers until we owned them for 1 year, which was in June, but when you look at their pro forma comp, which is really what they are going against, they were well into double digits throughout most of the first half last year and so they've got a comp comparison that is very challenging. And then finally, despite both the U.S. and the U.K. had a similar weather pattern in February, we both had winter this year, whereas last year, it was very spring-like. And so if you're set for spring goods, you really need the storms to clear and the sun to shine, and we haven't had that happen yet. So that's what we would point out. And also, just to point out also that February is a very small month. And so small changes in sales translate into pretty big percentages, so I'd just throw that out as a caution about the drawing too much into what's going on.

Moving on, we'll hear from Steve Marotta, CL King & Associates. Steven Louis Marotta - CL King & Associates, Inc., Research Division: Jim, you mentioned, and if I didn't get this right, let me know, that performance-based comp related to Schuh in fiscal '14 is roughly $0.55, is that accurate?

Yes. Steven Louis Marotta - CL King & Associates, Inc., Research Division: And is that then...

Let me just keep on going. That, when you say performance-based, there's really 2 bonus programs here. One is the normal EVA program and then the other is the Schuh contingent bonus. And that's really what I'm referring to. Steven Louis Marotta - CL King & Associates, Inc., Research Division: What part is the contingent bonus, because that then goes away in fiscal '15? Correct?

Right.

Contingent bonus, just to be clear, is that's the payment being made that we regard as purchase price because it is basically an additional payment for upside performance in the set 4-year period. And what was Jim was saying is that we are paying regular EVA bonuses to the team in England and Scotland, and that will continue beyond year 4. But as you're pointing out, this contingent bonus is a onetime thing. We add it all up at the end of 4 years, pay it and we're done.

So to answer your question, yes, for the most part, it goes away this year. There's some of it next year. Part of it, it will be obviously driven by the performance this year. But we anticipate right now that for the most part, it won't go away, there'll be some payment next year. Steven Louis Marotta - CL King & Associates, Inc., Research Division: What do you anticipate the delta there. So we take out EVA and it's just contingent and there'll be a little bit next year, is that $0.25?

This year, we said that it's about $17 million or about $0.55. And if you look at the $17 million, it could be well below 1/2 of the next year, it could be $0.05, in that range. Steven Louis Marotta - CL King & Associates, Inc., Research Division: Okay. I know when you purchased Schuh, you spoke about being able to read fashion trends a bit quicker as they tend to travel east to west, had that been the case? Can you give an 1 or 2 examples of that where Journeys was able to jump on a trend a little bit quickly because of the reads from Schuh?

When you say they go east to west, not necessarily -- if you look at the teen fashion business, at least lately, it has been more American-influenced traveling to Europe and the U.K. And so the examples would be more along those lines. Then it's not as if our -- the Schuh guys have visibility on it, they maybe get a little improved visibility. What our guys do probably more importantly in the collaboration that's going on is when we work with a lot of the major vendors, we are getting some more favorable treatment in form of special makeups, products that can make us exclusive in this market. And that's being carried over to the U.K. And so the team over there is getting lots of access to product that would only be available in a Schuh, S-C-H-U-H, store in the U.K. and that's probably one of the really big advantages. Steven Louis Marotta - CL King & Associates, Inc., Research Division: I understand. Lastly, boiling everything down, I know you do not guide quarterly, but is there any expectations at all for a potential negative EPS comparisons in either the first or the second quarter?

Well, you're right, we don't give quarterly guidance. But let me just give a little flavor here. We obviously started out February with a negative comp. And February could make up anywhere from 29%, 30% of the quarter from a sales standpoint. So it's, as I've said before, it's more of an important month than it has been in the past. So starting out the negative comp in February, we're all hopeful that as tax refunds begin to kick in March, we'll see some pick up there. We're not sure exactly what the other tax impact might be, the payroll tax. So we're really in uncharted territory right now. And so all we can say is that it's going to be a challenging first quarter. And that's about it. Now the second quarter is really a different story because that 1 week is incremental sales Back-to-School business, so we're hopeful that we, the second quarter, we're going to pick up a little bit there as a result of Back-to-School. But first quarter definitely will be challenging.

And if you look at the comps from last year, by quarter, they were 8, 4, 5 and minus 2, so we're up against an 8. And certainly, conditions in the marketplace have changed year-over-year.

[Operator Instructions] We'll now go to Mark Montagna, Avondale Partners.

Just a question about the debt. When can you pay off that U.K. debt? And is all the other debt that you have completely paid off, expect for the U.K.? And what level of cash are you comfortable with?

Well, the U.S. debt is a revolving credit agreement, so we can pay that down whenever we want. The question is when to pay it down, maybe because you had that amount of cash but a certain amount of cash in the system and there's certain amount of cash in the U.K. So it was -- but we are totally flexible in terms of paying down the U.S. debt. The U.K. debt is, over the next 3 years -- over the next 3 years we pay it down. We have been accelerating some of the payments on that and we will continue to do that. But right now, it's about a 3-year maturity with amortization along the way.

And Mark, for tax reasons, we don't have any incentive to use anything other than our earnings in the U.K. for servicing that debt.

Okay. And then prior delay at Journeys, was that the only division with the delay? And then, was it a particular vendor, was exclusive product, can you just kind of explain why it was delayed?

Yes, I mean, there are some basic logistical stuff, first of, which relates to the warehouse. We did our audit of the warehouse at a different period and then we had to extend that effort because, remember last year, we consolidated the Underground Station stores with Journeys. We waited until after Christmas to consolidate the inventories and to bring them all on common SKUs. And that required both systems programming and physical movement of products in the warehouse. And so to make room for that effort, the team pushed things off. And then the last thing, if you think about it last year, Journeys came through holiday with very, very strong comps. And as they say, the shelves were bare. And so the team had to accelerate just to provide inventory for the stores. And then they got the benefit of having done that of a spring-like February. So that was sort of the perfect positive storm. This year, we still have a more normal year where you have some clearance to get through in January into early February. And so there was less physical space in the stores, and there was more of an effort to clear the remaining inventory. And so it's not as if we were late delivering. We weren't accelerating deliveries on a year-over-year basis, that's probably the better way to think about it. And yes, Journeys was the only one in that situation and it was very specific to those reasons.

Okay. And then Lids has been more promotional last quarter, what about in February?

Nothing too unusual. We're still having to make sure we're competitive in the snapback category, and we continue to make sure that we are not owners of snapback styles that are not in demand. It really has become a much more narrow business, Mark, in terms of the styles, with a huge emphasis on NBA. And so we had -- in particular, we had inventory position in college, that's NCAA, that slowed down, and so we've been making sure we're clear of that. Overall, when you look at snaps, we're in a very good inventory position over all in the sense that our percent of sales in the stores are much higher than our percent of inventory held. So it's very fast and we're making sure that we stay lean because we continue to believe that at some point, this will cool, and we want to be well positioned for that.

Okay. And then just lastly, what's your goal operationally for Lids Team Sports this year?

Lids Team Sports just -- we haven't talked a lot about it. We've been in investment mode. We're building some terrific capabilities for the team. We had hiccups along the way as we integrated the businesses that we had acquired, some unexpected disruptions. But we've got through that and we think it's now very nicely positioned for growth, both top line and bottom line. So it's not a meaningful contributor yet. But we expect this will be the year that it can really start to grow, and grow off of the space into the next 5 years.

We'll take our next question from Jill Caruthers, Johnson Rice. Jill R. Caruthers - Johnson Rice & Company, L.L.C., Research Division: Could you talk about -- you briefly mentioned new product collection that you're doing to help offset the snapback weakness. Could you give a little bit more detail on that, maybe the timing of when we expect that to be in stores?

Correct. We'll give you a little bit of color but maybe not as much as you want. As you know, similar to Journeys, we're very sensitive to current trend information, competitively. That said, we've had 3 programs. They're all fitted. They've all landed in our stores. They're all in as we speak, they have arrived over the course of the last 2 or 3 weeks. So we have very thin information right now on sell-throughs, but what we have right now, we like. Jill R. Caruthers - Johnson Rice & Company, L.L.C., Research Division: Okay. And then could you talk about -- you briefly mentioned the Underground Station conversions, given you've kind of set with the new store look for the first holiday, with the fully assorted assortment. Could you give us any initial takes on that performance?

Yes, the Underground -- the former Underground Station, now Underground by Journeys stores, they did very nicely. They continue to deliver what we had hoped for in terms of performance. We are looking at how we might further their differentiation from Journeys, that's a work in progress. The one thing that we learned from looking -- because we still look at them as a group separately, we know that they still trade with a demographic of households that are more challenged economically. And that shines a light on what this income tax return pattern has been. The Underground Stations within the Journeys world had been the hardest hit, and we're expecting them to have the biggest rebound in March. And so -- but we're very pleased with what has happened there. We continue to monitor the cannibalization. But general theme there is we think we're net ahead of the game in those malls where we have 2 stores. And as I said, the team is continuing to explore what the differentiation -- points of differentiation might be in the assortment. We know that we want Underground by Journeys to play older and maybe play a little -- still a little more off the street fashion theme, but that's a work in progress.

And we'll go to a follow-up question from Scott Krasik, BB&T Capital Markets. Scott D. Krasik - BB&T Capital Markets, Research Division: Jim, I just wanted to clarify -- I have to go back to 2004 when Q2 sales were bigger than Q1 sales, was that what you said was going to happen this year?

I didn't say necessarily that. I said, it will be big. The relationship, in terms of the first and second quarter will be, with the -- will not be as dramatic as it has been in terms of the falloff in sales between the second and first, and it potentially could be up to where it was, up to the first quarter. But my major point was that the falloff that you've seen in the last couple of years between the first and second quarter, you won't see that much of a falloff because of additional week. Now the reason that you had to go back that far is that there's been a gradual movement of tax holidays from July to August, and that has affected our July business. And what I'm saying now is because of the later week, we're going to pick up some of what we lost over the last couple of years. So, again, the major point is, the falloff in absolute dollar sales between the first in the second quarter will not be as great because we're picking up more business in July for the second quarter. Scott D. Krasik - BB&T Capital Markets, Research Division: Okay, that helps. And then, Bob, your -- I mean it's a small sample for your direct sales or e-commerce sales were up 38% at Lids in February, they were up strong in Q4. Are these just off of really low bases? Or is there anything you're doing differently?

No, first of all, it's not off a low base. Lids has a pretty robust online business. We hired a great group of people to come in and help us do that about 6 months ago. They've hit the ground running real hard. We've gotten more aggressive with getting the site marketed around. The single biggest thing, factor structurally probably is the addition of inventory. Again, because Lids does not read the whole store base, a lot of our SKUs, which are fully distributed to stores, they are sort of in their run out, don't show up on the web. But we've been working hard to continue to add SKUs. So if you think about it, Lids was, and still to some extent, is known as the hack site. But what we are doing with Lids Locker Room and Clubhouse inventory, every time that we add teams and add breadth in the team, because we now have the retail store or the Clubhouse store, then we add the jerseys, the T-shirts, everything else. And so you can expect that Lids will just continue to migrate to be a all-things license sports site. And that will be a driver of business I think in several years to come. But that's a big part of what you see right now. Scott D. Krasik - BB&T Capital Markets, Research Division: Is there an advantage to Clubhouse, specifically? I assume if they're not using you, they're using some sort of third-party GSI-type, PFS-type service?

Well, you've got to go by sport, we don't have access to baseball because it's all run by MLB.com but we run -- we have a relationship with the Jets, we have a lot of colleges. So we face off a lot of other sites and so I don't know the total count of URLs that we represent right now. But still the biggest driver almost all of that is lids.com.

Thank you. And that does conclude today's question-and-answer session. Mr. Dennis, I'd like to turn the conference back to you for any additional or closing remarks.

Just thank you all for joining us and we're looking forward to talking to you again in 3 months.