Despite weak sales trends, Genesco Inc. managed to beat analyst expectations for the second quarter, thanks to tight expense control.
For the three months ended Aug. 1, the Nashville, Tenn.-based company reported a net loss of $2.7 million, or 13 cents a diluted share, versus a loss of $10.8 million, or 58 cents during the year-ago period.
Adjusted for impairments in both periods, Genesco’s net loss for the second quarter totaled $400,000, or 2 cents a diluted share, which beat expectations of analysts polled by Yahoo Finance by 2 cents.
Sales dropped 5 percent to $334.7 million from $353.1 million in the second quarter last year. The company’s total comparable-store sales decreased by 8 percent, with the biggest drop, at 19 percent, coming from the Underground Station chain. The Journeys Group reported a 9 percent decrease, while the Hat World Group dropped 2 percent and Johnston & Murphy retail was down 16 percent.
“We were pleased with our bottom line performance during the quarter given that sales remain choppy,” Robert Dennis, Genesco’s president and CEO, said on a conference call. “Despite the sales shortfall, the bottom line benefited from expense control.”