Strong Bottom Line Lifts Genesco

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.”

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