Genesco Back in the Black

Genesco Back in the Black
A Journeys store location.

Genesco Inc. returned to the black in the quarter ended May 1, posting profits of $8.6 million, or 36 cents a diluted share. A year ago, it saw a first-quarter loss of $5.8 million, or 31 cents a share. The firm’s adjusted earnings per share totaled 42 cents in the most recent period.

Sales at the Nashville, Tenn.-based footwear retailer and wholesaler increased 8 percent in the three months to $400.9 million from $370.4 million in the comparable 2009 period.

Genesco sailed past Wall Street estimates for both its top and bottom lines. Analysts polled by Yahoo Finance had expected adjusted EPS of 22 cents on revenues of $388.5 million, on average.

The company credited revived demand at its retail, wholesale and direct-to-consumer channels for the sales growth. Overall comparable-store sales increased 5 percent in the quarter, led by a 10 percent gain at both its Lids Sports Group and Johnston & Murphy Retail. The Journeys Group’s comps rose 2 percent, while Underground Station’s same-store sales were flat.

Looking at the current quarter, Robert Dennis, chairman, president and CEO, said that as of May 22, comps were up 3 percent. Given the better-than-expected results in the first quarter, Genesco revised its full-year earnings guidance range to between $2.10 and $2.20 a share. It had previously forecast EPS of $2.00 to $2.10 for the year.

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