Genesco Income Surges by Half

Genesco Income Surges by Half
A Journeys store location.

Genesco Inc. topped estimates by 13 cents in the third quarter.

Net earnings for the period ended Oct. 30 were $16.9 million, or 72 cents a share, surging 48 percent from $11.4 million, or 50 cents, in the third quarter of 2009.

The Nashville, Tenn.-based retailer said net sales for the quarter advanced 19 percent to $464.8 million, from $390.3 million, while comparable store sales increased by 9 percent.

Analysts were looking for earnings of 59 cents a share on revenue of $418.8 million.

The Lids Sports Group’s comparable store sales surged 13 percent, while the Journeys Group’s increased by 9 percent. Johnston & Murphy Retail advanced by 7 percent, and Underground Station inched up 3 percent.

Robert Dennis, chairman, president and CEO of Genesco, said the firm’s performance exceeded expectations.

“Our overall businesses produced better than planned top-line results as the positive trends we witnessed in the back-to-school season continued throughout the quarter. We are more optimistic in our outlook for the holiday selling season,” said Dennis in a statement.

Genesco added that comparable store sales across its retail businesses are up 11 percent through the first three weeks of November.

The firm raised its full year EPS guidance to between $2.38 and $2.43, representing a 27 to 30 percent increase over last year’s earnings.

Genesco ended the quarter with cash and cash equivalents of $24.6 million, and $30.4 million in long-term debt.

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