Genesco Caps Year of Strong Growth

Genesco Caps Year of Strong Growth
A Journeys store location.

Genesco Inc. beat the street in the fourth quarter.

For the period ended Jan. 29, net income rose about 20 percent to $30.9 million, or $1.31 a share, from $25.9 million, or $1.08 a year earlier. Revenue rose 17 percent to $560.5 million, from $479 million.

Analysts were looking for earnings per share of $1.29 on revenue of $539 million, as polled by Yahoo Finance. Earnings rose about 8 cents a share, thanks to a lower effective tax rate primarily related to network intrusion expenses, fixed asset impairments and purchase price accounting adjustments, the firm said.

The Nashville, Tenn.-based firm also saw comparable-store sales in the fourth quarter advance 9 percent, led by double-digit increases at the Journeys Group and Johnston & Murphy Retail. The Lids Sports Group’s comps rose 6 percent, while Underground Station decreased by 4 percent.

For the full fiscal year 2011, Genesco earned $53.2 million, or $2.24 a share, up from $28.8 million, or $1.30, a year earlier. Full-year revenue was $1.8 billion, versus $1.6 billion.

“Our key competitive advantages, especially in our two largest businesses, the Journeys Group and the Lids Sports Group … [mean] we now have two very strong and differentiated growth vehicles, supported by strong performances from Johnston & Murphy and licensed brands, and a solid balance sheet to support our expansion plans,” Robert Dennis, chairman, president and CEO of Genesco, said in a statement.

“Looking ahead, we believe our business model will generate solid cash flow and put us in a position to pursue further growth opportunities,” he added.

With February comps across the group’s retail businesses up 10 percent, Genesco predicted fiscal-year 2012 comp sales to be up 3 percent, and for full-year EPS to be in the range of $2.78 to $2.85.

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