Genesco Profit Up 75%

Genesco Profit Up 75%
A Journeys store location.

Double-digit comparable-store increases across most segments buoyed Genesco Inc.’s profitability in the first quarter.

The Nashville, Tenn.-based company earned a net income of $14.8 million, or 63 cents a share, up 75 percent from $8.6 million, or 36 cents, in the same period a year ago.

Revenue for the quarter ended April 30, totaled $481.5 million, a 20 percent increase from $400.9 million last year, on the back of consolidated comp-store sales in the period advancing 14 percent.

Comps for the Journeys Group rose by 15 percent; the Lids Sports Group saw an increase of 16 percent; Johnston & Murphy was up 10 percent; and Underground Station advanced by 6 percent. Internet and catalog sales surged 24 percent.

“Our performance was driven by our two largest businesses — Journeys and Lids Sports — both of which delivered mid-teens comp-store sales increases and grew operating income 94 percent and 49 percent, respectively,” Robert Dennis, chairman, president and CEO of Genesco, said in a statement.

“The pace of our business has been better than expected over the past several quarters. We are tracking ahead of our current five-year growth plans, which include achieving $2.3 billion in revenues and 8 percent operating margins by fiscal 2015,” added Dennis.

The company also raised its fiscal 2012 guidance. Assuming comp sales rise between 5 percent and 6 percent, it now expects earnings per share to be in the range of $2.90 to $2.97, which represents a 17 percent to 20 percent increase over last year’s earnings.

Genesco had $56.8 million in cash and cash equivalents as of April 30, and no long-term debt.

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