Genesco Raises Full-Year Outlook

Genesco Raises Full-Year Outlook
A Journeys store.
FN Archives.

Genesco Inc. raised its 2012 full-year outlook Friday after announcing fourth-quarter results that beat the Street.

For the period ended Jan. 28, the Nashville, Tenn.-based retailer earned a net income of $41.5 million, or $1.72 a share, a 34.3 percent increase over $30.9 million, or $1.31, in the same period a year ago.

The firm’s shares were trading about 4 percent higher after topping estimates that came in at $1.67 a share, as polled by Yahoo Finance.

Led by strong performances from the group’s two largest businesses, Journeys Group and Lids Sports Group, revenue advanced 29 percent to $723 million, from $560 million, on the back of a 12 percent comparable-store sales increase.

“[2012] has started well, with February consolidated comparable-store sales up 13 percent,” Robert Dennis, chairman, president and CEO of Genesco said in a statement. “While we expect these trends to moderate, we continue to look for positive comparable-store sales on top of the challenging quarterly comparisons ahead of us.”

Dennis added that earnings per share for the next fiscal year are expected to come in between $4.58 and $4.70, which represents a 12 percent to 15 percent increase over last year.

For the full year, Genesco earned $82 million, or $3.43 a share, a 54 percent increase over $53.2 million, or $2.24, a year earlier. Full-year revenue advanced 27.9 percent to $2.29 billion, from $1.79 billion.

The firm ended the year with $53.8 million in cash and cash equivalents, and $31.9 million in long-term debt.

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