Genesco Sees Q3 Improvement

Genesco Inc. reported Tuesday that third-quarter net earnings rose 27 percent, citing improvement in gross margins and expense management.

The company said net earnings were $11.4 million, or 50 cents a diluted share, versus a profit of $9 million, or 43 cents, the prior year. Results in the most recent quarter included pre-tax charges related to asset impairments.

On an adjusted basis, earnings from continuing operations were $12.3 million, or 53 cents, compared with $9.5 million, or 43 cents, the prior year.

Analysts were expecting a profit of 44 cents.

Quarterly net revenues rose 1 percent to $390.3 million, and comparable-store sales fell 2 percent.

Though noting that comp-store sales fell 3 percent for the first three weeks of November, Robert Dennis, president and CEO of Genesco, said in a company statement that “given the consumer’s continued willingness to shop during the peak sales periods throughout the current economic downturn, the relatively easier comparisons later in the quarter, and our strong merchandise position, we remain optimistic about the holiday selling season.”

As a result, the company upped its full-year earnings per share guidance to $1.78 to $1.84. Analysts are expecting EPS of $1.75.

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