Genesco Trims Losses in Q2

For the period ended July 31, Genesco Inc. reported a net loss of $2.4 million, or 10 cents a share, on revenue of $363.7 million.

That compares with a net loss of $2.7 million, or 12 cents, on revenue of $334.7 million in the same period a year ago.

Analysts were expecting an average loss of 2 cents on revenue of $354.1 million, as polled by Yahoo Finance.

Losses from operations rose 19 percent, but bank fees of $900,000 from the second quarter of 2009 were reclassified from “interest expense” to “selling and administrative expenses” to conform to the current-year presentation.

As a result, losses from continuing operations for the quarter fell 5 percent.

“We turned in a performance essentially in line with our expectations and [showed] some signs of strength in our core operating dynamics despite an economic environment that is obviously still choppy,” Robert Dennis, chairman, president and CEO of Genesco, said during a conference call with analysts.

“The back-to-school season has been strong for us so far, with comparable-store sales up 8 percent for August. We expect this trend to moderate as we proceed through the third quarter,” he added.

Total sales for the quarter were up 9 percent, and consolidated comp sales for the quarter increased 3 percent. Sales from the group’s overall direct business rose 3 percent in the quarter.

Genesco ended the quarter with $49 million in cash and no debt after buying back $11 million worth of stock in the quarter — more than twice its $21.5 million cash balance a year ago. 

Dennis said the balance sheet “easily supports [the company’s] growth plan,” and reiterated that the company’s fiscal 2011 outlook for full-year earnings is between $2.10 and $2.20.

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