Genesco Inc. handily topped estimates in its third quarter ended Oct. 27, but said the fourth quarter is off to a sluggish start.
Still, the Nashville, Tenn.-based firm raised its full-year guidance after earnings per share came in at $1.70, a 56 percent increase from $1.09 a year ago. Net income was $40.9 million.
Adjusted for deferred purchase price payments in connection with the acquisition of Schuh Group Ltd. in June 2011, earnings from continuing operations were $1.44 a share.
Revenue for the quarter advanced 7.8 percent to $664.5 million, from $616.5 million, on the back of a comparable-store sales increase of 4 percent. Gains were broad based, with the Journeys group rising 8 percent; the Schuh group 9 percent; and the Johnston & Murphy group 6 percent. The Lids Sports group, however, slipped 5 percent.
Analysts had expected earnings of $1.33 per share on revenue of $659.9 million, as polled by Yahoo Finance.
Robert Dennis, chairman, president and CEO of Genesco, said in a statement that third-quarter results were achieved by leveraging expenses on a mid-single-digit comparable-store sales gain.
“The fourth quarter got off to a slow start with November comparable-store sales down 4 percent compared with a 12 percent increase in November last year. We estimate that Hurricane Sandy reduced November comparable-store sales by approximately 1 percent to 2 percent. For the long Thanksgiving weekend, U.S. comparable-store sales increased by low single digits,” he said.
The firm now expects full-year adjusted earnings per share to be in the range of $5 to $5.08, an increase from the previous guidance range of $4.88 to $5, representing an increase of 22 percent to 24 percent over last year’s earnings.
“[We] have recently adopted updated five-year targets for annual sales of $3.5 billion and operating margins of 9.5 percent by fiscal 2017,” Dennis added.