Genesco Inc. struggled during the second quarter as the Lids group weighed on the firm’s strength.
The Nashville, Tenn.-based company reported net earnings of $4.7 million, or 20 cents per diluted share. It was a steep decline for the firm from the year-ago period, when they earned $8.3 million, or 36 cents a share. Analysts predicted earnings in the second quarter of 2014 of 55 cents a share.
Net sales increased during the second quarter to $615.5 million, up 7 percent from $574.7 million. This was a bright spot for the firm, as it beat analyst expectations of $613.9 million for the quarter.
“We are disappointed with our second-quarter earnings performance,” said Robert J. Dennis, chairman, president and CEO. “Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group.”
Journeys and recently acquired U.K. retailer Schuh had strong comps and helped to carry the group. Comps were up around 2 percent for the quarter and were trending high for the start of the third quarter, up 4 percent over last year. Executives also said online sales were growing ahead of expectations.
Genesco adjusted earnings down for the year to reflect the challenging quarter and sluggish performance in the Lids division. The company now expects diluted earnings per share to range from $5.10 to $5.20. Previously, the company offered guidance of $5.40 to $5.55.