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Earnings Preview: What to Expect When Brown Shoe, Genesco & Ferragamo Report This Week

Several big names in footwear and apparel are expected to post Q4 and full-year earnings this week. Brown Shoe Co., the 130-year-old company behind brands Famous Footwear and Via Spiga, among others, will report on March 11. Genesco Inc. and Salvatore Ferragamo SpA will follow on March 12.

What are analysts expecting?

Brown Shoe

Christopher Svezia, an analyst at Susquehanna Financial, said in a note today that he’s looking for $611 million in sales from Brown Shoe, with a 2 percent to 3 percent increase in comparable-store sales at Famous Footwear.

In Q3, Brown Shoe reported net earnings of $33.1 million, or $0.75 per share, up 21.2% over the $27.3 million, or $0.63, in the same quarter of 2013. Net sales were $729.3 million, up 3.8%, versus $702.8 million in 2013.

“I’m very pleased with our results, especially considering what a mixed quarter we had in terms of weather, traffic patterns and consumer sentiment,” CEO Diane Sullivan said during the Q3 conference call on Nov. 25, 2014.

Watch on FN

Genesco

Svezia said he expects the company behind Journeys Group, Lids and Dockers to post shares at a 52-week low. In a note this morning, Svezia said he expects earnings per diluted share of $2.40, slightly above the consensus of $2.38.

Analysts say they are continuing to see strength at retail chain Journeys and expect a standout performance stemming from a solid boot season.

Genesco’s earnings from continuing operations for the third quarter of fiscal year 2015 were $28.7 million, compared with the earnings from continuing operations of $27.8 million for the third quarter, which ended Nov. 2, 2013.

Net sales for the Q3 increased 8 percent, from $666 million to $723 million.

Ferragamo

In November, Florence-based Ferragamo reported strong growth for the first nine months of 2014, though a capital gain in the previous year hurt the bottom line.

Net profits dropped 5 percent, to 114 million euros, or $154 million, including a minority interest of 4 million euros, or $5.4 million, compared with 120 million euros, or $157.2 million, in the same period last year. The prior year’s figure included a capital gain of 13 million euros, or $17 million, derived from the sale of the company’s stake in ZeFer to the Ermenegildo Zegna group. If that capital gain were excluded, profits would have increased 6 percent.

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