While Genesco Inc.’s fourth quarter results are an improvement over the year-ago quarter, they fell short of Wall Street and the company’s expectations. The Nashville, Tenn. based firm posted net earnings of $50.4 million, or $2.12 per diluted share, for the quarter ended Jan. 31, 2015. The numbers are an improvement from the year-ago period, which saw net income of $42.2 million or $1.79 per diluted share.
Fourth quarter earnings, adjusted for discontinued operations and non-recurring costs some of which are related to the Schuh Group Ltd. acquisition, amounted to $54.7 million, or $2.30 per diluted share, compared to $51 million, or $2.16 per diluted share, in the prior year. Analysts polled by Yahoo Finance had predicted earnings of $2.39.
Net revenue increased 12.6 percent to $893 million from $793 million in the prior year. The average estimate of analysts polled by Yahoo Finance was $886.6 million.
“Fourth quarter sales were strong, exceeding our expectations,” Genesco’s CEO Robert Dennis, said in a statement. “However, gross margin pressure, lower than planned contribution from new stores and acquisitions in the Lids Sports Group and unfavorable trends in foreign exchange rates resulted in disappointing earnings.”
Genesco also is softening its 2016 guidance due to currency pressures and “supply chain uncertainties from the backlog related to West Coast port delays,” said Dennis.