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VOL. 35 | NO. 34 | Friday, August 26, 2011
Statewide
Retailer Genesco narrows 2Q loss
NASHVILLE (AP) — Genesco Inc. said Wednesday its second-quarter loss narrowed as it saw big revenue gains from its Journeys shoe and Lids hat stores and an acquisition. The retailer also raised its fiscal 2012 earnings forecast.
Its shares rose $2.02, or 4.1 percent, to $51 in premarket trading.
The Nashville, Tenn., company reported a net loss of $392,000, or 2 cents per share, in the three months that ended July 30. That compares to a loss of $3.2 million, or 14 cents per share, in last year's quarter.
Adjusted earnings were 22 cents per share, excluding discontinued operations and expenses tied to the company's Schuh Group acquisition, among other costs.
Revenue climbed 29 percent to $470.6 million from $363.6 million a year ago.
Analysts surveyed by FactSet expected, on average, earnings of 10 cents per share on $447.3 million in revenue.
Genesco said in June that it purchased British footwear company Schuh Group Ltd. for about $112.6 million, in a deal that gives it a retail presence in the United Kingdom and better insight into global fashion trends. Genesco recorded $33.9 million in revenue from Schuh Group in the second quarter.
Revenue from Genesco stores open at least a year jumped 14 percent in the quarter. That compares to a 3 percent increase last year. That measurement is a key for retailers because it shows growth at existing locations rather than including new ones.
Genesco said Lids Sports Group sales climbed 34 percent to $177.5 million, and Journeys Group revenue rose 16 percent to $177.3 million.
Some expenses also rose. Genesco's cost of sales climbed 30 percent to $233.3 million. Its selling and administrative expenses were up 27 percent to $235.3 million.
Genesco said it now expects fiscal 2012 earnings to range between $3.35 and $3.42 per share. That's up from a previous range of $2.90 to $2.97 per share. Those projections exclude acquisition-related expenses and some other charges.
Analysts expect earnings of $3.31 per share, on average.