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VOL. 36 | NO. 20 | Friday, May 18, 2012
Nashville Area
Genesco 1Q profit up, raises full-year guidance
NASHVILLE (AP) - Genesco Inc.'s fiscal first-quarter profit surged 39 percent as sales strengthened at its Journeys, Lids and Johnston & Murphy stores.
The Nashville company, which sells shoes, hats, clothing and accessories, also boosted its fiscal 2013 adjusted earnings outlook, citing its first-quarter performance.
Its shares jumped $6.63, or 9.4 percent, to $77.54 per share in premarket trading. That would take it near its 52-week high of $78.97 if it carries over into regular market trading.
Genesco said its net income rose to $20.6 million, or 85 cents per share, in the quarter ended April 28 from $14.8 million, or 63 cents per share, a year ago.
Taking out impairment charges, compensation expense and other items, earnings from continuing operations were 98 cents per share.
This handily beat the 74 cents per share that analysts polled by FactSet expected.
Revenue rose 25 percent to $600.1 million fr om $481.5 million, topping the $577.1 million that Wall Street forecast.
Revenue at stores open at least a year climbed 9 percent, with Lids Sports Group posting a 4 percent rise, Journeys Group reporting a 12 percent increase and Murphy Retail recording a 4 percent gain.
This figure is a key indicator of a retailer's health because it excludes results from stores open at least a year.
Genesco now expects fiscal 2013 adjusted earnings between $4.70 and $4.82 per share, up from $4.58 to $4.70 per share.
Analysts expect full-year earnings of $4.69 per share.
The company said that its revised forecast accounts for a 3 percent to 4 percent increase in revenue at stores open at least a year.
Genesco has more than 2,380 stores in the U.S. Canada, the U.K. and Ireland.