Genesco earnings down in Q4

NASHVILLE, Tenn. — Genesco, a specialty retailer of sports apparel and accessories reported fourth quarter earnings of $38.7 million, or $1.63 per diluted share, compared with earnings from continuing operations of $41.5 million, or $1.72 per diluted share, for the same period last year.

Net sales for the fourth quarter increased 10% to $797 million from $723 million in the same period last year. Consolidated fourth quarter 2013 comparable sales, including same-store sales and comparable e-commerce and catalog sales, decreased 2% on a 14-week basis, with a 1% decrease in the Journeys Group, a 10% decrease in the Lids Sports Group, a 7% increase in the Schuh Group, and a 2% increase in the Johnston & Murphy Group.

 The company also reported earnings from continuing operations for the full year of $111 million, or $4.62 per diluted share, compared with earnings from continuing operations of $83 million, or $3.48 per diluted share, for the 52-week period ended Jan. 28, 2012. 

Robert Dennis, chairman, president and CEO of Genesco, said, "Fiscal 2013 was another solid year for Genesco, highlighted by annual sales and adjusted earnings per share increases of 14% and 24%, respectively. We believe that the strong earnings performance in a year characterized by challenges in our markets and in the broader economy demonstrates the resiliency of our business model."

"Fiscal 2014 has started off somewhat slowly, with February consolidated comparable sales down 9%. We believe that most of the negative factors we have identified in our recent performance, including a delay in initial federal tax refunds and the timing of new product deliveries versus a year ago, are temporary. Comparable sales improved in the course of February, but we remain cautious in our near-term outlook given continuing uncertainty in the economy and in some of our markets and the relatively strong prior year comparisons we face in the first half of this year."

The company expects adjusted fiscal 2014 diluted earnings per share to be in the range of $5.57 to $5.67, which represents a 10% to 12% increase over fiscal 2013's adjusted earnings per share of $5.06. 

This guidance assumes comparable sales increases in the low single digit range for the full fiscal year.

Dennis concluded, "We enter the new year focused on continuing to navigate successfully through the short-term headwinds while executing our long-term growth strategies."