Genesco exceeds holiday expectations with solid direct performance

By

Obi Anyanwu

Published
Jan 9, 2017

Genesco fared well this holiday season with e-commerce and catalog sales increasing 11% on a comparable basis. The solid direct performance offset the 2% decrease in same store sales, but the comparable sales were flat for the period overall.

 
Comparable sales for Journeys and Johnston & Murphy decreased 6% and 1%, respectively, and Lids and Schuh comparable sales increased 8% and 1%, respectively. Robert J. Dennis, Chairman, President and Chief Executive Officer of Genesco, said he was very pleased with the company’s performance during the holiday season.
 
“Sales for the quarter-to-date have exceeded the expectations outlined in our most recent earnings guidance,” he said. “While we now anticipate that comparable sales for the quarter will be flat to -1%, compared to the -2% to -3% assumption reflected in that guidance, we also expect to give up some gross margin in order to end the year in an optimal inventory position.” 

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Genesco also expects to meet the high end of its fiscal year adjusted earnings per share expectations, which ranges from $3.80 to $4.00.
 
Dennis added, “We remain cautious about the amount of upside potential versus our earnings guidance, but we believe that adjusted earnings per share will be at least at the high end of our guidance range."