Net sales for the second quarter of the current fiscal year decreased by 4.6% totaling 626 million US dollars (compares to 656 million US dollars in similar period last year), reflecting the divestiture of the Lids Team Sports business in the fourth quarter during last financial year.  Consolidated second quarter comparable sales, including same store sales and comparable e-commerce and catalog sales, decreased by 1%, with a 4% decrease in the Journeys Group, flat comps at Lids Sports Group, a 1% decrease in the Schuh Group, and a 3% increase in the Johnston & Murphy Group. Comparable sales for the company reflected a 2% decrease in same store sales and a 1% decrease in e-commerce sales.

Robert J. Dennis, Genesco Chairman, President and Chief Executive Officer, stated: "Our comparable sales were challenged during the second quarter particularly in July with the emergence of a fashion rotation at Journeys. We experienced a sudden shift away from many of the core styles that have fueled Journeys' strong performances in recent years. We were able to offset the effect this headwind had on our bottom line through a meaningful improvement in Lids Sports Group and continued strength at Johnston & Murphy combined with share repurchases over the past year."

The company confirmed the third quarter is off to a difficult start driven largely by the impact of the fashion shift at Journeys during the back to school season and other challenges at Schuh. Genesco already indicated that comparable sales for the third quarter through the 27th of August are performing low compared to similar period last year (down by 5%).

Based on the comparable sales trend and expectations for sustained challenges due to the fashion rotation at Journeys and conditions at Schuh, Genesco is lowering the full year outlook, expecting adjusted diluted earnings per share for the fiscal year ending on the 28th of January 2017, in the range of 3.80 US dollars to 4.00 US dollars, compared to our previously issued guidance range of 4.80 US dollars to 4.90US dollars. Mr. Dennis commented: “While we are disappointed with our reduced outlook, we are confident that the Journeys' team will be able to leverage their experience and strong vendor relationships to ensure Journeys emerges from this current cycle with leading, trend right merchandise assortments."