Genesco, a US-based retailer and wholesaler of footwear, apparel and accessories, reported earnings from continuing operations for the first quarter of 9.9 million US dollars, which represents a 29.8% fall from similar period last year.

Fiscal 2016 first quarter results reflect pretax items of 3.5 million US dollars, including 0.9 million US dollars of expenses related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited and 2.6 million US dollars for network intrusion expenses, asset impairment charges and other legal matters.

Fiscal 2015 first quarter results reflected pretax items of 7.7 million US dollars, including 5.7 million US dollars related to a change in accounting for bonus awards; 3.1 million US dollars of expenses related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited; and 2.0 million US dollars in network intrusion expenses, asset impairment charges and other legal matters, offset by a 3.1 million US dollars gain on a lease termination.

Adjusted for the items described above in both periods, earnings from continuing operations in Genesco were 12.2 million US dollars for the first quarter of fiscal 2016, compared to earnings from continuing operations of 19.3 million US dollars in similar period last year.

Net sales for the first quarter of fiscal 2016 increased 5% to 661 million US dollars from 629 million US dollars in the first quarter of fiscal 2015.  Comparable sales in the first quarter increased 4%, with a 5% increase in the Journeys Group, a 3% increase in the Lids Sports Group, a 4% increase in the Schuh Group, and a 3% increase in the Johnston & Murphy Group.


"Our first quarter results were generally in line with our expectations", stated Robert J. Dennis, Chairman, President and Chief Executive Officer of Genesco, adding: "Our recent performance reflects solid top-line growth, with positive comparable sales in all our retail businesses, led by Journeys, where comparable sales would have been even stronger if not for product delivery delays related to the West Coast port challenges.  The year-over-year decrease in earnings reflects expected gross margin pressure from planned actions to reduce inventories in the Lids Sports Group, the growth of businesses that are primarily second-half contributors, and expenses related to the growth of our e-commerce business”. 

Considering this set of results now presented, Genesco expects fiscal 2016 adjusted earnings per share to be in the range of 4.70 US dollars to 4.80 US dollars, compared to fiscal 2015 adjusted earnings per share of 4.74 US dollars. Such guidance assumes comparable sales increases in the 3% to 4% range for the full fiscal year.