13 Jan Genesco Sees Flat Holiday Comps
Genesco Inc. stated that comparable sales, including both stores and direct sales, were flat for the quarter-to-date period ended January 5, 2017. Same-store sales decreased 2 percent and sales for the company’s e-commerce and catalog direct sales businesses increased 11 percent on a comparable basis for that period.
Among its segments, same-store sales were down 6 percent for Journeys Group, up 1 percent for Schuh Group, ahead 8 percent for Lids Sports Group and off 1 percent Johnston & Murphy Group.
The company also announced that it now expects to meet the high end of the range of its most recently announced expectations for adjusted earnings per diluted share for the fiscal year ending January 28, 2017, in the range of $3.80 to $4.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We are pleased with our performance during a Holiday selling season that we expected to be difficult for some of our businesses. Sales for the quarter-to-date have exceeded the expectations outlined in our most recent earnings guidance. While we now anticipate that comparable sales for the quarter will be flat to -1 percent, compared to the -2 percent to -3 percent 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. Thus, 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.”
Genesco plans to announce its fourth quarter and fiscal year 2017 results on March 10, 2017.
The company’s adjusted earnings per share expectations for fiscal 2017 do not reflect expected non-cash asset impairments and other charges, net of the gain on a litigation settlement, gain on the sale of Lids Team Sports and a gain on the sale of SureGrip, estimated in the range of a $9.2 million to $13.8 million pretax gain, or $(44 cents) to $(29 cents) per share after tax. The company believes that providing an adjusted earnings per share estimate not reflecting these items will benefit investors by facilitating comparison with the company’s previously announced expectations, which also excluded these items.
Genesco updated its guidance due to its participation on Tuesday at the 2017 ICR Conference on Tuesday, January 10, 2017, at 1:30 p.m. Eastern Standard Time.