Genesco raises fourth quarter earnings outlook
Genesco Inc announced that same store sales for the quarter-to-date period ended January 7, 2012, increased 13% from the equivalent period last year, when same store sales increased 9%. Sales for the Company's e-commerce and catalog direct sales businesses increased 7% in the quarter-to-date period ended January 7, 2012, on a comparable basis.
The Company also said that the performance of its U.K.-based retail business, Schuh, which it acquired in June 2011, has continued to exceed internal expectations.
Based on the stronger than expected sales for the quarter to date, the Company has increased its adjusted earnings per diluted share expectations to a range of $1.63 to $1.68 for the fourth quarter and $3.74 to $3.79 for the fiscal year ending January 28, 2012. The Company's most recent previously announced earnings expectations were in the range of $1.53 to $1.58 per diluted share for the fourth quarter and $3.64 to $3.69 for the fiscal year.
The adjusted earnings per share expectations do not reflect expected non-cash asset impairments and other charges, which are expected to be approximately $0.01 per diluted share for the fourth quarter and $0.06 per diluted share for the fiscal year.
They also do not reflect expenses incurred in connection with the Schuh acquisition in June 2011 or compensation expense associated with deferred purchase price payments for the acquisition, which are required to be expensed because they are contingent on continued employment of the payees, expected to be approximately $0.12 per diluted share in the fourth quarter and $0.54 per diluted share for the fiscal year.
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.
Additionally, the Company believes that the presentation of earnings from continuing operations before the compensation expense associated with the Schuh deferred purchase price will enable investors to understand the effect attributable to incorporating continuing employment conditions into the obligation to pay deferred purchase price.
Since the compensation expense is a non cash charge until the deferred purchase price is actually paid, earnings including such expense may not be fully reflective of the Company's ongoing results or indicative of its prospects.
Genesco plans to announce its fourth quarter and fiscal year 2012 results on March 2, 2012.
Genesco Inc, a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,380 retail stores throughout the U.S., Canada and the United Kingdom, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Schuh, Lids, Lids Locker Room, Johnston & Murphy, and Underground Station, and on internet websites.