Earnings from continuing operations dived 43.52% year-on-year at specialty retailer Genesco Inc. in the second quarter ended August 2, 2014.
NYSE-listed Genesco reported earnings from continuing operations of $4.8 million, or $0.20 per diluted share, compared to $8.5 million, or $0.36 per diluted share for the second quarter ended August 3, 2013.
Genesco said second quarter of 2014 results reflect expenses of $3.6 million, or $0.14 per diluted share after tax, including $2.2 million related to deferred purchase price payments for acquisition of Schuh Group and $1.4 million in network intrusion expenses and asset impairment charges.
Net sales for the second quarter of 2014 rose 7.1% to $615 million from $575 million in the second quarter of 2013. Comparable sales, including same store sales and comparable e-commerce and catalogue sales went up just 2%.
Robert Dennis, CEO at Genesco, said, "We are disappointed with our second quarter earnings performance. Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group.”
“However, the third quarter is off to a solid start, with consolidated comparable sales up 4% through August 23, 2014", he added.
On Genesco’s outlook Robert Dennis informed, "Based on our second quarter performance and slightly lower expectations for the balance of the year at Lids, we now expect adjusted Fiscal 2015 diluted earnings per share in the range of $5.10 to $5.20.”
Dennis concluded by saying, "We continue to believe our longer-term future is compelling based on the strength of our brands and the numerous omni-channel initiatives that are helping fortify their strategic positions."
Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,670 retail stores and leased departments throughout the U.S., Canada, the United Kingdom and the Republic of Ireland,