Genesco Inc. (GCO) reported that its fourth-quarter net earnings declined to $38.53 million from $41.47 million in the prior year quarter. On a per share basis, net earnings for the quarter were $1.62, down from $1.72 last year.
Earnings from continuing operations for the quarter were $38.7 million, or $1.63 per share, compared to earnings from continuing operations of $41.5 million, or $1.72 per share last year.
Fiscal 2013 fourth quarter results reflect expenses of $19.3 million, or $0.53 per share after tax, including $15.4 million of expenses related to the 2010 network intrusion; $3.2 million of expenses related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited, which are required to be expensed as compensation because the payment is contingent upon the payees' continued employment; and $0.7 million in asset impairment charges; and a higher effective tax rate related to the nondeductibility of the Schuh deferred purchase price expenses.
Adjusted for the items, earnings from continuing operations were $51.4 million, or $2.16 per share, for the fourth quarter of Fiscal 2013, compared to earnings from continuing operations of $47.5 million, or $1.97 per share, for the fourth quarter of Fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $2.12 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the fourth quarter increased about 10% to $796.69 million from $723.37 million in the year ago quarter, with the extra week accounting for approximately half the increase. Eight had consensus revenue estimate of $774.51 million for the quarter.
Consolidated fourth quarter 2013 comparable sales, including same store sales and comparable e-commerce and catalog sales, decreased 2% on a 14-week basis, with a 1% decrease in the Journeys Group, a 10% decrease in the Lids Sports Group, a 7% increase in the Schuh Group, and a 2% increase in the Johnston & Murphy Group.
The company expects adjusted fiscal 2014 earnings per share to be in the range of $5.57 to $5.67, which represents a 10% to 12% increase over fiscal 2013's adjusted earnings per share of $5.06. Analysts expect the company to report earnings of $5.57per share for fiscal 2014.
Consistent with previous guidance, these expectations do not include expected non-cash asset impairments and other charges, which are estimated in the range of $3.0 million to $4.0 million pretax, or $0.08 to $0.11 per share, after tax, in Fiscal 2014, the company said.
They also do not reflect compensation expense associated with the Schuh deferred purchase price, which are currently estimated at approximately $11.6 million, or $0.49 per share, for the full year. This guidance assumes comparable sales increases in the low single digit range for the full fiscal year.
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