Genesco Inc. (GCO), Tuesday reported an increase in third quarter profit, that exceeded estimates, helped by improved margins and higher sales. Absence of a sustained sales trend, however, caused comparable sales to drop 2%. Looking ahead, the apparel stores operator raised its fiscal 2010 earnings forecast from the prior level.
For the third quarter, net income of Nashville, Tennessee-based Genesco increased to $11.44 million or $0.50 per share from $8.97 million or $0.43 per share in the same quarter a year ago. Earnings from continuing operations were $11.52 million, compared to $8.99 million in the year-earlier quarter.
Third quarter earnings reflects pretax charge of $2.6 million or $0.07 per share, charges associated with merger related expenses, asset impairment and other items. Excluding items, earnings from continuing operations were $12.3 million or $0.53 per share, compared to $9.5 million or $0.43 per share in the prior-year quarter.
On average, nine-analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimate typically excludes one-time items.
Net sales increased to $390 million from $389.77 million in the prior-year quarter, surpassing Street estimates of $388.41 million for the quarter. Comparable store sales decreased by 2%.
Comparable store sales in the Journeys Group decreased by 2%, the Hat World Group increased by 1%, Underground Station decreased by 6%, and Johnston & Murphy Retail decreased by 2%.
Earnings from operations was $19.25 million, compared to $16.27 million in the corresponding quarter last year.
For the nine-month period, net earnings from continuing operations was $3.26 million or $0.13 per share, compared to $133.04 million or $5.41 per share in the year-ago period. Net sales was $1.095 million, compared to $1.099 million in the prior-year period.
Looking ahead to fiscal 2010, Genesco said it now expects earnings in the range of $1.78 to $1.84 per share, up from the prior outlook range of $1.70 - $1.80 per share. Street currently expect earnings of $1.75 per share for the year.
Fiscal year guidance assumes fourth quarter earnings per share of $1.07 to $1.13 per share, based on flat to slightly positive fourth quarter comparable store sales compared with a negative 5% last year.
GCO is currently trading at $26.38, down $2.25 or 7.88%, on a volume of 0.34 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.