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Genesco banks on back half after tepid Q1

Genesco’s first-quarter results may have been tepid, but the company highlighted its second quarter, which is off to a solid start with a comparable sales increase of 3% through May 24, and expressed confidence that it can build on the current momentum.

The company reported net earnings of $13.97 million in the first quarter of fiscal 2015, down 3% from $14.41 million in the same quarter last year. An increase in selling and administrative expenses drove the net earnings decline.

Net sales increased 6% to $629 million, from $591 million. Same-store sales increased 1%.

“We are pleased with our performance given the choppy retail environment, combined with the lack of a meaningful, new fashion driver in the teen footwear space early in the year,” said Robert J. Dennis, chairman, president and CEO of Genesco. “We continue to expect stronger comparable sales gains and improved profitability as we move into the back half of the year.”

Based on its first quarter performance and current visibility, the company is sticking with its previously announced guidance for adjusted fiscal 2015 diluted earnings per share in the range of $5.40 to $5.55, a 6% to 9% increase over fiscal 2014's adjusted earnings per share of $5.09. This guidance is based on an estimated comparable sales increase in the low single digit range for the full fiscal year.