Solid comparable sales gains and a strong topline performance in Genesco’s direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the company’s Lids Sports Group, prompting the company to lower its guidance for the full fiscal year.
The company reported earnings from continuing operations for the second quarter ended Aug. 2 of $4.8 million, or $0.20 per diluted share, compared to earnings from continuing operations of $8.5 million, or $0.36 per diluted share, for the second quarter ended August 3, 2013.
Net sales for the quarter increased 7.1% to $615 million from $575 million in the second quarter last year. Consolidated comparable store sales — including same store sales and comparable e-commerce and catalog sales — increased 2%, with a 5% increase in the Journeys Group, a 2% decrease in the Lids Sports Group, a 1% increase in the Schuh Group and a 2% increase in the Johnston & Murphy Group.
Although chairman, president and CEO Robert J. Dennis is disappointed with the company’s second quarter earnings performance, he says the third quarter is off to a solid start, with consolidated comparable sales for the company up 4% through August 23.
"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, or from flat to a 2% increase over fiscal 2014's adjusted earnings per share of $5.09, down from our previously issued guidance of $5.40 to $5.55,” said Dennis. “We continue to believe our longer-term future is compelling based on the strength of our brands and the numerous omnichannel initiatives that are helping fortify their strategic positions.”
The 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, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Underground by Journeys, Schuh, Schuh Kids, Lids, Locker Room by Lids, Lids Clubhouse and Johnston & Murphy.