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Friday, December 1, 2017

Genesco (GCO) reported earnings on Fri 1 December 2017 (b/o)

Genesco Inc. is an American publicly owned specialty retailer of branded footwear, licensed and branded headwear and licensed sports apparel and accessories and is a wholesaler of branded and licensed footwear based out of Nashville, Tennessee.
  • Headquarters: Nashville, TN
  • Revenue: 2.6 billion USD (2013)
  • Founded: 1924
  • Sector: Services
  • Industry: Apparel Stores
  • Full Time Employees: 7,425
** charts before earnings **


** charts after earnings **


Genesco misses by $0.10 ex-$182 mln impairment charge, beats on revs; lowers FY18 EPS below consensus 
  • Reports Q3 (Oct) earnings of $1.02 per share, excluding an $8.13/share impairment charge related to Lids and $0.03/share impact from Hurrican Maria, $0.10 worse thanthe Capital IQ Consensus of $1.12; revenues rose 0.8% year/year to $716.8 mln vs the $706.58 mln Capital IQ Consensus. 
  • Consolidated third quarter 2018 comparable sales, including same store sales and comparable e-commerce and catalog sales, increased 1%, with a 4% increase in the Journeys Group, a 4% increase in the Schuh Group, a 6% decrease in the Lids Sports Group, and a 1% decrease in the Johnston & Murphy Group. Comparable sales for the Company included a 2% decrease in same store sales and a 24% increase in e-commerce sales.
  • Co issues downside guidance for FY18, lowers EPS to $3.05-3.35 from $3.35-3.65, excluding non-recurring items, vs. $3.39 Capital IQ Consensus; reaffirms comps -1 to +1%. 
  • "Our third quarter results are the tale of two businesses. Journeys built on its momentum following its emergence from the recent fashion shift in its markets and posted a solid comp gain. Meanwhile Lids, after a tough second quarter, faced additional challenges that pressured its performance. The dramatic shift in consumer shopping behavior away from stores to digital continued across all of our divisions, although we did see bright spots in both store traffic and store purchases during Back-to-School in more than one of our concepts. The combination of these factors with gross margin headwinds in many of our businesses, the deleverage resulting from negative store comps and higher expenses from our omnichannel initiatives led to earnings below last year's level but slightly ahead of our internal forecasts.
  • "Top line results for our footwear businesses for the fourth quarter to date, including sales and e-commerce bookings over Black Friday Weekend and Cyber Monday, accelerated over the third quarter, and we are now more optimistic about Journeys' fourth quarter prospects. Strong e-commerce sales growth continues in our retail businesses, while store traffic remains challenging. While we expected tough comparisons lapping the anniversary of the Cubs' World Series victory, unfortunately, due to other challenges, current trends at Lids are running below our expectations. These challenges include, among others, dampened demand for NFL licensed merchandise resulting from the well-publicized challenges facing the League and disruption in our Canadian business from the NHL vendor transition. Therefore, we have adopted a more conservative outlook for Lids." 

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