Genesco 2Q loss widens on special items, but revenue rises more than expected, shares climb

By AP
Wednesday, September 1, 2010

Shoe, hat seller Genesco posts wider 2Q loss

NASHVILLE, Tenn. — Genesco Inc. said Wednesday its second-quarter loss widened, as the retailer absorbed charges tied to asset impairments, acquisition expenses and flood-related losses in its headquarters city. But its revenue rose, beating Wall Street estimates.

Its shares rose $2.14, or 8.5 percent, to $27.38 in morning trading.

The Nashville, Tenn., company, which runs stores under the Lids, Journeys, Underground Station and other names, reported a net loss of $3.2 million, or 14 cents per share, in the three months ended July 31 versus a loss of $2.7 million, or 13 cents per share, a year earlier.

Genesco said this year’s results reflected pretax charges of $3.2 million. It said its adjusted loss from continuing operations was 2 cents per share.

Revenue rose nearly 9 percent to $364 million from $335 million a year ago.

Analysts polled by Thomson Reuters expected, on average, a loss of 2 cents per share on lower revenue of $353.8 million.

The company said revenue from stores open at least a year increased by 3 percent, helped by a 7 percent jump from The Lids Sports Group and a 2 percent rise from the Journeys Group. That figure declined 4 percent for the Underground Station Group while it was flat for Johnston & Murphy Retail’s outlets.

The measurement is a key one for retailers because it measures growth at existing locations rather than including new ones.

Genesco reaffirmed its outlook for fiscal 2011 earnings of between $2.10 and $2.20 per share, not counting non-cash asset impairments and other charges.

Analysts, who normally exclude one-time items from their projections, expect fiscal 2011 earnings of $2.21 per share.

YOUR VIEW POINT
NAME : (REQUIRED)
MAIL : (REQUIRED)
will not be displayed
WEBSITE : (OPTIONAL)
YOUR
COMMENT :