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

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.

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