"We are disappointed with our second quarter earnings performance. Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group. The third quarter is off to a solid start, with consolidated comparable sales for the company up 4% through August 23rd", commented Robert J. Dennis, Chairman, President and Chief Executive Officer of Genesco.

Genesco's net sales for the second quarter increased +7.1% to 615.5 million US dollars from 574.7 million US dollars in similar period last year. Consolidated second quarter 2015 comparable sales, including same store sales and comparable e-commerce and catalog sales, were up by 2%, with a 2% decrease in the Lids Sports Group and increases of 5%, 1% and 2% in the Journeys Group, Schuh Group and Johnston & Murphy Group, respectively. Net earnings for the period stood at 4.7 million US dollars, a decline of 43.7% from the 8.3 million US dollars registered last year.

According to the company’s statement second quarter results also reflect expenses of 3.6 million US dollars, including 2.2 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited and 1.4 million US dollars in network intrusion expenses, asset impairment charges and other legal matters. 

As for the semester net sales were up by 6.7% reaching 1 244.3 million US dollars, which compares to 1 166.1 million US dollars in similar period last year. The excellent sales performance didn’t prevent a dive on net earnings, as these were down by 17.9% in the first six months of the current fiscal year.

Robert J. Dennis also commented on the company's updated outlook. "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 US dollars to 5.20 US dollars, or from flat to a 2% increase over fiscal 2014's adjusted earnings per share of 5.09 US dollars, down from our previously issued guidance of 5.40 US dollars to 5.55 US dollars... These expectations also do not reflect a 5.7 million US dollars change in the first quarter related to the change in accounting for bonus awards.  Finally, the expected earnings per share do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately 7.4 million US dollars, or 0.31 US dollars per diluted share, for the full year. This guidance assumes a comparable sales increase in the low single digit range for the full fiscal year." Mr Dennis concluded: "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."

Genesco' shares were last traded at 77.16 US dollars at the New York Stock Exchange on the 22nd of September.

Genesco Inc. is a specialty retailer based in Nashville, selling footwear, headwear, sports apparel and accessories in more than 2 500 retail stores and leased departments throughout the US, Canada, United Kingdom and Republic of Ireland.

For more information on Genesco and its operating divisions, please visit the company’s website.