World Footwear

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Genesco with highest sales increase in years

Mar 14, 2019 United States
Genesco with highest sales increase in years
The Nashville-based company announced net sales from continuing operations of 2.2 billion US dollars in fiscal 2019. Comparable sales from continuing operations increased by 5% in the period
Robert J. Dennis, Genesco Chairman, President and Chief Executive Officer, commented: "Fiscal 2019 was an incredibly significant and successful year for Genesco highlighted by several important accomplishments and a turnaround in the trajectory of our business. The strength of our US retail footwear concepts fuelled our highest annual comparable sales increase in three years. Our top-line performance included positive store comps, which along with our recent cost reduction efforts allowed us to leverage our brick and mortar expense structure".

Dennis continued: "With the sale of the Lids Sports Group completed in early February, we began Fiscal 2020 as a footwear-focused company. Our strong strategic positioning, close connection with our customers and enduring leadership positions are what make each of our footwear businesses distinctive.  With the new strategic course we have set for Genesco, we believe we are now in a stronger position to unlock the potential of our combined footwear businesses, utilize the platforms we have for future growth and generate greater shareholder value this year and over the long-term."

Fourth Quarter Review

Net sales from continuing operations for the fourth quarter of fiscal 2019 decreased by 2% to 675 million US dollars from 689 million US dollars in the fourth quarter of Fiscal 2018. Excluding the extra week from last year's 14-week quarter and the impact of lower exchange rates this year, revenue was up 4%. Comparable sales from continuing operations increased by 4%, with stores up by 3% and direct up by 10%. Direct-to-consumer sales were 14% of total retail sales from continuing operations for the quarter, compared to 13% last year. GAAP earnings from continuing operations were 29.7 million US dollars in the fourth quarter of fiscal 2019, compared to 48.4 million US dollars in the fourth quarter last year.

Full Year Review

Net sales from continuing operations for the year of 2019 increased by 3% totalling 2.2 billion US dollars (2.1 billion US dollars in 2018). Comparable sales from continuing operations increased by 5%, with stores up by 4% and direct up by 10%. Direct-to-consumer sales were 11% of total retail sales from continuing operations for the year compared to 10% last year. GAAP earnings from continuing operations were 51.2 million US dollars in fiscal 2019, compared to 36.7 million US dollars in Fiscal 2018.

Fiscal 2020 Outlook 

For Fiscal 2020, Genesco expects comparable sales from continuing operations to be up 1% to 2%.

Photo by Adeolu Eletu on Unsplash

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