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Genesco’s quarter boosted by Journeys

Mar 19, 2018 United States
Genesco’s quarter boosted by Journeys
Net sales for the fourth quarter of fiscal 2018 increased by 5%, totaling 883 million US dollars, much driven by a 11% increase in the Journeys Group
Robert J. Dennis, Chairman, President and Chief Executive Officer of Genesco, commented: "Our fourth quarter earnings per share were in-line with our most recent outlook and flat with last year's level, as strong performance by our US retail footwear businesses was offset by specific challenges in our other operating divisions. Overall Fiscal 2018 was a difficult year as Journeys managed through a fashion rotation up until the start of back to school, Lids faced a number of specific marketplace headwinds, and consumers shifted their shopping from brick & mortar to online at an accelerated pace".

Net sales for the fourth quarter of fiscal 2018 increased by 5%. Consolidated fourth quarter 2018 comparable sales, including same store sales and comparable e-commerce and catalog sales increased by 1% with an 11% increase in the Journeys Group, a 1% increase in the Schuh Group, a 14% decrease in the Lids Sports Group, and a 4% increase in the Johnston & Murphy Group.

Genesco reported earnings from continuing operations for the 14-week period ended on the 3rd of February totaled 56.3 million US dollars, or 2.91 US dollars per diluted share, which compares to earnings from continuing operations of 46.8 million US dollars, or 2.40 US dollars per diluted share, for the 13-week period ended on the 28th of January 2017. Fiscal 2018 fourth quarter results reflect a benefit of 19.8 million US dollars, or 1.02 US dollars per diluted share from lower tax expense, partially offset by pre-tax charges of 7.5 million US dollars, or 0.26 US dollars per diluted share including 5.4 million US dollars, or 0.19 US dollars per diluted share in licensing termination expenses and 2.1 million US dollars, or 0.7 US dollars per diluted share of store impairment charges, among other items. 

Genesco reported net sales for the 53-week year ended on the 3rd of February of 2.91 billion US dollars, an increase of 1% from net sales of approximately 2.87 billion US dollars for the 52-week year ended on the 28th of January 2017. Earnings from continuing operations reached 60.3 million US dollars, or 3.13 US dollars per diluted share, for fiscal 2018, compared to earnings from continuing operations of 87.2 million US dollars, or 4.33 US dollars per diluted share, for fiscal 2017.

Dennis concluded, "We continue to be confident that the work we are doing to strengthen the strategic positioning of our businesses will drive long-term growth. At the same time, we are undertaking a multi-year reshaping of our cost structure in order to improve profitability and deliver greater value to our shareholders and have already identified potential annualized cost savings in the range of 35 million US dollars to 40 million US dollars."

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