NASHVILLE, Tenn. — Genesco Inc., a specialty retailer which sells footwear, headwear, sports apparel and accessories, continues navigating through uncertain consumer environments as second quarter results fell short of expectations.
Net sales for the quarter ended Aug. 3 increased 5.7% to $574.7 million from $543.5 million in the year-ago period. Comparable-store sales decreased 2%. The Lids Sports Group's comparable store sales decreased by 3%, the Journeys Group decreased by 1%, the newly acquired Schuh Group decreased by 7% and Johnston & Murphy Retail increased by 7%.
"We are disappointed that our second quarter performance fell short of expectations,” said Robert J. Dennis, chairman, president and CEO of Genesco. “Sales trends proved to be more challenging as the quarter progressed and results came in below our plan. The third quarter has gotten off to a difficult start with comparable sales down 3% through Saturday, August 24. Despite our current sales trajectory we remain optimistic that we can deliver a modest comp improvement in the fourth quarter based primarily on a product mix shift in footwear that moves in our favor and easier comparisons for Journeys and Lids."
Based on its second quarter performance and month-to-date results for August, the company is lowering its outlook for fiscal 2014. It now expects adjusted fiscal 2014 diluted earnings per share, prior to any change in accounting for the company's bonus accruals, to be in the range of $5.20 to $5.30, a 3% to 5% increase over fiscal 2013's adjusted earnings per share of $5.06, down from its previously issued guidance of $5.57 to $5.67.
This guidance also assumes a comparable sales increase in the low single digit range for the full fiscal year, including a low single digit decline in the third quarter and a low to mid-single digit increase in the fourth quarter.
Genesco operates more than 2,480 retail stores throughout the U.S., Canada, the U.K. and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Underground by Journeys, Schuh, Lids, Locker Room by Lids and Johnston & Murphy and their corresponding e-commerce sites. In addition, the company sells wholesale footwear under its Johnston & Murphy brand, the licensed Dockers brand, SureGrip, and other brands, and operates the Lids Team Sports team dealer business.