Breaking its streak of reporting positive comparable-store
sale (comps) results for several quarters, the Nashville,
) witnessed a 2% decline in the same for the
fourth-quarter-to-date period ended Jan 12, 2013. The company had
experienced an impressive comps growth of 13% in the year-ago
The dip in comps was primarily due to weak comps performance
at the company's Lids Sports Group and Johnston & Murphy
Group divisions, which fell 12% and 1%, respectively. However,
Genesco's Journeys Group and Schuh Group divisions' comps
improved 2% and 7%, respectively.
Sales at the company's fastest-growing e-Commerce and catalog
direct sales businesses surged 17% during the period under
review. Including both stores and direct sales, Genesco's total
comparable sales inched down 1% compared with 13% growth
registered in the year-ago comparable period.
However, the company has revealed that sales have improved in
January so far. Currently, it has healthy inventory level and its
merchandises are being sold out at stipulated time.
The company is in the process of integrating its retail stores
and e-Commerce operations, and hence believes that total
comparable sales provide better assessment of its retail
However, the company lowered its earnings guidance range
for the fiscal year ending on Feb 2, 2013, due to current sales
trends and a delay in federal tax refunds, which may
significantly affect its sales in the last week of January,
shifting it to the next quarter.
The company now expects its earnings per share for the fiscal
to be at the lower half of its earlier guidance range of
$5.00-$5.08. The current Zacks Consensus Estimate is pegged at
$5.03 per share for the fiscal.
Genesco sells footwear, headwear, sports apparel and
accessories in the U.S., Canada, the United Kingdom and the
Republic of Ireland. Its principal brands Journeys, Journeys
Kidz, Shi by Journeys, Underground by Journeys, Schuh, Lids, Lids
Locker Room, Johnston & Murphy, compete with assorted apparel
store chains like
Finish Line Inc.
Weyco Group Inc.
Genesco currently retains Zacks Rank #3 (Hold). Moreover, we
maintain a long term Neutral recommendation on this retailer.
FINISH LINE-CLA (FINL): Free Stock Analysis
GENESCO INC (GCO): Free Stock Analysis Report
(WEYS): ETF Research Reports
To read this article on Zacks.com click here.