) has witnessed a slight improvement in its comparable-store
sales (comps) performance in the fourth quarter ended Jan 11,
2014. This footwear retailer announced on Tuesday, Jan 14 that
its comps including stores and direct sales for the period inched
up 1% against a 1% fall registered in the comparable prior-year
The year-over-year rise in comps was primarily driven by an
increase of 11% at its e-Commerce and catalog direct sales.
However, the company's comps performance at its stores remained
flat year over year.
Genesco has been witnessing decline in comps for the past
several quarters. During the first, second and third quarter of
fiscal 2014, Genesco reported comps decline of 4%, 2% and 1%,
respectively due to lower comps in most of its business segments.
Genesco also began the fourth quarter of fiscal 2014 on a
disappointing note by recording flat comps for the five weeks
ended Nov 2013.
The recent comps data has somewhat boosted confidence among
the investors. Since the announcement, shares of the company have
gained approximately 2.7% in the last two trading days.
We believe the stock price could have risen further if the
company had not trimmed its fiscal 2014 earnings guidance based
on tough retail conditions in the U.S. that stemmed from a
restrained consumer spending environment and heavy promotions.
Genesco now expects earnings to come at the lower-end of its
earlier guidance range of $5.10-$5.20 per share.
Currently, the Zacks Consensus Estimate is pegged at $5.14 per
share, which may witness a downward revision in the coming days
due to Genesco's downbeat guidance. The company is slated to
release fourth quarter and fiscal 2014 results on Mar 7,
In the recent holiday season, most retail companies reported
lackluster results, followed by lowered forecasts. These
companies suffered from reduced traffic, an intensified
promotional environment, lesser shopping days between
Thanksgiving and Christmas, numerous icy storms and sluggish
consumer spending. Retailers that lowered their guidance battered
by the holiday results include
Family Dollar Stores Inc.
American Eagle Outfitters Inc.
L Brands Inc.
Currently, Genesco carries a Zacks Rank #3 (Hold).
AMER EAGLE OUTF (AEO): Free Stock Analysis
FAMILY DOLLAR (FDO): Free Stock Analysis
GENESCO INC (GCO): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
To read this article on Zacks.com click here.