By Dean Seal
Genesco raised its full-year guidance after back-to-school-season demand and a strong performance for its Journeys brand boosted third-quarter sales.
The footwear retailer now expects sales to fall no more than 1% and possibly come in flat year-over-year. It previously targeted a 1% to 2% decline. Adjusted earnings from continuing operations, which strip out one-time items, are now expected to be 80 cents to $1 a share, lifting the floor of Genesco's previous outlook by 20 cents.
The raise comes after sales in the third quarter increased 3% to $596 million, with a comparable sales gain of 6%.
Chief Executive Mimi Vaughn said the back-to-school season was a strong start to the quarter, which ended Nov. 2.
The company's Journeys chain saw robust sales trends in September and October, fueling an 11% gain in comparable sales for the brand. That offset small declines for its Schuh and Johnston & Murphy banners.
Genesco posted a loss for the quarter of $18.9 million, or $1.76 a share, compared with a profit of $6.5 million, or 60 cents a share, in the same quarter of last year. A $26.3 million tax expense weighed on the bottom line.
Vaughn said earnings would have been stronger had an important back-to-school week not been shifted into the second quarter this year.
Shares rose 5.6% to $39.50 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 06, 2024 07:16 ET (12:16 GMT)
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