Genesco CFO to retire; reports Q3 profit miss

Nashville, Tenn. — Genesco Inc. announced that James S. Gulmi, senior VP and CFO, will retire at the end of its current fiscal year. He will be succeeded as CFO by Mimi E. Vaughn, the company's current senior VP —strategy and shared services.



Gulmi, who has served as Genesco's CFO since 1986, will continue as senior advisor to the company for at least the next year.



"Jim Gulmi's service for 28 years as Genesco's chief financial officer is remarkable for more than its duration. Serving with six different chief executive officers, Jim has been the constant thread running through successive chapters of a long and successful transformation of the company into a market-leading specialty retailer,” said Genesco's chairman, president and CEO Robert J. Dennis.



In addition, Genesco missed Wall Street expectations with net earnings of $28.66 million in the third quarter of fiscal 2015, down 39% from $47.33 million the same period a year earlier. Increased cost of sales and selling, general and administrative (SG&A) expenses contributed to the net income decline.



Net sales rose 8% to $722.91 million from $666.33 million. Consolidated same-store sales climbed 3%.



"We delivered solid top-line growth in the third quarter, driven by better than expected sales in the Journeys Group.,” said Robert J. Dennis, chariman, president and CEO. “Sales in our other divisions, except for the Lids Sports Group, were essentially on plan. At the Lids Sports Group, lower than planned sales caused negative expense leverage and lower gross margins, resulting in a shortfall in earnings that was not offset by the other divisions' performance.”



Same-store sales for the fourth quarter to date are up 9%.