Genesco earnings down in Q4

NASHVILLE, Tenn. — Genesco, a specialty retailer of sports apparel and accessories reported fourth quarter earnings of$38.7 million, or $1.63 per diluted share, compared withearnings from continuing operations of $41.5 million, or $1.72 per dilutedshare, for the same period last year.

Net sales for the fourth quarter increased 10% to $797million from $723 million in the same period last year.Consolidated fourthquarter 2013 comparable sales, including same-store sales and comparablee-commerce and catalog sales, decreased 2% on a 14-week basis, with a 1%decrease in the Journeys Group, a 10% decrease in the Lids Sports Group, a 7%increase in the Schuh Group, and a 2% increase in the Johnston & Murphy Group.

The company also reported earnings from continuing operations for the full yearof $111 million, or $4.62 per diluted share,compared with earnings from continuing operations of $83 million, or $3.48 perdiluted share, for the 52-week period ended Jan. 28, 2012.

Robert Dennis, chairman, president and CEO of Genesco,said, "Fiscal 2013 was another solid year for Genesco, highlighted by annualsales and adjusted earnings per share increases of 14% and 24%, respectively. Webelieve that the strong earnings performance in a year characterized bychallenges in our markets and in the broader economy demonstrates the resiliencyof our business model."

"Fiscal 2014 has started off somewhat slowly, with February consolidatedcomparable sales down 9%. We believe that most of the negative factors we haveidentified in our recent performance, including a delay in initial federal taxrefunds and the timing of new product deliveries versus a year ago, aretemporary. Comparable sales improved in the course of February, but we remaincautious in our near-term outlook given continuing uncertainty in the economyand in some of our markets and the relatively strong prior year comparisons weface in the first half of this year."

The company expectsadjusted fiscal 2014 diluted earningsper share to be in the range of $5.57 to $5.67, which represents a 10% to 12%increase over fiscal 2013's adjusted earnings per share of $5.06.

This guidance assumes comparable sales increases in the low single digit rangefor the full fiscal year.

Dennis concluded, "We enter the new year focused on continuing to navigatesuccessfully through the short-term headwinds while executing our long-termgrowth strategies."