Genesco lowers outlook, names new CFO

Genesco detailed succession plans for its CFO on a day that the company also reported weaker-than-expected earnings for the fiscal third quarter and lowered its outlook for the full year.

Genesco reported third-quarter earnings of $30.3 million, or $1.28 per diluted share, for the third quarter, compared to earnings from continuing operations of $33.8 million, or $1.43 per diluted share, for the prior-year quarter. Analysts estimated earnings of $1.44 per share. Sales for the latest third quarter rose by 8% to $722.92 million from $666.33 million a year ago with same store sales, including same store sales and comparable e-commerce and catalog sales, rising 3%. Analysts estimated revenue of $716.58 million.

The company also announced that James S. Gulmi plans to retire from the role of chief financial officer at the end of the fiscal year and that he will be succeeded as chief financial officer by Mimi E. Vaughn, currently the company's SVP of strategy and shared services.

Robert J. Dennis, chairman, president and CEO of Genesco, said: "We delivered solid top-line growth in the third quarter, driven by better than expected sales in the Journeys Group. 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. The fourth quarter has started off well, with consolidated comparable sales up 9% through December 2, 2014.”

Dennis added: "Based on our third quarter performance and expectations for additional margin pressure in the Lids Sports Group in the fourth quarter, we are revising our full year outlook. We now expect adjusted diluted earnings per share to be in the range of $4.75 to $4.85, compared to fiscal 2014's adjusted earnings.”

The Nashville-based specialty retailer sells footwear, headwear, sports apparel and accessories in more than 2,670 retail stores and leased departments throughout the United States, Canada, the United Kingdom and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Underground by Journeys, Schuh, Schuh Kids, Lids, Locker Room by Lids, Lids Clubhouse and Johnston & Murphy.