Genesco reports Q3 profit lift

Nashville, Tenn. Genesco on Tuesday reported earnings of $11.5 million for the third quarter ended Oct. 31, compared with earnings $9.0 million in the year-ago period.

Sales for the quarter were $390 million, essentially even with the third quarter of fiscal 2009. Comparable-store sales decreased by 2%. By division, comp sales in the Journeys Group dipped 2%, the Hat World Group increased 1%, Underground Station decreased 6%, and Johnston & Murphy Retail decreased 2%.

Robert J. Dennis, president and CEO, said, "We are pleased with our third-quarter earnings, which exceeded expectations thanks to improved gross margin and solid expense leverage, despite the lack of a sustained sales trend in the quarter. Comparable-store sales for the first three weeks of November are down 3% from the same period last year. Nevertheless, given the consumer's continued willingness to shop during the peak sales periods throughout the current economic downturn, the relatively easier comparisons later in the quarter, and our strong merchandise position, we remain optimistic about the Holiday selling season.”