(Click here for our Executive Edition story that includes a recap of Genesco CEO Bob Dennis’s presentation to day 1 of the 2011 ICR Xchange investor conference.)
Genesco Reports Same Store Sales, Raises Fourth Quarter Earnings Outlook
NASHVILLE, Tenn. — Genesco Inc. (NYSE: GCO) announced on Jan. 11 that same store sales for the quarter-to-date period ended January 8, 2011, increased 9% from the equivalent period last year, when same store sales increased 1%.
Sales for the Company’s e-commerce and catalog direct sales businesses increased 25% in the quarter-to-date period ended January 8, 2011. Same store sales changes for each retail segment for the period were as follows:
QTD (Jan. 8, 2011)
- Journeys Group: 13%
- Underground Station Group: -4%
- Lids Sports Group: 6%
- Johnston & Murphy Group: 13%
- Total Genesco: 9%
Based on the stronger than expected sales for the quarter to date, the Company has increased its adjusted earnings per diluted share expectations to a range of $1.25 to $1.30 for the fourth quarter and $2.40 to $2.45 for the fiscal year ending January 29, 2011.
The Company’s most recent previously announced earnings expectations were in the range of $1.23 to $1.28 per diluted share for the fourth quarter and $2.38 to $2.43 for the fiscal year.
The adjusted earnings per share expectations do not reflect expected non-cash asset impairments and other charges, including costs related to the previously announced intrusion into the Company’s computer network, expected to be in the range of $0.07 to $0.11 per diluted share for the fourth quarter and $0.29 to $0.33 per diluted share for the fiscal year.
The Company believes that providing an adjusted earnings per share estimate not reflecting these items will benefit investors by facilitating comparison with the Company’s previously announced expectations, which also excluded these items.
A reconciliation of the adjusted earnings per share estimates with the diluted earnings per share estimates calculated in accordance with U.S. Generally Accepted Accounting Principles is included as Schedule A to this press release.
Genesco plans to announce its fourth quarter and fiscal year 2011 results on March 3, 2011.
On page 2: An update on the investigation into computer hacking of its ecommerce sites
The Company also said that it is continuing to investigate the previously announced intrusion into a portion of its computer network that processes transactions in its United States Journeys, Journeys Kidz, Shi by Journeys and Johnston & Murphy stores, and in some of its Underground Station stores.
The investigation to date has indicated that, in addition to the payment card information previously identified as potentially at risk of compromise in the intrusion, some information related to check transactions (including bank routing, account, check, and drivers license numbers) in the affected stores may also have been accessible to the malicious software involved in the intrusion. The Company has no reason to believe that any customer name or address information was at risk of compromise in the intrusion.
As the Company has previously reported, it took immediate steps to secure the affected part of its network and is confident that customers can safely use payment cards and checks in the Company’s stores. Attached to this press release is additional information for customers concerning the intrusion.
Cautionary Note Concerning Forward-Looking Statements
This release contains forward-looking statements, including those regarding the earnings outlook for the Company for the fourth quarter and fiscal year ending January 29, 2011, and those reflecting expectations about the investigation and effects of the network intrusion. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences.
These include developments that have a negative effect on sales or earnings for the balance of the fiscal year, year-end adjustments to estimates reflected in the expectations, or developments in the Company’s investigation and response to the network intrusion that increase the costs or liabilities expected to be incurred or recognized in the fourth quarter. Additional factors are cited in the “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of, and elsewhere, in our SEC filings, copies of which may be obtained from the SEC website, www.sec.gov, or by contacting the investor relations department of Genesco via our website, www.genesco.com.
Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco’s ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements.
About Genesco Inc.
Genesco Inc., a Nashville-based specialty retailer, sells footwear, headwear, sports apparel and accessories in more than 2,300 retail stores throughout the U.S. and Canada, principally under the names Journeys, Journeys Kidz, Shi by Journeys, Lids and Lids Locker Room, Johnston & Murphy, and Underground Station, and on internet websites www.journeys.com, www.journeyskidz.com, www.shibyjourneys.com, www.undergroundstation.com, www.johnstonmurphy.com, www.dockersshoes.com, and www.lids.com.
The Company’s Lids Sports division operates the Lids headwear stores and the lids.com website, the Lids Locker Room and other team sports fan shops and single team clubhouse stores, and the Lids Team Sports team dealer business. In addition, Genesco sells wholesale footwear under its Johnston & Murphy brand, the licensed Dockers brand and other brands. For more information on Genesco and its operating divisions, please visit www.genesco.com.
