Genesco Cuts FY Profit View - Quick Facts

(RTTNews) - Genesco Inc. (GCO) said that it lowered its adjusted earnings per share outlook for fiscal year 2016 to a range of $4.50 to $4.60, from the prior guidance of $4.70 to $4.80. Analysts polled by Thomson Reuters expect the company to report earnings of $4.75 per share for fiscal year 2016. Analysts' estimates typically exclude special items.

The guidance now assumes comparable sales increases in the 5% to 6% range for the full year.

"Recent comparable sales trends have been volatile and we expect that the retail market will remain promotional through the balance of the Holiday season. Given these factors in combination with the incremental promotional activity we now plan at Lids Sports Group through the fourth quarter to conclude its inventory reduction initiative and to position it for the freshest possible start to the next fiscal year, we are revising our full year outlook," Robert Dennis, chairman, president and chief executive officer of Genesco, said.

Consistent with previous guidance, The expectations do not include expected non-cash asset impairments and other charges, estimated in the range of $6.1 million to $6.6 million pretax, or $0.17 to $0.18 per share after tax, for the full fiscal year. These expectations also do not reflect expenses related to Schuh deferred purchase price payments, which are $1.5 million, or $0.06 per share, for the full year.

Dennis said, "While we are disappointed with our reduced outlook, we believe that the steps we are taking now will allow the Company to realize greater earnings power next year and beyond."