Genesco Q1 Adj. Earnings Miss View; Backs FY15 Outlook - Quick Facts

(RTTNews) - Specialty retailer Genesco, Inc. (GCO) posted first-quarter fiscal 2015 earnings from continuing operations of $14.1 million, or $0.60 per share, compared with the prior-year figures of $14.5 million, or $0.61 per share, a year ago.

The company said the latest quarter's results reflect expenses of $7.7 million, or $0.21 per share after tax, including $5.7 million related to a change in accounting for bonus awards; $3.1 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Limited; and $2.0 million in network intrusion expenses, asset impairment charges and other legal matters, offset by a $3.1 million gain on a lease termination. The prior-year quarter's results reflected expenses of $10.7 million, or $0.33 per share after tax, including $6.5 million associated with a change in accounting for bonus awards, $2.9 million related to deferred purchase price payments in connection with the acquisition of Schuh Group Ltd., and $1.3 million for impairment charges and network intrusion expenses.

Quarterly net earnings slid year-over-year to $13.97 million, or $0.59 per share, from $14.41 million, or $0.61 per share.

Adjusted for the items mentioned above in both the periods, earnings from continuing operations were $19.3 million, or $0.81 per share, for the quarter. On average, 9 analysts polled by Thomson Reuters expected earnings per share of $0.91 for the quarter. Analysts' estimates typically exclude one-time items.

For the tri-monthly period, net sales totaled $629 million, up 6.3% from $591 million in the first quarter of fiscal 2014; whereas 8 analysts estimated revenues of $620.03 million.

Looking forward to fiscal 2015, the firm confirmed its adjusted earnings per share guidance in the range of $5.40 - $5.55. Consistent with its earlier forecast, these projections exclude non-cash asset impairments and other charges, partially offset by a gain on a lease termination in the first quarter this year, which the company expects to be in the range of $2.6 million - $3.1 million pretax, or $0.07 - $0.08 per share, after tax, in fiscal 2015.