Genesco Q3 Profit Falls, But Tops Estimates; Updates FY EPS View - Quick Facts

(RTTNews) - Specialty retailer Genesco, Inc. (GCO) posted a drop in third-quarter earnings from continuing operations to $27.8 million, or $1.18 per share, from $42.2 million, or $1.76 per share last year. The recent quarter results reflect pretax items of $8.5 million, or $0.25 per share after tax, including $4.0 million of expenses related to the change in accounting for deferred bonuses under the company's EVA Incentive Plan announced in September 2013, $3.0 million of expenses on deferred purchase price payments in connection with the acquisition of Schuh Group Limited which are required to be expensed as compensation because the payment is contingent upon the payees' continued employment, and $1.5 million for network intrusion expenses, asset impairment charges and other legal matters.

Adjusted for the items, quarterly earnings from continuing operations totaled $33.8 million, or $1.43 per share. On average, 9 analysts polled by Thomson Reuters expected earnings per share of $1.38 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the recent period increased 0.3% year-on-year to $666.3 million from $664.5 million, while 8 analysts estimated revenues of $662.57 million. Comparable-store sales slid by 1% for the company, with a 5% growth in the Lids Sports Group, a 2% decrease in the Journeys Group, a 10% decline in the Schuh Group, and a 7% increase in the Johnston & Murphy Group.

Looking ahead to the full year, the company now expects adjusted earnings per share to be in the range of $5.10 - $5.20, whereas 9 analysts project annual earnings of $5.20 per share.