Genesco Reports Increase In Adjusted Profit, Revenue In Q3; Raises Full-year Outlook; Stock Up

(RTTNews) - Genesco Inc. (GCO), a retailer and wholesaler of footwear, apparel, and accessories, Friday reported a loss for the third quarter, compared with profit in the year-ago period, primarily impacted by income tax expense of $26.3 million related to a U.S. valuation allowance. However, the company posted higher earnings on an adjusted basis. It also raised its full-year outlook. Genesco shares were up more than 4 percent in pre-market.

The company posted loss from continuing operations of $18.85 million or $1.76 per share for the third quarter, compared with earnings from continuing operations of $6.59 million or $0.60 per share in the same quarter a year ago.

Net loss was $18.93 million or $1.76 per share compared with profit of $6.54 million or $0.60 per share last year.

Excluding one-time items, adjusted earnings were $6.59 million or $0.61 per share, up from $6.21 million or $0.57 per share in the prior year.

Operating income declined to $10.21 million from $10.85 million a year ago.

Net sales grew to $596.33 million from $579.32 million in the previous year.

For the full year, the company now expects adjusted EPS from continuing operations in the range of $0.80 - $1.00, up from the previous outlook of $0.60 - $1.00.

Sales outlook for the year has been raised to down 1 percent to flat from 1 percent to 2 percent decrease.

Genesco stock had closed at $37.41, down 2.04 percent on Thursday. It has traded in the range of $23.21-$39.34 in the last 1 year.