Genesco Slips To Loss In Q1; Slashes FY24 Outlook

(RTTNews) - Specialty retailer Genesco, Inc. (GCO) on Thursday reported a net loss for the first quarter of $18.89 million or $1.60 per share, compared to net income of $4.95 million or $0.37 per share in the prior-year quarter.

Excluding items, adjusted loss from continuing operations were $1.60 per share, compared to adjusted earnings from continuing operations of $0.44 per share in the year-ago quarter.

Net sales for the quarter decreased 7 percent to $483.33 million from $520.75 million in the same quarter last year. Excluding the impact of lower exchange rates, net sales decreased 6 percent. Total Genesco Comparable Sales declined 5 percent.

On average, three analysts polled by Thomson Reuters expected the company to report a loss of $1.10 per share on revenues of $478.01 million for the quarter. Analysts' estimates typically exclude special items.

Looking ahead to fiscal 2023, the company now projects adjusted earnings from continuing operations in the range of $2.00 to $2.50 per share on sales to be down 4 to 5 percent, or down 5 to 6 percent excluding the 53rd week this year

Previously, the company expected adjusted earnings from continuing operations in the range of $5.10 to $5.90 per share on sales to be flat to up 2 percent, or down 1 percent to up 1 percent excluding the 53rd week this year.

The Street is looking for earnings of $5.39 per share on revenue growth of 0.9 percent to $2.41 billion for the year.

The Company now expects to close more than 100 Journeys stores in fiscal 2024, versus prior expectations to close 60 stores. It also now anticipates up to $40 million in cost reductions, versus $20 million to $25 million prior, with $20 million realized in Fiscal 2024.

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