Home breadcru News breadcru Company breadcru Genesco Q2 earnings drop despite higher sales

Genesco Q2 earnings drop despite higher sales

24 Aug '06
4 min read

Shoe and hat retailer Genesco Inc reported earnings of $5.9 million, or $0.24 per diluted share, for the second quarter ended July 29, 2006.

Earnings were $6.8 million, or $0.27 per diluted share, for the second quarter ended July 30, 2005. Net sales for the second quarter of fiscal 2007 increased 11% to $304 million compared to $275 million for the second quarter of fiscal 2006.

Genesco Chairman, President and CEO Hal Pennington, said, "Strong performances in Journeys and our wholesale businesses helped to offset weakness in the urban market, reflecting an advantage of our diversified operating model. We also continued to execute our store growth plans during the quarter, opening a total of 47 stores, compared with 40 during the second quarter last year, and increasing square footage by 15% compared to a year ago.

"Net sales in the Journeys Group increased 15% to approximately $137 million in the second quarter. Same store sales increased 5% and footwear unit comps rose 8%. Athletic footwear, led by board sport shoes, sandals and women's casuals once again performed well, and we expect these trends to continue through the back to school season. We are excited about Journeys' prospects for the second half of the year, and we believe its product offerings provide an important point of differentiation to its customer. We remain on plan to open a total of 60 Journeys stores in fiscal 2007.

"Journeys Kidz posted another strong quarter, with total sales up 51% and same store sales up 12% against a 14% comparison last year. We remain on track to open a total of 25 Kidz stores in fiscal 2007 and continue to believe that we can eventually grow this chain to at least 250 stores across the country. Our newest concept, Shi by Journeys, is also performing well. We opened three Shi by Journeys stores during the quarter and now have six stores in operation. Based on the concept's early success, we now expect to accelerate our Shi by Journeys store opening plans for the balance of fiscal 2007.

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!