Genesco (GCO) Tops Q3 EPS by 9c

Genesco (NYSE: GCO) reported Q3 EPS of $0.95, $0.09 better than the analyst estimate of $0.86. Revenue for the quarter came in at $713 million versus the consensus estimate of $712.38 million.

Robert J. Dennis, Chairman, President and Chief Executive Officer, said:

"We achieved our highest quarterly comparable sales increase in more than two years driven by the ongoing strength of our U.S. footwear businesses. Journeys and Johnston & Murphy delivered strong performances both in-store and online, which fueled an acceleration in our combined consolidated store and digital comps on a sequential basis. While still negative, sales trends at both the Lids Sports Group and Schuh Group continued to improve following a very challenging start to the year. Even with the strong comp result, sales were down year-over-year due primarily to the calendar shift that moved an important back-to-school sales week out of the third quarter into the second quarter. At the same time, a change in timing of catalog expenses due to new revenue recognition standards contributed to an increase in operating costs. All of this resulted in earnings per share that were slightly ahead of our expectations but below last year's level.

"The fourth quarter has started well, highlighted by solid results during the Black Friday through Cyber Monday period. While we are optimistic about continued strength at Journeys and Johnston & Murphy, the persistent negative comps at Lids and Schuh keep us cautious for the balance of the year, with the greater part of holiday shopping ahead of us. Looking further ahead, we believe the many initiatives we\'ve recently executed have the Company well positioned to generate increased profitability and deliver greater shareholder value in fiscal 2020."

GUIDANCE:

Genesco sees FY2019 EPS of $3.10-$3.40.

For earnings history and earnings-related data on Genesco (GCO) click here.

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