Genesco Inc. reported net sales of $286 million for the first quarter ended April 30, 2005, compared to $226 million for the same period last year. The Company also reported that Journeys' same store sales increased 7%, Hat World's same store sales rose 7%, Underground Station Group's same store sales increased 9% with Underground Station stores up 11%, and Johnston & Murphy reported a same store sales gain of 3%.
The Company said that it remains comfortable with its previously announced first quarter earnings per share guidance of between $0.25 and $0.26, versus $0.24 for the same period a year ago.
The Company said that its reaffirmation of guidance reflects charges of $1.6 million, or $0.06 per share, after taxes, associated with the anticipated settlement of a previously disclosed class action lawsuit. The lawsuit, brought on behalf of managers and assistant managers of its California retail stores, alleges violations of California wages and hours laws and other employment laws and regulations. The anticipated settlement is subject to negotiation of a definitive settlement agreement, class certification and court approval, among other conditions, and may be terminated at the Company's option if more than 5% of the class members elect not to participate in the settlement.
Hal N. Pennington, Genesco chairman, president and chief executive officer, commented, “These strong results represent a great way to start the new fiscal year. Our positive momentum continues and we are encouraged about our prospects.”
