Genesco Inc. expects to report net sales in the range of $303 million to $304 million for the second quarter, up from $275 million during last year’s second quarter. The company said that its same store sales for the quarter to date are up between 1% and 2%, with the Journeys stores up 5%, Hat World flat, the Underground Station Group down 5% and Johnston & Murphy down 2%. The company now expects to report earnings per share of 20 cents to 21 cents for the second quarter compared to 27 cents for the corresponding period a year ago. This year’s earnings per share are expected to reflect charges of 4 cents per share related to stock-based compensation, including option expense under FAS 123R, not reflected in last year’s earnings.
Hal N. Pennington, Genesco chairman, president and chief executive officer, commented, “Journeys second-quarter performance has been good, and the strength we saw in our wholesale operations in the first quarter has continued. A challenging urban market, reflected in the same store sales of Underground Station stores and the more urban-influenced of the Hat World stores, has been the primary factor leading us to temper our expectations for the quarter. We are confident about our merchandise selection for the back to school season, and early back to school indications in Journeys are encouraging.”
