Genesco Inc. said same-store sales for the quarter-to-date period ended January 10, were down 4%.   Among the divisions, comps at Journeys Group for the quarter-to-date are down 1% and Hat World Group is down 4%. Additionally, Underground Station comped down 12% for the quarter-to-date period.


The company said that same-store sales were stronger during the last three weeks of the quarter-to-date period than previously in the quarter. If this trend continues for the balance of the quarter, the company expects to achieve the lower end of its previously announced same-store sales target range of -1% to -4% for the quarter. For the year-ago fourth quarter GCO reported a 5% decline in comparable store sales.


As expected, the top line at Journey’s was one of the best performers for December.  This was driven in large part by a very successful UGG boot season. The positive impact of UGG dissipates in the spring so Journey’s may be more challenged in H1.  Still, the retailer is planning big growth with UGG in the back half of 2009.


Underground remains an anchor to sales and profits.  They did say that 80% of the locations become up for renewal or kickout in the next 3 years, so they may just wind it down.  Perhaps some stores could be converted to Shi or Journey’s kids.

Iconix Brand Group kicked off its investor conference this week by discussing its unusual business model for the upcoming year. “We think that it's unique because we have guaranteed royalties,” said EVP and CFO Warren Clamen. “For 2009, in our guidance, we guided to $225 million to $235 million, and two-thirds of that is guaranteed by minimum royalties.  At the beginning of this year, if you add up all of our contracts excluding extensions, we have $500 million in guaranteed minimums.”


“Our business model has no inventory or operating risk,” he continued. “It's our licensees, not us, who have the relationships and the manufacturing and the sourcing and do the distribution; and we just collect a royalty check… So, cash is king.” The company expects to have generated over $120 million of free cash flow in 2008 and expects the same in 2009.


Iconix anticipates growing in 2009, despite the economy, because of its relationship with Wal-Mart. “We have three brands that are going to be really launching this year in Wal-Mart, and therefore we see our royalty growth is roughly 50% because we have high minimums on these brands,” said Chairman and CEO Neil Cole.


Cole added a bit of guidance, saying that last year the company grew from $160 million of revenue, and projects this year over $215 million of revenue. Last year, ICON had about $1.00 after special charges. This year, they are projecting $1.15 to $1.20.  Next year, that figure should be roughly $2.25 to $2.35.  EPS is expected to increase to a range of $1.20 to $1.30.”

Golfsmith International Holdings, Inc. net revenues dropped 13.7% to $68.2 million for the fourth quarter from net revues of $79.0 million last year. The revenues decline reflects a 17.3% drop in comparable store sales and a 23% decrease in direct channel revenues.


For the fiscal year, net revenues decreased 2.3% to $379.1 million from $388.2 million last year. Golfsmith comps declined 6.3% for the year, while direct revenues decreased 13.1%.
Looking ahead, the retailer tightly managed its inventories to a 5% to 7% decline, or a decrease of approximately 8% on a per store basis.


Delta Apparel, Inc. expects fiscal second quarter revenues to be approximately $73 million, an increase of 6.0% from the prior year’s second quarter. Earnings for the quarter ended December 27 are expected to be approximately 5 cents to 6 cents a share. The company reversed a portion of its tax valuation allowance on its state operating loss carryforwards, which will contribute approximately 4 cents per diluted share to its earnings for the quarter.



For the fiscal year ending June 27, 2009, the company reiterated its expectation for net sales to be in the range of $340 million to $360 million and earnings to be in the range of 70 cents to 90 cents per diluted share. This compares to fiscal year 2008 sales of $322.0 million and a loss of 6 cents per diluted share, inclusive of 39 cents per share of costs associated with the textile restructuring plan.


In anticipation of the difficult retail environment, DLA has been working to improve its supply chain. By building new textile facilities, DLA expects to expand distribution to about 1 million pounds per week with $2 million to $3 million of additional capital investment.


In addition to improving distribution and manufacturing costs, DLA’s e-commerce initiatives have recently been rewarding. Its online Soffe fan club has helped pump internet sales, which in fiscal 2008 were a record $1 million annually. The first two quarters have been continuing to grow at over a 30% rate. Delta is now using this successful platform for its Junkfood sales as well.


“As we began 2009 we set forth our expectations for sales to be in the range of $340 million to $360 million,” said VP, CFO and Treasurer Deb Merrill of DLA’s guidance. “This would be above our 2008 level of $322 million, increasing our top line by 5% to 12% all of which would be organic growth.”


Broken down into categories, Merrill said Delta expects activewear sales to be $190 million to $200 million, a 6% to 10% growth from the 2008 level of $180 million. In the retail-ready segment, the company expects sales to be approximately $150 million to $160 million, a 5% to 11% sales increase over 2008.