Genesco Inc. reported earnings before discontinued operations of $12.5 million, or 55 cents per diluted share, for the third quarter ended October 30, 2004. The results included expenses of $0.02 per share related to the closing of certain Jarman retail stores in connection with the Company’s plan to accelerate the conversion of Jarman to Underground Station stores and retail store asset impairments. Net earnings were $9.4 million, or $0.42 per diluted share, for the third quarter last year. Net sales for the third quarter of fiscal 2005 increased 36% to $288 million compared to $212 million for the third quarter of fiscal 2004.

Genesco Chairman, President and Chief Executive Officer Hal N. Pennington, said, “Our third quarter results highlight the significant progress we have made across the board in our programs to improve our operating platform and promote long-term growth and profitability. We look forward to building on the momentum we have created in the marketplace.

“Net sales at Journeys increased 13% to approximately $138 million, same store sales rose 7% and footwear unit comps increased 10%. Once again, we benefited from the strong trend in fashion athletic footwear. As we move into the holiday selling season, we are confident that Journeys is well positioned from a merchandising perspective and we are excited about our prospects.

“The Underground Station Group, including the Jarman stores, reported a same store sales decrease of 5%. The Underground Station stores same store sales declined only 2%, which compares to a 7% decline for the same period last year. We have taken a number of steps to enhance the operations of Underground Station and the business has improved considerably since the beginning of the year. Importantly, these trends have continued into the fourth quarter so far. We recognize that there is a tremendous opportunity in this underserved niche and we remain committed to leveraging Underground Station’s unique position in the market.

“Hat World posted another excellent quarter, with total sales up 23% and same store sales up 12%, primarily driven by increased demand for core sports product, as well as by strength in the fashion and branded businesses. During the quarter, Hat World opened 25 stores, including its first campus-area location and its first two stores in Puerto Rico. Hat World has so far delivered on the high expectations we brought to its acquisition, and we remain focused on realizing its potential.

“We continued to make meaningful progress at Johnston & Murphy. Operating margin rose 370 basis points to 4.9%, as gross margin increased due to better sourcing, less promotional selling and a higher mix of premium product. For some time, we have been focused on profitable sales and margin improvement and it is gratifying to see the positive results of our efforts. As we head into the next stage of our strategic plan, we are working hard to enhance our brand image further and to update our store design in order to attract new customers.

“Finally, Dockers Footwear’s sales rose 8% to approximately $18 million, primarily due to the strength of the Stain Defender product. Dockers also experienced a substantial increase in gross margin, which helped drive a 400 basis point increase in operating margin to 11.7%. Dockers has continued to perform well in the moderately priced men’s shoe environment, which underscores the strength of the brand and is a testimony to the strength of its design, marketing and sales teams.”

Genesco also stated that it is revising upward its fiscal 2005 guidance. The Company now expects sales of approximately $1.1 billion for the year and diluted earnings per share to range from $2.01 to $2.02, including previously announced charges of approximately $0.07 to $0.08 per share primarily associated with the planned closing of Jarman and other underperforming stores. The Company noted that, if shares of its common stock close above $26.54 for 10 of the last 30 days of the fourth quarter, or if certain proposed changes in accounting standards governing the contingent conversion feature of the Company’s 4-1/8% convertible subordinated debentures become effective, the shares underlying the debentures must be included in diluted shares outstanding for purposes of the earnings per share calculation for the quarter and year. Assuming that the shares are included, diluted earnings per share guidance for the year would be adjusted to a range of $1.81 to $1.82 per share, including the previously announced store related charges.

Genesco also announced preliminary sales and diluted earnings per share guidance for the fiscal year ending January 28, 2006. The Company expects net sales for fiscal 2006 to range from $1.2 billion to $1.3 billion and diluted earnings per share to range from $2.37 to $2.41, assuming the convertible shares are not included in the calculation, or from $2.11 to $2.15, if the convertible shares are included.

                                GENESCO INC.
    Consolidated Earnings Summary
                                    Three Months Ended   Nine Months Ended
                                     Oct. 30,   Nov. 1,  Oct. 30,   Nov. 1,
    In Thousands                        2004      2003      2004      2003

    Net sales                       $288,398  $212,483  $759,863  $584,707
    Cost of sales                    145,030   113,355   383,928   313,998
    Selling and administrative
     expenses                        119,251    82,426   330,596   243,350
    Restructuring and other, net         667         -       627      (139)
    Earnings from operations before
     interest and other               23,450    16,702    44,712    27,498
    Loss on early retirement of
     debt                                  -         -         -     2,581
    Interest expense, net              3,138     1,510     7,916     5,691
    Earnings before income taxes
     from continuing operations       20,312    15,192    36,796    19,226

    Income tax expense                 7,783     5,780    13,668     7,368
    Earnings from continuing
     operations                       12,529     9,412    23,128    11,858
    Provision for discontinued
     operations, net                    (440)        -      (461)        -
    Net Earnings                     $12,089    $9,412   $22,667   $11,858

    Earnings Per Share Information
                                    Three Months Ended   Nine Months Ended
    In Thousands (except per         Oct. 30,   Nov. 1,  Oct. 30,   Nov. 1,
     share amounts)                     2004      2003      2004     2003

    Preferred dividend requirements      $73       $74      $219     $221

    Basic earnings per share:
         Before discontinued
          operations                   $0.57     $0.43     $1.05    $0.54
         Net earnings                  $0.55     $0.43     $1.02    $0.54

    Diluted earnings per share:
         Before discontinued
          operations                   $0.55     $0.42     $1.02    $0.53
         Net earnings                  $0.54     $0.42     $1.00    $0.53