Genesco is also seeing improved traffic and sales patterns at most of its retail units. The Journeys unit did see a 1.0% decline in comp store sales for Q2 while Underground Station posted a 9.0% jump in comps for the quarter on top of a 19% gain in the year-ago period. The company said that both chains had a “solid” start for Back-to-School and that “positive momentum late in the quarter has continued into August”.
Journeys unit sales were up for the quarter, driven by fashion athletic and womens. Top vendors include Converse, Diesel, adidas, Etnies, Puma and Timberland.
GCO said the Jarman retail stores and Dockers Footwear performed below expectations. Jarman's same store sales declined 14%, “reflecting its inability to participate in the women's and fashion athletic trends” that are driving Journeys and Station.
Journeys gross margin improved in the quarter while all other divisions saw GM decline. The company said it was “comfortable” with inventory levels at Journeys.
Citing caution due to continuing issues with J&M and Dockers, GCO sees Q3 EPS of 40 cents to 43 cents and $222mm to $226 mm in sales versus the consensus of 51 cents on revenues of $229.5mm.
