Genesco Inc. third quarter earnings were $5.6 million before discontinued operations, or 23 cents per diluted share compared to earnings before discontinued operations of $16.0 million, or 62 cents per diluted share last year. Total company sales increased 2.3% to $372.5 million compared to $364.3 million last year. Total company comparable store sales declined 3% for the quarter with increases at Hat World and Johnston & Murphy offset by declines in all other divisions.

Results for the quarter included $6.2 million pretax, or approximately 16 cents per diluted share, in litigation and other expenses related to the Company's proposed merger with a subsidiary of The Finish Line Inc., retail store asset impairment charges and costs related to the previously announced decision to close certain underperforming stores, primarily in the Underground Station Group. Results for the quarter last year include $1.1 million pretax, or approximately two cents per share, of retail store asset impairment charges.

Genesco Chairman and Chief Executive Officer Hal N. Pennington said, “Our third quarter results continued to reflect generally challenging economic conditions and a difficult retail environment, especially in footwear.

“Net sales in the Journeys Group were approximately $183 million in the third quarter, and same store sales declined 3%. The benefit we expected from the shift in sales tax holidays and the onset of the back to school season from the second quarter last year to the third quarter this year was more than offset by the general weakness of the retail footwear climate and significant underperformance by one line of shoes that performed very strongly for the Journeys Group in the third quarter last year. While there remains some uncertainty in the marketplace, we believe Journeys is well positioned for the holiday selling season.

“Net sales in the Hat World Group increased 13% to approximately $88 million, and same store sales rose 2% in the third quarter. Hat World's core business, particularly Major League Baseball products, performed well during the quarter, as did branded action product. However, Hat World sacrificed some gross margin in connection with a program designed to adjust MLB fashion inventory levels. We completed that program during the third quarter and expect it to benefit future performance.

“Net sales for the Underground Station Group, which includes the remaining Jarman stores, were $27 million, and same store sales declined 19%. Same store sales again reflected the weak urban market, a difficult Nike comparison, especially during the early part of the quarter, and an ongoing transition into the chain's new merchandising strategy. While the general retail environment and the urban market remain challenging, we expect Underground Station to benefit from new merchandising strategies in the holiday season and from easier comparisons with last year, especially since Nike sales were less meaningful in the fourth quarter last year.

“Johnston & Murphy Group's net sales increased 4% to approximately $46 million in the third quarter. Same store sales for the shops were up 3% and operating margin for the Johnston & Murphy Group increased 220 basis points to 9.4%, reflecting the continuing strength of the brand.

“Third quarter sales of Licensed Brands increased 26% to approximately $29 million, and operating margin increased 380 basis points to 14% reflecting the continuing strength of Dockers Footwear, sales of which increased approximately 9%, and additional sales related to the introduction of a line of footwear sourced for limited distribution under a new license arrangement. Even in a very challenging retail environment our target consumers are continuing to respond very positively to the product styling, comfort and value found in Dockers Footwear, and our retail customers are very happy with the performance. We believe we are poised for continued success.”

                                  GENESCO INC.

     Consolidated Earnings Summary

                                   Three Months Ended       Nine Months Ended
                              November 3, October 28, November 3, October 28,
     In Thousands                    2007        2006        2007        2006

     Net sales                   $372,496    $364,298  $1,035,124   $ 983,617
     Cost of sales                184,445     182,844     511,610     487,404
     Selling and administrative
      expenses                    174,194     150,992     499,326     433,477
     Restructuring and other, net      56       1,083       6,809       1,672
     Earnings from operations      13,801      29,379      17,379      61,064
     Interest expense, net          3,504       2,948       8,906       7,022
     Earnings before income taxes
      from continuing operations   10,297      26,431       8,473      54,042

     Income tax expense             4,687      10,456       3,600      21,457
     Earnings from continuing
      operations                    5,610      15,975       4,873      32,585

     Provision for discontinued
      operations                      (10)        (98)     (1,235)       (287)
     Net Earnings                  $5,600     $15,877      $3,638     $32,298


     Earnings Per Share Information

                                   Three Months Ended       Nine Months Ended
     In Thousands (except     November 3, October 28, November 3, October 28,
      per share amounts)             2007        2006        2007        2006

     Preferred dividend
      requirements                    $49         $64        $167        $192

     Average common shares
      – Basic EPS                  22,454      22,284      22,420      22,771

     Basic earnings per share:
        Before discontinued
         operations                 $0.25       $0.71       $0.21       $1.42
        Net earnings                $0.25       $0.71       $0.15       $1.41

     Average common and common
        equivalent shares –
         Diluted EPS               26,918      26,624      22,994      27,111

     Diluted earnings per share:
        Before discontinued
         operations                 $0.23       $0.62       $0.20       $1.26
        Net earnings                $0.23       $0.62       $0.15       $1.25