Genesco Inc. reported earnings from continuing operations jumped 74.4 percent for the first quarter ended April 30, to $15.0 million, or 63 cents per share, compared to earnings from continuing operations of $8.6 million, or 36 cents, in the same period a year ago.
Net sales for the first quarter of Fiscal 2012 increased 20 percent to
$482 million from $401 million in the first quarter of Fiscal 2011.
Comparable store sales in the first quarter of Fiscal 2012 increased by
14 percent. The Journeys Group’s comparable store sales for the quarter rose by
15 percent, the Lids Sports Group’s increased by 16 percent, Underground Station’s
comps were up 6 percent, and Johnston & Murphy Retail’s increased by 10 percent.
Internet and catalog sales across the Company increased 24 percent on a comp
basis in the quarter.
Fiscal 2012 first quarter earnings reflected pretax charges of $1.2 million, or 4 cents per share, related to fixed asset impairments and other expenses. Fiscal 2011 first quarter earnings reflected pretax charges of $2.4 million, or 6 cents per share, primarily for fixed asset impairments.
Adjusted for the listed items in both periods, earnings from continuing operations were $15.7 million, or 67 cents per diluted share, for the first quarter of Fiscal 2012, compared to $10.1 million, or 42 cents per diluted share, for the first quarter of Fiscal 2011.
Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We were very pleased with the strong sales and earnings growth we generated in the first quarter. Our performance was driven by our two largest businesses, Journeys and Lids Sports, both of which delivered mid-teens comparable store sales increases and grew operating income 94 percent and 49 percent, respectively. These contributions helped us achieve a significant improvement in profitability and provided us with good momentum to start the year.”
Dennis also discussed the company’s updated outlook.
“Based on our first quarter performance and current visibility, we are raising our Fiscal 2012 guidance. We now expect full year diluted earnings per share to be in the range of $2.90 to $2.97, which represents a 17 percent to 20 percent increase over last year’s earnings, up from our previous guidance range of $2.78 to $2.85. Consistent with previous guidance, these expectations do not include expected non-cash asset impairments and other charges, which are projected to total approximately $4 million to $5 million pretax, or $0.10 to $0.13 per share, after tax, in Fiscal 2012. This guidance assumes comparable store sales of 5 percent to 6 percent for the full fiscal year.”
The company noted that the revised guidance does not reflect the effects of a possible disruption of the 2011-2012 NFL season. The company estimates that the loss of the full season could result in a reduction of up to $5.5 million in pretax earnings in the Lids Sports Group, reducing consolidated earnings per share by up to $0.14.
Dennis concluded, “The pace of our business has been better than expected over the past several quarters. As a result, we are currently tracking ahead of our current 5-year growth plans which include achieving $2.3 billion in revenues and 8 percent operating margins by Fiscal 2015. We are encouraged by our recent performance and are optimistic that we have the strategies, infrastructure, and financial flexibility to further build our market positions and create meaningful long-term value for our shareholders.”
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Consolidated Earnings Summary |
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Three Months Ended |
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|
April 30, |
May 1, |
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|
In Thousands |
2011 |
2010 |
||||
|
Net sales |
$ 481,502 |
$ 400,853 |
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|
Cost of sales |
233,960 |
192,782 |
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|
Selling and administrative expenses |
220,773 |
191,077 |
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|
Restructuring and other, net |
1,244 |
2,443 |
||||
|
Earnings from operations |
25,525 |
14,551 |
||||
|
Interest expense, net |
514 |
235 |
||||
|
Earnings from continuing operations before income taxes |
25,011 |
14,316 |
||||
|
Income tax expense |
10,036 |
5,753 |
||||
|
Earnings from continuing operations |
14,975 |
8,563 |
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|
(Provision for) earnings from discontinued operations, net |
(182) |
53 |
||||
|
Net Earnings |
$ 14,793 |
$ 8,616 |
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Consolidated Earnings Summary |
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Three Months Ended |
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April 30, |
May 1, |
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In Thousands |
2011 |
2010 * |
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Sales: |
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|
Journeys Group |
$ 208,714 |
$ 181,891 |
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|
Underground Station Group |
25,803 |
26,073 |
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Lids Sports Group |
169,676 |
119,988 |
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Johnston & Murphy Group |
48,051 |
44,537 |
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Licensed Brands |
28,950 |
28,142 |
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|
Corporate and Other |
308 |
222 |
||||
|
Net Sales |
$ 481,502 |
$ 400,853 |
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Operating Income (Loss): |
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|
Journeys Group |
$ 16,311 |
$ 8,425 |
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|
Underground Station Group |
1,147 |
649 |
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|
Lids Sports Group |
14,004 |
9,414 |
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Johnston & Murphy Group |
2,895 |
2,059 |
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Licensed Brands |
3,304 |
4,532 |
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Corporate and Other** |
(12,136) |
(10,528) |
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Earnings from operations |
25,525 |
14,551 |
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Interest, net |
514 |
235 |
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