Apparently a later back-to-school season did not hurt earnings at Genesco. The apparel company delivered net income of $8.5 million, or 36 cents a share, in the second quarter of fiscal 2016, beating last year’s earnings of 34 cents a share and topping analyst expectations of 24 cents a share. Net sales of $656 million increased 7 percent over last year and were higher than the FactSet consensus of $651 million.
Where other mall-based teen retailers have struggled, Genesco’s Journeys saw a 4 percent increase in sales and strong full-price selling. The chain benefited from freshness and growth on the fashion athletic side as well as the casual footwear side. Genesco did note that b-t-s did not have a specific beginning day and that it is now stretching over several months.
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Chief executive officer Bob Dennis said, “The shift in the timing of back-to-school and sale packed holidays due to a later Labor Day had its most dramatic effect at Journeys where comps accelerated in May and June compared to the first quarter trends and then flattened out at the end of July as a result of these changes. Despite these headwinds, Journeys delivered a solid comp for the quarter benefiting from freshness and growth on the fashion athletic side as well as the casual footwear side.”
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Sales at Lids increased by 8 percent but profitability declined for the group as Genesco is trying to rightsize inventory and had higher promotional activity. The key selling season starts this week with the beginning of college football, followed by the NFL regular season.
Johnston & Murphy sales increased 10 percent for the quarter. The men’s shoe chain saw strength in men’s casual and dress casual footwear, but cautioned that in the past significant declines in the stock market have affected its shoppers.
Genesco reiterated its full year guidance with an earnings per share range of $4.70 to $4.80. Genesco stock jumped over 7 percent in the early session to $63.01.