Genesco Stock Soars on Earnings Beat and Raised Outlook
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Shares for Genesco Inc. are up 15% in premarket trading on the heels of third-quarter earnings that blew past expectations and a raised full-year outlook.
For the period ended Nov. 2, the footwear and accessories firm — parent to teen mall staple Journeys and shoe brands Johnston & Murphy and Schuh — said its profits, on an adjusted basis, were $1.33 per share, trouncing analysts bets of $1.08 and the prior year’s 97 cents. (On a reported basis, profits rose 31% to $18.9 million, or $1.31 per share.)
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Although revenues dropped to $537.3 million from last year’s $539.8 million (analysts had predicted $540.6 million), same-store sales were up 3% — the firm’s 10th consecutive quarter of positive comps for its footwear businesses, driven by the strength of Journeys and an improved performance from Schuh.
“The fourth quarter has started well, highlighted by solid results during the Black Friday through Cyber Monday period versus the comparable period last year,” said chairman, president and CEO Robert Dennis. “Based on our strong third-quarter results and positive start to the holiday season, we are raising our full-year guidance.”
For fiscal 2020, Genesco now predicts earnings per share to be between $4.10 to $4.40, with expectations near the mid-point of that range — up from the previous guidance of $3.80 to $4.20.
During the third quarter, the firm announced a top leadership change, with SVP and COO Mimi Vaughn appointed as president and CEO, effective Feb. 2 at the start of its fiscal year. (The 16-year Genesco veteran also joined the board of directors in late October.)
In a statement, Dennis shared that Vaughn’s appointment marks another step in Genesco’s succession-planning process, which began several years ago and led to her recent promotion to COO.
As of 9 a.m. ET, the company’s stock was up 15.04% to $42.50.
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