Aug 29 Footwear retailer Genesco Inc, known for its Journeys brand, estimated second-quarter results below analysts' forecast, hurt by challenging sales environment, and the company slashed its adjusted profit outlook for the current year.
The company, which also sells Schuh footwear and Lids headwear, said its profit estimate for the quarter ended Aug. 3 was based upon a potential change in accounting for certain bonus awards payable under an incentive plan.
Genesco said it may restate certain prior financial statements depending on any charges associated with the accounting changes.
The company said it expects net income to rise to $12.1 million, or 52 cents per share, in the second quarter, from $10.6 million, or 44 cents per share, a year earlier.
On an adjusted basis, Genesco estimated earnings of 56 cents per share.
Analysts on average were expecting a profit of 60 cents per share, according to Thomson Reuters I/B/E/S.
The company said sales rose 5.7 percent to $574.7 million in the quarter, missing market estimates of $596.2 million.
Genesco said comparable store sales fell 2 percent.
The company cut its full-year profit forecast to $5.20-$5.30 per share from $5.57-$5.67.
Analysts on average were expecting a profit of $5.63 per share.
Nashville, Tennessee-based Genesco's shares closed at $69.55 on the New York Stock Exchange on Wednesday.