* Estimates 2nd-quarter earnings/share $0.56 vs est $0.60
* Estimates revenue of $574.7 mln vs est $596.2 mln
* Cuts FY profit/share forecast to $5.20-$5.30 from
* Stock falls 14 pct, top percentage loser on NYSE
By Maria Ajit Thomas
Aug 29 Footwear retailer Genesco Inc,
known for its Journeys brand, slashed its adjusted profit
outlook for the year as it battles a tough back-to-school
Genesco shares fell 14 percent in morning trading, making
them the top percentage losers on the New York Stock Exchange.
The company, which also sells Schuh footwear and Lids caps,
estimated second-quarter results below analysts' expectations
due to the challenging sales environment.
Genesco 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.
The company said comparable store sales fell 2 percent in
the second quarter and were down 3 percent in the current
quarter, as of Aug. 24.
"Back-to-school has been a disappointment for us relative to
what we were expecting, and it has been a pretty steady
disappointment," Chief Executive Robert Dennis said on a
conference call with analysts.
Some companies have said U.S. shoppers are waiting longer to
buy back-to-school items, suggesting they are waiting for deals.
Based on the slow start to the current quarter, Genesco
expects comparable store sales to fall about 1-2 percent in the
third quarter, Chief Financial Officer James Gulmi said on the
call. He, however, said the company expects the sales to rise
about 3 percent in the fourth quarter.
Teen retailers Abercrombie & Fitch Co, Aeropostale
Inc and American Eagle Outfitters Inc have
reported declines in comparable store sales and forecast
continued weakness in the back-to-school season.
Genesco said it expects net income to rise to $12.1 million,
or 52 cents per share, in the second quarter ended Aug. 3, from
$10.6 million, or 44 cents per share, a year earlier.
On an adjusted basis, Genesco estimated earnings of 56 cents
Analysts on average were expecting a profit of 60 cents per
share, according to Thomson Reuters I/B/E/S.
Genesco said its profit estimate for the quarter was based
on a potential change in accounting for certain bonus awards
payable under an incentive plan.
The company said it may restate certain prior financial
statements depending on any charges associated with the
Genesco's sales rose 5.7 percent to $574.7 million in the
quarter, missing market estimates of $596.2 million.
Genesco shares, which have risen 26 percent since January,
were trading down 10 percent at $62.61.