US: Genesco boosts Q3 earnings despite flat sales
- Q3 earnings up to $11.5m
- Flat net sales
- Exceeded expectations
US footwear retailer Genesco has reported improved third quarter earnings after cutting down expenses.
Genesco posted earnings from continuing operations for the period of $11.5m, compared to $9.0m for the third quarter of last year.
Fiscal 2010 third quarter earnings reflected pretax charges of $2.6m, primarily related to fixed asset impairments and other expenses. Fiscal 2009 third quarter earnings included merger related expenses.
Net sales for the third quarter were $390m, essentially even with the third quarter of Fiscal 2009. Same-store sales in the third quarter of Fiscal 2010 decreased by 2%.
Robert J Dennis, president and chief executive officer of Genesco, said: "We are pleased with our third quarter earnings, which exceeded expectations thanks to improved gross margin and solid expense leverage, despite the lack of a sustained sales trend in the quarter.
"Comparable store sales for the first three weeks of November are down 3% from the same period last year. Nevertheless, given the consumer's continued willingness to shop during the peak sales periods throughout the current economic downturn, the relatively easier comparisons later in the quarter, and our strong merchandise position, we remain optimistic about the Holiday selling season."
Click here for Genesco's full third quarter earnings statement.
- Steps to piloting living wage in garment factories
- Trump blows the case for Brexit out of the water
- How to ensure sustainability is more than a slogan
- Duty-free trade key to build Africa supply chains
- Bangladesh slips as US imports decline in October
- Taiwan textile maker investing in first US plant
- US Q3 in brief – Destination Maternity, Cherokee
- Outdoor apparel sector set for double-digit growth
- World cotton price prospects lifted again
- Myanmar garment industry "lacking labour rights"