• Profit increased 14.2% to US$12m versus $10.5m 
  • Sales rose 5.7% to $574.7m from $543.5m 
  • Comparable store sales fell 3% 
  • Cuts full-year earnings guidance

Apparel and footwear retailer Genesco was "disappointed" with its performance during the second quarter, as net profit and sales fell below company expectations - forcing it to cut its full year earnings guidance. 

Chairman, president and CEO Robert Dennis said: "We are disappointed that our second quarter performance fell short of expectations. Sales trends proved to be more challenging as the quarter progressed and results came in below our plan."

Dennis noted that the third quarter "has gotten off to a difficult start", with comparable store sales falling 3% through 24 August. "Despite our current sales trajectory we remain optimistic that we can deliver a modest comp improvement in the fourth quarter based primarily on a product mix shift in footwear that moves in our favour and easier comparisons for Journeys and Lids." 

The company now expects full-year adjusted earnings per share to be $5.20-5.30, down from its previous guidance of $5.57-5.67. Comparable store sales are forecast to increase in the low single digit range. 

"We continue to feel good about the strategic strengths of each of our businesses and the long-term growth prospects for our company. We've successfully navigated through uncertain consumer environments before and I'm confident we are doing the right things to ensure we once again emerge with our dominant market positions intact," Dennis added.