• Q1 net profit up 39.3% to $20.6m
  • Net sales jump 25% to $600m
  • Raises guidance to $4.70 to $4.82

Apparel group Genesco yesterday (23 May) reported a 39.3% jump in first-quarter net profits, boosted by higher sales in its Lids, Journeys and Johnston & Murphy retail divisions.

For the quarter ended 28 April, the company posted net profit of US$20.6m, compared to $14.8m the same period last year. Earnings from operations increased 41.1% to $36m.

Net sales jumped 25% to $600m, reflecting the addition of sales from Schuh, which Genesco aquired last June for GBP100m (US$160m).

Comparable store sales rose 9%. The Lids Sports Group's same-store sales increased by 4%, the Journeys Group was up by 12% and Johnston & Murphy Retail rose by 4%.

"Our first quarter results reflect the continuation of the positive sales trends that have characterised our business for the past several quarters," said Robert Dennis, chairman, president and CEO.

"The combination of favourable fashion trends, excellent execution, and the strong strategic positions of our businesses has helped us maintain momentum even in the face of tougher comparisons. The strength in sales once again drove improved expense leverage and profitability above expectations."

Genesco is raising its full-year earnings guidance to be in the range of $4.70 to $4.82, compared to previous guidance of $4.58 to $4.70.

"We remain optimistic about the company's prospects and are pleased with our progress toward our near-term and long-term goals," Dennis added.