• Q1 earnings fell 11% to $18.5m
  • Net sales slipped 1.5% to $591m
  • Comparable sales fell 4%

A deferred payment and impairment charges have contributed to an 11% drop in first quarter profit at apparel and footwear retailer Genesco Inc.

The company, which operates around 2,455 stores under the Journeys, Schuh, Lids, and Johnston & Murphy names, today (31 May) said earnings fell to $18.5m in the three months to 4 May, down from $20.8m a year earlier.

Adjusted to take out the impact of expenses related to its acquisition of Schuh Group Limited, as well as asset impairment charges, earnings were $22.2m, it said.

Net sales slipped 1.5% to $591m, while comparable sales fell 4%.

"After a slow start in February, which we attribute primarily to delayed processing of federal income tax refunds, comparable sales improved for the balance of the quarter, despite continued headwinds from unseasonably cold weather," said chairman, president and CEO Robert Dennis.

"Strong gains in our direct channel helped partially offset soft retail traffic, which combined with well-controlled expenses allowed us to deliver earnings that were slightly ahead of expectations.

"The improved sales trends we experienced during the March-April period have accelerated during the second quarter so far with May comparable sales up 1% through 25 May. 

"We are encouraged by the recent momentum and optimistic about our prospects for the upcoming back to school season."

The retailer reiterated its earlier guidance for full-year adjusted earnings per share in the range of $5.57 to $5.67, a 10% to 12% increase over the year before.