US: Genesco Q4 profit up on lower charges
- Q4 earnings of US$42.2m against $38.8m
- Sales edge down 0.5% to $793m
- Comparable store sales climb 1%
Substantially lower one-time charges helped US apparel and footwear retailer Genesco to book an increase in fourth-quarter net profit.
The profit figure included $7.2m in pre-tax items such as $3m in connection with the company's acquisition of Schuh Group, and $5.7m for network intrusion expenses, other legal matters, a lease termination and asset impairment charges. This compares to charges of $19.2m in the prior year's quarter.
Sales during the three month period edged down 0.5% to $793m.
"Our fiscal 2014 performance reflects a challenging selling environment throughout the year, including the fourth quarter," said chairman, president and CEO Robert Dennis. "While our overall results were lower than we planned, we are confident the fundamentals of our business remain intact.
But during the full year, net earnings declined 17.6% to $92.7m from $112.4m last year, while sales reached $2.62bn, up 0.8% against $2.60bn in the prior year period.
The company expects adjusted fiscal 2015 earnings per share to be in the range of $5.40 to $5.55, a 6-9% increase on the prior year's $5.09. Comparable store sales are forecast to grow in the low single digit range for the full year.
Genesco has revealed a "disappointing" second-quarter in which the US apparel and footwear retailer reported a decline in earnings and lowered full-year expectations....
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