• Q3 earnings reach US$28.8m
  • Adjusted earnings drop 10.3%
  • Sales increase 8%

US apparel and footwear retailer Genesco said it delivered solid top-line growth in the third quarter, driven by better than expected sales from Journeys Group.

In the three months ended 1 November, earnings edged up to US$28.8m from $27.8m a year earlier. The results reflect pre-tax items of $2m, including $1.m related to deferred purchase price payments in connection with the acquisition of Schuh Group.

Adjusted for these items, earnings dropped 10.3% to $30.3m.

Net sales in the period increased 8% to $723m from $666m. Consolidated sales, including same store sales and comparable e-commerce and catalog sales, were up 3%, with a 6% increase in the Journeys Group, a 1% increase in the Lids Sports Group, and flat comparable sales in the Schuh and Johnston & Murphy Groups.

CEO Robert Dennis, said: "We delivered solid top-line growth in the third quarter, driven by better than expected sales in the Journeys Group. Sales in our other divisions, except for the Lids Sports Group, were essentially on plan. At the Lids Sports Group, lower than planned sales caused negative expense leverage and lower gross margins, resulting in a shortfall in earnings that was not offset by the other divisions' performance."