Genesco profit exceeds forecasts, stock jumps
NEW YORK, March 9 (Reuters) - Genesco Inc. GCO.N, a
footwear maker whose brands include Johnston & Murphy and
Dockers, on Tuesday reported a better-than-expected profit in
its fiscal fourth quarter, when it cut 60 jobs to help battle a
weak retail market.
Shares in the the Nashville, Tenn.-based company surged 11
percent after the news, making it one of the Nasdaq's top
gainers. By early afternoon, the stock was up 87.5 cents at
$8.625, a seven-month high. Volume was 248,500 shares, more
than twice its daily average.
Genesco also announced a management shake-up at Genesco
Retail, which oversees the Journeys, Jarman and General Shoe
Warehouse retail chains. James Boscamp, a senior vice president
and president of its Nautica footwear division, was named
president of the unit, replacing Craig Michael, who will stay
on as a consultant to the unit for one year.
Genesco's net income for its fiscal fourth quarter, which
ended Jan. 30, rose to $40.1 million, or $1.36 per diluted
share, compared with a loss of $7 million, or 28 cents, a year
earlier.
The most recent quarter includes one-time gains of $25.2
million for tax benefits, $450,000 for discontinued retail
operations, and $1.5 million for staff cuts amounting to 11
percent of its work force. The year-earlier quarter included a
charge of $17.9 million for selling its Western boot business.
Genesco beat Wall Street expectations of 41 cents per share
even without those one-time items. Operating income was $16
million, or 58 cents per share, up from a profit of $10.9
million, or 40 cents per share, a year earlier.
Helped by a stronger-than-expected surge in Christmas
buying, sales from ongoing operations increased 10 percent to
$154.1 million, from $140.7 million.
Genesco also announced plans to open 50 Journeys stores and
10 Jarman stores, and to convert up to 14 existing Jarman
stores into Journeys stores. The company currently operates 596
footwear retail stores in the United States and owns a leather
tanning and finishing business, called Volunteer Leather Co.
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