Genesco (NYSE:GCO) reported second-quarter earnings of 15 cents per share, which beat the analyst consensus estimate by 17 cents. This is a 275% increase over earnings of four cents per share from the same period last year.
The company reported quarterly sales of $486.573 million, which missed the analyst consensus estimate of $487.93 million by 0.28%. This is a 25.6% decrease over sales of $653.892 million the same period last year.
Excluding the effect of lower exchange rates, net sales would have increased 1%. Comparable sales increased 3%, with stores up 1% and direct up 20%. Direct-to-consumer sales were 10.4% of total retail sales for the quarter, compared to 8.9% last year.
Second-quarter gross margin this year was 48.6%, up 110 basis points, compared with 47.5% last year. The increase as a percentage of sales reflects freight claim credits for Journeys Group, improved wholesale gross margin in Johnston & Murphy Group and efficient sell through of sale product at Schuh Group with lower markdowns.
Genesco raised fiscal year 2020 EPS guidance from $3.35-$3.75 to $3.80-$4.20 versus the $3.67 estimate
"We delivered second-quarter consolidated results that exceeded expectations across the board," said CEO Robert Dennis.
"Our outperformance was driven primarily by the ongoing strength of our Journeys business, which continued to experience strong comparable sales even as year-over-year comparisons became more difficult."
Genesco shares were trading down seven cents at $35.35 in early Friday trading. The stock has a 52-week high of $50.73 and a 52-week low of $31.65.
