Shares of shoe and hat retailer Genesco are being hit hard Thursday after the company reported fiscal second-quarter earnings that fell well short of analysts' estimates.
For the three months ended early this month, Nashville-based Genesco reported adjusted earnings from continuing operations of $8.0 million, down from $13.2 million a year earlier. Per diluted share, that amounted to 34 cents, 21 cents below what analysts had expected. Same-store sales rose 2 percent from last year's Q2 but the company's Lids Sports Group — which accounted for 39 percent of operating profits last year — dragged down overall performance
"We are disappointed with our second quarter earnings performance," Chairman, President and CEO Bob Dennis said in a statement. "Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group."
At about 9:50 a.m., shares of Genesco (Ticker: GCO) were down 7.2 percent at about $82.30. They had earlier changed hands below $80 but it's worth pointing out that they had in the past week run up from that level to close at $88.67 on Wednesday. Year to date, they're still up about 12 percent.
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