Genesco is still targeting annual increases of 9 percent in revenues and 13 percent in operating profits through 2018, building up to an operating margin of between 9 and 9.5 percent on sales of $3.9 billion by 2018. The American shoe retail group plans to announce its financial results for the fourth quarter and full fiscal year on March 7, but they will not be bright.
Adjusted earnings for the year ending on Feb. 1 will likely be at at the lower end of the guidance range of $5.10 to $5.20 announced by the company last Dec. 6, indicating a net profit of around $122.7 million, marginally higher than the $121.8 million adjusted profit recorded in the previous financial year on sales of $2.6 billion.
Comparable store sales were flat across the group and actual sales went up by only one percent for the fourth quarter as of Jan. 11, 2014, as compared to the same period a year ago. Journeys scored 21 percent better online, but its physical stores had flat comps, with casual styles performing the best. At Britain's Schuh Group, comps were down by 5 percent and e-commerce by 2 percent, but solid results were generated by the chain's new stores. Comparable sales for the Johnston & Murphy group climbed by 12 percent.
Schuh will continue to set up new stores in London and in the southern part of England. Johnston & Murphy has gained a strong international presence with stores now in Korea, Japan, Vietnam, India, Panama, Mexico City and Canada.