Genesco has reported earnings before discontinued operations of $8,219,000 for its 1st fiscal quarter ended Apr. 30, up from $5,806,000 during the same period last year. The figure includes charges of $1.6 million associated with the anticipated settlement of a class action suit. Net sales for the first quarter of fiscal 2006 increased by 27 percent to $286.1 million, exceeding expectations. They were fueled by better than expected performance at Journeys, Hat World, Underground Station and Johnston & Murphy.
On a comparable basis, sales at Journeys' and Hat World’s stores both increased by 7 percent, while footwear unit sales increased by 11 percent. Retail sales for the Underground Station Group were up by 9 percent on a comparable basis, and its operating margin rose by 120 basis points to 5.8 percent, with a 6 percent gain in footwear unit sales on a comparable basis. Following the success of the new Underground Station store in Brooklyn, New York, which shares its location with a Lids store, the group sees a potential for more dual concept stores.
Retail sales at Johnston & Murphy increased by 3 percent on a comparable basis. The company hopes that Johnston & Murphy’s new logo, packaging, website, catalog and print ads will help attract new customers and drive incremental sales.