Genesco reported earnings from continuing operations of $32.9 million for the third quarter ended Oct. 31, up from $28.8 million for the same quarter a year ago. The American retailer's adjusted earnings of $32.2 million were up from $30.3 million in the year-ago period.
The group's quarterly sales increased by 7 percent to $774 million. On a comparable basis, sales went up by 6 percent at the company's physical stores and by 25 percent through e-commerce.
In dollar terms, sales went up by only 2 percent to $101.6 million at the Schuh Group, but the British chain's operating profit more than doubled to $8.6 million. The management complained about “bargain hunting” in the U.K. market in more recent weeks, which will affect performance in the fourth quarter. Schuh Group's retail units were 117 as of Oct. 31, up from 113 on Aug. 1.
Sales rose by 6 percent to $322 million in the Journeys Group, and by 6.7 percent to $70.4 million in the Johnston & Murphy Group. They made a strong recovery in the Lids Sports Group.
For the full year the company expects comparable sales to increase in the 5 to 6 percent range. The company said recent sales trends have been volatile, and the U.S. retail market is expected to remain promotional through the holiday season. Given these factors, combined with the incremental promotional activity it plans for the Lids Sports Group through the fourth quarter, it has revised down its profit outlook.