The company’s earnings for the 2nd quarter, ended July 29, totaled $5.9 million, as compared to $6.8 million in the year-ago period. The results include a share-related expense of $1.7 million before taxes. Sales were up by 11 percent to $304 million in the period. The group has revised its expectations for its 2007 fiscal year to sales of roughly $1.45 billion, as compared to a previous projection of $1.46 billion.
The Journeys footwear chain performed strongly, offsetting weaknesses in the urban market. For the Journeys group, which includes the Journeys, Journeys Kidz and Shi by Journeys footwear chains, sales grew by 15 percent to about $137 million in the quarter, with a 5 percent increase on a same-store basis. Athletic footwear again performed strongly for the group, and the trend is expected to continue. The group intends to open 60 Journeys doors this year and to close one. At the end of the quarter, the network totaled 736 doors, as compared to 670 at the end of the year-ago period.
Three additional doors were added during the period under the Shi by Journeys banner, which focuses on trendy shoes for women, bringing its total store count to six. The group plans to open 14 new Shi by Journeys locations on the year. Turnover for the Journeys Kidz chain was up by 51 percent in the quarter. Genesco plans to add 25 more of these outlets in fiscal 2007.
Sales for the mostly urban Underground Station Group, which includes the Jarman retail chain, fell by 3.9 percent to $32.2 million, with same-store sales down by 6 percent. The drop was blamed on weak turnover from men’s athletic shoes, as the division continues to suffer from the absence of Nike’s product in its stores and from low demand in the urban market. The immediate future looks cloudy for the Underground Station division, but Genesco hopes to eventually turn it around by concentrating on women’s and non-footwear categories.
Johnson & Murphy’s sales increased by 2 percent to $42 million in the period, when less product was shipped than in the year-ago quarter. The brand’s new collection was said to have received a warm reception at the WSA show last month. Sales of licensed brands rose by 16 percent to $16 million, driven by a growing demand for the Dockers brand, licensed by Genesco for North America and a few other markets.