Genesco had net earnings of $4.8 million for the 2nd quarter ended July 31, as compared to a net loss of $891,000 in the same period a year ago. Net sales increased by 37 percent to $246 million, thanks mainly to the acquisition of Hat World, the American chain of headwear shops, which contributed revenues of $57.9 million. The group’s better-than-expected results were driven by solid performance at Journeys and ongoing improvements at Johnston & Murphy and Dockers and continued strength at Hat World.
The Journeys retail chain’s sales rose by 8.5 percent to $105.8 million. Johnston & Murphy’s sales were marginally up to $39.41 million from $39.39 million but profit continued to increase. Underground Station Group dipped from $28.5 million from $30.7 million. Dockers Footwear’s sales rose to $14.2 million from $11.8 million, generating a positive operating margin of 9.2 percent against a negative margin of 2.2 percent a year ago.
In terms of constant store sales, Journeys was the only banner to improve from last year, with a rise of 2 percent led by stronger demand for athletic footwear and women’s fashion shoes. The Underground Station Group of stores instead fell by 10 percent. Johnston & Murphy remained flat. Overall, same-store sales were 1 percent worse than last year.
While average selling prices have declined, comparable store sales at Journeys are expected to increased by between 3 and 5 percent in the 2nd half of this year. Judging for the onset of the Fall season, the best-sellers are fashion athletic, retro and board brands along as casual shoes with color and suede materials.