Genesco reported sales of $615.5 million for the second quarter ended Aug. 2, 2014, up 7.1 percent from the second quarter of the previous year. Schuh Group, the chain owned by Genesco in the U.K., posted sales of $99.8 million in the quarter, up from $82.1 million a year earlier. Consolidated comparable sales, including same-store sales and comparable e-commerce and catalog sales, increased by 2 percent, with a 1 percent increase at Schuh Group, a 5 percent increase in the Journeys Group, a 2 percent decrease in the Lids Sports Group, and a 2 percent increase in the Johnston & Murphy Group. Genesco operated a total of 2,674 retail units as of Aug. 2, 2014, as compared to 2,573 on May 3, 2014.
Operating earnings more than tripled at Journeys to $6.8 million in the quarter. The management shared its conclusion from a study that the chain has incredible brand awareness among teenagers, and that it would benefit greatly by catering to those who spend the most and influence their peers with appropriate window displays and signage.
At Schuh Group, which targets a similar customer, the emergence of new fashion trends helped to boost its sales recently. They grew overall by 21.5 percent to $99.8 million, leading the chain to post a quarterly loss of only $197,000 against a loss of $1.4 million a year earlier.
Consolidated earnings from continuing operations were $4.8 million, down from $8.5 million for the second quarter ended Aug. 3, 2013. Adjusted for extraordinary items, earnings from continuing operations were $8.0 million for the quarter, as compared to $13.2 million for the year-ago period.;The consolidated gross margin shrank to 49.0 percent from 49.2 percent.
The company said the third quarter was off to a solid start, with consolidated comparable sales up 4 percent through August 23, 2014. However, based on second-quarter performance and slightly lower expectations for the balance of the year at Lids, the company has lowered its full-year guidance.