Genesco Up after Results-Raising Outlook

Genesco, Inc. (NYSE:GCO) shares are up over 2% in morning trade and at a 52 week high after the company reported earnings for its fourth quarter above analyst forecasts. The company also raised its full year earnings outlook above analyst forecasts.

Adjusted for the items described above in both periods, earnings from continuing operations were $47.5 million, or $1.97 per diluted share, for the fourth quarter of Fiscal 2012, compared to earnings from continuing operations of $31.3 million, or $1.33 per diluted share, for the fourth quarter of Fiscal 2011. This handily beat analyst forecasts of $1.67 per share.

The company said net sales for the fourth quarter of Fiscal 2012 increased 29% to $723 million from $560 million in the fourth quarter of Fiscal 2011.  Comparable store sales in the fourth quarter of Fiscal 2012 increased by 12%.  This is inline with analyst forecasts.

The Company also reported adjusted earnings from continuing operations for the fiscal year ended January 28, 2012, of $97.5 million, or $4.09 per diluted share, for Fiscal 2012, compared to earnings from continuing operations of $59.0 million, or $2.48 per diluted share, for Fiscal 2011.

The company said that it expects full-year adjusted earnings of $4.58-$4.70 per share. This is much higher than analyst consensus estimates that called for full year earnings of $4.42 per share.

Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, “We finished Fiscal 2012 with an excellent fourth quarter, led by strong performances from our two largest businesses, Journeys Group and Lids Sports Group. In addition, Schuh and Johnston & Murphy also contributed meaningfully to our results. Our merchandise strategies continued to drive strong full price selling in our stores and on our websites, helping push adjusted fourth quarter operating margin above 10% for the first time in five years.

“Fiscal 2013 has started well, with February consolidated comparable store sales up 13%. While we expect these trends to moderate, we continue to look for positive comparable store sales on top of the challenging quarterly comparisons ahead of us.”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.