Genesco Jumping 9% On Acquisition

Genesco Inc. GCO shares are jumping almost 9% today as the company announced it would be buying Schuh Group, based out of Britain for $112.6 million. Genesco, which which sells footwear, hats, clothing and accessories, said that the acquisition of Schuh would add to its Journeys Group, which caters to the 15 to 24 market. Schuh has 59 stores in the United Kingdom and Ireland, while Nashville-based Genesco has more than 2,285 stores in the U.S. and Canada. obert J. Dennis, chairman, president and chief executive officer of Genesco, said, "Schuh provides us with an immediate and established retail presence in the United Kingdom, a highly experienced international management team, and improved insight into global fashion trends. The concept is similar to Journeys in customer demographics, product offering and operating philosophy, so it is a business we know and understand. At the same time, we believe that the combined businesses will benefit from significant merchandising synergies and from many opportunities to share best practices to our mutual benefit. Financially, the Schuh business is compelling, with attractive store economics and solid growth prospects." Genesco said the deal is expected to be accretive in the current fiscal year. The company also said that same-store-sales rose 14% to date through June 18. At last check, shares of Genesco were trading at $49.01, up $3.87 on the day.