Genesco Beats Revenue Estimates (GCO)

Genesco Inc. GCO released financial results early Wednesday that were in line with Wall Street earnings estimates and beat revenue expectations. Genesco Inc. announced a 2nd quarter loss from continuing operations of $2.4 million, or 10 cents per share, compared to a loss from continuing operations of $2.7 million, or 12 cents per share, a year earlier. Excluding special items, the company reported a loss of 2 cents per share. Revenue climbed to $363.7 million, up from $334.7 million a year earlier. According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for a loss of 2 cents per share, on revenue of $354.13 million. Genesco Inc. (GCO) finished Tuesday trading at $25.24 per share. The consensus price target of analysts covering the company's stock is $37.50 per share. Chairman, president and chief executive officer Robert J. Dennis said, "Our second quarter results were in line with our expectations, with a same store sales increase for the Company, thanks to increases in the Lids Sports Group and Journeys Group. Increases in incentive compensation accruals related to improved performance masked declines in store occupancy cost and other key expense items as a percent of sales. The Back-to-School season has been strong for us so far, with comparable store sales up 8% for August. While we expect this trend to moderate as we proceed through the third quarter, this is an encouraging start to the second half of the year." Mr. Dennis also said, "We are reiterating our Fiscal 2011 outlook for full year earnings between $2.10 and $2.20. Consistent with previous years, this guidance does not include expected non-cash asset impairments and other charges, which are projected to be approximately $10 million to $12 million, or $0.26 to $0.31 per share, in Fiscal 2011. This guidance assumes comparable sales in the low single digits for the second half." Read more from Benzinga's Company news.