Genesco Q2 Earnings Beat Expectations

reported better-than-expected earnings for the second quarter on Thursday. The Nashville, Tennessee-based company reported quarterly earnings from continuing operations of $7.6 million, or $0.32 per share, up from $4.8 million, or $0.20 per share, in the year-ago quarter. Excluding items, earnings from continuing operations surged to $0.36 per share from $0.34 per share. Its net sales rose 7 percent year-over-year to $656 million from $615 million. However, analysts were expecting earnings of $0.24 per share on revenue of $650.7 million. The average estimate among 7 Estimize users was for earnings of $0.25 per share and revenue of $652.69 million. Comparable sales climbed 7 percent in the second quarter. "The second quarter saw strong comparable sales growth despite the later start to the back-to-school selling season," said Robert J. Dennis, chairman, president and chief executive officer of Genesco. "Our top-line performance helped offset expected gross margin pressure from our continued efforts to right size the Lids Sports Group's inventory levels." Genesco reiterated its fiscal 2016 forecast for adjusted earnings of $4.70 to $4.80 per share. Genesco shares fell 0.09 percent to close at $58.70 yesterday.