UPDATE: Genesco Posts Downbeat Q2 Results, Lowers Full-Year Forecast

Shares of Genesco

dipped more than 7.5% in pre-market trading after the company reported downbeat second-quarter results and lowered its earnings forecast for the full year. The Nashville, Tennessee-based company posted quarterly earnings of $4.7 million, or $0.20 per share, compared to $8.3 million, or $0.36 per share, in the year-ago period. Excluding certain items, its earnings from continuing operations fell to $0.34 per share from $0.56 per share. Its net sales gained 7.1% to $615.5 million. However, analysts were expecting earnings of $0.55 per share on revenue of $614.96 million. Genesco's same-store sales rose 2% in the quarter. Genesco's Journeys group reported a 5% rise in same-store sales, while the Lids Sports Group's same-store sales dropped 2%. The Schuh Group's same-store sales gained 1%, while the Johnston & Murphy Group's same-store sales climbed 2% in the period. Genesco's gross margin shrank to 49% from 49.2%, while input costs rose 7.5% to $313.7 million. Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, "We are disappointed with our second quarter earnings performance. Solid comparable sales gains and a strong topline performance in our direct businesses were not enough to offset a sales and gross margin shortfall versus plan at the Lids Sports Group. The third quarter is off to a solid start, with consolidated comparable sales for the Company up 4% through August 23, 2014." Genesco now expects full-year earnings of $5.10 to $5.20 per share, versus its earlier forecast of $5.40 to $5.55 per share. Genesco's shares tumbled 7.66% to $81.88 in pre-market trading.