UPDATE: Genesco Posts Downbeat Q3 Earnings, Lowers FY15 Forecast

Shares of Genesco

fell more than 5% in pre-market trading after the company reported weaker-than-expected earnings for the fiscal third quarter and lowered its outlook for the full year. The Nashville, Tennessee-based company posted quarterly earnings from continuing operations of $28.8 million, or $1.21 per share, compared to $27.8 million, or $1.18 per shares, in the year-ago period. Excluding certain items, the company earned $1.28 per share. Its revenue gained 8.5% to $722.9 million. However, analysts were expecting earnings of $1.44 per share on revenue of $716.58 million. Genesco's same-Store sales rose 3% in the quarter. Robert J. Dennis, chairman, president and chief executive officer of Genesco, said, "We delivered solid top-line growth in the third quarter, driven by better than expected sales in the Journeys Group. Sales in our other divisions, except for the Lids Sports Group, were essentially on plan. At the Lids Sports Group, lower than planned sales caused negative expense leverage and lower gross margins, resulting in a shortfall in earnings that was not offset by the other divisions' performance.” For the full year, Genesco now projects earnings of $4.75 to $4.80 per share, versus its earlier forecast of $5.10 to $5.20 per share. Analysts expected earnings of $5.14 per share. Genesco shares slipped 5.73% to $76.00 in pre-market trading.