Genesco Inc GCO shares tanked after the company slashed its full year earnings forecast. The company delivered second quarter adjusted EPS above the estimates while revenue missed expectations.
The company delivered earnings from continuing operations of $14.5 million, or $0.72 a share, up from $7.6 million, or $0.32 a share, in the year-ago quarter. On an adjusted basis, it would have earned $6.9 million, or $0.34 a share, which is $0.07 a share more than the Street estimates of $0.27 a share.
Genesco delivered 4.6 percent drop in net sales from $656 million to $626 million, which is lower than the analysts' predictions of $642.53 million.
Chairman, President and CEO Robert Dennis commented, "The third quarter is off to a difficult start driven largely by the impact of the fashion shift at Journeys during the height of the back to school season and challenges at Schuh. Comparable sales for the third quarter through Saturday, August 27, 2016, are down (5%) from the same period last year."
Going forward, the company reduced its adjusted EPS forecast from $4.80-$4.90 to $3.80-$4.00 for the full year. Analysts are looking for an EPS of $4.91.
The stock tanked $11.64, or 16 percent, to $61 in pre-market trading on Thursday.
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