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Genesco caps solid year with forecast-beating fourth quarter
Footwear and clothing seller Genesco Inc (NYSE:HCO) put its best foot forward in early trading after releasing pleasing results after the bell last night.
Fourth quarter adjusted earnings per share (EPS) of US$2.40 were up from US$2.07mln the year before and ahead of expectations of US$1.78.
Net income from continuing operations clocked in at US$46.8mln, up from US$45.0mln the previous year.
Net sales eased to US$883mln from US$932mln in the fourth quarter of 2015, reflecting the sale of the lids Team Sports business in the fourth quarter.
Nonetheless, the sales number was below the US$901mln the market had been expecting.
That did not stop the market from marking the shares up 12% to US$63.10 in early deals.
“Fourth quarter EPS came in above last year’s levels and above expectations fueled in large part by better holiday selling than anticipated for most of our businesses,” revealed Robert Dennis, whose business card must be extra wide to fit in his job titles of chairman, president and chief executive officer.
“The strong gross margin and operating income recovery experienced at Lids and Schuh offset some impact of the significant fashion rotation at Journeys. January markdown and other assumptions proved to be conservative and we benefitted from a number of year-end items that contributed to the EPS beat as well. Year-over-year operating income was down, but EPS improved due to share buybacks and a lower tax rate,” Dennis said.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/174630/genesco-caps-solid-year-with-forecast-beating-fourth-quarter-174630.html
