Genesco 4Q Profit Widens on Improved Across-The-Board Demand

By FOXBusiness

Helped by improved sales at established stores across all brands, Genesco (NYSE:GCO) reported on Friday a stronger-than-expected fourth-quarter profit.

The Nashville, Tenn.-based company posted earnings of $31.4 million, or $1.34 a share, compared with $25.8 million, or $1.08 a share, in the same quarter last year.

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Excluding one-time items, the company earned $1.33 a share, ahead of average analyst estimates polled by Thomson Reuters of $1.29.

Revenue for the branded footwear, headwear and sports apparel retailer was $560.5 million, up 17% from $479 million a year ago, trumping the Street’s view of $539.04 million.

Sales were fueled in its comparable stores, which climbed 9%, led by improvements in its Lids Sports, Journeys, Johnston & Murphy and Underground Station, up 6%, 12%, 12% and 4%, respectively.

In a statement, Genesco CEO Robert Dennis said he was pleased with the company’s performance, attributing the results to solid organic growth coupled with contributions from recent acquisitions.

“Our top-line performance also helped us achieve our highest level of fourth quarter profitability in four years, representing a great way to close out a successful fiscal 2011,” he said.

In 2012, the company sees earnings in the range of $2.78 to $2.86 a share, which represents an increase of 12% to 15% over last year’s earnings. Wall Street analysts are predicting earnings of $2.81 a share.

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