Journeys, Lids Parent Genesco's Stock Plunges Toward 6-year Low After Profit And Sales Miss

Shares of Genesco Inc. plunged 12% toward a 6-year low in premarket trade Thursday, after the casual apparel, footwear and hat retailer missed profit and sales expectations, and cuts its full-year outlook. Net profit for the quarter to April 29 fell to $885,000, or 5 cents a share, from $10.4 million, or 50 cents a share, in the same period a year ago. Excluding non-recurring items, earnings per share came to 6 cents, well below the FactSet consensus of 27 cents a share. Revenue slipped to $643.4 million from $648.8 million, just shy of the FactSet consensus of $644.7 million, as declines in Journeys and Lids Sports group stores offset increases in Schuh, Johnston & Murphy and licensed brands sales. Same-store sales fell 1%, with a 5% decline at Journeys and a 1% rise at Lids Sports. "Consolidated comparable sales were pressured by weak store traffic in our U.S. businesses, which we believe was due in part to federal income tax refund delays, and by the impact from the significant fashion rotation at Journeys," said Chief Executive Robert Dennis. The stock changed hands at $39.40 in light trading ahead of the open, the lowest price seen during regular session hours since May 9, 2011. The stock had already plummeted 28% year to date through Wednesday, while the SPDR S&P Retail ETF has lost 8.3% and the S&P 500 has gained 7.4%.