Following its third-quarter earnings report, shares of footwear and apparel retailer Genesco (NYSE: GCO) fell as much as 20.7% on Friday. Shares are down 16.4% at the time of this writing. The stock's slide on Friday likely reflects disappointment in the company's earnings.
Not only did Genesco swing from a profit in the year-ago quarter to a loss in Q3, but its adjusted earnings per share of $1.02 was below a consensus analyst estimate for $1.12. In addition, adjusted EPS was below adjusted EPS last year of $1.28.
Genesco's GAAP net loss per share was about $165 million, compared to a profit of about $26 million in the year-ago quarter. Notably, though, its third-quarter net loss was impacted by a goodwill impairment charge of about $182 million.
While Genesco's Journeys brand notably posted a 4% increase in comparable stores, the ongoing shift in consumer shopping from physical stores to digital continued to negatively affect overall results. In addition, Lids Sports brand saw a steep year-over-year decline in comparable store sales of 6%.
Management commented on the performance:
Lids' underperformance led management to adopt a more conservative outlook for the fiscal year ending Feb. 3, 2018. Management now expects adjusted EPS for fiscal 2018 to be between $3.05 and $3.35, down from a previous forecast for a range between $3.35 and $3.65.
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