Shares of Genesco have experienced a decline following the company’s announcement of a reduction in its full-year profit outlook, as well as lower sales and earnings in the third quarter.
Stock Performance
During premarket trading, the stock dropped by 12% to $32.85. Year-to-date, shares fell by 19% when the market closed on Thursday.
Revised Sales Decline and Lower Earnings
Genesco, a renowned footwear and apparel retailer, has adjusted its sales decline projection for the year to be smaller than initially anticipated. However, this adjustment is accompanied by a decrease in earnings due to increased promotional activity planned for the remainder of the year.
Third Quarter Performance
In the third quarter, Genesco’s profit shrank from $20.4 million ($1.66 per share) in the year-ago period to $6.5 million (60 cents per share). Adjusted earnings for this period were 57 cents per share.
Sales Figures
Genesco experienced a 4% decline in sales, amounting to $579.3 million. Same-store sales, which factor in store openings and closings, decreased by 7%. On the other hand, direct-to-consumer sales saw an increase of 8%.
