Nashville-based specialty retailer Genesco has lowered its full-year profit outlook amid higher industry-wide promotional activity and cost pressures.
The company, whose portfolio includes Scottish footwear chain Schuh, now forecasts adjusted diluted earnings per share from continuing operations to be in the range of 5.5 dollars to 5.9 dollars.
It expects adjusted diluted EPS to be near the midpoint of that range, compared to its previous guidance of the midpoint of 6.25 dollars and 7 dollars.
It comes as net earnings fell to 20.4 million dollars in the third quarter from 32.9 million dollars a year earlier.
For the full year, Genesco expects revenue to fall by between 1 percent to 2 percent, compared to its previous range of between flat and down 3 percent.
The company posted a 1 percent increase in third-quarter sales to 603.8 million dollars, while comparable sales rose 3 percent, with every business posting gains.
“We are pleased that our third quarter results were largely in line with our expectations given the ongoing macroeconomic volatility,” Genesco CEO Mimi E. Vaughn told investors.
She continued: “While we did a good job growing top-line and protecting gross margins during back-to-school, a sluggish start to November combined with higher industry-wide promotional activity and cost pressures has led us to adopt a more conservative view on the balance of this year.”
Vaughn added that sales have re-accelerated with the start of the holiday season.
“Despite the current headwinds, I feel confident that the strong strategic positions of each of our businesses and the work we are doing to advance our footwear focused strategy have the company well situated to continue delivering increased shareholder value over the longer-term,” she said.