Nashville-based specialty retailer Genesco has lowered its full-year outlook after swinging to a loss in the first quarter of the year.
The company, whose portfolio includes Scottish footwear retailer Schuh, made a net loss of 18.9 million dollars in the three months to April 29 compared to a profit of 4.9 million dollars a year earlier.
That came as its sales dropped 7 percent to 483.3 million dollars, driven by a 13 percent drop in sales at Journeys and a 25 percent drop in sales at Genesco Brands, which were partly offset by an increase of 6 percent at Schuh and 16 percent at Johnston & Murphy.
Based on its first-quarter results, the company lowered its full-year outlook. It now expects sales to be down by between 4 percent and 5 percent, compared to previous guidance of sales to be flat to up 2 percent.
Meanwhile, it expects adjusted diluted earnings per share from continuing operations in the range of 2 dollars to 2.50 dollars, compared to previous guidance of between 5.10 dollars and 5.90 dollars.
“Following a positive end to the holiday season, the first quarter proved considerably more challenging than we anticipated,” Genesco chair and CEO Mimi E. Vaughn told investors.
She continued: “Consumer demand at Journeys dropped off significantly early in the quarter and did not improve as we changed seasons in the latter part of March and into April, offsetting another quarter of record sales at Schuh and Johnston & Murphy.
“In response, we are taking swift actions to mitigate the consumer shift in the marketplace, including closing more underperforming Journeys stores, reducing our cost base further, and working to quickly refine our product assortment.
“However, given the ongoing uncertainty around near-term consumer behavior, we are taking a much more conservative view and revising our outlook for the remainder of Fiscal 2024.”