Shares of Genesco Inc. GCO sank 5.8% in premarket trading Thursday, after the parent of retailer brands Johnston & Murphy, Journeys and Journeys Kidz reported mixed fiscal fourth-quarter results and provided a downbeat full-year profit outlook. Net income for the quarter to Jan. 28 fell to $38.9 million, or $3.21 a share, from $62.1 million, or $4.41 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $3.06, while the average estimate of two analyst surveyed by FactSet was $2.97. Sales slipped 0.4% to $725.0 million, below the average FactSet estimate of $727.4 million. Total Genesco same-store sales rose 5%, as Journeys Group sales fell 1% while Johnston & Murphy sales jumped 23%. For fiscal 2024, the company expects adjusted EPS of $5.10 to $5.90, below the current FactSet average estimate of $6.83. “With some additional pressure expected on sales this year, especially in the first half, we are balancing our focus on investing for the future and driving down costs as we expect some of the recent cost pressures to persist in the near-term,” said Chief Financial Officer Thomas George. The stock has rallied 11.5% over the past three months through Wednesday while the S&P 500 SPX has gained 1.5%.
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