Genesco shares plunged nearly 20% Friday afternoon after the company posted a significant year-over-year profit decline.
The footwear retailer reported earnings of $6.5 million, $0.60 per share, compared to $20.4 million, $1.66 per share, in the year-ago quarter. Revenue dipped 4% year-over-year to $579.3 million, and adjusted earnings dropped to $0.57 per share from $1.65 per share.
The decline was fueled by lower same-store sales at its Journeys locations and lower wholesale sales in its Genesco Brands Group.
“Following a good Back-to-School season, demand in October softened in an ongoing challenging operating environment, along with a delayed start to the fall selling season,” CEO Mimi Vaughn said in a statement.
“Fourth quarter-to-date, I’m pleased to say our total comps are currently running positive and we experienced a strong start to the holiday season,” Vaughn added.
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