Genesco Cuts Annual Earnings Outlook Below View; Stock Down Over 16% In Pre-Market

(RTTNews) - Genesco Inc. (GCO), a specialty retailer of branded footwear and accessories, on Monday said it lowered its annual earnings outlook with fourth-quarter sales trending below its expectations. The revised outlook also comes in below the Street estimates.

Mimi E. Vaughn, CEO of Genesco, said: "Following a positive start to the holiday season, sales decelerated in the weeks approaching Christmas, as consumer shopping trends remained choppy and peak shopping days were not enough to offset the lulls in between. While consumer appetite for key items remained strong, there was less interest in boots, which are a meaningful part of our winter assortment."

The retailer now expects adjusted income per share of $0.65 to $0.85 against its prior outlook of $1.50 to $2.

On average, three analysts polled by Thomson Reuters expect the firm to report earnings of $1.73 per share, for the year. Analysts' estimates typically exclude special items.

Genesco projects annual net loss per share of $1.45 to $1.21.

GCO was trading down by 16.29 percent at $26 per share in the pre-market trade on the New York Stock Exchange.

The company also said comparable sales, including both stores and direct sales decreased by 4 percent for the quarter-to-date or nine-week period ended December 30, 2023.

Same-store-sales for the period decreased by 6 percent, however, sales of the company's e-commerce businesses increased by 3 percent.