Genesco Inc. ( NYSE: GCO ) released a guidance update ahead of the retailer's appearance at the ICR Conference in Orlando, Florida on Monday.
For Q4, Genesco ( GCO ) said comparable sales, including both stores and direct sales, increased by 3%. Same store sales decreased 2% and sales for the company's e-commerce businesses increased 22% on a comparable basis for that period. Comparable sales for the period were down 2% for the Journeys Group business, while rising 18% for the Schuh Group business. The Johnston & Murphy business saw a 15% jump in comparable sales.
GCO noted that while Q4 sales are trending towards the higher-end of projections, more than expected shipping and warehouse expense is pressuring gross margins and December store performance in the U.S. has resulted in store expense deleverage. Full-year adjusted EPS is expected to be at the low end of the most recent range of $5.50 to $5.90.
CEO update: "We are pleased with our 3% comparable sales increase fourth quarter-to-date given the external challenges facing elements of our business this holiday season. Our multi-divisional, multi-channel operating model allowed us to capitalize on the strength at Schuh and Johnston & Murphy, along with robust gains in our online business, to offset lower than expected results at Journeys due primarily to a highly promotional selling environment and weaker store traffic."
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Genesco guides for Q4 comparable sales to be up 3%