Genesco backs FY18 EPS view of $3.05-$3.35, consensus $3.07
Robert Dennis, Chairman, President and CEO of Genesco, said, "Our Q4 results to date continue to be the tale of two businesses. After a successful back-to-school season, Journeys' momentum built during the holidays, while Lids' challenges expanded. We also experienced a promotionally-driven holiday in the U.K. at Schuh. We still anticipate that comparable sales for the quarter will be flat to 1%, but we also expect to give up more gross margin in order to achieve those sales and end the year in an optimal inventory position. Based on quarter-to-date results and current trends, we expect adjusted earnings per share within our most recently announced guidance range for FY18, with greater confidence toward the lower end of that range." The company's adjusted earnings per share expectations for FY18 do not include the non-cash goodwill impairment charge, fixed asset impairments and other charges, estimated in the range of $186.3M-$187.4M pretax, or $8.27-$8.31 per share after tax, for the full fiscal year. They also do not include certain tax effects related to equity grants pursuant to the newly effective ASU 2016-09, estimated at 11c per share after tax. This does not include the impact of the recently enacted federal tax reform, which the company expects will result in a fiscal year tax rate that is approximately 1% lower than previously announced. In addition, earnings do not include one-time charges related to tax reform.