Genesco, Inc. (GCO), the specialty retailer, announced on Friday a net loss of $24.35 million, equating to $2.23 per share for the first quarter. This loss has widened compared to the net loss of $18.89 million or $1.60 per share reported in the same quarter of the previous year.
When excluding specific items, the adjusted loss from continuing operations stood at $2.10 per share, an increase from the adjusted loss of $1.59 per share recorded for the same period last year.
The company’s net sales dropped by 5% to $457.60 million from $483.33 million in the prior-year quarter. Factoring out the influence of lower exchange rates, net sales declined by 6%. Moreover, overall comparable sales across Genesco fell by 5%.
Market analysts, surveyed by Thomson Reuters, had projected a loss of $2.70 per share, with revenues anticipated to be $445.65 million for the quarter. It is important to note that analysts' projections generally exclude one-time items.
Looking forward to fiscal year 2025, Genesco maintains its forecast for adjusted earnings from continuing operations to range between $0.60 to $1.00 per share, with an expected sales decline of 2 to 3 percent, or a 1 to 2 percent decrease when excluding the additional 53rd week noted in fiscal 2024.
Wall Street anticipates earnings of $0.63 per share on a 3.1 percent revenue decline, which would total $2.25 billion for the fiscal year.
The company is also considering the closure of up to 50 Journeys stores during fiscal 2025. Additionally, Genesco's cost savings initiative is on track to achieve an annualized reduction rate of $45 to $50 million by the end of fiscal 2025.
