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Genesco narrows FY guidance to low end of range

NASHVILLE, Tenn. (AP) -- Genesco Inc. said Tuesday that it expects its fiscal-year profit to come in at the lower half of its previously projected range, saying that a delay in federal tax refunds may prompt some customers to delay purchases.

The Nashville, Tenn.-based company sells shoes, hats, clothing and accessories at stores like Journeys Group and Lid Sports as well as online.

The company had previously projected a profit of $5 to $5.08 per share for the year ending Feb. 2. It said it now expects earnings to range "from the low end to the middle of the upwardly revised guidance" it offered in late November.

Analysts, on average, expect earnings of $5.05 per share, according to FactSet.

For the quarter-to-date period ended Saturday, Genesco said it revenue at stores open at least a year fell 2 percent compared with the same period a year ago. The metric is a key measure of a retailer's health, because it excludes revenue at stores that recently opened or closed.

Sales at the company's e-commerce and catalog direct businesses rose 17 percent during the same period on a comparable basis. Comparable sales, which include both stores and direct sales, fell 1 percent for the quarter-to-date period.

The drop in comparable sales included a 2 percent increase at the company's Journeys Group and an 8 percent jump at its Schuh Group. Comparable sales at the company's Lids Sports Group fell 10 percent, while its Johnston & Murphy Group posted a 1 percent increase.

Genesco said that comparable sales have strengthened so far in January, but the recently announced two-week delay in the start of federal tax refunds will likely push back a significant portion of sales from the last week of the month into the first quarter of the new fiscal year.

Genesco plans to announce its fiscal fourth quarter results on March 8.

Despite the adjustment in its guidance, Genesco shares rose $3.23, or 5.7 percent, to $60 in morning trading. Its shares have traded in a 52-week range of $50.33 to $78.97.