Shoe retailer Genesco cuts full-year earnings forecast, shares plunge premarket
Investing.com -- Shares in Genesco (NYSE:GCO) plunged on Monday after the branded footwear retailer slashed its full-year earnings forecast in the wake of a decline in sales during the crucial holiday sales period.
Total comparable sales fell by 4% during the nine-weeks ended on Dec. 30, as the company flagged that a positive start to the end-of-year holiday shopping season waned in the weeks approaching Christmas. Demand at Genesco's Journeys division was particularly weak despite the business rolling out more promotions.
"While consumer appetite for key items remained strong, there was less interest in boots, which are a meaningful part of our winter assortment," said Genesco Chief Executive Mimi Vaughn in a statement.
Vaughn noted that consumer shopping trends "remained choppy," adding that peak shopping days were not enough to "offset the lulls in between." Fourth-quarter sales are now trending below expectations, Vaughn flagged.
As a result, Genesco now sees total annual adjusted earnings per share in the range of $0.65-$0.85, down from its prior view of $1.50-$2.00.
Heading into its 2025 fiscal year, the group said it plans to "better align" its offerings with current customer trends while also "reshaping our cost base."
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