Genesco Zooms on Q1 Numbers - InvestingChannel

Genesco Zooms on Q1 Numbers

Genesco Inc. (NYSE:GCO) jumped on early markets, after the release first-quarter results Friday.

The Nashville-based company reported GAAP earnings from continuing operations per diluted share of $0.36 for the three months ended May 4, compared to earnings from continuing operations per diluted share of $0.10 in the first quarter last year.

Net sales for the first quarter of Fiscal 2020 increased 2% to $496 million from $486 million in the first quarter of Fiscal 2019. Excluding the effect of lower exchange rates, net sales would have increased 3%.

The effective tax rate for the quarter was 30.7% in Fiscal 2020 compared to 31.1% last year. The adjusted tax rate, reflecting excluded items, was 31.3% in Fiscal 2020 compared to 28.2% last year.

The higher adjusted tax rate for this year reflects the inability to recognize a tax benefit for certain foreign losses.

Net sales for the first quarter of Fiscal 2020 increased 2% to $496 million from $486 million in the first quarter of Fiscal 2019. Excluding the effect of lower exchange rates, net sales would have increased 3%.

CEO Robert J. Dennis said: “Fiscal 2020 is off to a good start with improved results in every business. In our first quarter as a footwear-focused company following the recent sale of the Lids Sports Group, we delivered top and bottom line results that exceeded expectations.

“Our overall performance was fueled by the continued strength of our Journeys business, as the momentum from the successful back-to-school and holiday seasons carried over into the new year.”

Shares leaped $7.25, or 18%, to $47.54