Sales rise, profits slip at Genesco
It’s not been a great week for US footwear retailer Genesco Inc., having been served with a subpoena by the US Attorney’s office over its failed merger with the Finish Line (see www.footwearbiz.com November 27) the company has now reported lower profits for the third quarter.
Although sales did rise 2.3% to $372 million and the company posted improvements at most of its groups, which include Journeys, Hat World, Underground Station, and Johnston & Murphy, profits fell to $5.6 million, down significantly from the $16 million reported in the same period last year. However, results for this year’s quarter did include $6.2 million in litigation and other expenses related to the proposed merger.
Chairman and chief executive Hal Pennington commented, "Our third quarter results continued to reflect generally challenging economic conditions and a difficult retail environment, especially in footwear.”
