Genesco reports lower sales as trial opens
It’s hard to imagine that footwear retailer Genesco Inc.’s management was feeling too buoyant yesterday as the company released less than positive interim financial results on the same day that a trial began accusing the company of providing “misleading” sales figures during a failed merger deal with The Finish Line.
For the purposes of the court hearing, the company released estimates placing net sales for the fiscal month of November at approximately $130.3 million, with same store sales dropping approximately 3.7%.
The plaintiffs in the court case are likely to use these figures to strengthen their argument which alleges that Genesco made false and misleading statements concerning its business and prospects. As a result they are seeking damages on behalf of all those that purchased shares in the company at the time when the merger was set to proceed. The Finish Line backed out of its proposed merger with Genesco in August when the company reported much lower than anticipated results.
