|Company Name:||Genesco Inc.|
|Event Title:||Q3 2014 Earnings Call Transcript|
|Event Time:||08:30 AM ET|
Good day everyone and welcome to the Genesco Third Quarter Fiscal 2014 Conference Call.
As a reminder, today's call is being recorded. Participants on the call expect to make forward-looking statements. These statements reflect the participants' expectations as of today but actual results could be different.
Genesco refers you to this morning's earnings release and to the company's SEC filings including the most recent SEC filing for some of the factors that could cause differences from the expectations reflected in the forward-looking statements made during the call today.
Participants also expect to refer to certain adjusted financial measures during the call. All non-GAAP financial measures referred to in the prepared remarks are reconciled to their GAAP counterparts in the attachments to this morning's press release and then schedules available on the company's home page under Investor Relations.
I will now turn call over to Bob Dennis, Genesco's Chairman, President and Chief Executive Officer. Please go ahead sir.
Robert J. Dennis
Chairman, President and Chief Executive Officer
Good morning, and thank you for being with us. Joining me today is Jim Gulmi, our Chief Financial Officer. As a reminder, Jim's detailed review of the quarterly
Financials has been posted to our website along with the press release from earlier this morning.
I'll begin today's call with a few remarks about our third quarter results. Then I'll turn the call over to Jim for a review of the numbers and guidance . After that, I'll return and give a little color on our operating segments before we open it up for questions. For the third quarter we reported adjusted EPS of a $1.43 versus a $1.44 last year.
Earnings in the quarter came in essentially inline with our expectations. Looking at guidance for a movement the fourth quarter this year is unusually tricky to analyze and forecast given the shift to Thanksgiving the early start to the Black Friday weekend and retail's promotional environment that looked to pull traffic ahead of Thanksgiving. Thus far the competitive environment in the U.S. has been reasonable in our market categories.
But because of the short holiday selling seasons, we recognized that the promotional atmosphere could easily change adding to the uncertainty. Given all that and a November that delivered sales somewhat below our projections, we are lowering our adjusted EPS guidance for the year slightly to $5.10 to $5.20.
In the third quarter, total sales for the company were $666 million essentially flat with last year. Our consolidated comp sales were minus 1% which was an improvement from minus 4% in the first quarter and minus 2% in the second quarter. These are your comparisons through the period of Hurricane Sandy last year. And a favorable line up of teams and baseball play-offs in World Series accounted for part of the improvement.
Although the differential was not as dramatic as in previous quarters, comps for the quarter were again strongest in the direct channel with e-commerce and catalog sales up 8% on top of the 9% gain in our last third quarter as these businesses continue to benefit from merchandising and service related omni-channel initiatives.
We were particularly pleased to see a 5% positive comp for the quarter at Lids Sports Group. While some of that is attributable to the combination of the Sandy offset and the favorable post season line up in major league baseball. We are encouraged that the rest came from more fundamental improvements. A significant comp increase in the larger format Lids Locker Room and Clubhouse stores, some improvement in our Schuh Stores that we predicted as we anniversaried the challenges in the snapback category and continued strength in the direct business. We will talk about these factors in more depth after Jim covers the numbers.