Specialty footwear and sports apparel retailer Genesco Inc. adopted a more conservative outlook for fiscal 2018 as it reported results for the third quarter ended Oct. 28.
The company, which owns and operates Lids and Journeys stores in the U.S., now expects adjusted diluted EPS for the full fiscal year to be between $3.05 and $3.35, compared to its previous outlook of $3.35 to $3.65, due to challenging conditions at Lids. The guidance assumes comparable sales to range between -1% and 1%.
"While we expected tough comparisons lapping the anniversary of the Cubs' World Series victory, unfortunately, due to other challenges, current trends at Lids are running below our expectations. These challenges include, among others, dampened demand for NFL licensed merchandise resulting from the well-publicized challenges facing the League and disruption in our Canadian business from the NHL vendor transition," Genesco Chairman, President and CEO Robert Dennis said in a statement.
For the fiscal third quarter, Genesco reported a loss from continuing operations of $164.8 million, or a decline of $8.55 per diluted share, compared to earnings from continuing operations of $25.9 million, or $1.30 per diluted share. The company recorded a non-cash impairment charge of $182.2 million pretax or $8.13 per diluted share after tax during the quarter.
