Genesco Inc. (GCO) has reported a 60.20 percent jump in profit for the quarter ended Aug. 01, 2015. The company has earned $7.52 million, or $0.32 a share in the quarter, compared with $4.69 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $8.48 million, or $0.36 a share compared with $8.02 million or $0.34 a share, a year ago. Revenue during the quarter grew 6.51 percent to $655.52 million from $615.47 million in the previous year period. Gross margin for the quarter contracted 20 basis points over the previous year period to 48.83 percent. Total expenses were 98.09 percent of quarterly revenues, down from 98.36 percent for the same period last year. This has led to an improvement of 27 basis points in operating margin to 1.91 percent.
Operating income for the quarter was $12.50 million, compared with $10.08 million in the previous year period.
However, the adjusted operating income for the quarter stood at $14.22 million compared to $13.73 million in the prior year period. At the same time, adjusted operating margin contracted 6 basis points in the quarter to 2.17 percent from 2.23 percent in the last year period.
'The second quarter saw strong comparable sales growth despite the later start to the back-to-school selling season,' said Robert J. Dennis, chairman, president and chief executive officer of Genesco. 'Our top-line performance helped offset expected gross margin pressure from our continued efforts to right size the Lids Sports Group's inventory levels.'
For fiscal year 2016, Genesco forecasts revenue to grow in the range of 4 percent to 5 percent. The company expects diluted earnings per share to be in the range of $4.70 to $4.80 on adjusted basis.
Working capital increases
Genesco Inc. has recorded an increase in the working capital over the last year. It stood at $516.25 million as at Aug. 01, 2015, up 17.54 percent or $77.06 million from $439.19 million on Aug. 02, 2014. Current ratio was at 2.21 as on Aug. 01, 2015, up from 2 on Aug. 02, 2014.
Cash conversion cycle (CCC) has decreased to 67 days for the quarter from 131 days for the last year period. Days sales outstanding went down to 4 days for the quarter compared with 8 days for the same period last year.
Days inventory outstanding has decreased to 100 days for the quarter compared with 182 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 59 for the same period last year.
Debt increases substantially
Genesco Inc. has witnessed an increase in total debt over the last one year. It stood at $113.46 million as on Aug. 01, 2015, up 48.57 percent or $37.09 million from $76.37 million on Aug. 02, 2014. Total debt was 6.74 percent of total assets as on Aug. 01, 2015, compared with 4.83 percent on Aug. 02, 2014. Debt to equity ratio was at 0.11 as on Aug. 01, 2015, up from 0.08 as on Aug. 02, 2014. Interest coverage ratio improved to 13.47 for the quarter from 12.90 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
