Genesco shares falls earnings warning

Shares of Genesco fell $6.32 to $11.40. Earlier in the session, the company's shares set a six-year low of $10.80. It plans to report earnings on Nov. 25.

After the market closed Tuesday, Genesco said it expects earnings from continuing operations of between $9 million and $9.5 million, or between 41 cents to 43 cents per share, for the period ended Nov. 2.

That would be up from the $5.6 million, or 23 cents per share, it earned last year. But it would be below the 53 cents per share analysts expect, according to Thomson Reuters. They typically exclude one-time items.

Genesco said the results reflect restructuring charges of about $2.3 million pretax, which includes fixed-asset impairments, store closing costs and merger-related expenses.

Genesco expects net sales of about $390 million, up 5 percent from last year but off Wall Street's expectations of $397.2 million.

Robert W. Baird & Co. analyst Mitch Kummetz said in a note to clients that Genesco's same-store sales have deteriorated lately, "and we expect the company's performance to continue to be hampered by difficult market conditions through at least the first half of next year."

Genesco said total same-store sales for the most recent quarter grew 2 percent. It said the Journeys Group was up 5 percent, the Hat World Group up 2 percent and the Underground Station Group up 1 percent. The Johnston & Murphy group was down 15 percent though.

For the fourth quarter, the company said it expects same-store sales--a key measure of a retailer's health--will fall between 1 percent and 4 percent as consumers pullback on spending. It said November total same-store sales have fallen 9 percent so far.

Kummetz lowered his fourth-quarter earnings estimate for Genesco to $1.10 from $1.35. Based on a 4 percent drop in same-store sales, earnings per share would fall between $1.06 and $1.20.