Genesco Expects Lower Sales Decrease, Stock Rises

Shares of Genesco, a footwear retailer, rose on Thursday as the company announced that it anticipates a smaller decline in full-year sales than originally projected.

At 13:54 E.T., shares were up by 12% at $32.75. Over the past three months, the stock has surged by 83%, but it has dropped by 29% since the beginning of the year.

Genesco now forecasts a full-year sales decrease of 2% to 4%, compared to the previous estimate of a drop in the range of 4% to 5%.

The company's positive outlook follows the announcement of a narrower-than-expected loss in the second quarter.

Excluding one-time items, Genesco reported losses per share of 85 cents, surpassing analysts' expectations of adjusted losses per share of $1.23.

Furthermore, sales declined by 2% to $523 million, exceeding analysts' estimates of $497.3 million.

"We were encouraged to see some improvement in the trend within our Journeys business as the quarter progressed, leading us to deliver results ahead of our prior expectations," said Chief Executive Mimi Vaughn. Vaughn also noted that Genesco's Schuh and Johnston & Murphy stores continued to outperform.