Genesco raises profit view on high Schuh sales

Footwear and cap retailer Genesco Inc raised its profit outlook for the second time this year after strong performance at its Journeys and Schuh stores boosted quarterly sales.

Shares of Genesco, which acquired UK-based retailer Schuh in June 2011, rose as much as 4 percent in early trading.

Genesco said Schuh stores contributed $81 million to its second-quarter sales of $543.5 million. Its Journeys segment recorded sales of $209.4 million.

The company, which also operates Lids stores, raised its full-year profit view to between $4.88 and $5.00 per share, up from its previous forecast of between $4.70 and $4.82 per share.

Genesco expects the second half of 2012 to benefit from the upcoming NFL season and Nike Inc's new line of apparel, Chief Executive Bob Dennis said in a conference call.

The company, which competes with DSW Inc and Foot Locker Inc, plans to open 116 new stores next year, including 17 Schuh stores.

"The average Schuh store sales are roughly four times the average Journeys store," Dennis said. "So 17 new stores represents significant growth."

Genesco will also buy back $75 million of its stock.

Adjusted profit rose to $12.1 million, or 50 cents per share, for the quarter ended July 28 from $5.2 million, or 22 cents per share, a year earlier.

Same-store sales rose 4 percent.

Nashville, Tennessee-based Genesco's shares, which have risen 49 percent over the past year, were up 2.5 percent at $73.00 on the New York Stock Exchange on Wednesday.