US footwear-focused speciality retailer Genesco has reported net earnings of $6.53m in the third quarter (Q3) of fiscal year 2024 (FY24), a 67.9% drop from $20.37m in the corresponding period of fiscal 2023 (FY23).

The retailer’s earnings from continuing operations over the quarter were $6.58m, against $20.42m in Q3 FY23.

During the quarter ending 28 October 2023, Genesco’s generally accepted accounting principles earnings per diluted share (EPS) from continuing operations was $0.60, down from $1.66 in the same quarter of the previous year.

The retailer posted total net sales of $579m in Q3 FY24, a decline of 4% from $604m in the same period a year previously.

Genesco attributed the decline in net sales to the 8% fall in store sales in Journeys Group and wholesale sales in Genesco Brands Group.

The decline was partially offset by an 8% rise in e-commerce comparable sales and a favourable foreign exchange effect.

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By GlobalData

The retailer’s total comparable sales were down 4% in Q3 FY 24, with same-store sales down by 8% while comparable direct sales were up 6%.

E-commerce sales accounted for 21% of retail sales in Q3 FY24 compared with 18% in Q3 FY23.

Genesco board chair, president and chief executive officer Mimi E Vaughn stated: “Disruptions related to implementation of a new ERP system for our branded businesses added to the pressure, all leading to results that were below our expectations.

“Despite these headwinds, we were pleased to see sales trends within our Journeys business continue to sequentially improve, and Schuh and Johnston & Murphy deliver record third-quarter sales.”

For full-year fiscal 2024, the retailer expects sales to drop by 1% to 2%, compared to fiscal year 2023, and adjusted diluted EPS from continuing operations to be between $1.50 and $2.00.

Genesco opened five stores and closed 20 stores in Q3 FY23, ending the quarter with a total of 1,360 stores compared with 1,404 stores at the end of Q3 FY23.

The retailer stated that it is on track to close almost 100 Journeys stores in FY24.