Genesco Lowers Guidance, Takes Huge Lids Writedown
A $182 million goodwill impairment charge for Lids sent Genesco’s bottom line deep into the red as it reported a net loss of $164,821,000 against income of $25,895,000 in the third quarter ended Oct. 28 on 1% higher sales at $716,759,000 vs. $710,822,000. The non-cash charge was triggered by the company’s market value remaining below its book value for an extended time, and its lowered expectations for Lids. Excluding the writedown and other one-time items, adjusted net income was down 23% to $19.7 million from $25.5 million. Comps were up 1% overall with a 2% decrease in same store sales ... Log in to view full article.