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Genesco Sees Positive 4th Quarter Results
Company Outlook Is Healthy

NASHVILLE, TN— Genesco, Inc. (NYSE: GCO) the Nashville-based specialty retailer reported earnings from continuing operations for the fourth quarter ended January 30, 2010, of $25.8 million, or $1.08 per diluted share, compared to earnings from continuing operations of $23.2 million, or $1.05 per diluted share, for the fourth quarter ended January 31, 2009. Net sales for the fourth quarter of Fiscal 2010 increased 6 percent to $479 million from $452 million in the fourth quarter of Fiscal 2009. Comparable store sales in the fourth quarter of Fiscal 2010 were flat with a year ago. Comparable store sales in the Hat World Group increased by 6 percent, the Journeys Group decreased by 3 percent, Underground Station decreased by 2 percent, and Johnston & Murphy Retail increased by 2 percent.

Robert J. Dennis, president and chief executive officer of Genesco, said, “Our fourth quarter earnings exceeded expectations, driven by strong sales at Hat World and our direct-to-consumer catalog and e-commerce businesses combined with higher gross margins for the company and well-managed expenses across all our divisions. This performance caps a year in which, despite a challenging retail environment, we generated almost $100 million in cash flow from operations and paid down all $32 million of our outstanding bank debt, to end with $82 million in cash and no debt.

“As we begin the new fiscal year, all of our businesses are performing above their fourth quarter comparable sales, with positive comparable store sales across the board. For February, comparable sales increased 10 percent for the Hat World Group, 4 percent for the Journeys Group, 13 percent for Underground Station, 4 percent for Johnston & Murphy Retail and 6 percent for the total company. Including the 17 percent comparable sales increase for the direct businesses, the company’s comparable sales for February increased 7 percent.
“We move forward confident that we have the right strategies in place at each of our operating segments. With a much stronger balance sheet than a year ago, we are better positioned to pursue multiple near-term growth opportunities that we have identified.”

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