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Genesco Reports First Quarter Results.

Article Excerpt
--Diluted EPS Before Discontinued Operations Increase 33% to $0.32, including charges associated with previously announced class action suit--

--Raises Fiscal 2006 Guidance--

NASHVILLE, Tenn., May 26 /PRNewswire-FirstCall/ -- Genesco Inc. today reported earnings before discontinued operations of $8.2 million, or $0.32 per diluted share, for the first quarter ended April 30, 2005. This compares with earnings before discontinued operations of $5.8 million, or $0.24 per diluted share, for the first quarter last year. These results include previously announced charges of $1.6 million, or $0.06 per diluted share after taxes, associated with the anticipated settlement of a previously disclosed class action suit. Net sales for the first quarter of fiscal 2006 increased 27% to $286 million compared to $226 million for the first quarter of fiscal 2005.

Genesco Chairman, President and Chief Executive Officer Hal N. Pennington, said, "Our results for the quarter, which significantly exceeded plan, were fueled by better than expected performances at Journeys, Hat World, Underground Station and Johnston & Murphy. Sales, margins, and cash flow were strong, and we ended the quarter with a good inventory position. We look forward to building on our momentum in the marketplace.

"Journeys' same store sales increased 7%, footwear unit comparable sales rose 11%, and gross margins came in above plan. Journeys generated meaningful leverage on the strong sales as operating margin improved 270 basis points to 10.7%. Our stores are focused and our merchandise selection is reflective of what is currently happening in the marketplace, helping us sustain the favorable same store sales trend.

"Once...