Genesco Shares Rise On Upgrade

NEW YORK (AP) — Shares of Genesco Inc. rose on Friday, after the shoe and hat retailer reported first-quarter results above expectations, helped by better higher sales at its Hat World and Journeys stores, and an analyst upgraded the stock.

Its stock advanced $1.97, or 8.3 percent, to $25.75 during afternoon trading. The stock has traded between $10.37 and $38.74 during the past 52 weeks.

On Thursday, the company said it swung to a profit of 17 cents per share, excluding one-time items related to retiring debt early, while analysts expected a profit of 4 cents per share. Sales increased 4 percent, also beating analyst estimates.

Sales in stores open at least one year, a key retail metric known as same-store sales, rose 2 percent.

Sterne Agee analyst Sam Poser said the strong quarter illustrates the resiliency of the Nashville company's model.

"Same-store sales of 2 percent were above our forecast of a 2 percent contraction, driven by strength in the Journey's group, and strong performance from Hat World," he said.

He added, "We are encouraged by the resiliency of the company's margins, the potential for a meaningful rebound in the second half of 2010 same-store sales and the opportunity for share gains via competitive rationalization."

He upgraded the company to "Buy" from "Neutral" and set a $27 price target, implying potential upside of 13.5 percent over the stock's closing price Thursday of $23.78.