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GENESCO REPORTS THIRD QUARTER AND NINE MONTH OPERATING RESULTS

 NASHVILLE, Tenn., Nov. 18 /PRNewswire/ -- GENESCO Inc. (NYSE: GCO) today reported operating results for the third quarter and nine months ended Oct. 31, 1993.
 GENESCO's net sales for the third quarter totaled $154.1 million, up 5 percent from $146.1 million in the year-earlier period. The Company incurred a net loss for the quarter of $3.1 million, or $.13 per share, compared with net income in the year-earlier period of $4.9 million, or $.21 per share.
 For the first nine months of fiscal 1994, GENESCO's net sales totaled $428.5 million, up 10 percent from $389 million in the year-earlier period. The Company reported a loss of $3.4 million, or $.15 per share, before an extraordinary charge due to the early retirement of debt and a non-recurring loss from adopting a new accounting standard relating to postretirement benefits. For the first nine months of last year, GENESCO reported net income of $5.5 million, or $.23 per share.
 GENESCO had indicated last month that it did not expect to report a profit for the third fiscal quarter.
 "The actual results for the three months verified the concern we previously expressed that the year-to-year comparison would be unfavorable," said E. Douglas Grindstaff, president and chief executive officer. "Although there recently have been some signs of a strengthening in retail spending, we have not seen a sustained pattern of improvement. This, in turn, has caused a promotional and price-sensitive climate to persist that has continued to affect both our wholesaling and retail operations."
 GENESCO was also affected during the third quarter by non-recurring costs and expenses associated with The Greif Companies. These expenses, totaling more than $2 million, related to labor difficulties experienced by Grief in negotiating a new collective bargaining agreement Oct. 1, 1993.
 Grindstaff attributed the higher sales achieved for the third quarter and nine months to the contribution from recently introduced and acquired brands.
 "Sales will benefit from these additional brands during the fourth quarter as well which should lead to a gain for fiscal 1994 compared with the $539.9 million in sales last year," Grindstaff said. "It does not seem likely now, however, that the Company's performance in the final quarter will enable us to achieve a profit for fiscal 1994 as a whole.
 "As we have previously highlighted, we made the decision at the start of this year to accelerate the growth of our brands through expanded marketing initiatives. Incurring the higher costs associated with the investment in these programs during a disappointing, slow period for our business has significantly affected the Company's results.
 "Based on the fundamental strength of our brands, we remain confident about the potential for GENESCO's growth. Our strategic plans are to capitalize on that opportunity, but our immediate focus is to control expenses and manage assets prudently to restore the Company's profitability," Grindstaff said.
 GENESCO, headquartered in Nashville, is a consumer products company with operations in footwear and men's tailored clothing
 GENESCO INC.
 Consolidated Earnings Summary
 In Thousands Three Months Ended Nine Months Ended
 Oct. 31, Oct. 31,
 1993 1992 1993 1992
 SALES
 Footwear retail $58,417 $57,101 $160,760 $158,018
 Footwear wholesale 65,272 61,833 187,208 149,978
 Tailored clothing 30,407 27,193 80,571 81,027
 Total Sales $154,096 $146,127 $428,539 $389,023
 PRETAX EARNINGS (LOSS)
 Footwear retail $1,292 $3,144 $1,728 $3,109
 Footwear wholesale and
 manufacturing 2,189 6,743 10,857 15,423
 Tailored clothing (715) 2,209 1,508 4,415
 Operating income 2,766 12,096 14,093 22,947
 Corporate expenses:
 Interest expense (3,019) (1,667) (8,100) (4,081)
 Other corporate expenses (2,726) (3,577) (8,893)(A)(10,865)
 Total Pretax Earnings (Loss)($2,979) $6,852 ($2,900) $8,001
 (A) Includes $677,000 of income from favorable adjustments to reserves relating to previously divested operations.
 Consolidated Balance Sheet
 In Thousands Oct. 31,
 1993 1992
 Assets
 Cash and short-term investments $2,097 $2,599
 Accounts receivable 89,470 79,675
 Inventories 176,218 153,342
 Other current assets 9,897 6,942
 Total current assets 277,682 242,558
 Plant, equipment and capital leases 49,330 46,294
 Other non-current assets 45,520 30,421
 Total Assets $372,532 $319,273
 Liabilities and Shareholders' Equity
 Total current liabilities $63,365 $71,854
 Long-term debt and capital leases 126,855 71,389
 Other long-term liabilities 25,492 24,993
 Shareholders' equity 156,820 151,037
 Total Liabilities and Shareholders' Equity $372,532 $319,273
 Consolidated Earnings Summary
 In Thousands Three Months Ended Nine Months Ended
 Oct. 31, Oct. 31,
 1993 1992 1993 1992
 Net sales $154,096 $146,127 $428,539 $389,023
 Cost of sales 101,929 90,588 277,669 243,735
 Selling and administrative
 expenses 51,625 46,319 145,951 131,860
 Earnings from operations
 before other income
 and expenses 542 9,220 4,919 13,428
 Other expenses (income):
 Interest expense 3,019 1,667 8,100 4,081
 Other expenses (income) 502 701 (281)(A) 1,346
 Total other expenses, net 3,521 2,368 7,819 5,427
 Earnings (loss) before income
 taxes, extraordinary loss,
 and cumulative effect of
 change in accounting
 principle (2,979) 6,852 (2,900) 8,001
 Income taxes 105 2,001 470 2,516
 Earnings (loss) before
 extraordinary loss and
 cumulative effect of change
 in accounting principle (3,084) 4,851 (3,370) 5,485
 Extraordinary loss from
 early retirement of debt 0 0 (240) 0
 Postretirement benefits(B) 0 0 (2,273) 0
 Net Earnings (Loss) ($3,084) $4,851 ($5,883) $5,485
 Earnings Per Share Information
 In Thousands Three Months Ended Nine Months Ended
 (except per share amounts) Oct. 31, Oct. 31,
 1993 1992 1993 1992
 Preferred dividend requirements $77 $79 $232 $235
 Average common and common
 equivalent shares 24,254 23,219 24,110 23,084
 Earnings (loss) per share:
 Earnings (loss) before
 extraordinary loss and
 cumulative effect of change
 in accounting principle $(.13) $.21 $(.15) $.23
 Extraordinary loss $.00 $.00 $(.01) $.00
 Postretirement benefits(B) $.00 $.00 $(.09) $.00
 Net earnings (loss) $(.13) $.21 $(.25) $.23
 (A) Includes $677,000 of income from favorable adjustments to reserves relating to previously divested operations.
 (B) Reflects the cumulative effect of changes in the method of accounting for postretirement benefits due to the implementation of Statement of Financial Accounting Standards No. 106.
 -0- 11/18/93
 /CONTACT: Media Contact - Teresa Miller Mangelsdorf, 615-367-8281, or Financial Contact -- James S. Gulmi, 615-367-8325, both of GENESCO/
 (GCO)


CO: GENESCO Inc. ST: Tennessee IN: REA SU: ERN

DF -- CH001 -- 5856 11/18/93 08:13 EST
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Date:Nov 18, 1993
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