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GENESCO REPORTS SUBSTANTIALLY IMPROVED SECOND QUARTER EARNINGS

 GENESCO REPORTS SUBSTANTIALLY IMPROVED SECOND QUARTER EARNINGS
 NASHVILLE, Tenn., Aug. 17 /PRNewswire/ -- GENESCO Inc. (NYSE: GCO) today announced operating results for the second quarter ended July 31, 1992, and for the first six months of its fiscal year.
 Net sales for the quarter were $130,043,000, a 10 percent increase from sales of $118,086,000 for the year-ago second quarter. The Company had net earnings of $1,574,000, or $.07 per share, compared with a net loss of $231,000, or $.01 per share, in the same quarter last year.
 For the six months ended July 31, 1992, GENESCO reported net earnings of $634,000, or $.02 per share, compared with a net loss of $2,556,000, or $.12 per share, for the same period last year.
 Sales for the first six months of the current fiscal year were $242,896,000, up 8 percent from $224,313,000 in the first half of last year.
 "We are pleased with the continued improvement in the Company. Our sales increase and substantial earnings improvement in the second quarter demonstrate the strength with which GENESCO has emerged from the recession," William S. Wire II, chairman and CEO, said.
 "While our tailored clothing business continues to operate in a market that shows very weak demand, both wholesale and retail footwear operations showed good improvement," Wire said.
 According to E. Douglas Grindstaff, president and COO, the continued trend in Western fashion helped generate healthy sales gains for the Laredo and Code West western footwear brands, with sales rising 58 percent compared with the same quarter a year ago.
 "For the quarter our Johnston & Murphy and Mitre brands also showed improvement and our retail sales had a 5 percent constant store increase," Grindstaff said.
 During the second quarter, GENESCO completed the acquisition of Mitre Sports UK from Grampian Holding plc. The acquisition provides GENESCO with the opportunity to expand worldwide its successful Mitre Sports business. Two months of sales for Mitre UK, $5.6 million, are included in the footwear wholesale results.
 "The improved business conditions we saw at the beginning of the year are continuing and we are optimistic about the remainder of the year," Wire said.
 On June 1, GENESCO's new president and chief operating officer, E. Douglas Grindstaff, took office. Grindstaff is a 29-year veteran of Procter & Gamble, most recently having served as president of Procter & Gamble, Canada.
 GENESCO, headquartered in Nashville, is a consumer products company with operations concentrated in footwear and men's apparel.
 GENESCO INC.
 Consolidated Earnings Summary
 Three Months Ended Six Months Ended
 July 31 July 31
 In Thousands 1992 1991 1992 1991
 Net sales $130,043 $118,086 $242,896 $224,313
 Cost of sales 81,736 76,201 153,147 144,380
 Selling and adminis-
 trative expenses 44,404 40,880 85,541 80,695
 Earnings (loss) from
 operations before other
 income and expenses 3,903 1,005 4,208 (762)
 Other expenses (income):
 Interest expense, net 1,565 1,275 2,414 2,520
 Other expenses (income) 255 (47) 645 (741)
 Total other expenses, net 1,820 1,228 3,059 1,779
 Pretax earnings (loss) 2,083 (223) 1,149 (2,541)
 Income taxes 509 8 515 15
 Net Earnings (Loss) $1,574 ($231) $634 ($2,556)
 Earnings Per Share Information
 Three Months Ended Six Months Ended
 July 31 July 31
 In Thousands (except per share
 amounts) 1992 1991 1992 1991
 Preferred dividend
 requirements $78 $69 $156 $138
 Average common and common
 equivalent shares 22,996 22,729 23,017 22,703
 Earnings (loss) per common
 share $.07 $(.01) $.02 $(.12)
 GENESCO INC.
 Consolidated Earnings Summary
 Three Months Six Months
 Ended July 31 Ended July 31
 In Thousands 1992 1991 1992 1991
 Sales:
 Footwear retail $52,496 $50,804 $100,917 $97,241
 Footwear wholesale and
 manufacturing 51,528 36,468 88,145 65,690
 Tailored clothing 26,019 30,814 53,834 61,382
 Total Sales $130,043 $118,086 $242,896 $224,313
 Pretax Earnings (Loss):
 Footwear retail $875 ($424) ($35) ($1,574)
 Footwear wholesale and
 manufacturing 5,681 3,617 8,680 5,309
 Tailored clothing 1,049 1,201 2,206 2,736
 Operating income 7,605 4,394 10,851 6,471
 Corporate expenses:
 Interest expense,
 net (1,565) (1,275) (2,414) (2,520)
 Other corporate
 expenses (3,957) (3,342) (7,288) (6,492)
 Total Pretax Earnings
 (Loss) $2,083 ($223) $1,149 ($2,541)
 Consolidated Balance Sheet
 July 31
 In Thousands 1992 1991
 Assets
 Cash and short-term investments $2,514 $3,036
 Accounts receivable 74,220 62,686
 Inventories 146,883 124,128
 Other current assets 6,643 6,344
 Total current assets 230,260 196,194
 Plant, equipment and capital leases 46,700 45,212
 Other non-current assets 33,451 10,705
 Total Assets $310,411 $252,111
 Liabilities and Shareholders' Equity
 Total current liabilities $58,601 $44,732
 Long-term debt and capital leases 75,777 43,240
 Other long-term liabilities 24,440 17,745
 Shareholders' equity 151,593 146,394
 Total Liabilities and Shareholders'
 Equity $310,411 $252,111
 -0- 8/17/92
 /CONTACT: Media, Teresa N. Miller, 615-367-8281, or Financial, James S. Gulmi, 615-367-8325, both of GENESCO Inc./
 (GCO) CO: GENESCO Inc. ST: Tennessee IN: REA SU: ERN


JZ -- CH001 -- 0353 08/17/92 08:46 EDT
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Date:Aug 17, 1992
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