August 31, 2007, 12:00 AM

Finish Line rethinks its Genesco acquisition

The Finish Line Inc. is re-thinking its acquisition of Genesco Inc. as a result of Genesco’s unfavorable second-quarter earnings. Genesco reported a loss of $2.9 million, including expenses of $5.5 million related to the acquisition.

Don Davis

Editor in Chief

The Finish Line Inc. is re-thinking its acquisition of Genesco Inc. as a result of Genesco’s unfavorable second-quarter earnings, Finish Line reports.

Retail chain Finish Line, No. 154 in the Internet Retailer Top 500 Guide, announced in June that it would acquire Genesco, No. 325 in the Internet Retailer Top 500 Guide, after Genesco has rejected offers from Foot Locker Inc. (See Internet Retailer.com, June 18, 2007.)

On Thursday, Genesco reported a loss of $2.9 million, including expenses of $5.5 million related to the acquisition. Q2 year-ago earnings were $5.9 million. Net sales increased in the second quarter increased 8% to $328 million from $304 million.

"The company is disappointed with Genesco`s second quarter fiscal 2008 financial results,” Finish Line said in a staement. “Consistent with its responsibilities to The Finish Line`s shareholders, the company is evaluating its options in accordance with the terms of the merger agreement. The company does not intend to make further comments at this time."

Genesco operates 2,100 stores under the Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat Shack, Hat Zone, Head Quarters and Cap Connection brands. It operates associated web sites journeys.com , journeyskidz.com, shibyjourneys.com, undergroundstation.com, johnstonmurphy.com , lids.com and lidskids.com.

Comments

Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!

Advertisement

Advertisement

Advertisement

Relevant Commentary

FPO

Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...

FPO

Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of Quill.com that will let customers and Quill ...

Advertisement