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, 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.
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