Genesco's short-term plan is simple: sell Lids and focus on shoes.
But "the pool of buyers appears relatively limited." If the retailer can
find a buyer for Lids, which has more than 1,000 locations worldwide,
it could bring in around $250 million.
Not helping in
the pursuit of a buyer: Lids had a horrendous holiday season. Comparable
sales at the hat seller fell 14% during the holiday period, dragging
down Genesco's overall comps metric, according to a Jan. 8 press release
announcing quarter-to-date sales. While Lids sales plummeted, comps at
Journeys rose 10%, Schuh comps were up 1 % and Johnston & Murphy
comps were up 5%. Comps at the company as a whole rose 1%. CEO Robert
Dennis noted in a release that "Lids' challenges expanded.". . . more