US retailer of footwear, headwear and accessories Genesco Inc. has exceeded expectation slightly, reporting earnings before discontinued operations of $10.7 million for the first quarter ended April 29, up from $8.4 million in the comparable period a year earlier.

Net sales in the Journeys Group increased 10% to more than $141 million, same store sales increased 1% in the first quarter. Board sport and women's casual shoes continued to perform well, but sales were affected by a shift in demand from men's boots and utility footwear to lower-priced canvas shoes, sandals and clogs.

Journeys Kidz registered a positive quarter with total sales up 30% to more than $8 million and same store sales up 10%, against a 22% comparison last year. Net sales at Hat World increased 14% to approximately $71 million and same store sales declined less than 1%. Hat World had a 7% comparable store sales increase in the same period a year ago. The Major League Baseball and branded core headwear categories continued strong, but this was offset by softness in demand for NCAA product.

Net sales for the Underground Station Group, which includes Jarman, were flat at $40 million and same store sales fell 3% in the first quarter. Comparable store sales declined 2%, due to weak demand in men's boots and utility footwear. Johnston & Murphy posted a strong quarter with net sales increasing 6% to more than $44 million, same store sales for the shops rose 3% and wholesale sales increased 14% in the first quarter.

First quarter sales of licensed brands increased 37% to $19 million and operating profit more than doubled.

The company stated that it is increasing its fiscal 2007 guidance slightly and now expects sales to increase 14% to approximately $1.46 billion for the year.