Genesco Completes Hat Shack, Inc. Acquisition

    NASHVILLE, Tenn., Jan. 12 /PRNewswire-FirstCall/ -- Genesco Inc. (
 GCO) announced today that its Hat World subsidiary has completed the
 acquisition of all the outstanding stock of Hat Shack, Inc. for a purchase
 price of $16.6 million, after preliminary closing adjustments anticipated
 in the purchase agreement, funded from cash on hand. Hat Shack operates 49
 retail headwear stores located in 10 states, primarily in the southeastern
 United States.
     Kenneth J. Kocher, Hat World president, said, "We are pleased to add
 the 49 Hat Shack stores to our base of more than 700 stores and talented
 members of the Hat Shack organization to our team. We view this acquisition
 as a meaningful step forward in our plans for continuing growth."
     Genesco said it expects the acquisition to have a slightly positive
 effect on the Company's earnings for the fiscal year ending February 2,
 2008.
     Genesco also said that it currently plans to announce operating results
 for the fourth quarter and fiscal year ending February 3, 2007, in a press
 release and webcast conference call on March 7, 2007. As a matter of
 policy, Genesco comments on expected operating results only in press
 releases and previously announced, publicly accessible internet webcasts,
 or by other means complying with Regulation FD.
     Forward-looking statements in this release (including those about Hat
 World's continuing growth, the expected effects of the acquisition on next
 fiscal year's performance and all other statements not reflecting
 exclusively historical or present facts or conditions) reflect the
 Company's expectations as of the date of this release and are subject to
 risks and uncertainties. Actual events could turn out materially different
 from the expectations reflected in the statements. Factors that could cause
 materially different outcomes include all those that could impact Genesco's
 or its subsidiaries' business and financial condition generally, including
 weakness in consumer demand for products sold by the Company, fashion
 trends that affect the sales or product margins of the Company's product
 offerings, disruptions in product supply or distribution, and changes in
 business strategies by competitors. Other factors that could change
 expected outcomes include the Company's ability to integrate Hat Shack's
 operations as planned, the continued performance of Hat Shack in accordance
 with expectations, and the outcome of litigation affecting the Company.
     Genesco Inc., a Nashville-based specialty retailer, sells footwear,
 headwear and accessories in more than 1,900 retail stores in the United
 States and Canada, principally under the names Journeys, Journeys Kidz, Shi
 by Journeys, Johnston & Murphy, Underground Station, Hatworld, Lids, Hat
 Zone, Cap Factory, Head Quarters and Cap Connection, and on internet
 websites http://www.journeys.com, http://www.journeyskidz.com,
 http://www.undergroundstation.com, http://www.johnstonmurphy.com,
 http://www.lids.com, http://www.hatworld.com, and http://www.lidscyo.com.
 The Company also sells footwear at wholesale under its Johnston & Murphy
 brand and under the licensed Dockers brand. Additional information on
 Genesco and its operating divisions may be accessed at its website
 http://www.genesco.com.
     Hat World is a leading specialty retailer of athletic and fashion
 headwear. Founded in 1995, Indianapolis-based Hat World operates primarily
 under the Lids and Hat World retail brands with more than 700 mall-based,
 airport, street level and factory outlet stores nationwide and in Canada.
 Hat World also operates Lids Kids, Hat Zone, Head Quarters and Cap
 Connection stores as well as its e-commerce sites http://www.lids.com,
 http://www.hatworld.com, and http://www.lidscyo.com.
 
 

SOURCE Genesco Inc.