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12 hours ago
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Spotting Winners: Genesco (NYSE:GCO) And Footwear Stocks In Q1
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how footwear stocks fared in Q1, starting with Genesco (NYSE:GCO). Before the advent of the internet, styles changed, but consumers mainly bought shoes by visiting local brick-and-mortar shoe, department, and specialty stores. Today, not only do styles change more frequently as fads travel through social media and the internet but consumers are also shifting the way they buy their goods, favoring omnichannel and e-commerce experiences. Some footwear companies have made concerted efforts to adapt while those who are slower to move may fall behind. The 8 footwear stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 1.4% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results. Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners. Genesco reported revenues of $474 million, up 3.6% year on year. This print exceeded analysts' expectations by 2.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts' adjusted operating income estimates and full-year EPS guidance topping analysts' expectations. Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, 'Following the significant momentum in last year's back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we've done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income.' The stock is up 1.5% since reporting and currently trades at $22.70. Is now the time to buy Genesco? Access our full analysis of the earnings results here, it's free. Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories. Nike reported revenues of $11.27 billion, down 9.3% year on year, outperforming analysts' expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. The market seems unhappy with the results as the stock is down 13.5% since reporting. It currently trades at $62.15. Is now the time to buy Nike? Access our full analysis of the earnings results here, it's free. The owner of Dr. Scholl's, Caleres (NYSE:CAL) is a footwear company offering a range of styles. Caleres reported revenues of $614.2 million, down 6.8% year on year, falling short of analysts' expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts' adjusted operating income and EPS estimates. Caleres delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.4% since the results and currently trades at $13.70. Read our full analysis of Caleres's results here. Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands. Deckers reported revenues of $1.02 billion, up 6.5% year on year. This result beat analysts' expectations by 2.4%. Overall, it was a strong quarter as it also logged an impressive beat of analysts' constant currency revenue and EPS estimates. The stock is down 12% since reporting and currently trades at $111.05. Read our full, actionable report on Deckers here, it's free. Founded in 1883, Wolverine Worldwide (NYSE:WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony. Wolverine Worldwide reported revenues of $412.3 million, up 4.4% year on year. This number surpassed analysts' expectations by 4.1%. It was a very strong quarter as it also put up an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. Wolverine Worldwide scored the biggest analyst estimates beat among its peers. The stock is up 25.8% since reporting and currently trades at $18.63. Read our full, actionable report on Wolverine Worldwide here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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6 days ago
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Journeys Helps Genesco Deliver Q1 Sales Above Expectations
Genesco president, chief executive officer and board chair Mimi Vaughn said on Wednesday that the company started fiscal 2026 with both sales and profitability coming in above expectations. According to the Nashville-based footwear company, total net sales for the first quarter of fiscal 2026 increased 3.6 percent to $474 million compared to $457.6 million the same time last year. More from WWD Name Game: Shoe Carnival Is Converting More Stores to Shoe Station Banner Ulta Beauty Nudges Up Full-year Guidance After Stronger Than Expected Q1 Performance Foot Locker Opened 9 New Stores and Closed 56 Doors In Q1 Genesco noted in its earnings release that this sales increase reflects a 5 percent increase in comparable sales, including a 7 percent increase in e-commerce comparable sales and a 5 percent increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings. The company further noted that overall sales increase for the first quarter was driven by an increase of 5 percent at Journeys, an increase of 4 percent at Schuh and a 7 percent increase at Genesco Brands, partially offset by a decrease of 3 percent at Johnston & Murphy. Still, there was a net loss of $21.2 million in the period, down from a net loss of $24.3 million the same time last year. During the quarter, the company opened four stores and closed 26 stores. The company said it ended the quarter with 1,256 stores compared with 1,321 stores in the same year-ago period, representing a decrease of 5 percent. Square footage was down 3 percent on a year-over-year basis, Genesco noted. Vaughn said in a statement that the company's first quarter performance was highlighted by its third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as its strategic plan to accelerate growth and increase market share continues to gain traction. 'At the same time, the work we've done realigning our cost structure, including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income,' the CEO said. Looking ahead, the company continues to expect adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 for the full fiscal year 2026. This includes the impact of tariffs currently in place, Genesco said. Net sales for the year are expected to be up between 1 percent and 2 percent compared to fiscal 2025 versus prior expectation of flat to up 1 percent due to the impact of favorable foreign exchange. 'While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact,' Vaughn added. 'In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment.' Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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6 days ago
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Genesco (NYSE:GCO) Posts Better-Than-Expected Sales In Q1
Footwear, apparel, and accessories retailer Genesco (NYSE:GCO) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 3.6% year on year to $474 million. Its non-GAAP loss of $2.05 per share was 3.8% above analysts' consensus estimates. Is now the time to buy Genesco? Find out in our full research report. Revenue: $474 million vs analyst estimates of $463.8 million (3.6% year-on-year growth, 2.2% beat) Adjusted EPS: -$2.05 vs analyst estimates of -$2.13 (3.8% beat) Management reiterated its full-year Adjusted EPS guidance of $1.50 at the midpoint Operating Margin: -5.9%, up from -7% in the same quarter last year Locations: 1,256 at quarter end, down from 1,321 in the same quarter last year Same-Store Sales rose 5% year on year (-5% in the same quarter last year) Market Capitalization: $240.9 million Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, 'Following the significant momentum in last year's back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we've done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income.' Spanning a broad range of styles, brands, and prices, Genesco (NYSE:GCO) sells footwear, apparel, and accessories through multiple brands and banners. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Genesco's sales grew at a sluggish 3.4% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector and is a tough starting point for our analysis. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Genesco's recent performance shows its demand has slowed as its revenue was flat over the last two years. We can dig further into the company's revenue dynamics by analyzing its same-store sales, which show how much revenue its established locations generate. Over the last two years, Genesco's same-store sales were flat. This number doesn't surprise us as it's in line with its revenue growth. This quarter, Genesco reported modest year-on-year revenue growth of 3.6% but beat Wall Street's estimates by 2.2%. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. This projection is underwhelming and indicates its newer products and services will not catalyze better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Genesco's operating margin has been trending up over the last 12 months, leading to break even profits over the last two years. However, its large expense base and inefficient cost structure mean it still sports inadequate profitability for a consumer discretionary business. Genesco's operating margin was negative 5.9% this quarter. The company's consistent lack of profits raise a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Genesco's EPS grew at a weak 1.5% compounded annual growth rate over the last five years, lower than its 3.4% annualized revenue growth. We can see the difference stemmed from higher interest expenses or taxes as the company actually grew its operating margin and repurchased its shares during this time. In Q1, Genesco reported EPS at negative $2.05, up from negative $2.10 in the same quarter last year. This print beat analysts' estimates by 3.8%. Over the next 12 months, Wall Street expects Genesco's full-year EPS of $0.99 to grow 53%. It was encouraging to see Genesco's full-year EPS guidance beat analysts' expectations. We were also happy its revenue and EPS outperformed Wall Street's estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $22.55 immediately after reporting. Genesco may have had a good quarter, but does that mean you should invest right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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7 days ago
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Genesco Acknowledges 'More Pronounced' Tariff Impact, Stands By Guidance
Genesco Inc. (NYSE:GCO), on Wednesday, reported mixed first-quarter 2026 results and reaffirmed fiscal 2026 EPS guidance. The company reported an adjusted loss per share of $2.05, missing the street view of $2.00 loss. Quarterly sales of $473.973 million (increased 4% year over year) were above the analyst consensus estimate of $465.30 million. Net sales were driven by a 5% increase at Journeys, 4% at Schuh, and 7% at Genesco Brands, partly offset by a 3% decline at Johnston & sales rose 5%, with stores up 5% and e-commerce up 7%. On a constant currency basis, Schuh sales rose 1%. The first quarter's gross margin fell to 46.7% from 47.6% a year ago, mainly due to brand mix shifts at Journeys and Schuh, promotions at Schuh, and lower margins from product liquidations at Genesco Brands. Genesco reported a GAAP operating loss of $28.1 million, or 5.9% of sales, down from $32.1 million, or 7%, a year ago. On an adjusted basis, the loss narrowed to $27.9 million from $30.0 million, with the operating margin improving to a loss of 5.9% of sales from a loss of 6.5% in the first quarter last year. As of May 3, 2025, Genesco held $21.7 million in cash, up from $19.2 million a year earlier. Total debt rose to $121 million from $59.4 million, mainly due to a 15% inventory increase to support higher demand at Journeys. Genesco repurchased 604,531 shares for $12.6 million, or $20.79 per share, during the quarter. Under its expanded buyback program, announced in June 2023, it has $29.8 million remaining. In the first quarter, capital expenditures totaled $19 million, mainly for retail stores and other projects. The company opened four new stores and closed 26, ending the quarter with 1,256 stores. This represents a 5% decrease from 1,321 stores at the end of the first quarter last year. Overall square footage also decreased by 3% year-over-year. Mimi E. Vaughn, Genesco's Board Chair, president, and CEO, said, 'While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact. In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment.' 'Today, we are reiterating our full-year adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. Although there is ongoing external market uncertainty, we know our businesses are strong, and we are making investments in product, stores, and marketing across all brands to drive growth,' commented Sandra Harris, Genesco's Senior VP of Finance and CFO. For fiscal 2026, Genesco reaffirmed its expectation of adjusted diluted EPS between $1.30 and $1.70 versus the consensus estimate of $1.47, factoring in current tariffs. Total sales are now projected to rise 1%–2%, up from prior guidance of flat to 1%, due to favorable foreign exchange. Comparable sales range outlook narrowed to up 2% to 3% versus the prior range of up 2% to 4%, with no additional share buybacks assumed and a 29% tax rate. Price Action: GCO shares are trading higher by 1.39% to $22.66 at last check Wednesday. Photo by JHVEPhoto via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? GENESCO (GCO): Free Stock Analysis Report This article Genesco Acknowledges 'More Pronounced' Tariff Impact, Stands By Guidance originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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7 days ago
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Genesco Inc. Reports Fiscal 2026 First Quarter Results
--Top and bottom-line results exceed expectations----Comparable sales increased 5%, led by Journeys with an 8% increase----Sales growth and meaningful expense leverage drives bottom line improvement compared to Q1 last year----Company reiterates full year EPS outlook including impact of current tariffs-- NASHVILLE, Tenn., June 04, 2025--(BUSINESS WIRE)--Genesco Inc. (NYSE: GCO) today reported first quarter results for the three months ended May 3, 2025. First Quarter Fiscal 2026 Financial Summary Net sales of $474 million increased 4% compared to Q1FY25 Comparable sales increased 5%, with stores up 5% and e-commerce up 7% E-commerce sales represented 23% of retail sales Selling and administrative expenses leveraged 170 basis points compared to last year GAAP EPS was ($2.02) and Non-GAAP EPS was ($2.05)1 versus GAAP EPS of ($2.22) and Non-GAAP EPS of ($2.10) last year Mimi E. Vaughn, Genesco's Board Chair, President and Chief Executive Officer, said, "Following the significant momentum in last year's back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we've done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income." Vaughn continued, "While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact. In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment." __________________________ 1Excludes charges for severance and asset impairments, net of tax effect in the first quarter of Fiscal 2026 ("Excluded Items"). A reconciliation of loss and loss per share from continuing operations in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") with the adjusted loss and loss per share numbers is set forth on Schedule B to this press release. The Company believes that disclosure of loss and loss per share from continuing operations adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Sandra Harris, Genesco's Senior Vice President Finance and Chief Financial Officer, added, "Our first quarter performance exceeded our expectations, and our adjusted EPS would have been $0.05 better had we not opportunistically bought back shares during the quarter. Today we are reiterating our full-year adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. Although there is ongoing external market uncertainty, we know our businesses are strong, and we are making investments in product, stores, and marketing across all brands to drive growth." First Quarter Review Net sales for the first quarter of Fiscal 2026 increased 4% to $474 million compared to $458 million in the first quarter of Fiscal 2025. The net sales increase reflects a 5% increase in comparable sales, including a 7% increase in e-commerce comparable sales and a 5% increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings. Comparable Sales Comparable Same Store and E-commerce Sales: 1QFY26 1QFY25 Journeys Group 8% (5)% Schuh Group 1% (7)% Johnston & Murphy Group (2)% (3)% Total Genesco Comparable Sales 5% (5)% Same Store Sales 5% (7)% Comparable E-commerce Sales 7% 3% The overall sales increase of 4% for the first quarter of Fiscal 2026 compared to the first quarter of Fiscal 2025 was driven by an increase of 5% at Journeys, an increase of 4% at Schuh and a 7% increase at Genesco Brands, partially offset by a decrease of 3% at Johnston & Murphy. On a constant currency basis, Schuh sales were up 1% for the first quarter this year. Gross margin for the first quarter this year was 46.7% compared to 47.3% last year. Adjusted gross margin for the first quarter this year of 46.7% decreased 90 basis points as a percentage of sales compared to 47.6% last year. The decrease as a percentage of sales compared to Fiscal 2025 is due primarily to changes in brand mix at Journeys and Schuh, promotional activity at Schuh and lower margins at Genesco Brands related to liquidation of product for sunsetting licenses. Selling and administrative expenses for the first quarter this year of 52.5% decreased 170 basis points as a percentage of sales compared with last year primarily reflecting decreased occupancy and performance-based compensation expenses as well as other cost savings initiatives. Genesco's GAAP operating loss for the first quarter was $28.1 million, or 5.9% of sales this year, compared with a loss of $32.1 million, or 7.0% of sales in the first quarter last year. Adjusted for the Excluded Items in the first quarters of both Fiscal 2026 and 2025, the operating loss for the first quarter was $27.9 million this year compared to a loss of $30.0 million last year. Adjusted operating margin was a loss of 5.9% of sales in the first quarter of Fiscal 2026 compared to a loss of 6.5% in the first quarter last year. The effective tax rate for the quarter was 28.5% in Fiscal 2026 compared to 26.7% in the first quarter last year. The adjusted tax rate, reflecting Excluded Items, was 26.7% in Fiscal 2026 compared to 26.0% in the first quarter last year. GAAP loss from continuing operations was $21.2 million in the first quarter of Fiscal 2026 compared to a loss of $24.3 million in the first quarter last year. Adjusted for the Excluded Items, the first quarter loss from continuing operations was $21.5 million, or $2.05 per share, in Fiscal 2026, compared to a loss of $22.9 million, or $2.10 per share, in the first quarter last year. Cash, Borrowings and Inventory Cash as of May 3, 2025, was $21.7 million, compared with $19.2 million as of May 4, 2024. Total debt at the end of the first quarter of Fiscal 2026 was $121.0 million compared with $59.4 million at the end of last year's first quarter, primarily reflecting increased inventories which were up 15% on a year-over-year basis to meet increased demand at Journeys. Capital Expenditures and Store Activity For the first quarter this year, capital expenditures were $19 million, related primarily to retail stores and other initiatives. Depreciation and amortization was $13 million. During the quarter, the Company opened four stores and closed 26 stores. The Company ended the quarter with 1,256 stores compared with 1,321 stores at the end of the first quarter last year, or a decrease of 5%. Square footage was down 3% on a year-over-year basis. Share Repurchases The Company repurchased 604,531 shares for $12.6 million, or $20.79 per share, during the first quarter of Fiscal 2026. The Company currently has $29.8 million remaining on its expanded share repurchase authorization announced in June 2023. Fiscal 2026 Outlook For Fiscal 2026, the Company: Continues to expect adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 2 , including the impact of tariffs currently in place Expects total sales to be up 1% to 2% compared to Fiscal 2025 versus prior expectation of flat to up 1% due to the impact of favorable foreign exchange, with comparable sales range narrowed to up 2% to 3% versus prior range of up 2% to 4% Guidance assumes no further share repurchases and a tax rate of 29% __________________________ 2A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to GAAP is included in Schedule B to this press release. Conference Call, Management Commentary and Investor Presentation The Company has posted detailed financial commentary and a supplemental financial presentation of first quarter results on its website, in the investor relations section. The Company's live conference call on June 4, 2025, at 7:30 a.m. (Central time), may be accessed through the Company's website, To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software. Safe Harbor Statement This release contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, cost reductions, and all other statements not addressing solely historical facts or present conditions. Forward-looking statements are usually identified by or are associated with such words as "intend," "expect," "feel," "should," "believe," "anticipate," "optimistic," "confident" and similar terminology. Actual results could vary materially from the expectations reflected in these statements. A number of factors could cause differences. These include adjustments to projections reflected in forward-looking statements, including those resulting from weakness in store and shopping mall traffic, the imposition of tariffs on product imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; our ability to pass on price increases to our customers; restrictions on operations imposed by government entities and/or landlords, changes in public safety and health requirements, and limitations on the Company's ability to adequately staff and operate stores. Differences from expectations could also result from store closures and effects on the business as a result of the level and timing of promotional activity necessary to maintain inventories at appropriate levels; the Company's ability to obtain from suppliers products that are in-demand on a timely basis and effectively manage disruptions in product supply or distribution, including disruptions as a result of pandemics or geopolitical events, including shipping disruptions in the Red Sea; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; civil disturbances; our ability to renew our license agreements; impacts of the Russia-Ukraine war, and other sources of market weakness in the U.K. and Republic of Ireland; the effectiveness of the Company's omnichannel initiatives; costs associated with changes in minimum wage and overtime requirements; wage pressure in the U.S. and the U.K.; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets; risks related to the potential for terrorist events; risks related to public health and safety events; changes in buying patterns by significant wholesale customers; retained liabilities associated with divestitures of businesses including potential liabilities under leases as the prior tenant or as a guarantor; and changes in the timing of holidays or in the onset of seasonal weather affecting period-to-period sales comparisons. Additional factors that could cause differences from expectations include the ability to secure allocations to refine product assortments to address consumer demand; the ability to renew leases in existing stores and control or lower occupancy costs, to open or close stores in the number and on the planned schedule, and to conduct required remodeling or refurbishment on schedule and at expected expense levels; the Company's ability to realize anticipated cost savings, including rent savings; the amount and timing of share repurchases; the Company's ability to achieve expected digital gains and gain market share; deterioration in the performance of individual businesses or of the Company's market value relative to its book value, resulting in impairments of fixed assets, operating lease right of use assets or intangible assets or other adverse financial consequences and the timing and amount of such impairments or other consequences; unexpected changes to the market for the Company's shares or for the retail sector in general; costs and reputational harm as a result of disruptions in the Company's business or information technology systems either by security breaches and incidents or by potential problems associated with the implementation of new or upgraded systems; the Company's ability to realize any anticipated tax benefits in both the amount and timeframe anticipated; and the cost and outcome of litigation, investigations, environmental matters and other disputes involving the Company. Additional factors are cited in the "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of, and elsewhere in, the Company's SEC filings, copies of which may be obtained from the SEC website, or by contacting the investor relations department of Genesco via the Company's website, Many of the factors that will determine the outcome of the subject matter of this release are beyond Genesco's ability to control or predict. Genesco undertakes no obligation to release publicly the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Forward-looking statements reflect the expectations of the Company at the time they are made. The Company disclaims any obligation to update such statements. About Genesco Inc. Genesco Inc. (NYSE: GCO) is a footwear focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities offering customers the footwear they desire in engaging shopping environments, including more than 1,250 retail stores and branded e-commerce websites. Its Journeys, Little Burgundy and Schuh brands serve teens, kids and young adults with on-trend fashion footwear that inspires youth culture in the U.S., Canada and the U.K. Johnston & Murphy serves the successful, affluent man and woman with premium footwear, apparel and accessories in the U.S. and Canada, and Genesco Brands Group sells branded lifestyle footwear to leading retailers under licensed brands including Levi's, Dockers, Starter and PONY. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit GENESCO INC. Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) Quarter 1 Quarter 1 May 3, % of May 4, % of 2025 Net Sales 2024 Net Sales Net sales $ 473,973 100.0 % $ 457,597 100.0 % Cost of sales 252,792 53.3 % 241,316 52.7 % Gross margin(1) 221,181 46.7 % 216,281 47.3 % Selling and administrative expenses 249,035 52.5 % 247,831 54.2 % Asset impairments and other, net(2) 291 0.1 % 578 0.1 % Operating loss (28,145 ) -5.9 % (32,128 ) -7.0 % Other components of net periodic benefit cost 180 0.0 % 109 0.0 % Interest expense, net 1,339 0.3 % 890 0.2 % Loss from continuing operations before income taxes (29,664 ) -6.3 % (33,127 ) -7.2 % Income tax benefit (8,452 ) -1.8 % (8,839 ) -1.9 % Loss from continuing operations (21,212 ) -4.5 % (24,288 ) -5.3 % Loss from discontinued operations, net of tax (15 ) 0.0 % (59 ) 0.0 % Net Loss $ (21,227 ) -4.5 % $ (24,347 ) -5.3 % Basic loss per share: Before discontinued operations $ (2.02 ) $ (2.22 ) Net loss $ (2.02 ) $ (2.23 ) Diluted loss per share: Before discontinued operations $ (2.02 ) $ (2.22 ) Net loss $ (2.02 ) $ (2.23 ) Weighted-average shares outstanding: Basic 10,495 10,930 Diluted 10,495 10,930 (1) Includes a $1.6 million gross margin charge related to a distribution model transition in Genesco Brands Group in the first quarter of Fiscal 2025. (2) Includes a $0.3 million charge in the first quarter of Fiscal 2026 for severance. Includes a $0.6 million charge in the first quarter of Fiscal 2025 which includes $0.3 million for severance and $0.3 million for asset impairments. GENESCO INC. Sales/Earnings Summary by Segment (in thousands) (Unaudited) Quarter 1 Quarter 1 May 3, % of May 4, % of 2025 Net Sales 2024 Net Sales Sales: Journeys Group $ 272,634 57.5 % $ 259,445 56.7 % Schuh Group 95,915 20.2 % 92,349 20.2 % Johnston & Murphy Group 76,839 16.2 % 79,207 17.3 % Genesco Brands Group 28,585 6.0 % 26,596 5.8 % Net Sales $ 473,973 100.0 % $ 457,597 100.0 % Operating income (loss): Journeys Group $ (15,283 ) -5.6 % $ (18,822 ) -7.3 % Schuh Group (6,131 ) -6.4 % (5,896 ) -6.4 % Johnston & Murphy Group 500 0.7 % 2,355 3.0 % Genesco Brands Group(1) 698 2.4 % (986 ) -3.7 % Corporate and Other(2) (7,929 ) -1.7 % (8,779 ) -1.9 % Operating loss (28,145 ) -5.9 % (32,128 ) -7.0 % Other components of net periodic benefit cost 180 0.0 % 109 0.0 % Interest expense, net 1,339 0.3 % 890 0.2 % Loss from continuing operations before income taxes (29,664 ) -6.3 % (33,127 ) -7.2 % Income tax benefit (8,452 ) -1.8 % (8,839 ) -1.9 % Loss from continuing operations (21,212 ) -4.5 % (24,288 ) -5.3 % Loss from discontinued operations, net of tax (15 ) 0.0 % (59 ) 0.0 % Net Loss $ (21,227 ) -4.5 % $ (24,347 ) -5.3 % (1) Includes a $1.6 million gross margin charge related to a distribution model transition in Genesco Brands Group in the first quarter of Fiscal 2025. (2) Includes a $0.3 million charge in the first quarter of Fiscal 2026 for severance. Includes a $0.6 million charge in the first quarter of Fiscal 2025 which includes $0.3 million for severance and $0.3 million for asset impairments. GENESCO INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) May 3, 2025 May 4, 2024 Assets Cash $ 21,748 $ 19,247 Accounts receivable 52,815 50,119 Inventories 450,829 392,671 Other current assets(1) 107,922 46,003 Total current assets 633,314 508,040 Property and equipment 236,909 233,601 Operating lease right of use assets 472,091 420,133 Goodwill and other intangibles 36,857 36,331 Non-current prepaid income taxes - 57,441 Other non-current assets 25,420 51,871 Total Assets $ 1,404,591 $ 1,307,417 Liabilities and Equity Accounts payable $ 122,166 $ 108,847 Current portion long-term debt 7,299 - Current portion operating lease liabilities 126,954 125,450 Other current liabilities 74,504 73,888 Total current liabilities 330,923 308,185 Long-term debt 113,733 59,444 Long-term operating lease liabilities 389,384 345,670 Other long-term liabilities 48,319 45,665 Equity 522,232 548,453 Total Liabilities and Equity $ 1,404,591 $ 1,307,417 (1) Includes prepaid income taxes of $74.8 million at May 3, 2025 and $17.3 million at May 4, 2024. GENESCO INC. Store Count Activity Balance Balance Balance 02/03/24 Open Close 02/01/25 Open Close 05/03/25 Journeys Group 1,063 7 64 1,006 2 19 989 Schuh Group 122 4 2 124 0 3 121 Johnston & Murphy Group 156 1 9 148 2 4 146 Total Retail Stores 1,341 12 75 1,278 4 26 1,256 GENESCO INC. Comparable Sales Quarter 1 May 3, May 4, 2025 2024 Journeys Group 8% -5% Schuh Group 1% -7% Johnston & Murphy Group -2% -3% Total Comparable Sales 5% -5% Same Store Sales 5% -7% Comparable E-commerce Sales 7% 3% Schedule B Genesco Inc. Adjustments to Reported Loss from Continuing Operations Three Months Ended May 3, 2025 and May 4, 2024 The Company believes that disclosure of earnings (loss) and earnings (loss) per share from continuing operations and operating income (loss) adjusted for the items not reflected in the previously announced expectations will be meaningful to investors, especially in light of the impact of such items on the results. Quarter 1 Quarter 1 May 3, 2025 May 4, 2024 Net of Per Share Net of Per Share In Thousands (except per share amounts) Pretax Tax Amounts Pretax Tax Amounts Loss from continuing operations, as reported $ (21,212 ) ($2.02 ) $ (24,288 ) ($2.22 ) Gross margin adjustment: Charges related to distribution model transition $ - - 0.00 $ 1,581 1,151 0.10 Asset impairments and other adjustments: Asset impairment charges $ 34 24 0.00 $ 244 178 0.02 Severance 257 185 0.02 334 243 0.02 Total asset impairments and other adjustments $ 291 209 0.02 $ 578 421 0.04 Income tax expense adjustments: Tax impact share based awards 139 0.01 130 0.01 Other tax items (666 ) (0.06 ) (345 ) (0.03 ) Total income tax expense adjustments (527 ) (0.05 ) (215 ) (0.02 ) Adjusted loss from continuing operations (1) and (2) $ (21,530 ) ($2.05 ) $ (22,931 ) ($2.10 ) (1) The adjusted tax rate for the first quarter of Fiscal 2026 and 2025 is 26.7% and 26.0%, respectively. (2) EPS reflects 10.5 million and 10.9 million share count for the first quarter of Fiscal 2026 and 2025, respectively, which excludes common stock equivalents in both periods due to the loss from continuing operations. Genesco Inc. Adjustments to Reported Operating Income (Loss) and Gross Margin Three Months Ended May 3, 2025 and May 4, 2024 Quarter 1 - May 3, 2025 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (15,283 ) $ - $ (15,283 ) Schuh Group (6,131 ) - (6,131 ) Johnston & Murphy Group 500 - 500 Genesco Brands Group 698 - 698 Corporate and Other (7,929 ) 291 (7,638 ) Total Operating Loss $ (28,145 ) $ 291 $ (27,854 ) % of sales -5.9 % -5.9 % Depreciation and amortization 13,393 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) $ (14,461 ) % of sales -3.1 % Quarter 1 - May 4, 2024 Operating Asset Impair Adj Operating In Thousands Income (Loss) & Other Adj Income (Loss) Journeys Group $ (18,822 ) $ - $ (18,822 ) Schuh Group (5,896 ) - (5,896 ) Johnston & Murphy Group 2,355 - 2,355 Genesco Brands Group (986 ) 1,581 595 Corporate and Other (8,779 ) 578 (8,201 ) Total Operating Loss $ (32,128 ) $ 2,159 $ (29,969 ) % of sales -7.0 % -6.5 % Depreciation and amortization 13,237 Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) $ (16,732 ) % of sales -3.7 % (1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations. Quarter 1 In Thousands May 3, 2025 May 4, 2024 Gross margin, as reported $ 221,181 $ 216,281 % of sales 46.7 % 47.3 % Charges related to distribution model transition - 1,581 Total adjustments - 1,581 Adjusted gross margin $ 221,181 $ 217,862 % of sales 46.7 % 47.6 % Schedule B Genesco Inc. Adjustments to Forecasted Earnings from Continuing Operations Fiscal Year Ending January 31, 2026 In millions (except per share amounts) High Guidance Low Guidance Fiscal 2026 Fiscal 2026 Net of Tax Per Share Net of Tax Per Share Forecasted earnings from continuing operations $ 17.0 $ 1.61 $ 12.5 $ 1.17 Asset impairments and other adjustments: Asset impairments and other matters 1.0 0.09 1.3 0.13 Total asset impairments and other adjustments (1) 1.0 0.09 1.3 0.13 Adjusted forecasted earnings from continuing operations (2) $ 18.0 $ 1.70 $ 13.8 $ 1.30 (1) All adjustments are net of tax where applicable. The forecasted tax rate for Fiscal 2026 is approximately 29%. (2) EPS reflects 10.6 million share count for Fiscal 2026 which includes common stock equivalents. This reconciliation reflects estimates and current expectations of future results. Actual results may vary materially from these expectations and estimates, for reasons including those included in the discussion of forward-looking statements elsewhere in this release. The Company disclaims any obligation to update such expectations and estimates. View source version on Contacts Genesco Financial Contact Sandra Harris, SVP Finance, Chief Financial Officer(615) 367-7578 / SHarris2@ Genesco Media Contact Claire S. McCall, Director, Corporate Relations(615) 367-8283 / cmccall@
