Latest news with #Journeys
Fibre2Fashion
4 days ago
- Business
- Fibre2Fashion
American retailer Genesco raises FY26 sales outlook to 1â2% growth
American footwear retailer Genesco expects total sales to increase by 1 to 2 per cent in fiscal 2026 (FY26), up from the previous forecast of flat to 1 per cent growth, due to favourable foreign exchange impacts. The company also narrowed its comparable sales growth outlook to 2 to 3 per cent, compared to the earlier range of 2 to 4 per cent. Genesco expects FY26 sales to rise 1â€'2 per cent, up from its prior flat to 1 per cent forecast. In Q1 FY26, net sales grew 4 per cent to $474 million, driven by 5 per cent comparable sales growth. Journeys, Schuh, and Genesco Brands saw gains, offsetting a decline at Johnston & Murphy. The company reaffirmed its full-year EPS guidance of $1.30â€'$1.70 despite tariff-related uncertainty. Net sales for the first quarter (Q1) of FY26 increased 4 per cent to $474 million compared to $458 million in the first quarter of fiscal 2025. The net sales increase reflects a 5 per cent growth in comparable sales, including a 7 per cent rise in e-commerce comparable sales and a 5 per cent increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings. The overall sales increase of 4 per cent for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 was driven by an increase of 5 per cent at Journeys, an increase of 4 per cent at Schuh and a 7 per cent increase at Genesco Brands, partially offset by a decrease of 3 per cent at Johnston & Murphy. On a constant currency basis, Schuh sales were up 1 per cent for the first quarter this year, the company said in a press release. The company reported a gross margin of 46.7 per cent for Q1, down from 47.3 per cent a year earlier. On an adjusted basis, the gross margin declined by 90 basis points from 47.6 per cent last year, primarily due to changes in brand mix at Journeys and Schuh, increased promotional activity at Schuh, and lower margins at Genesco Brands linked to product liquidations from discontinued licences. Selling and administrative expenses improved to 52.5 per cent of sales, down 170 basis points from the prior year, reflecting reduced occupancy costs, lower performance-based compensation, and ongoing cost-saving initiatives. The company posted a GAAP operating loss of $28.1 million, or 5.9 per cent of sales, compared to a loss of $32.1 million, or 7 per cent, in the same period last year. On an adjusted basis, the operating loss narrowed to $27.9 million from $30 million, with the adjusted operating margin improving to -5.9 per cent from -6.5 per cent year-on-year. It reported a GAAP loss from continuing operations of $21.2 million in Q1, an improvement from the $24.3 million loss recorded in the same period last year. On an adjusted basis, the Q1 loss totalled $21.5 million, or $2.05 per share, compared to $22.9 million, or $2.10 per share, in Q1 FY25. The effective tax rate for the quarter rose to 28.5 per cent from 26.7 per cent last year. Excluding one-time items, the adjusted tax rate was 26.7 per cent, up from 26 per cent in the prior-year period. '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 optimisation initiatives, helped drive a nice year-over-year improvement in operating income,' Mimi E Vaughn, Genesco's board chair, president and chief executive officer , 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,' Vaughn continued.
Yahoo
4 days ago
- Business
- Yahoo
Truist Raises Genesco Inc. (GCO)'s Price Target by $2
Truist has raised its price target on Genesco Inc. (NYSE:GCO) from $23 to $25, while maintaining a Hold rating on the stock. A model wearing the newest apparel and accessories from the company, showcasing their up-to-date fashion sense. This comes after Genesco Inc. (NYSE:GCO) reported strong first-quarter results and maintained its full-year profits per share target, despite the company's current tariff implications. Investors can take confidence from its Journeys brand's excellent momentum. The company listed a few difficulties, such as select price increases that are expected later in the year and possible impacts on the gross margin from sourcing and efficiency initiatives. The way that customers will react to these changes is unclear, though. Although Truist is upbeat about the Journeys brand's development, it is nonetheless wary of the macroeconomic conditions and potential changes in consumer demand. While we acknowledge the potential of GCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
New Paper
5 days ago
- Sport
- New Paper
Persons with disabilities to take part in 2025 StanChart Marathon alongside able-bodied participants
In a push for inclusivity, the 2025 Standard Chartered Singapore Marathon (SCSM) will feature persons with disabilities (PWDs) alongside able-bodied participants, as part of an initiative titled One Race, Many Journeys. The initiative was launched at The Westin Singapore on June 4 in celebration of it being the official elite hotel for the SCSM for the third straight year, with the hotel pledging to help PWDs achieve their sporting goals at Singapore's biggest marathon. This is not the first time that the SCSM will see participation of PWDs, with wheelchair users having already featured previously. In 2018, it introduced an elite wheelchair racing category, which was also included in 2019. James Walkden, general manager of The Westin Singapore, said: "This year, we wanted to do more to support the community and encourage more people to get involved. Therefore, we came up with the One Race, Many Journeys initiative to demonstrate that there are many ways to get to one destination and there is no one correct answer." Selected PWDs will receive complimentary entry to the category of their choice at this year's SCSM, those being the 5km, 10km, half-marathon or marathon categories. Showing their support at the launch were American former Paralympic champion swimmer Gregory Burns and Australian ultramarathoner Natalie Dau, both of whom are based in Singapore and ambassadors of The Westin Singapore. Natalie Dau (left) and Gregory Burns (right) are both ambassadors for The Westin Singapore. PHOTO: LIANHE ZAOBAO Burns, who has been living in Singapore for the past 30 years, believes the initiative will help change public perception of PWDs in wider society. "When I came here in 1995, there were much fewer physically challenged people out and about. But in 30 years, the physical infrastructure has got better," said the 68-year-old, a three-time Paralympian with five medals (two golds, two silvers, one bronze). "Singapore has developed and grown as a compassionate society and the SCSM is yet another way to show that these physically challenged people are out and about and we all can make the best of what we do." Burns, who is also a passionate artist, unveiled an artwork he had been working on for the past month in support of the initiative. The artwork, named Runners, is a hybrid media piece that combines digital art with contemporary painting techniques. "This is a collage painting and it's (also) a collage of a race of different people with different abilities and disabilities," he said. Dau, who completed the second iteration of Project 1000 in May, this time running 1,000km through the Philippines over 12 days, encouraged those participating in the SCSM to be more actively inclusive. Dau, 53, said: "There's still a big gap between the people that are starting and the people that may be a bit more experienced and I think what we've been missing in Singapore is real inclusivity and the community coming together." "Try to mend your passion with purpose. If you have the opportunity to run the marathon for something bigger than yourself, make the most of that," she added. "A lot of us don't have friends with disabilities, so if you are running next to someone who is not able-bodied, then have a chat (with them) and welcome them into the community." After the event launch, both Burns and Dau went for a short 2.4km run with members of the public. PHOTO: LIANHE ZAOBAO The 2025 SCSM will take place on Dec 6 and 7. Registration is open till Nov 30, or until all slots are sold out. The 2024 edition drew about 55,000 runners over three days, including close to 13,000 international participants from 84 countries.
Yahoo
5 days ago
- Business
- Yahoo
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
Yahoo
6 days ago
- Business
- Yahoo
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
