Financial News
Genesco Inc. Reports Fiscal 2026 Second Quarter Results
--Top and Bottom-line Results Exceed Expectations--
--Journeys Comparable Sales Increased 9%, Overall Comparable Sales Increased 4%--
--Fourth Consecutive Quarter of Positive Comparable Sales Growth--
--Raises Full Year Sales Outlook--
Genesco Inc. (NYSE: GCO) today reported second quarter results for the three months ended August 2, 2025.
Second Quarter Fiscal 2026 Financial Summary
- Net sales of $546 million increased 4% compared to Q2FY25
- Comparable sales increased 4%, with stores up 5% and e-commerce up 1%
- E-commerce sales represented 22% of retail sales
- GAAP EPS was ($1.79) and Non-GAAP EPS was ($1.14)1 versus GAAP EPS of ($0.91) and Non-GAAP EPS of ($0.83) last year
Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, said, "We are pleased to report another quarter that exceeded expectations and our fourth consecutive quarter of positive comparable sales growth. The momentum from the second half of last year has continued in Fiscal 2026 highlighted by Journeys high-single digit comp increase as our strategic plan to accelerate growth continues to gain traction. Our focus on product elevation, enhanced customer experience, and strengthened brand positioning is resonating with our broader target teen customer base, as we outperform the market and drive increased share.”
Vaughn continued, "Back to school is off to a very good start in the third quarter with Journeys comping nicely positive on the positive comps for the same period last year. While near-term uncertainty around tariff rates and consumer demand remains elevated, we are encouraged by our recent performance as we prepare for the start of the upcoming holiday season. I am confident in our ability to navigate the current environment and build on our momentum.”
__________________________ |
1 Excludes charges for severance, net of tax effect and the tax impact of the One Big Beautiful Bill Act (“OBBBA”) in the second 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, "With Journeys strong performance year-to-date, we are raising our full year revenue outlook. The increased top-line and corresponding leverage are allowing us to offset additional pressure on gross margins from higher tariffs and a very promotional U.K. marketplace, and reiterate our full year adjusted EPS guidance of $1.30 to $1.70.”
Second Quarter Review
Net sales for the second quarter of Fiscal 2026 increased 4% to $546 million compared to $525 million in the second quarter of Fiscal 2025. The net sales increase reflects a 4% increase in comparable sales, including a 5% increase in same store sales and a 1% increase in e-commerce comparable sales, and a favorable foreign exchange impact, partially offset by the impact of net store closings.
Comparable Sales |
||
|
|
|
Comparable Same Store and E-commerce Sales: |
2QFY26 |
2QFY25 |
Journeys Group |
9% |
(1)% |
Schuh Group |
(4)% |
(2)% |
Johnston & Murphy Group |
1% |
(5)% |
Total Genesco Comparable Sales |
4% |
(2)% |
Same Store Sales |
5% |
(4)% |
Comparable E-commerce Sales |
1% |
8% |
The overall sales increase of 4% for the second quarter of Fiscal 2026 compared to the second quarter of Fiscal 2025 was driven by an increase of 6% at Journeys, an increase of 2% at Schuh and a 5% increase at Genesco Brands, partially offset by a decrease of 3% at Johnston & Murphy. On a constant currency basis, Schuh sales were down 4% for the second quarter this year.
Gross margin for the second quarter this year was 45.8% compared to 46.8% last year. The 100 basis point decrease in gross margin as a percentage of sales compared to Fiscal 2025 is due primarily to increased promotional activity at Schuh and lower margins at Genesco Brands related to the exit of licenses and the impact from tariffs, partially offset by increased margins at Johnston & Murphy reflecting price increases and lower retail markdowns as well as improved costs from sourcing optimization.
Selling and administrative expenses for the second quarter this year of 48.4% decreased 20 basis points as a percentage of sales from 48.6% last year primarily reflecting decreased occupancy and other expenses, partially offset by increased marketing expense and an unfavorable comparison to a credit for certain non-income taxes last year.
Genesco’s GAAP operating loss for the second quarter was $14.4 million, or 2.6% of sales this year, compared with a loss of $10.3 million, or 2.0% of sales in the second quarter last year. Adjusted for the Excluded Items in the second quarters of both Fiscal 2026 and 2025, the operating loss for the second quarter was $14.3 million this year compared to a loss of $9.3 million last year. Adjusted operating margin was a loss of 2.6% of sales in the second quarter of Fiscal 2026 compared to a loss of 1.8% in the second quarter last year.
The effective tax rate for the quarter was -15.0% in Fiscal 2026 compared to 15.2% in the second quarter last year. The adjusted tax rate, reflecting Excluded Items, was 26.5% in Fiscal 2026 compared to 15.1% in the second quarter last year. The higher adjusted tax rate for the second quarter this year compared to the second quarter last year reflects a higher expected tax rate for Fiscal 2026 versus Fiscal 2025 due to the impact of the valuation allowance in certain jurisdictions. The divergence between the effective tax rate and the adjusted tax rate is due to income tax law changes under the OBBBA that we have excluded from the adjusted tax rate.
GAAP loss from continuing operations was $18.5 million in the second quarter of Fiscal 2026 compared to a loss of $9.9 million in the second quarter last year. Adjusted for the Excluded Items, the second quarter loss from continuing operations was $11.7 million, or $1.14 per share, in Fiscal 2026, compared to a loss of $9.1 million, or $0.83 per share, in the second quarter last year.
Cash, Borrowings and Inventory
Cash as of August 2, 2025 was $41.0 million, compared with $45.9 million as of August 3, 2024. Total debt at the end of the second quarter of Fiscal 2026 was $71.0 million compared with $77.8 million at the end of last year’s second quarter. Inventories increased 11% on a year-over-year basis, reflecting increased inventory at Journeys, Schuh and Johnston & Murphy, partially offset by decreased inventory at Genesco Brands.
Capital Expenditures and Store Activity
For the second quarter this year, capital expenditures were $15 million, related primarily to retail stores and other initiatives. Depreciation and amortization was $13 million. During the quarter, the Company opened nine stores and closed 12 stores. The Company ended the quarter with 1,253 stores compared with 1,314 stores at the end of the second quarter last year, or a decrease of 5%. Square footage was down 3% on a year-over-year basis.
Share Repurchases
The Company did not repurchase any shares during the second 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
- Now expects total sales to be up 3% to 4% compared to Fiscal 2025 with comparable sales range up 4% to 5%, up from prior guidance for total sales to be up 1% to 2% and comparable sales up 2% to 3%.
- Guidance assumes no further share repurchases and a tax rate of 29% excluding the tax impact of OBBBA
__________________________ |
2 A 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 second quarter results on its website, www.genesco.com, in the investor relations section. The Company's live conference call on August 28, 2025, at 7:30 a.m. (Central time), may be accessed through the Company's website, www.genesco.com. To listen live, please go to the website at least 15 minutes early to register, download and install any necessary software.
Genesco to Present at the Goldman Sachs 32nd Annual Global Retailing Conference
As previously announced, Genesco’s management team will present at the Goldman Sachs 32nd Annual Global Retailing Conference on Thursday, September 4, 2025 at 8:55 a.m. (Eastern Time). The audio portion of the presentation will be webcast live and may be accessed through the Company's internet website, http://www.genesco.com. To listen, 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 (including the timing and amount thereof) 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; 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; changes in tax laws and tax rates and 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, www.sec.gov, or by contacting the investor relations department of Genesco via the Company’s website, www.genesco.com. 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 inspired by youth culture in the U.S., Canada and the U.K. Johnston & Murphy serves the successful, affluent men and women 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 Wrangler, Dockers, Starter and PONY. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit www.genesco.com.
| GENESCO INC. | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| Quarter 2 | Quarter 2 | ||||||||||
Aug. 2, |
% of |
Aug. 3, |
% of |
||||||||
|
2025 |
Net Sales |
|
2024 |
Net Sales |
||||||
| Net sales | $ |
545,965 |
|
100.0% |
$ |
525,188 |
|
100.0% |
|||
| Cost of sales |
|
296,016 |
|
54.2% |
|
279,549 |
|
53.2% |
|||
| Gross margin(1) |
|
249,949 |
|
45.8% |
|
245,639 |
|
46.8% |
|||
| Selling and administrative expenses |
|
264,265 |
|
48.4% |
|
255,135 |
|
48.6% |
|||
| Asset impairments and other, net(2) |
|
124 |
|
0.0% |
|
778 |
|
0.1% |
|||
| Operating loss |
|
(14,440 |
) |
-2.6% |
|
(10,274 |
) |
-2.0% |
|||
| Other components of net periodic benefit cost |
|
148 |
|
0.0% |
|
86 |
|
0.0% |
|||
| Interest expense, net |
|
1,459 |
|
0.3% |
|
1,345 |
|
0.3% |
|||
| Loss from continuing operations before | |||||||||||
| income taxes |
|
(16,047 |
) |
-2.9% |
|
(11,705 |
) |
-2.2% |
|||
| Income tax expense (benefit) |
|
2,409 |
|
0.4% |
|
(1,776 |
) |
-0.3% |
|||
| Loss from continuing operations |
|
(18,456 |
) |
-3.4% |
|
(9,929 |
) |
-1.9% |
|||
| Loss from discontinued operations, net of tax |
|
(15 |
) |
0.0% |
|
(63 |
) |
0.0% |
|||
| Net Loss | $ |
(18,471 |
) |
-3.4% |
$ |
(9,992 |
) |
-1.9% |
|||
| Basic loss per share: | |||||||||||
| Before discontinued operations | $ |
(1.79 |
) |
$ |
(0.91 |
) |
|||||
| Net loss | $ |
(1.79 |
) |
$ |
(0.91 |
) |
|||||
| Diluted loss per share: | |||||||||||
| Before discontinued operations | $ |
(1.79 |
) |
$ |
(0.91 |
) |
|||||
| Net loss | $ |
(1.79 |
) |
$ |
(0.91 |
) |
|||||
| Weighted-average shares outstanding: | |||||||||||
| Basic |
|
10,294 |
|
|
10,942 |
|
|||||
| Diluted |
|
10,294 |
|
|
10,942 |
|
|||||
| (1) Includes a $0.2 million gross margin charge in the second quarter of Fiscal 2025 related to a distribution model transition in Genesco Brands Group. | |||||||||||
| (2) Includes a $0.1 million charge in the second quarter of Fiscal 2026 for severance. Includes a $0.8 million charge in the second quarter of Fiscal 2025 which includes $0.7 million for severance and $0.1 million for asset impairments. | |||||||||||
| GENESCO INC. | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| Six Months Ended | Six Months Ended | ||||||||||
Aug. 2, |
% of |
Aug. 3, |
% of |
||||||||
|
2025 |
Net Sales |
|
2024 |
Net Sales |
||||||
| Net sales | $ |
1,019,938 |
|
100.0% |
$ |
982,785 |
|
100.0% |
|||
| Cost of sales |
|
548,808 |
|
53.8% |
|
520,865 |
|
53.0% |
|||
| Gross margin(1) |
|
471,130 |
|
46.2% |
|
461,920 |
|
47.0% |
|||
| Selling and administrative expenses |
|
513,300 |
|
50.3% |
|
502,966 |
|
51.2% |
|||
| Asset impairments and other, net(2) |
|
415 |
|
0.0% |
|
1,356 |
|
0.1% |
|||
| Operating loss |
|
(42,585 |
) |
-4.2% |
|
(42,402 |
) |
-4.3% |
|||
| Other components of net periodic benefit cost |
|
328 |
|
0.0% |
|
195 |
|
0.0% |
|||
| Interest expense, net |
|
2,798 |
|
0.3% |
|
2,235 |
|
0.2% |
|||
| Loss from continuing operations before | |||||||||||
| income taxes |
|
(45,711 |
) |
-4.5% |
|
(44,832 |
) |
-4.6% |
|||
| Income tax benefit |
|
(6,043 |
) |
-0.6% |
|
(10,615 |
) |
-1.1% |
|||
| Loss from continuing operations |
|
(39,668 |
) |
-3.9% |
|
(34,217 |
) |
-3.5% |
|||
| Loss from discontinued operations, net of tax |
|
(30 |
) |
0.0% |
|
(122 |
) |
0.0% |
|||
| Net Loss | $ |
(39,698 |
) |
-3.9% |
$ |
(34,339 |
) |
-3.5% |
|||
| Basic loss per share: | |||||||||||
| Before discontinued operations | $ |
(3.82 |
) |
$ |
(3.13 |
) |
|||||
| Net loss | $ |
(3.82 |
) |
$ |
(3.14 |
) |
|||||
| Diluted loss per share: | |||||||||||
| Before discontinued operations | $ |
(3.82 |
) |
$ |
(3.13 |
) |
|||||
| Net loss | $ |
(3.82 |
) |
$ |
(3.14 |
) |
|||||
| Weighted-average shares outstanding: | |||||||||||
| Basic |
|
10,394 |
|
|
10,936 |
|
|||||
| Diluted |
|
10,394 |
|
|
10,936 |
|
|||||
(1) |
Includes a $1.8 million gross margin charge in the first six months of Fiscal 2025 related to a distribution model transition in Genesco Brands Group. | ||||||||||
(2) |
Includes a $0.4 million charge in the first six months of Fiscal 2026 for severance. Includes a $1.4 million charge in the first six months of Fiscal 2025 which includes $1.0 million for severance and $0.4 million for asset impairments. | ||||||||||
| GENESCO INC. | |||||||||||
| Sales/Earnings Summary by Segment | |||||||||||
| (in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Quarter 2 | Quarter 2 | ||||||||||
Aug. 2, |
% of |
Aug. 3, |
% of |
||||||||
|
2025 |
Net Sales |
|
2024 |
Net Sales |
||||||
| Sales: | |||||||||||
| Journeys Group | $ |
318,189 |
|
58.3% |
$ |
298,846 |
|
56.9% |
|||
| Schuh Group |
|
126,595 |
|
23.2% |
|
124,561 |
|
23.7% |
|||
| Johnston & Murphy Group |
|
68,789 |
|
12.6% |
|
71,037 |
|
13.5% |
|||
| Genesco Brands Group |
|
32,392 |
|
5.9% |
|
30,744 |
|
5.9% |
|||
| Net Sales | $ |
545,965 |
|
100.0% |
$ |
525,188 |
|
100.0% |
|||
| Operating Income (Loss): | |||||||||||
| Journeys Group | $ |
(4,999 |
) |
-1.6% |
$ |
(11,151 |
) |
-3.7% |
|||
| Schuh Group |
|
(11 |
) |
0.0% |
|
7,339 |
|
5.9% |
|||
| Johnston & Murphy Group |
|
(1,782 |
) |
-2.6% |
|
(403 |
) |
-0.6% |
|||
| Genesco Brands Group(1) |
|
653 |
|
2.0% |
|
2,672 |
|
8.7% |
|||
| Corporate and Other(2) |
|
(8,301 |
) |
-1.5% |
|
(8,731 |
) |
-1.7% |
|||
| Operating loss |
|
(14,440 |
) |
-2.6% |
|
(10,274 |
) |
-2.0% |
|||
| Other components of net periodic benefit cost |
|
148 |
|
0.0% |
|
86 |
|
0.0% |
|||
| Interest, net |
|
1,459 |
|
0.3% |
|
1,345 |
|
0.3% |
|||
| Loss from continuing operations before | |||||||||||
| income taxes |
|
(16,047 |
) |
-2.9% |
|
(11,705 |
) |
-2.2% |
|||
| Income tax expense (benefit) |
|
2,409 |
|
0.4% |
|
(1,776 |
) |
-0.3% |
|||
| Loss from continuing operations |
|
(18,456 |
) |
-3.4% |
|
(9,929 |
) |
-1.9% |
|||
| Loss from discontinued operations, net of tax |
|
(15 |
) |
0.0% |
|
(63 |
) |
0.0% |
|||
| Net Loss | $ |
(18,471 |
) |
-3.4% |
$ |
(9,992 |
) |
-1.9% |
|||
(1) |
Includes a $0.2 million gross margin charge in the second quarter of Fiscal 2025 related to a distribution model transition in Genesco Brands Group. | ||||||||||
(2) |
Includes a $0.1 million charge in the second quarter of Fiscal 2026 for severance. Includes a $0.8 million charge in the second quarter of Fiscal 2025 which includes $0.7 million for severance and $0.1 million for asset impairments. | ||||||||||
| GENESCO INC. | |||||||||||
| Sales/Earnings Summary by Segment | |||||||||||
| (in thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Six Months Ended | Six Months Ended | ||||||||||
Aug. 2, |
% of |
Aug. 3, |
% of |
||||||||
|
2025 |
Net Sales |
|
2024 |
Net Sales |
||||||
| Sales: | |||||||||||
| Journeys Group | $ |
590,823 |
|
57.9% |
$ |
558,291 |
|
56.8% |
|||
| Schuh Group |
|
222,510 |
|
21.8% |
|
216,910 |
|
22.1% |
|||
| Johnston & Murphy Group |
|
145,628 |
|
14.3% |
|
150,244 |
|
15.3% |
|||
| Genesco Brands Group |
|
60,977 |
|
6.0% |
|
57,340 |
|
5.8% |
|||
| Net Sales | $ |
1,019,938 |
|
100.0% |
$ |
982,785 |
|
100.0% |
|||
| Operating Income (Loss): | |||||||||||
| Journeys Group | $ |
(20,282 |
) |
-3.4% |
$ |
(29,973 |
) |
-5.4% |
|||
| Schuh Group |
|
(6,142 |
) |
-2.8% |
|
1,443 |
|
0.7% |
|||
| Johnston & Murphy Group |
|
(1,282 |
) |
-0.9% |
|
1,952 |
|
1.3% |
|||
| Genesco Brands Group(1) |
|
1,351 |
|
2.2% |
|
1,686 |
|
2.9% |
|||
| Corporate and Other(2) |
|
(16,230 |
) |
-1.6% |
|
(17,510 |
) |
-1.8% |
|||
| Operating loss |
|
(42,585 |
) |
-4.2% |
|
(42,402 |
) |
-4.3% |
|||
| Other components of net periodic benefit cost |
|
328 |
|
0.0% |
|
195 |
|
0.0% |
|||
| Interest, net |
|
2,798 |
|
0.3% |
|
2,235 |
|
0.2% |
|||
| Loss from continuing operations before | |||||||||||
| income taxes |
|
(45,711 |
) |
-4.5% |
|
(44,832 |
) |
-4.6% |
|||
| Income tax benefit |
|
(6,043 |
) |
-0.6% |
|
(10,615 |
) |
-1.1% |
|||
| Loss from continuing operations |
|
(39,668 |
) |
-3.9% |
|
(34,217 |
) |
-3.5% |
|||
| Loss from discontinued operations, net of tax |
|
(30 |
) |
0.0% |
|
(122 |
) |
0.0% |
|||
| Net Loss | $ |
(39,698 |
) |
-3.9% |
$ |
(34,339 |
) |
-3.5% |
|||
(1) |
Includes a $1.8 million gross margin charge in the first six months of Fiscal 2025 related to a distribution model transition in Genesco Brands Group. | ||||||||||
(2) |
Includes a $0.4 million charge in the first six months of Fiscal 2026 for severance. Includes a $1.4 million charge in the first six months of Fiscal 2025 which includes $1.0 million for severance and $0.4 million for asset impairments. | ||||||||||
| GENESCO INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (Unaudited) | ||||||||
Aug. 2, 2025 |
Aug. 3, 2024 |
|||||||
| Assets | ||||||||
| Cash | $ |
40,989 |
$ |
45,855 |
||||
| Accounts receivable |
|
54,322 |
|
57,497 |
||||
| Inventories |
|
501,008 |
|
450,187 |
||||
| Other current assets |
|
49,572 |
|
53,181 |
||||
| Total current assets |
|
645,891 |
|
606,720 |
||||
| Property and equipment |
|
238,626 |
|
229,116 |
||||
| Operating lease right of use assets |
|
475,221 |
|
402,715 |
||||
| Goodwill and other intangibles |
|
36,744 |
|
36,446 |
||||
| Non-current prepaid income taxes |
|
- |
|
58,051 |
||||
| Other non-current assets |
|
25,443 |
|
50,703 |
||||
| Total Assets | $ |
1,421,925 |
$ |
1,383,751 |
||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ |
193,016 |
$ |
187,439 |
||||
| Current portion long-term debt |
|
13,275 |
|
- |
||||
| Current portion operating lease liabilities |
|
123,106 |
|
122,527 |
||||
| Other current liabilities |
|
84,958 |
|
85,697 |
||||
| Total current liabilities |
|
414,355 |
|
395,663 |
||||
| Long-term debt |
|
57,677 |
|
77,839 |
||||
| Long-term operating lease liabilities |
|
395,186 |
|
329,773 |
||||
| Other long-term liabilities |
|
48,335 |
|
47,854 |
||||
| Equity |
|
506,372 |
|
532,622 |
||||
| Total Liabilities and Equity | $ |
1,421,925 |
$ |
1,383,751 |
||||
| GENESCO INC. | |||||||||||
| Store Count Activity | |||||||||||
Balance |
|
|
|
Balance |
|
|
|
|
Balance |
||
02/03/24 |
Open |
Close |
|
02/01/25 |
|
Open |
Close |
|
08/02/25 |
||
| Journeys Group | 1,063 |
7 |
64 |
1,006 |
6 |
28 |
984 |
||||
| Schuh Group | 122 |
4 |
2 |
124 |
1 |
5 |
120 |
||||
| Johnston & Murphy Group | 156 |
1 |
9 |
148 |
6 |
5 |
149 |
||||
| Total Retail Stores | 1,341 |
12 |
75 |
1,278 |
13 |
38 |
1,253 |
||||
| GENESCO INC. | ||||||
| Store Count Activity | ||||||
Balance |
|
|
|
Balance |
||
05/03/25 |
Open |
Close |
|
08/02/25 |
||
| Journeys Group | 989 |
4 |
9 |
984 |
||
| Schuh Group | 121 |
1 |
2 |
120 |
||
| Johnston & Murphy Group | 146 |
4 |
1 |
149 |
||
| Total Retail Stores | 1,256 |
9 |
12 |
1,253 |
||
| GENESCO INC. | ||||||||||
| Comparable Sales | ||||||||||
| Quarter 2 | Six Months | |||||||||
Aug. 2, |
|
Aug. 3, |
|
|
Aug. 2, |
|
Aug. 3, |
|||
2025 |
|
2024 |
|
|
2025 |
|
2024 |
|||
| Journeys Group | 9% |
-1% |
9% |
-3% |
||||||
| Schuh Group | -4% |
-2% |
-2% |
-4% |
||||||
| Johnston & Murphy Group | 1% |
-5% |
0% |
-4% |
||||||
| Total Comparable Sales | 4% |
-2% |
5% |
-3% |
||||||
| Same Store Sales | 5% |
-4% |
5% |
-6% |
||||||
| Comparable E-commerce Sales | 1% |
8% |
4% |
6% |
||||||
Schedule B |
|||||||||||||||||||
| Genesco Inc. | |||||||||||||||||||
| Adjustments to Reported Loss from Continuing Operations | |||||||||||||||||||
| Three Months Ended August 2, 2025 and August 3, 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 2 | Quarter 2 | ||||||||||||||||||
| August 2, 2025 | August 3, 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 | $ |
(18,456 |
) |
($ |
1.79 |
) |
$ |
(9,929 |
) |
($ |
0.91 |
) |
|||||||
| Gross margin adjustment: | |||||||||||||||||||
| Charges related to distribution model transition | $ |
- |
|
- |
|
|
0.00 |
|
$ |
169 |
|
176 |
|
|
0.02 |
|
|||
| Asset impairments and other adjustments: | |||||||||||||||||||
| Asset impairment charges | $ |
- |
|
- |
|
|
0.00 |
|
$ |
116 |
|
95 |
|
|
0.01 |
|
|||
| Severance |
|
124 |
|
88 |
|
|
0.00 |
|
|
662 |
|
512 |
|
|
0.05 |
|
|||
| Total asset impairments and other adjustments | $ |
124 |
|
88 |
|
|
0.00 |
|
$ |
778 |
|
607 |
|
|
0.06 |
|
|||
| Income tax expense adjustments: | |||||||||||||||||||
| Tax impact share based awards |
|
(139 |
) |
|
(0.01 |
) |
|
592 |
|
|
0.05 |
|
|||||||
| One big beautiful bill impact |
|
6,849 |
|
|
0.66 |
|
|
- |
|
|
0.00 |
|
|||||||
| Other tax items |
|
(50 |
) |
|
0.00 |
|
|
(577 |
) |
|
(0.05 |
) |
|||||||
| Total income tax expense adjustments |
|
6,660 |
|
|
0.65 |
|
|
15 |
|
|
0.00 |
|
|||||||
| Adjusted loss from continuing operations (1) and (2) | $ |
(11,708 |
) |
($ |
1.14 |
) |
$ |
(9,131 |
) |
($ |
0.83 |
) |
|||||||
| (1) The adjusted tax rate for the second quarter of Fiscal 2026 and 2025 is 26.5% and 15.1%, respectively. | |||||||||||||||||||
| (2) EPS reflects 10.3 million and 10.9 million share count for the second 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 August 2, 2025 and August 3, 2024 | |||||||||
| Quarter 2 - August 2, 2025 | |||||||||
| Operating | Asset Impair | Adj Operating | |||||||
| In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||
| Journeys Group | $ |
(4,999 |
) |
$ |
- |
$ |
(4,999 |
) |
|
| Schuh Group |
|
(11 |
) |
|
- |
|
(11 |
) |
|
| Johnston & Murphy Group |
|
(1,782 |
) |
|
- |
|
(1,782 |
) |
|
| Genesco Brands Group |
|
653 |
|
|
- |
|
653 |
|
|
| Corporate and Other |
|
(8,301 |
) |
|
124 |
|
(8,177 |
) |
|
| Total Operating Loss | $ |
(14,440 |
) |
$ |
124 |
$ |
(14,316 |
) |
|
| % of sales |
|
-2.6 |
% |
|
-2.6 |
% |
|||
| Depreciation and amortization |
|
13,474 |
|
||||||
| Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ |
(842 |
) |
||||||
| % of sales |
|
-0.2 |
% |
||||||
| Quarter 2 - August 3, 2024 | |||||||||
| Operating | Asset Impair | Adj Operating | |||||||
| In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||
| Journeys Group | $ |
(11,151 |
) |
$ |
- |
$ |
(11,151 |
) |
|
| Schuh Group |
|
7,339 |
|
|
- |
|
7,339 |
|
|
| Johnston & Murphy Group |
|
(403 |
) |
|
- |
|
(403 |
) |
|
| Genesco Brands Group |
|
2,672 |
|
|
169 |
|
2,841 |
|
|
| Corporate and Other |
|
(8,731 |
) |
|
778 |
|
(7,953 |
) |
|
| Total Operating Loss | $ |
(10,274 |
) |
$ |
947 |
$ |
(9,327 |
) |
|
| % of sales |
|
-2.0 |
% |
|
-1.8 |
% |
|||
| Depreciation and amortization |
|
13,169 |
|
||||||
| Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ |
3,842 |
|
||||||
| % of sales |
|
0.7 |
% |
||||||
| (1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations. | |||||||||
| Quarter 2 | |||||||
| In Thousands | August 2, 2025 | August 3, 2024 | |||||
| Gross margin, as reported | $ |
249,949 |
|
$ |
245,639 |
|
|
| % of sales |
|
45.8 |
% |
|
46.8 |
% |
|
| Charges related to distribution model transition |
|
- |
|
|
169 |
|
|
| Total adjustments |
|
- |
|
|
169 |
|
|
| Adjusted gross margin | $ |
249,949 |
|
$ |
245,808 |
|
|
| % of sales |
|
45.8 |
% |
|
46.8 |
% |
|
Schedule B |
||||||||||||||||||
| Genesco Inc. | ||||||||||||||||||
| Adjustments to Reported Loss from Continuing Operations | ||||||||||||||||||
| Six Months Ended August 2, 2025 and August 3, 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. | ||||||||||||||||||
| Six Months | Six Months | |||||||||||||||||
| August 2, 2025 | August 3, 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 | $ |
(39,668 |
) |
($ |
3.82 |
) |
$ |
(34,217 |
) |
($ |
3.13 |
) |
||||||
| Gross margin adjustment: | ||||||||||||||||||
| Charges related to distribution model transition | $ |
- |
|
- |
|
|
0.00 |
|
$ |
1,750 |
|
1,327 |
|
|
0.12 |
|
||
| Asset impairments and other adjustments: | ||||||||||||||||||
| Asset impairment charges | $ |
34 |
|
24 |
|
|
0.00 |
|
$ |
360 |
|
273 |
|
|
0.02 |
|
||
| Severance |
|
381 |
|
273 |
|
|
0.03 |
|
|
996 |
|
755 |
|
|
0.07 |
|
||
| Total asset impairments and other adjustments | $ |
415 |
|
297 |
|
|
0.03 |
|
$ |
1,356 |
|
1,028 |
|
|
0.09 |
|
||
| Income tax expense adjustments: | ||||||||||||||||||
| Tax impact share based awards |
|
- |
|
|
0.00 |
|
|
722 |
|
|
0.07 |
|
||||||
| One big beautiful bill impact |
|
6,849 |
|
|
0.66 |
|
|
- |
|
|
0.00 |
|
||||||
| Other tax items |
|
(716 |
) |
|
(0.07 |
) |
|
(922 |
) |
|
(0.08 |
) |
||||||
| Total income tax expense adjustments |
|
6,133 |
|
|
0.59 |
|
|
(200 |
) |
|
(0.01 |
) |
||||||
| Adjusted loss from continuing operations (1) and (2) | $ |
(33,238 |
) |
($ |
3.20 |
) |
$ |
(32,062 |
) |
($ |
2.93 |
) |
||||||
| (1) The adjusted tax rate for the first six months of Fiscal 2026 and 2025 is 26.6% and 23.2%, respectively. | ||||||||||||||||||
| (2) EPS reflects 10.4 million and 10.9 million share count for the first six months 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 | |||||||||
| Six Months Ended August 2, 2025 and August 3, 2024 | |||||||||
| Six Months - August 2, 2025 | |||||||||
| Operating | Asset Impair | Adj Operating | |||||||
| In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||
| Journeys Group | $ |
(20,282 |
) |
$ |
- |
$ |
(20,282 |
) |
|
| Schuh Group |
|
(6,142 |
) |
|
- |
|
(6,142 |
) |
|
| Johnston & Murphy Group |
|
(1,282 |
) |
|
- |
|
(1,282 |
) |
|
| Genesco Brands Group |
|
1,351 |
|
|
- |
|
1,351 |
|
|
| Corporate and Other |
|
(16,230 |
) |
|
415 |
|
(15,815 |
) |
|
| Total Operating Loss | $ |
(42,585 |
) |
$ |
415 |
$ |
(42,170 |
) |
|
| % of sales |
|
-4.2 |
% |
|
-4.1 |
% |
|||
| Depreciation and amortization |
|
26,867 |
|
||||||
| Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ |
(15,303 |
) |
||||||
| % of sales |
|
-1.5 |
% |
||||||
| Six Months - August 3, 2024 | |||||||||
| Operating | Asset Impair | Adj Operating | |||||||
| In Thousands | Income (Loss) | & Other Adj | Income (Loss) | ||||||
| Journeys Group | $ |
(29,973 |
) |
$ |
- |
$ |
(29,973 |
) |
|
| Schuh Group |
|
1,443 |
|
|
- |
|
1,443 |
|
|
| Johnston & Murphy Group |
|
1,952 |
|
|
- |
|
1,952 |
|
|
| Genesco Brands Group |
|
1,686 |
|
|
1,750 |
|
3,436 |
|
|
| Corporate and Other |
|
(17,510 |
) |
|
1,356 |
|
(16,154 |
) |
|
| Total Operating Loss | $ |
(42,402 |
) |
$ |
3,106 |
$ |
(39,296 |
) |
|
| % of sales |
|
-4.3 |
% |
|
-4.0 |
% |
|||
| Depreciation and amortization |
|
26,406 |
|
||||||
| Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) | $ |
(12,890 |
) |
||||||
| % of sales |
|
-1.3 |
% |
||||||
| (1) Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations. | |||||||||
| Six Months | |||||||
| In Thousands | August 2, 2025 | August 3, 2024 | |||||
| Gross margin, as reported | $ |
471,130 |
|
$ |
461,920 |
|
|
| % of sales |
|
46.2 |
% |
|
47.0 |
% |
|
| Charges related to distribution model transition |
|
- |
|
|
1,750 |
|
|
| Total adjustments |
|
- |
|
|
1,750 |
|
|
| Adjusted gross margin | $ |
471,130 |
|
$ |
463,670 |
|
|
| % of sales |
|
46.2 |
% |
|
47.2 |
% |
|
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 | $ |
17.1 |
$ |
1.62 |
$ |
12.6 |
$ |
1.19 |
||
| Asset impairments and other adjustments: | ||||||||||
| Asset impairments and other matters |
|
0.8 |
|
0.08 |
|
1.2 |
|
0.11 |
||
| Total asset impairments and other adjustments (1) |
|
0.8 |
|
0.08 |
|
1.2 |
|
0.11 |
||
| Adjusted forecasted earnings from continuing operations (2) | $ |
17.9 |
$ |
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 businesswire.com: https://www.businesswire.com/news/home/20250827319372/en/
Contacts
Genesco Financial Contact
Sandra Harris, SVP Finance, Chief Financial Officer
(615) 367-7578 / SHarris2@genesco.com
Genesco Media Contact
Claire S. McCall, Director, Corporate Relations
(615) 367-8283 / cmccall@genesco.com
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