Genesco (NYSE: GCO) lifts EPS outlook on Q1 gains and $40–50M cost plan
Rhea-AI Filing Summary
Genesco Inc. reported stronger fiscal 2027 first-quarter results, with net sales rising to $487 million, up 3% from a year ago, and total comparable sales up 2%, marking a seventh straight quarter of positive comps.
Gross margin improved to 47.0%, up 30 basis points, while GAAP operating loss narrowed to $15.4 million (from $28.1 million). GAAP EPS was ($1.42) and non-GAAP EPS was ($2.18), better than last year’s ($2.02) GAAP and ($2.05) non-GAAP losses.
Journeys and Johnston & Murphy led growth with comparable sales gains of 5% and 7%, respectively. Genesco announced a new cost savings program targeting $40 to $50 million through Fiscal 2029 and raised its full-year adjusted EPS outlook to a range of $2.00 to $2.40 from $1.90 to $2.30, while also highlighting expected tariff refunds of $23 to $25 million that are excluded from current results and guidance.
Positive
- Raised full-year EPS outlook: Adjusted diluted EPS guidance increased to a range of $2.00 to $2.40 from $1.90 to $2.30, reflecting a better-than-expected start to Fiscal 2027.
- New cost savings program: The company introduced a cost reduction initiative expected to generate $40 to $50 million in savings through Fiscal 2029, supporting operating margin expansion.
- Improving profitability trend: GAAP operating loss narrowed to $15.4 million from $28.1 million, and adjusted operating margin improved by 100 basis points despite continued net losses.
Negative
- None.
Insights
Genesco delivered better sales, margin and EPS, raised guidance, and added a sizable new cost savings program.
Genesco grew Q1 fiscal 2027 net sales 3% to $487 million with total comparable sales up 2%. Gross margin reached 47.0%, 30 basis points higher year over year, and adjusted operating loss improved to $23.9 million from $27.9 million, reflecting better profitability.
Segment trends were mixed but generally favorable. Journeys sales increased 5% and Johnston & Murphy 6%, while Schuh declined 5% (down 9% in constant currency). Store rationalization continued, with 30 closures and only two openings, reducing the store base to 1,208 locations and helping cost leverage.
Management raised full-year adjusted EPS guidance to $2.00 to $2.40 from $1.90 to $2.30 and launched a new cost reduction program targeting $40 to $50 million by Fiscal 2029. Expected tariff refunds of $23 to $25 million are excluded from current results and outlook, so any realization would be incremental to the guidance trajectory.
8-K Event Classification
Key Figures
Key Terms
non-GAAP financial measures financial
comparable sales financial
adjusted operating margin financial
tariff refunds financial
One Big Beautiful Bill Act regulatory
payment card interchange fee litigation financial
Earnings Snapshot
For fiscal 2027, adjusted diluted EPS from continuing operations is now expected in the range of $2.00 to $2.40, up from the prior $1.90 to $2.30 range, with comparable sales growth of 1% to 2%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 29, 2026, Genesco Inc. issued a press release announcing results of operations for the first fiscal quarter ended May 2, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
On May 29, 2026, the Company also posted on its website, www.genesco.com, a slide presentation with summary results. A copy of the slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.
In addition to disclosing financial results calculated in accordance with United States generally accepted accounting principles (GAAP), the press release furnished herewith contains non-GAAP financial measures, including adjusted gross margin, selling and administrative expenses, operating income (loss), pretax earnings (loss), earnings (loss) from continuing operations and earnings (loss) per share from continuing operations, as discussed in the text of the release and as detailed on the reconciliation schedule attached to the press release. For consistency and ease of comparison with the adjusted results for the prior period announced last year, the Company believes that disclosure of the non-GAAP measures will be useful to investors.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
The following exhibits are furnished herewith:
Exhibit Number |
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Description |
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99.1 |
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Press Release issued by Genesco Inc. on May 29, 2026 |
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99.2 |
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Genesco Inc. First Quarter ended May 2, 2026 Summary Results |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GENESCO INC. |
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Date: May 29, 2026 |
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By: |
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/s/ Mimi E. Vaughn |
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Name: |
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Mimi E. Vaughn |
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Title: |
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Board Chair, President, Chief Executive Officer and Interim Chief Financial Officer |
Exhibit 99.1
GENESCO INC. REPORTS FISCAL 2027 FIRST QUARTER RESULTS
--Sales and Bottom Line Improvement Exceed Expectations--
-- Journeys Comparable Sales +5%, Johnston & Murphy Comparable Sales +7%--
--Seventh Consecutive Quarter of Positive Total Comparable Sales Growth--
--Announces New $40 to $50 million Cost Savings Program--
--Raises Full Year EPS Outlook Range to $2.00 to $2.40--
NASHVILLE, Tenn., May 29, 2026 --- Genesco Inc. (NYSE: GCO) today reported first quarter results for the three months ended May 2, 2026.
First Quarter Fiscal 2027 Financial Summary
Mimi E. Vaughn, Genesco’s Board Chair, President, Chief Executive Officer and Interim Chief Financial Officer, said, “After a strong finish to Fiscal 2026, we are pleased to report a solid start to Fiscal 2027, delivering our seventh consecutive quarter of positive comparable sales and first quarter results that exceeded expectations across the board. The execution of our strategic initiatives continues to translate into tangible results. Journeys’ comparable sales grew mid-single-digits on top of a high-single-digit gain last year, as our work around product elevation and customer experience continues to drive market share gains. At the same time, Johnston & Murphy’s comparable sales accelerated sharply, increasing high-single-digits, while Schuh’s comparable sales performance reflects our decision to pull back on promotions and prioritize a more full-price selling model.”
Vaughn continued, “With the better than expected start, we are raising our full-year adjusted EPS outlook to $2.00 to $2.40. We are creating meaningful value through our strategic growth plan and operational execution. Across our portfolio, we’re seeing encouraging progress and momentum as our top-line initiatives gain traction, which along with disciplined expense management and a new cost savings program are establishing a more profitable, higher-quality business for the near and longer-term.”
__________________________
1Non-GAAP earnings per share (“EPS”) is a non-GAAP measure. Non-GAAP EPS excludes (i) a gross margin gain for a reversal of an inventory write-down related to license exits in Genesco Brands Group, net of tax effect, in the first quarter of Fiscal 2027, and (ii) a gain related to payment card interchange fee litigation, partially offset by charges for store restructuring, costs associated with information technology transformation, severance and professional fees related to shareholder activities, net of tax effect, in the first quarter of Fiscal 2027 and a charge for severance, net of tax effect, in the first quarter of Fiscal 2026 (“the 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.
2 The effective tax rate for the first quarter was 6.8% in Fiscal 2027 compared to 28.5% in the first quarter last year. The adjusted tax rate, reflecting Excluded Items, was 6.9% in Fiscal 2027 compared to 26.7% in the first quarter last year.
First Quarter Review
Net sales for the first quarter of Fiscal 2027 increased 3% to $487 million compared to $474 million in the first quarter of Fiscal 2026. The net sales increase reflects a 2% increase in comparable sales, including a 3% increase in same store sales, other non-comp gains and a favorable foreign exchange impact, partially offset by the impact of net store closings.
Comparable Sales |
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Comparable Same Store and E-commerce Sales: |
1QFY27 |
1QFY26 |
Journeys Group |
5% |
8% |
Schuh Group |
(9)% |
1% |
Johnston & Murphy Group |
7% |
(2)% |
Total Genesco Comparable Sales |
2% |
5% |
Same Store Sales |
3% |
5% |
Comparable E-commerce Sales |
0% |
7% |
The overall sales increase of 3% for the first quarter of Fiscal 2027 compared to the first quarter of Fiscal 2026 was driven by an increase of 5% at Journeys, an increase of 6% at Johnston & Murphy and a 4% increase at Genesco Brands, partially offset by a decrease of 5% at Schuh. On a constant currency basis, Schuh sales were down 9% for the first quarter this year.
Gross margin for the first quarter this year of 47.0% increased 30 basis points as a percentage of sales compared to 46.7% last year. The increase as a percentage of sales compared to Fiscal 2026 is due primarily to efficiencies in shipping and warehouse costs and less promotional activity across our businesses, partially offset by changes in brand mix at Journeys and Schuh.
Selling and administrative expenses improved to 52.2% compared to 52.5% last year. Adjusted selling and administrative expenses for the first quarter this year of 51.9% improved 60 basis points as a percentage of sales compared with last year primarily reflecting decreased selling salaries, occupancy, freight and warehouse expenses as well as ongoing cost savings initiatives, partially offset by increased performance-based incentive compensation expenses and investments in marketing.
Genesco’s GAAP operating loss for the first quarter was $15.4 million, or 3.2% of sales this year, compared with a loss of $28.1 million, or 5.9% of sales in the first quarter last year. Adjusted for the Excluded Items in the first quarters of both Fiscal 2027 and Fiscal 2026, the operating loss for the first quarter was $23.9 million this year compared to a loss of $27.9 million last year. Adjusted operating margin was a loss of 4.9% of sales in the first quarter of Fiscal 2027 compared to a loss of 5.9% in the first quarter last year.
The effective tax rate for the first quarter was 6.8% in Fiscal 2027 compared to 28.5% in the first quarter last year. The adjusted tax rate, reflecting Excluded Items, was 6.9% in Fiscal 2027 compared to 26.7% in the first quarter last year. The lower adjusted tax rate for the first quarter of Fiscal 2027 compared to the first quarter last year primarily reflects a lower expected tax rate for Fiscal 2027 versus Fiscal 2026 due to the impact of the valuation allowance in certain jurisdictions combined with the income tax law changes from the One Big Beautiful Bill Act (“OBBBA”).
GAAP loss from continuing operations was $14.8 million in the first quarter of Fiscal 2027 compared to a loss of $21.2 million in the first quarter last year. Adjusted for the Excluded Items, the first quarter loss from continuing operations was $22.7 million, or $2.18 per share, in Fiscal 2027, compared to a loss of $21.5 million, or $2.05 per share, in the first quarter last year.
Tariff Refunds
The Company is expecting refunds under the International Emergency Economic Powers Act of approximately $23 to $25 million related to its branded businesses, for which it has already applied but which are not included in the financials this quarter. In addition, the tariff refunds are not included in the Company’s guidance for the remainder of the year.
Cost Savings Program
In connection with its IT Transformation and programs to drive automation, operating efficiencies and spend optimization, the Company is announcing a new cost reduction program which is expected to generate cost savings of $40 to $50 million between now and Fiscal 2029. This program is aimed at structurally reducing the cost base, continued investment in growth initiatives, further supporting operating margin expansion and continued utilization of AI capabilities which unlock additional opportunities.
Cash, Borrowings and Inventory
Cash as of May 2, 2026, was $27.1 million, compared with $21.7 million as of May 3, 2025. Total debt at the end of the first quarter of Fiscal 2027 was $45.3 million compared with $121.0 million at the end of last year’s first quarter. Inventories increased 6% on a year-over-year basis primarily reflecting increased inventory for Journeys, partially offset by decreased inventory at Genesco Brands.
Capital Expenditures and Store Activity
For the first quarter this year, capital expenditures were $15 million, related primarily to retail stores. Depreciation and amortization was $13 million. During the quarter, the Company opened two stores and closed 30 stores. The Company ended the quarter with 1,208 stores compared with 1,256 stores at the end of the first quarter last year, or a decrease of 4%. Square footage was down 4% on a year-over-year basis.
Share Repurchases
The Company did not repurchase any shares during the first quarter of Fiscal 2027. The Company currently has $29.8 million remaining on its expanded share repurchase authorization announced in June 2023, after repurchasing 604,531 shares during Fiscal 2026. The Company continues to view share repurchases as an important component of its balanced capital allocation strategy and is committed to deploying excess capital.
Fiscal 2027 Outlook
Vaughn concluded, “We have clear plans in place to drive continued improvement in Fiscal 2027. Our top-line guidance reflects another year of overall positive comparable sales growth, offset by store closures and license transitions in our branded footwear group. The projected increase in our bottom line is being driven by another year of increased profitability at Journeys and improvement at Johnston & Murphy. We also expect higher gross margins, primarily at Schuh, as we reduce the business’ dependency on promotions and focus on returning to a full price, full margin sales model.”
For Fiscal 2027, the Company:
__________________________
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, www.genesco.com, in the investor relations section. The Company's
live conference call on May 29, 2026, 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.
Safe Harbor Statement
This release contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, tariff refunds, 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, e-commerce and shopping mall traffic, the imposition of tariffs (including the timing and amount thereof) on products imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the amount and timing of any tariff refunds; 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 of consumer spending on our merchandise and interest in our brands and in general; 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 near crucial trade routes; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; a disruption in shipping or increase in cost of our imported products, and other factors affecting the cost of products; our dependence on third-party vendors and licensors for the products we sell;
store closures and effects on the business as a result of civil disturbances; our ability to renew our license agreements; impacts of the ongoing geopolitical conflicts around the world including, without limitation, the conflict with Iran; and other sources of market weakness in the locations in which we operate; the effectiveness of the Company's omnichannel initiatives; costs associated with shareholder
activism; costs associated with changes in minimum wage and overtime requirements; wage pressures; labor shortages; the effects of inflation; the evolving regulatory landscape related to our use of social media; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets, including trends with respect to the popularity of casual and dress footwear; any failure to increase sales at our existing stores, given our high fixed expense cost structure, and in our e -commerce businesses; risks related to the potential for terrorist events; changes in buying patterns by significant wholesale customers; changes in consumer preferences; our ability to continue to complete and integrate acquisitions; our ability to expand our business and diversify our product base; impairment of goodwill in connection with acquisitions; payment related risks that could increase our operating cost, expose us to fraud or theft, subject us to potential liability and disrupt our business; 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 and savings in connection with the restructuring of the Company’s information technology functions; the amount and timing of share repurchases; our ability to make our occupancy costs more variable; 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 or as the result of the restructuring of the Company’s information technology functions; 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 first 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 1,200 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 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 and Starter. Founded in 1924, Genesco is based in Nashville, Tennessee. For more information on Genesco and its operating divisions, please visit www.genesco.com.
Genesco Financial Contact
Darryl MacQuarrie, Senior Director, FP&A & Investor Relations
(615) 308-5629 / dmacquarrie@genesco.com
Genesco Media Contact
Claire S. McCall, Director, Corporate Relations
(615) 308-2483 / cmccall@genesco.com
GENESCO INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
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Quarter 1 |
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Quarter 1 |
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May 2, |
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% of |
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May 3, |
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% of |
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Net sales |
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$ |
487,025 |
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100.0 |
% |
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$ |
473,973 |
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100.0 |
% |
Cost of sales |
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258,106 |
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53.0 |
% |
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252,792 |
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53.3 |
% |
Gross margin(1) |
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228,919 |
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47.0 |
% |
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221,181 |
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46.7 |
% |
Selling and administrative expenses(2) |
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254,403 |
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52.2 |
% |
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249,035 |
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52.5 |
% |
Asset impairments and other, net(3) |
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(10,107 |
) |
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-2.1 |
% |
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291 |
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0.1 |
% |
Operating loss |
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(15,377 |
) |
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-3.2 |
% |
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(28,145 |
) |
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-5.9 |
% |
Other components of net periodic benefit cost |
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|
237 |
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|
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0.0 |
% |
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|
180 |
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|
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0.0 |
% |
Interest expense, net |
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|
265 |
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|
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0.1 |
% |
|
|
1,339 |
|
|
|
0.3 |
% |
Loss from continuing operations before income taxes |
|
|
(15,879 |
) |
|
|
-3.3 |
% |
|
|
(29,664 |
) |
|
|
-6.3 |
% |
Income tax benefit |
|
|
(1,073 |
) |
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|
-0.2 |
% |
|
|
(8,452 |
) |
|
|
-1.8 |
% |
Loss from continuing operations |
|
|
(14,806 |
) |
|
|
-3.0 |
% |
|
|
(21,212 |
) |
|
|
-4.5 |
% |
Loss from discontinued operations, net of tax |
|
|
(8 |
) |
|
|
0.0 |
% |
|
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(15 |
) |
|
|
0.0 |
% |
Net Loss |
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$ |
(14,814 |
) |
|
|
-3.0 |
% |
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$ |
(21,227 |
) |
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-4.5 |
% |
Basic loss per share: |
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||||
Before discontinued operations |
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$ |
(1.42 |
) |
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$ |
(2.02 |
) |
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Net loss |
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$ |
(1.42 |
) |
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$ |
(2.02 |
) |
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Diluted loss per share: |
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Before discontinued operations |
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$ |
(1.42 |
) |
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$ |
(2.02 |
) |
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Net loss |
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$ |
(1.42 |
) |
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|
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$ |
(2.02 |
) |
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Weighted-average shares outstanding: |
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||||
Basic |
|
|
10,428 |
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|
|
|
|
|
10,495 |
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|
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||
Diluted |
|
|
10,428 |
|
|
|
|
|
|
10,495 |
|
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GENESCO INC.
Sales/Earnings Summary by Segment
(in thousands)
(Unaudited)
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Quarter 1 |
|
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Quarter 1 |
|
||||||||||
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May 2, |
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% of |
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May 3, |
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% of |
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Sales: |
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|
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|
|
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Journeys Group |
|
$ |
285,323 |
|
|
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58.6 |
% |
|
$ |
272,634 |
|
|
|
57.5 |
% |
Schuh Group |
|
|
90,702 |
|
|
|
18.6 |
% |
|
|
95,915 |
|
|
|
20.2 |
% |
Johnston & Murphy Group |
|
|
81,310 |
|
|
|
16.7 |
% |
|
|
76,839 |
|
|
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16.2 |
% |
Genesco Brands Group |
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29,690 |
|
|
|
6.1 |
% |
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28,585 |
|
|
|
6.0 |
% |
Net Sales |
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$ |
487,025 |
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|
|
100.0 |
% |
|
$ |
473,973 |
|
|
|
100.0 |
% |
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Journeys Group |
|
$ |
(11,555 |
) |
|
|
-4.0 |
% |
|
$ |
(15,283 |
) |
|
|
-5.6 |
% |
Schuh Group(1) |
|
|
(6,987 |
) |
|
|
-7.7 |
% |
|
|
(6,131 |
) |
|
|
-6.4 |
% |
Johnston & Murphy Group |
|
|
1,507 |
|
|
|
1.9 |
% |
|
|
500 |
|
|
|
0.7 |
% |
Genesco Brands Group(2) |
|
|
1,162 |
|
|
|
3.9 |
% |
|
|
698 |
|
|
|
2.4 |
% |
Corporate and Other(3) |
|
|
496 |
|
|
|
0.1 |
% |
|
|
(7,929 |
) |
|
|
-1.7 |
% |
Operating loss |
|
|
(15,377 |
) |
|
|
-3.2 |
% |
|
|
(28,145 |
) |
|
|
-5.9 |
% |
Other components of net periodic benefit cost |
|
|
237 |
|
|
|
0.0 |
% |
|
|
180 |
|
|
|
0.0 |
% |
Interest expense, net |
|
|
265 |
|
|
|
0.1 |
% |
|
|
1,339 |
|
|
|
0.3 |
% |
Loss from continuing operations before income taxes |
|
|
(15,879 |
) |
|
|
-3.3 |
% |
|
|
(29,664 |
) |
|
|
-6.3 |
% |
Income tax benefit |
|
|
(1,073 |
) |
|
|
-0.2 |
% |
|
|
(8,452 |
) |
|
|
-1.8 |
% |
Loss from continuing operations |
|
|
(14,806 |
) |
|
|
-3.0 |
% |
|
|
(21,212 |
) |
|
|
-4.5 |
% |
Loss from discontinued operations, net of tax |
|
|
(8 |
) |
|
|
0.0 |
% |
|
|
(15 |
) |
|
|
0.0 |
% |
Net Loss |
|
$ |
(14,814 |
) |
|
|
-3.0 |
% |
|
$ |
(21,227 |
) |
|
|
-4.5 |
% |
GENESCO INC.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
May 2, 2026 |
|
|
May 3, 2025 |
|
||
Assets |
|
|
|
|
|
||
Cash and cash equivalents |
$ |
27,122 |
|
|
$ |
21,748 |
|
Accounts receivable |
|
47,694 |
|
|
|
52,815 |
|
Inventories |
|
476,853 |
|
|
|
450,829 |
|
Other current assets(1) |
|
44,109 |
|
|
|
107,922 |
|
Total current assets |
|
595,778 |
|
|
|
633,314 |
|
Property and equipment |
|
239,701 |
|
|
|
236,909 |
|
Operating lease right of use assets |
|
485,669 |
|
|
|
472,091 |
|
Goodwill and other intangibles |
|
37,011 |
|
|
|
36,857 |
|
Other non-current assets |
|
25,870 |
|
|
|
25,420 |
|
Total Assets |
$ |
1,384,029 |
|
|
$ |
1,404,591 |
|
|
|
|
|
|
|
||
Liabilities and Equity |
|
|
|
|
|
||
Accounts payable |
$ |
129,033 |
|
|
$ |
122,166 |
|
Current portion long-term debt |
|
— |
|
|
|
7,299 |
|
Current portion operating lease liabilities |
|
115,773 |
|
|
|
126,954 |
|
Other current liabilities |
|
80,054 |
|
|
|
74,504 |
|
Total current liabilities |
|
324,860 |
|
|
|
330,923 |
|
Long-term debt |
|
45,346 |
|
|
|
113,733 |
|
Long-term operating lease liabilities |
|
414,604 |
|
|
|
389,384 |
|
Other long-term liabilities |
|
46,782 |
|
|
|
48,319 |
|
Equity |
|
552,437 |
|
|
|
522,232 |
|
Total Liabilities and Equity |
$ |
1,384,029 |
|
|
$ |
1,404,591 |
|
GENESCO INC.
Store Count Activity
|
Balance |
|
Open |
|
Close |
|
Balance |
|
Open |
|
Close |
|
Balance |
|
|||||||
Journeys Group |
|
1,006 |
|
|
8 |
|
|
49 |
|
|
965 |
|
|
0 |
|
|
25 |
|
|
940 |
|
Schuh Group |
|
124 |
|
|
1 |
|
|
7 |
|
|
118 |
|
|
1 |
|
|
5 |
|
|
114 |
|
Johnston & Murphy Group |
|
148 |
|
|
14 |
|
|
9 |
|
|
153 |
|
|
1 |
|
|
0 |
|
|
154 |
|
Total Retail Stores |
|
1,278 |
|
|
23 |
|
|
65 |
|
|
1,236 |
|
|
2 |
|
|
30 |
|
|
1,208 |
|
GENESCO INC.
Comparable Sales
|
Quarter 1 |
|
||||
|
May 2, |
|
May 3, |
|
||
Journeys Group |
|
5 |
% |
|
8 |
% |
Schuh Group |
|
-9 |
% |
|
1 |
% |
Johnston & Murphy Group |
|
7 |
% |
|
-2 |
% |
Total Comparable Sales |
|
2 |
% |
|
5 |
% |
Same Store Sales |
|
3 |
% |
|
5 |
% |
Comparable E-commerce Sales |
|
0 |
% |
|
7 |
% |
Schedule B
Genesco Inc.
Adjustments to Reported Loss from Continuing Operations
Three Months Ended May 2, 2026 and May 3, 2025
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 2, 2026 |
|
|
May 3, 2025 |
|
||||||||||||||
In Thousands (except per share amounts) |
Pretax |
|
Net of |
|
Per Share |
|
|
Pretax |
|
Net of |
|
Per Share |
|
||||||
Loss from continuing operations, as reported |
|
|
$ |
(14,806 |
) |
$ |
(1.42 |
) |
|
|
|
$ |
(21,212 |
) |
$ |
(2.02 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gross margin adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reversal of inventory write-down related to exit of licenses |
$ |
(84 |
) |
|
(78 |
) |
|
(0.01 |
) |
|
$ |
— |
|
|
— |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selling and administrative expense adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs associated with information technology transformation |
$ |
1,698 |
|
|
1,578 |
|
|
0.15 |
|
|
$ |
— |
|
|
— |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset impairments and other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Asset impairment charges |
$ |
— |
|
|
— |
|
|
0.00 |
|
|
$ |
34 |
|
|
24 |
|
|
0.00 |
|
Severance |
|
90 |
|
|
84 |
|
|
0.01 |
|
|
|
257 |
|
|
185 |
|
|
0.02 |
|
Costs associated with information technology transformation |
|
198 |
|
|
184 |
|
|
0.02 |
|
|
|
— |
|
|
— |
|
|
0.00 |
|
Gain related to payment card interchange fee litigation |
|
(13,425 |
) |
|
(12,474 |
) |
|
(1.20 |
) |
|
|
— |
|
|
— |
|
|
0.00 |
|
Store restructuring charges |
|
2,970 |
|
|
2,768 |
|
|
0.27 |
|
|
|
— |
|
|
— |
|
|
0.00 |
|
Professional fees related to shareholder activities |
|
60 |
|
|
56 |
|
|
0.00 |
|
|
|
— |
|
|
— |
|
|
0.00 |
|
Total asset impairments and other adjustments |
$ |
(10,107 |
) |
|
(9,382 |
) |
|
(0.90 |
) |
|
$ |
291 |
|
|
209 |
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income tax expense adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Tax impact share based awards |
|
|
|
— |
|
|
0.00 |
|
|
|
|
|
139 |
|
|
0.01 |
|
||
Other tax items |
|
|
|
(7 |
) |
|
0.00 |
|
|
|
|
|
(666 |
) |
|
(0.06 |
) |
||
Total income tax expense adjustments |
|
|
|
(7 |
) |
|
0.00 |
|
|
|
|
|
(527 |
) |
|
(0.05 |
) |
||
Adjusted loss from continuing operations (1) and (2) |
|
|
$ |
(22,695 |
) |
|
(2.18 |
) |
|
|
|
$ |
(21,530 |
) |
|
(2.05 |
) |
||
Schedule B
Genesco Inc.
Adjustments to Reported Operating Income (Loss)
Three Months Ended May 2, 2026 and May 3, 2025
|
Quarter 1 - May 2, 2026 |
|
|||||||
In Thousands |
Operating |
|
Asset Impair |
|
Adj Operating |
|
|||
Journeys Group |
$ |
(11,555 |
) |
$ |
— |
|
$ |
(11,555 |
) |
Schuh Group |
|
(6,987 |
) |
|
289 |
|
|
(6,698 |
) |
Johnston & Murphy Group |
|
1,507 |
|
|
— |
|
|
1,507 |
|
Genesco Brands Group |
|
1,162 |
|
|
(84 |
) |
|
1,078 |
|
Corporate and Other |
|
496 |
|
|
(8,698 |
) |
|
(8,202 |
) |
Total Operating Loss |
$ |
(15,377 |
) |
$ |
(8,493 |
) |
$ |
(23,870 |
) |
% of sales |
|
-3.2 |
% |
|
|
|
-4.9 |
% |
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
|
13,247 |
|
||
Adjusted loss before interest, taxes, depreciation and amortization ("EBITDA")(1) |
|
$ |
(10,623 |
) |
|||||
% of sales |
|
|
|
|
|
-2.2 |
% |
||
|
Quarter 1 - May 3, 2025 |
|
|||||||
In Thousands |
Operating |
|
Asset Impair |
|
Adj Operating |
|
|||
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 |
% |
||
(1)Excludes "Other components of net periodic benefit cost" line item on the Consolidated Statements of Operations.
Schedule B
Genesco Inc.
Adjustments to Reported Gross Margin and Selling and Administrative Expenses
Three Months Ended May 2, 2026 and May 3, 2025
|
Quarter 1 |
|
||||
In Thousands |
May 2, 2026 |
|
May 3, 2025 |
|
||
Gross margin, as reported |
$ |
228,919 |
|
$ |
221,181 |
|
% of sales |
|
47.0 |
% |
|
46.7 |
% |
|
|
|
|
|
||
Reversal of inventory write-down related to exit of licenses |
|
(84 |
) |
|
— |
|
Total adjustments |
|
(84 |
) |
|
— |
|
|
|
|
|
|
||
Adjusted gross margin |
$ |
228,835 |
|
$ |
221,181 |
|
% of sales |
|
47.0 |
% |
|
46.7 |
% |
|
Quarter 1 |
|
||||
In Thousands |
May 2, 2026 |
|
May 3, 2025 |
|
||
Selling and administrative expenses, as reported |
$ |
254,403 |
|
$ |
249,035 |
|
% of sales |
|
52.2 |
% |
|
52.5 |
% |
|
|
|
|
|
||
Costs associated with information technology transformation |
|
(1,698 |
) |
|
— |
|
Total adjustments |
|
(1,698 |
) |
|
— |
|
|
|
|
|
|
||
Adjusted selling and administrative expenses |
$ |
252,705 |
|
$ |
249,035 |
|
% of sales |
|
51.9 |
% |
|
52.5 |
% |
Schedule B
Genesco Inc.
Adjustments to Forecasted Earnings from Continuing Operations
Fiscal Year Ending January 30, 2027
In millions (except per share amounts) |
|
High Guidance |
|
|
Low Guidance |
|
||||||||||
|
|
Net of Tax |
|
|
Per Share |
|
|
Net of Tax |
|
|
Per Share |
|
||||
Forecasted earnings from continuing operations |
|
$ |
29.8 |
|
|
$ |
2.75 |
|
|
$ |
25.1 |
|
|
$ |
2.32 |
|
Asset impairments and other adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Asset impairments and other matters |
|
5.6 |
|
|
0.52 |
|
|
|
6.0 |
|
|
0.55 |
|
|||
Gain related to payment card interchange fee litigation |
|
|
(9.4 |
) |
|
|
(0.87 |
) |
|
|
(9.4 |
) |
|
|
(0.87 |
) |
Total asset impairments and other adjustments (1) |
|
|
(3.8 |
) |
|
|
(0.35 |
) |
|
|
(3.4 |
) |
|
|
(0.32 |
) |
Adjusted forecasted earnings from continuing operations (2) |
|
$ |
26.0 |
|
|
$ |
2.40 |
|
|
$ |
21.7 |
|
|
$ |
2.00 |
|
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.
FY27 Q1 GENESCO Summary Results May 29, 2026 Exhibit 99.2
This presentation contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, tariff refunds, 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, e-commerce and shopping mall traffic, the imposition of tariffs (including the timing and amount thereof) on products imported by the Company or its vendors as well as the ability and costs to move production of products in response to tariffs; the amount and timing of any tariff refunds; 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 of consumer spending on our merchandise and interest in our brands and in general; 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 near crucial trade routes; unfavorable trends in fuel costs, foreign exchange rates, foreign labor and material costs, and other factors affecting the cost of products; a disruption in shipping or increase in cost of our imported products, and other factors affecting the cost of products; our dependence on third-party vendors and licensors for the products we sell; store closures and effects on the business as a result of civil disturbances; our ability to renew our license agreements; impacts of the ongoing geopolitical conflicts around the world including, without limitation, the conflict with Iran; and other sources of market weakness in the locations in which we operate; the effectiveness of the Company's omnichannel initiatives; costs associated with shareholder activism; costs associated with changes in minimum wage and overtime requirements; wage pressures; labor shortages; the effects of inflation; the evolving regulatory landscape related to our use of social media; weakness in the consumer economy and retail industry; competition and fashion trends in the Company's markets, including trends with respect to the popularity of casual and dress footwear; any failure to increase sales at our existing stores, given our high fixed expense cost structure, and in our e -commerce businesses; risks related to the potential for terrorist events; changes in buying patterns by significant wholesale customers; changes in consumer preferences; our ability to continue to complete and integrate acquisitions; our ability to expand our business and diversify our product base; impairment of goodwill in connection with acquisitions; payment related risks that could increase our operating cost, expose us to fraud or theft, subject us to potential liability and disrupt our business; 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 and savings in connection with the restructuring of the Company’s information technology functions; the amount and timing of share repurchases; our ability to make our occupancy costs more variable; 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 or as the result of the restructuring of the Company’s information technology functions; 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. Safe Harbor Statement
We report consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). However, to supplement these consolidated financial results our presentation includes certain non-GAAP financial measures such as earnings (loss) and earnings (loss) per share and operating income (loss). This supplemental information should not be considered in isolation as a substitute for related GAAP measures. We believe 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. Reconciliations of the non-GAAP supplemental information to the comparable GAAP measures can be found in the Appendix. Non-GAAP • Financial Measures
SALES $487M Up 3% vs Q1 FY2026 with e-commerce 24% of retail sales GROSS MARGIN 47.0% Up 30 bps vs Q1 FY2026 GAAP SG&A 52.2% and 30 bps leverage vs Q1 FY2026 Non-GAAP SG&A 51.9% and 60 bps leverage vs Q1 FY2026 COMPS +2% Stores Johnston & Murphy Journeys +3% +7% +5% GAAP OI ($15.4M) $13 million improvement vs Q1 FY2026 Non-GAAP OI ($23.9M) $4 million improvement vs Q1 FY2026 Q1 FY27 Financial Snapshot GAAP EPS ($1.42) Non-GAAP EPS ($2.18)
The first quarter exceeded our expectations with increased sales and gross margin along with meaningful expense leverage for 100 basis points of adjusted operating income improvement Overall comps grew 2%, marking the seventh consecutive quarter of positive comps for the company Stores continued positive growth with comps up 3% Journeys added to comp run with 5% comp growth on top of 8% increase last year Johnston & Murphy delivered 7% comps, a meaningful acceleration Adjusted selling and administrative expenses leveraged 60 basis points primarily due to our ongoing cost savings initiatives; Journeys delivered 190 basis points of expense leverage Company raises full-year EPS outlook and announces cost program Q1 FY27 Highlights
We unite footwear-led brands that inspire consumers with elevated, on-trend style Footwear First Strategy
Footwear is what we know, and our brands are where we win. By combining winning assortments, distinctive brands, and exceptional customer experiences, we attract more customers and create loyalty. Our people are our advantage. We have the teams, the skills, and the drive for success. What We Do
1 Curate & Create Winning Product We focus on having the right footwear, in the right styles, all the time. Elevate Distinct Brands We activate brands with unique stories, product, and experiences to be top of mind for our customers. Create Exceptional Experiences We offer compelling physical and digital environments that drive customers to choose us. Build Amazing Teams We have the capabilities to perform, improve, and deliver results that move us forward. Growth Drivers Powered by Performance 2 3 4
What is Journeys’ Strategic Growth Plan? Multi-Brand, multi-category offering to inspire the journey from one you to the next
Unique Consumer Positioning There is white space in the market for Journeys to expand its reach amongst teens with a sharp focus on females STYLE-LED FOOTWEAR DESTINATION
Our three consumer segments reach a wider teen audience with a more intentional focus Target Consumer Segments @STYLECHASER What’s cool & fashionable More mainstream Later trend adopters @ANTI-HERO Independent Heritage Journeys consumer Self-expression @DYNAMICEXPLORER Many different styles What’s new & next Seeks latest trend
STRATEGIES DIVERSIFY OUR FOOTWEAR LEADERSHIP BUILD OUR BRAND RE-IMAGINE OUR STORE FLEET DRIVE DIGITAL EVOLUTION UNLOCK THE POWER OF OUR PEOPLE
DIVERSIFY OUR FOOTWEAR LEADERSHIP STRATEGIES Lead with Her Elevate & Diversify the Assortment Extend Key Franchise Leadership Drive Newness and Trend Leadership ASP Increases
BUILD OUR BRAND STRATEGIES Life on Loud and New Creative Concept for BTS and Holiday Invest in Journeys Brand Presence for Greater Awareness Elevate Editorial Content and Trend Positioning Expand Brand Activation Launch Community Platform
STRATEGIES Double 4.0 Store Count Pursue Targeted Expansions & Relocations Strengthen Key Markets Test Journeys Kidz 4.0 Concept RE-IMAGINE OUR STORE FLEET
STRATEGIES Improve Online Discoverability within Agentic Search Elevate the Site Experience Increase Customer Acquisition & Retention Including All-Access DRIVE DIGITAL EVOLUTION
FINANCIALS
Q1 FY27 Key Earning Highlights
TOTAL LIQUIDITY ~$353M Liquidity is comprised of cash and borrowing available under bank facilities INVENTORY $477M +6% vs Q1 FY2026 CAPITAL EXPENDITURES $15M ~95% allocated to stores ~5% to other STORE COUNT 1,208 2 30 Opened Closed SHARE REPURCHASES None in quarter; $30M remaining under current authorization JOURNEYS 4.0 21 remodels 105 total remodels to date Q1 FY27 Capital Allocation Snapshot
% of Retail Sales (1) 31% 25% 23% 24% 25% 26% 5% 6% (1) Retail sales represent combined store sales and e-commerce sales FY27 Strong Digital Growth
Q1 FY27 Net Sales $487.0 Million Journeys Schuh Johnston & Murphy Group Genesco Brands Group Q1 FY27 Sales by Segment
Q1 & Proj 12 mos FY27 • Retail Store Summary
FY27 Outlook(1) Additional color on anticipated sales growth by business which includes a reduction in sales of approximately $30 million due to net store closures (no changes versus prior guidance): Journeys: Low-single digit percentage increase schuh: Mid-single digit percentage decrease with promotional reset Johnston & Murphy: Mid-single digit percentage increase Genesco Brands Group: A reduction in sales of approx. $30 million net due to exit of licenses
APPENDIX
(1) Q1 FY27 • Adjusted Operating Income (Loss) Statement
Q1 FY27 Non-GAAP Reconciliation
Q1 FY27 Adjusted Gross Margin
Q1 FY27 Adjusted Selling and Administrative Expenses
FY27 Q1 GENESCO Summary Results May 29, 2026