Robert J. Dennis, Chairman, President and Chief Executive Officer of Genesco commented: "Our first quarter performance reflects a number of challenges, many of which were expected, early in the new fiscal year. Consolidated comparable sales were pressured by weak store traffic in our US businesses, which we believe was due in part to federal income tax refund delays, and by the impact from the significant fashion rotation at Journeys. This was partially offset by very strong growth in digital channel sales“.

Net sales for the first quarter of fiscal 2018 decreased by 0.8% and totaled 643 million US dollars from 649 million US dollars in the first quarter of fiscal 2017. Consolidated first quarter 2018 comparable sales, including same store sales and comparable e-commerce and catalog sales, decreased by 1%, with a 5% decrease in the Journeys Group, a 1% increase in the Lids Sports Group, a 10% increase in the Schuh Group, and a 3% decrease in the Johnston & Murphy Group. Comparable sales for the company included a 4% decrease in same store sales and a 28% increase in direct sales.

In face of these results and given the anemic level of mall traffic year-to-date and the more pronounced shift in consumer spending away from stores to online Genesco has adopted a more conservative outlook for store-based sales.

Dennis concluded: "While we are disappointed with our lower guidance, our second quarter .. is better than what we experienced in the first quarter, in particular for Journeys. Despite the slow start to the year, we believe that the strategies we are executing will result in improved sales and margin trends, particularly in the back half, as the year progresses and drive profitable growth and increased shareholder value over the long-term.”