“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”, commented Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer.

Second Quarter Results

In the second quarter of the 2026 financial year, the company’s total net sales totalled 546 million US dollars, reflecting an increase of 4%, on a comparable basis to the same period of the last financial year. This increase includes a 4% rise in comparable sales, comprising a 5% rise in same-store sales and a 1% rise in e-commerce comparable sales. It also includes a favourable foreign exchange impact, which is partially offset by the impact of net store closures.

During this period, Journeys’ sales grew by 4% year-on-year to 318.2 million US dollars, Schuh’s sales grew by 2% (or decreased by 4% on a constant currency basis) to 126.6 million US dollars and Genesco brands’ sales grew by 5% year-on-year to 32.4 million US dollars. However, sales at Johnston & Murphy decreased by 3% year-on-year to 68.8 million US dollars.

In the second quarter of the current financial year, Genesco’s gross margin fell by 100 basis points year-on-year, from 46.8% to 45.8%. This decline was mainly due to increased promotions at Schuh and lower margins at Genesco Brands, caused by tariffs and the loss of certain licences. However, this was partially offset by margin gains at Johnston & Murphy, driven by price increases and improved procurement.

Genesco highlighted that selling and administrative expenses in the second quarter decreased by 20 basis points, as compared to the same quarter in fiscal year 2025, reaching 48.4%.

In the second quarter of this year, the company’s GAAP operating loss was 14.4 million US dollars, while the loss adjusted for excluded items was 14.3 million US dollars. This compares with losses of 10.3 million and 9.3 million US dollars respectively in the previous fiscal year.

The company reported a GAAP loss from continuing operations of 18.5 million US dollars in the second quarter, as compared to a loss of 9.9 million US dollars in the same quarter last year. Adjusted for excluded items, the loss from continuing operations was 11.7 million US dollars, as compared to a loss of 9.1 million US dollars in the same quarter last year.

During the quarter, the company opened nine stores and closed 12, ending with 1 253 stores, as compared to 1 314 at the end of this period in the previous year. Square footage decreased by 3% year-on-year.

Fiscal 2026 Outlook

“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”, added Vaughn.

For the full year of 2026, Genesco expects total sales to rise by between 3% and 4%, with comparable sales up by between 4% and 5%, as compared to the full year 2025. This is an increase on the previous forecast of a 1% to 2% rise in total sales and a 2% to 3% rise in comparable sales.

In addition, it expects adjusted diluted earnings per share from continuing operations to be in the range of 1.30 to 1.70 US dollars, including the impact of the current tariffs.

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