Companies

Genesco lowers its full year guidance

Dec 10, 2025 United States

Despite reporting a solid third quarter, the US-based footwear company has lowered its full-year guidance, having witnessed lower sales trends during regular shopping periods

“We delivered another quarter of top and bottom-line growth, marking our fifth consecutive quarter of positive comparable sales increases”, said Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer. However, “we experienced a meaningful pullback in the back half of the third quarter, as consumers retreated following the back-to-school season when there was less of a reason to shop”, she added.

Consequently, the footwear retailer has revised its full-year guidance and now anticipates a 2% increase in total sales and a 3% increase in comparable sales, as compared to fiscal 2025, which is lower than the previous guidance of a 3% to 4% increase in total sales and a 4% to 5% increase in comparable sales. Adjusted diluted earnings per share from continuing operations are expected to be around 0.952 US dollars, down from its previous forecast of 1.30 to 1.70 US dollars.

Nevertheless, Genesco emphasised that its trends improved during the Black Friday / Cyber Monday period, “contributing to a positive start to the fourth quarter”.

Third Quarter Results

In the third quarter of the 2026 financial year, which ended on the 1^stof November, the company’s net sales totalled 616 million US dollars. This represents a 3% increase, as compared to the same period in the previous financial year – driven by a 5% rise in same-store sales, an increase in wholesale sales, and a favourable foreign exchange impact. However, this was also partially offset by the impact of net store closures and a 3% decrease in e-commerce comparable sales.

During this period, Journeys’ sales grew by 4% year-on-year to reach 376.7 million US dollars. Meanwhile, sales at Schuh grew by 2% year-on-year to reach 123.8 million US dollars, while Johnston & Murphy and Genesco brand group saw sales grew by 3% year-on-year to reach 81.2 million and 34.6 million US dollars, respectively. On a constant currency basis, Schuh sales were down by 1%.

In the third quarter of this year, Genesco’s gross margin was 46.8%, a decline of 100 basis points from the same period last year. This reflects lower margins at the Genesco Brands Group due to ongoing tariff pressures and licence exits, as well as higher promotional activity at Schuh. These factors were partly offset by reduced shipping and warehouse costs at Journeys and Schuh.

The company posted a GAAP operating income of 8.6 million US dollars in the third quarter, which is a decrease from 10.2 million US dollars in the same quarter of the prior year. However, adjusted for the excluded items, operating income increased from 10.3 million US dollars last year to 12.9 million US dollars.

Genesco also reported GAAP earnings from continuing operations of 5.4 million US dollars in the third quarter of the current fiscal year, as compared to a loss of 18.8 million US dollars in the same period last year. Adjusted for the excluded items, earnings from continuing operations increased to 8.4 million US dollars, or 0.79 US dollars per share, up from 6.6 million US dollars, or 0.61 US dollars per share, in the same period a year ago.

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United States Companies Footwear Genesco Quarter Results Results