“Following the significant momentum in last year’s back half, we are pleased with our start to fiscal 2026 with both sales and profitability coming in above our expectations. Our first quarter performance was highlighted by our third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as our strategic plan to accelerate growth and increase market share continues to gain traction. At the same time, the work we’ve done realigning our cost structure including our ongoing store optimization initiatives, helped drive a nice year-over-year improvement in operating income”, commented Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer.

First Quarter Results

In the first quarter of the 2026 financial year, which ended on the 3^rd of May, the company’s net sales increased by 4%, compared to the same period last year, reaching 458 million US dollars. This reflects a 5% rise in comparable sales, including a 7% rise in comparable e-commerce sales, a 5% rise in same-store sales and increased wholesale sales, partially offset by the impact of net store closures.

Genesco highlighted that, on a comparable basis to the first quarter of fiscal 2025, first quarter net sales were up by 5% at Journeys, 4% at Schuh (or up by 1% on a constant currency basis) and 7% at Genesco brands. However, net sales were down by 3% year-over-year at Johnston & Murphy in the first quarter.

In the first quarter of the current financial year, the company’s gross margin fell from 47.3% to 46.7%, while the adjusted gross margin fell from 47.6% to 46.7%. This decrease as compared to fiscal year 2025 is primarily due to changes in the brand mix at Journeys and Schuh, increased promotional activity at Schuh, and lower margins at Genesco Brands due to the liquidation of products associated with licences that are being phased out.

Genesco noted that its selling and administrative expenses in the first quarter decreased by 170 basis points year-over-year to 52.5%, mainly due to decreased occupancy and performance-based compensation expenses, as well as other cost-saving initiatives.

In the three months to the 3^rd of May, the US company’s GAAP operating loss narrowed to 28.1 million US dollars from 32.1 million US dollars in the same period a year ago. On an adjusted basis, the operating loss narrowed to 27.9 million US dollars, as compared to 30.0 million US dollars in the same period last year.

Similarly, Genesco reported a first quarter GAAP loss from continuing operations of 21.2 million US dollars and an adjusted loss from continuing operations of 21.5 million US dollars, on a comparable basis to 24.3 and 22.9 million US dollars, respectively, in the same period of the previous year. 

Fiscal 2026 Outlook

For fiscal 2026, Genesco expects total sales to increase by 1% to 2%, as compared to fiscal 2025. This is an improvement on the previous guidance of a flat market or an increase of up to 1%. However, the range for comparable sales has been narrowed to an increase of 2% to 3%, compared to the previous range of 2% to 4%. 

In addition, diluted earnings from continuing operations are expected to be in the range of 1.30 to 1.70 US dollars, including the impact of current tariffs.