Companies

Genesco raises full-year earnings guidance

Sep 4, 2026 United States

Despite lower sales, the US-based footwear retailer has raised its full-year earnings outlook thanks to improved profitability in the second quarter. It also noted a positive start to the third quarter, with growing momentum at Journeys

Following second quarter’s bottom line results that were “significantly better” than last year and “well ahead” of expectations, Genesco raised its full-year adjusted earnings per share outlook to the high end of the 2.00 to 2.40 US dollars range, up from the previous midpoint of the same range.

Mimi Vaughn, Genesco’s Board Chair, President and Chief Executive Officer, also noted that “The third quarter is off to a good start with back-to-school and Journeys accelerating to a mid-single-digit comp in August on top of very strong growth the last two years”.

Second-Quarter Results

In the second quarter of the 2027 financial year, Genesco reported a 3% decrease in net sales compared to the same period in the last financial year, reaching 530 million US dollars.

Second-quarter sales decreased by 10% at Schuh, by 21% at Genesco Brands, and by 5% at Johnston & Murphy. Meanwhile, Journeys’ sales remained unchanged compared to the second quarter of fiscal 2026. On a constant currency basis, sales at Schuh fell by 10% in the second quarter of this year.

According to Mimi Vaughn, the decline was driven by strategic actions at Schuh, including store closures, licence transitions and a reduction in discounts. Meanwhile, positive comparable sales were delivered by Journeys and Johnston & Murphy, while increased full-price selling and disciplined cost management improved margins and earnings.

Genesco’s gross margin in the second quarter improved by 560 basis points compared to the same period last year, reaching 51.4%, reflecting the impact of tariff refunds. The adjusted gross margin rose by 140 basis points year-on-year, reaching 47.2%.

During the period, the company received 22.5 million US dollars in tariff refunds, including interest, related to its branded businesses under the International Emergency Economic Powers Act.

In the second quarter of this financial year, the company recorded a GAAP operating profit of 3.6 million US dollars, supported by tariff refunds, an improvement on the 14.4 million US dollars recorded in the same period a year ago, with the operating margin improving by 330 basis points. On an adjusted basis, the operating loss narrowed from 14.3 million to 8.3 million US dollars, while the adjusted operating margin improved by 100 basis points to -1.6%.

Genesco reported GAAP earnings from continuing operations of 3.5 million US dollars in the second quarter of fiscal 2027, compared with a loss of 18.5 million US dollars in the same period a year earlier. On an adjusted basis, loss per share improved from 1.14 to 0.83 US dollars in the same quarter last year.

Image Credits: journeys.com

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