Companies

Genesco raises full-year outlook after better-than-expected first quarter

Jun 4, 2026 United States

The US-based footwear retailer has raised its earnings outlook for the 2027 fiscal year following a stronger-than-expected first quarter and the seventh consecutive quarter of positive comparable sales

“After a strong finish to Fiscal 2026, we are pleased to report a solid start to Fiscal 2027, delivering our seventh consecutive quarter of positive comparable sales and first quarter results that exceeded expectations across the board”, said Mimi E. Vaughn, Genesco’s Board Chair, President, Chief Executive Officer and Interim Chief Financial Officer.

Consequently, Genesco raised its guidance for adjusted diluted earnings per share from continuing operations to between 2.00 and 2.40 US dollars, up from its previous forecast of between 1.90 and 2.30 US dollars.

The company has also maintained its outlook for comparable sales growth of between 1 and 2% and expects total sales to either decline by 1% year on year or remain flat, reflecting the impact of store closures and licence exits.

First-Quarter Results

In the first quarter of the 2027 financial year, Genesco reported a 3% increase in net sales, reaching 487 million US dollars, compared to the same period the previous year. Comparable sales rose by 2%, driven by a 3% rise in same-store sales, non-comp gains and favourable foreign exchange rates. This was partially offset by net store closures.

The year-on-year increase in net sales during the quarter was driven by a 5% increase at Journeys, a 6% increase at Johnston & Murphy and a 4% increase at Genesco Brands, which was partially offset by a 5% decrease at Schuh. On a constant currency basis, Schuh sales were down 9% in the first quarter of this year.

In the first quarter, the company’s gross margin increased by 30 basis points to 47.0%, compared to the same period in the 2026 financial year. This was mainly due to greater efficiency in shipping and warehouse costs, as well as reduced promotional activity. However, this was also partially offset by changes in the brand mix at Journeys and Schuh.

First-quarter selling and administrative expenses improved to 52.2% of sales, down from 52.5% a year earlier. On an adjusted basis, expenses fell by 60 basis points to 51.9% of sales. Lower labour, occupancy, freight and warehousing costs were partially offset by higher incentive compensation and marketing spending.

Genesco’s first-quarter GAAP operating loss narrowed to 15.4 million from 28.1 million US dollars in the same period of fiscal 2026. Excluding special items, the operating loss improved to 23.9 million from 27.9 million US dollars.

In the first quarter of this year, the company reported a GAAP loss from continuing operations of 14.8 million US dollars, compared to 21.2 million US dollars in the same period last year. On an adjusted basis, however, the loss increased slightly to 22.7 million, up from 21.5 million US dollars in the same period last year.

Cost Saving Programme

Genesco has launched a new cost-reduction programme linked to its IT transformation and efficiency initiatives, which is expected to generate savings of between 40 million and 50 million US dollars by fiscal 2029. The programme aims to reduce the company’s costs, support investment in growth, increase operating margins and boost the use of AI-driven capabilities.

Image Credits: wwd.com

United States Companies Footwear Genesco Quarter Results Results