Companies

Genesco reports strong fourth quarter

Mar 11, 2026 United States

The US-based footwear retailer has ended the fiscal year 2026 on a high note, with a strong performance in the fourth quarter characterised by increased sales and profitability

“We are very pleased to close out Fiscal 2026 with another quarter of strong performance, highlighted by our sixth consecutive quarter of positive comparable sales growth, demonstrating the sustainability of our momentum, combined with a meaningful increase in profitability”, said Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of the 2026 financial year, which ended on 31^st of January, the company’s net sales reached 800 million US dollars, an increase of 7% from 746 million US dollars in the same period the previous year.

This included a 9% increase in comparable sales, supported by a 9% rise in same-store sales and an 8% increase in e-commerce sales, as well as favourable currency effects. These were partly offset by lower wholesale sales and net store closures.

“Journeys once again led the way with double-digit comp growth on top of double digits last year, fueled by an exceptional holiday performance (…). At the same time, Johnston & Murphy’s comparable sales improved in each successive month, while Schuh navigated a promotional UK environment and exited the year with clean inventories”, added Mimi E. Vaughn, Genesco’s Board Chair, President and Chief Executive Officer.

Overall growth in total net sales was driven by year-on-year increases of 10% at Journeys, 9% at Schuh and 2% at Johnston & Murphy. This was partially offset by a 27% decrease at Genesco Brands. On a constant currency basis, Schuh sales increased by 3% in the fourth quarter.

Genesco’s fourth quarter gross margin fell to 45.9%, down from 46.9% in the same period of the 2025 financial year. This was due to increased promotional activity at Schuh and tariff-related pressure on Genesco Brands. Nevertheless, selling and administrative expenses decreased to 39.1% of sales, down from 40.5%, thanks to lower occupancy costs and cost-saving initiatives.

In the final quarter of the previous financial year, the company’s operating income totalled 51.3 million US dollars, up from 46.1 million US dollars in the same period the previous year. On an adjusted basis, operating income increased to 55.9 million US dollars, with the operating margin improving from 6.4% to 7.0%.

Overall, Genesco reported GAAP earnings from continuing operations of 47.5 million US dollars, as compared with 33.6 million US dollars in the same quarter of the 2025 financial year. Adjusted earnings stood at 40.2 million US dollars, or 3.74 US dollars per share, as compared to 35.8 million US dollars, or 3.26 US dollars per share.

Full-Year 2026

In the 2026 financial year, the company’s net sales increased by 5% year-on-year to reach 2.4 billion US dollars. This was supported by a 6% rise in comparable sales, despite the impact of store closures and weaker wholesale activity.

However, gross margin declined from 47.2% to 46.3%, reflecting higher promotional activity and tariff pressure. Nevertheless, cost reductions lowered selling and administrative expenses, contributing to improved profitability and a return to positive earnings – GAAP income from continuing operations was 13.3 million US dollars, as compared with a loss of 19.5 million US dollars in the previous year.

Fiscal 2027 Outlook

For the 2027 financial year, Genesco expects comparable sales growth of between 1% and 2%, while total sales are projected to range from an 1% year-on-year decline to remaining flat, reflecting the loss of certain licences and net store closures. Adjusted diluted earnings per share from continuing operations are expected to be between 1.90 and 2.30 US dollars.

Image Credits: genesco.com

United States Footwear Genesco Quarter Results Results Year Results