Net sales for the quarter ended May 2, 2026, increased 3 per cent year on year to $487 million from $474 million in the same quarter last year. Total comparable sales rose 2 per cent, marking the company’s seventh consecutive quarter of positive comparable sales growth. Same-store sales increased 3 per cent, while comparable e-commerce sales remained flat.
Genesco Inc has reported stronger-than-expected Q1 FY27 results, with net sales rising 3 per cent to $487 million and comparable sales increasing 2 per cent.
Journeys and Johnston & Murphy posted solid growth, while gross margin improved to 47 per cent.
The company announced a $40-$50 million cost savings programme and raised its FY27 adjusted EPS outlook to $2-2.4.
“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, board chair, president, CEO and interim chief financial officer of Genesco.
Journeys Group delivered comparable sales growth of 5 per cent, while Johnston & Murphy posted a 7 per cent increase. Schuh Group comparable sales declined 9 per cent as the company reduced promotional activity and prioritised a full-price selling strategy, Genesco said in a press release.
Gross margin improved 30 basis points year on year to 47 per cent, supported by lower shipping and warehouse costs as well as reduced promotional activity. Selling and administrative expenses improved to 52.2 per cent of sales from 52.5 per cent last year, while adjusted selling and administrative expenses improved 60 basis points.
Genesco reported a GAAP operating loss of $15.4 million compared to a loss of $28.1 million in the prior-year quarter. Adjusted operating loss narrowed to $23.9 million from $27.9 million a year earlier. GAAP loss from continuing operations improved to $14.8 million from $21.2 million last year.
GAAP earnings per share improved to a loss of $1.42 from a loss of $2.02 in the first quarter of FY26. Adjusted loss per share stood at $2.18 compared to $2.05 last year.
The company said lower adjusted tax rates in FY27 reflected valuation allowance impacts and changes introduced under the One Big Beautiful Bill Act (OBBBA).
Genesco expects continued comparable sales growth
Looking ahead, Genesco raised its adjusted diluted earnings per share guidance for FY27 to a range of $2.00-$2.40 from the earlier forecast of $1.9-2.3. The company continues to expect positive comparable sales growth of 1-2 per cent and total sales ranging from down 1 per cent to flat for the year, reflecting store closures and licence exits in its branded footwear business.
“We have clear plans in place to drive continued improvement in Fiscal 2027,” Vaughn said, adding that higher profitability at Journeys and improvement at Johnston & Murphy are expected to support earnings growth during the year.
Fibre2Fashion News Desk (SG)
