Journeys Helps Deliver Sales Gains

Genesco president, chief executive officer and board chair Mimi Vaughn said on Wednesday that the company started fiscal 2026 with both sales and profitability coming in above expectations.

According to the Nashville-based footwear company, total net sales for the first quarter of fiscal 2026 increased 3.6 percent to $474 million compared to $457.6 million the same time last year.

Genesco noted in its earnings release that this sales increase reflects a 5 percent increase in comparable sales, including a 7 percent increase in e-commerce comparable sales and a 5 percent increase in same store sales, and increased wholesale sales, partially offset by the impact of net store closings.

The company further noted that overall sales increase for the first quarter was driven by an increase of 5 percent at Journeys, an increase of 4 percent at Schuh and a 7 percent increase at Genesco Brands, partially offset by a decrease of 3 percent at Johnston & Murphy.

Still, there was a net loss of $21.2 million in the period, down from a net loss of $24.3 million the same time last year.

During the quarter, the company opened four stores and closed 26 stores. The company said it ended the quarter with 1,256 stores compared with 1,321 stores in the same year-ago period, representing a decrease of 5 percent. Square footage was down 3 percent on a year-over-year basis, Genesco noted.

Vaughn said in a statement that the company’s first quarter performance was highlighted by its third consecutive quarter of positive comparable sales increases, with results once again driven by Journeys, as its 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,” the CEO said.

Looking ahead, the company continues to expect adjusted diluted earnings per share from continuing operations in the range of $1.30 to $1.70 for the full fiscal year 2026. This includes the impact of tariffs currently in place, Genesco said. Net sales for the year are expected to be up between 1 percent and 2 percent compared to fiscal 2025 versus prior expectation of flat to up 1 percent due to the impact of favorable foreign exchange.

“While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact,” Vaughn added. “In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment.”