Raises Guidance After Sales Growth

Journeys’ parent company Genesco Inc. is raising its full-year guidance after reporting sales growth in the second quarter.

According to the Nashville-based footwear company, net sales in the second quarter of fiscal 2026 increased 4 percent to $546 million compared to $525 million in the second quarter of fiscal 2025.

Genesco noted in its earnings release that this sales increase reflects a 4 percent increase in comparable sales, which included a 5 percent increase in same store sales and a 1 percent increase in e-commerce comparable sales, as well as favorable foreign exchange impact, partially offset by the impact of net store closings.

The company further noted that the overall sales increase for the second quarter was driven by an increase of 6 percent at Journeys, an increase of 2 percent at Schuh and a 5 percent increase at Genesco Brands, partially offset by a decrease of 3 percent at Johnston & Murphy.

Still, the net loss of $18.47 million in the period widened from a net loss of $9.99 million in the same year-ago quarter. And Wall Street isn’t loving the company’s results either. Shares for Genesco closed down nearly 6 percent on Thursday at end-of-day trading to $31.04 per share.

During the quarter, the company opened nine stores and closed 12 stores. The company said it ended the quarter with 1,253 stores compared with 1,314 stores at the end of the second quarter last year, representing a decrease of 5 percent. Square footage was down 3 percent on a year-over-year basis, Genesco said.

Genesco president, chief executive officer and board chair Mimi Vaughn said in a statement on Thursday that Q2 is the company’s fourth consecutive quarter of positive comparable sales growth.

“The momentum from the second half of last year has continued in fiscal 2026 highlighted by Journeys high-single digit comp increase as our strategic plan to accelerate growth continues to gain traction,” Vaughn stated. “Our focus on product elevation, enhanced customer experience, and strengthened brand positioning is resonating with our broader target teen customer base, as we outperform the market and drive increased share.”

On the company’s earnings call on Thursday, Vaughn told analysts that their target teen customer is responding well to categories that Journeys historically has not offered in the past.

“Lifestyle running is a great example of a category that’s important to our teen customer,” the CEO said. “And our portfolio of brands really just shows our commitment to this category and trend development.”

Vaughn also called out that Journeys has added Hoka to its merchandise mix for the first time in select stores. “We don’t usually talk about brands, but we introduced [Hoka] into a handful of our Journeys’ stores recently,” she said. “We are building upon that [distribution] for the back part of the year and into next year.”

And adding brands like Hoka to the mix is helping with elevating Journeys’ assortment. “The elevated store environment that we are creating is helping to reinforce that,” Vaughn added. “And I think traditionally, Journeys has been really strong on the casual side, and we continue to drive strength on casual across sandals, across boots, across just footwear in general, and we are elevating price points there for sure. And so, we’ve been doing a lot to enhance and increase the assortment and to bring into the assortment athletic product at the same level where our casual assortment has been.”

The CEO also mentioned to analysts that Journeys’ customers are willing to pay these higher prices as well despite the economic uncertainty in the U.S. “Interestingly, the consumer in this environment is stretching to reach price points for must-have product,” she added. “In prior times when consumers have been stretched, they’ve gravitated to lower price point products. And that’s just not the case this time.”

Looking ahead, the company is raising its full-year guidance following another quarter that exceeded its expectations, Vaughn noted. The CEO added that back-to-school is “off to a very good start” in the third quarter with Journeys “comping nicely positive” on top of the positive comps for the same period last year.

Genesco now expects total sales for the year to be up 3 percent to 4 percent compared to fiscal 2025 with a comparable sales range up 4 percent to 5 percent, an increase from prior guidance which called for total sales to be up 1 percent to 2 percent and comparable sales up 2 percent to 3 percent in fiscal 2026.

“While near-term uncertainty around tariff rates and consumer demand remains elevated, we are encouraged by our recent performance as we prepare for the start of the upcoming holiday season,” Vaughn added. “I am confident in our ability to navigate the current environment and build on our momentum.”