Genesco Narrows 1Q Loss as Turnaround Takes Hold

Dow Jones
May 29
 

By Connor Hart

 

Genesco narrowed its fiscal first-quarter loss and logged higher sales, boosted by what Chief Executive Mimi Vaughn called encouraging progress across recent turnaround initiatives.

The retailer behind brands including Journeys and Johnston & Murphy on Friday reported a net loss of $14.8 million, or $1.42 a share, for its quarter ended May 2. That compares with a loss of $21.2 million, or $2.02 a share, in last year's comparable period.

Stripping out one-time items, the loss came in at $2.18 a share. Analysts polled by FactSet expected an adjusted loss of $2.57 a share.

Sales climbed 2.8% to $487 million, ahead of Wall Street models for $474.3 million.

Companywide comparable sales, which account for store openings and closings, were up 2%. Gains across Genesco's Journeys and Johnston & Murphy brands were partially offset by a decline across its Schuh brand.

Journeys is gaining market share, thanks to steps the company has taken to elevate the brand and improve customer experiences, Vaughn said. Johnston & Murphy saw a sharp acceleration in sales during the latest quarter, while Schuh's performance reflected fewer promotions and a more full-priced selling model, she added.

"The execution of our strategic initiatives continues to translate into tangible results," Vaughn said.

Looking ahead, Genesco now expects adjusted earnings of $2 to $2.40 a share for the year, up from a prior forecast of $1.90 to $2.30 a share. Analysts are looking for $2.13 a share.

The Nashville, Tenn., company continues to expect fiscal-year comparable sales to climb 1% to 2%, while total sales are projected to be down 1% to flat, reflecting store closures and license exits.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

May 29, 2026 07:23 ET (11:23 GMT)

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