Genesco Inc. (NYSE:GCO) shares moved higher Friday after the footwear retailer posted a stronger-than-expected quarterly performance and pointed to continued momentum across key banners.
Genesco is a footwear-focused retailer operating more than 1,230 stores and e-commerce sites across North America and the U.K. Its portfolio includes Journeys, Little Burgundy, Schuh, and Johnston & Murphy, while Genesco Brands Group distributes licensed footwear brands such as Wrangler, Dockers, and Starter.
The company also issued a fiscal-year outlook that signalled steady comparable sales growth despite pressure from store closures and license exits.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of $3.74, beating the analyst consensus estimate of $3.58. Quarterly sales of $799.941 million (+7% year over year) outpaced the Street view of $790.525 million.
The overall sales increase was driven by an increase of 10% at Journeys, 9% at Schuh, and 2% at Johnston & Murphy, partially offset by a decrease of 27% or $10 million at Genesco Brands. On a constant currency basis, Schuh sales were up 3% for the fourth quarter.
Comparable sales rose 9%, with both physical stores and e-commerce contributing to the growth. Store sales increased 9%, while online sales rose 8%, and e-commerce accounted for 31% of retail sales versus 30% a year ago.
“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 CEO Mimi E. Vaughn.
Adjusted gross margin for the fourth quarter was 46.0%, down 90 basis points compared with 46.9% last year, due primarily to increased promotional activity at Schuh and lower margins at Genesco Brands related to ongoing tariff pressure and changes in channel mix.
Vaughn continued, “We are optimistic about Fiscal 2027. We expect another year of comparable sales growth driven by our strategic growth plan and ongoing strength at Journeys, and improved acceleration at Johnston & Murphy as our product and marketing strategies gain more traction.”
Cash as of January 31, 2026, was $105.4 million, compared with $34 million as of February 1, 2025. Total debt at the end of the fourth quarter of fiscal 2026 was $3.4 million.
The company ended the quarter with 1,236 stores, a decrease of 3%. Square footage was down 2% year over year.
Outlook
Genesco is looking for 2027 adjusted EPS of $1.90-$2.30, versus the $2.04 analyst estimate. The company projects 2027 GAAP EPS of $2.12-$2.55, versus the $1.89 analyst estimate.
The company sees fiscal 2027 sales of $2.412 billion to $2.436 billion, slightly below the $2.470 billion analyst estimate.
For fiscal 2027, the company expects comparable sales to increase between 1% and 2%.
Genesco expects fiscal 2027 total sales to range from down 1% to flat year over year, reflecting about $60 million in lost revenue from license exits and store closures.
GCO Price Action: Genesco shares were up 8.55% at $28.32 at the time of publication on Friday, according to Benzinga Pro data.
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