For the fourth quarter (Q4), comparable sales rose by 9%, contributing to a 6% increase for the full fiscal year.
This growth included a 6% rise in same-store sales and a 4% increase in e-commerce comparable sales.
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Genesco Board chair, president and chief executive officer Mimi E. Vaughn said: “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.”
Genesco’s FY26 overall performance
During the fiscal year ended 31 January 2026, Genesco generated $2.4bn in net sales, up 5% from $2.3bn in the previous year. Within its portfolio, Journeys recorded a 7% rise in sales, while Schuh achieved a 4% gain.
Sales for the Johnston & Murphy brand were unchanged year-over-year, while Genesco Brands reported a 4% decrease.
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By GlobalDataThe annual gross margin declined to 46.3% from 47.2%, mainly due to increased promotions at Schuh and lower margins at Genesco Brands following license exits and ongoing tariff pressures.
Selling and administrative expenses as a percentage of sales fell to 45.2% from 46.4%, reflecting cost-saving measures such as reduced occupancy costs and selling salaries.
On a GAAP basis, Genesco reported operating income of $17.3m, up from $13.9m (0.6% of sales) last year, while adjusted operating income grew to $26.6m from $18.9m in FY25.
Earnings from continuing operations improved to $13.3m in FY26, compared to a loss of $19.5m last year.
Vaughn said: “Journeys once again led the way with double-digit comp growth on top of double digits last year, fuelled by an exceptional holiday performance. Our strategic initiatives around product elevation and customer experience continue to resonate with teens, driving market share gains and positioning Journeys as the clear destination for style-led footwear. At the same time, Johnston & Murphy’s comparable sales improved in each successive month, while Schuh navigated a promotional U.K. environment and exited the year with clean inventories.”
Q4 performance
In the quarter, net sales of Genesco rose 7% to $800m, led by a 10% increase at Journeys and a 9% gain at Schuh.
The company’s gross margin declined to 45.9% from 46.9%, primarily due to increased promotions at Schuh and lower margins at Genesco Brands tied to tariffs and channel mix changes.
GAAP earnings from continuing operations for the fourth quarter were $47.5m, up from $33.6m in the same period last year.
Outlook for FY27
Looking ahead to FY27, Genesco expects comparable sales growth between 1% and 2%. Total sales are projected to be flat or down by up to 1%, reflecting an anticipated reduction of approximately $60m due to license exits and further store closures.
Adjusted diluted earnings per share are forecasted in the range of $1.90 to $2.30.
“Our top-line guidance reflects another year of overall positive comparable sales growth, offset by store closures and license transitions in our branded footwear group. The projected increase in our bottom line is being driven by another year of increased profitability at Journeys, improvement at Johnston & Murphy and higher gross margins, primarily at Schuh, as we reduce the business’ dependency on promotions and focus on returning to a full price, full margin sales model,” Vaughn added.
