Genesco reports sales growth in first quarter

US footwear group Genesco reported a 3 percent increase in net sales for the first quarter of fiscal 2027, reaching 487 million dollars compared to 474 million dollars in the first quarter of fiscal 2026.

The revenue increase was driven by a 2 percent rise in comparable sales, including a 3 percent gain in same store sales, which helped offset the impact of net store closures. Performance across the brand portfolio was mixed, led by a 6 percent increase at Johnston & Murphy, a 5 percent gain at Journeys and a 4 percent increase at Genesco Brands. Conversely, sales at Schuh declined by 5 percent, or 9 percent on a constant currency basis.

Gross margin for the quarter improved by 30 basis points to 47 percent of sales, up from 46.7 percent in the previous year.

Outlook raised following positive start

The group recorded a GAAP operating loss of 15.4 million dollars, narrowing from a loss of 28.1 million dollars in the same period last year. Adjusted operating loss was 23.9 million dollars compared to 27.9 million dollars in fiscal 2026, representing an adjusted operating margin loss of 4.9 percent of sales. GAAP loss from continuing operations was 14.8 million dollars, while adjusted loss from continuing operations stood at 22.7 million dollars, or 2.18 dollars per share.

During the quarter, the company opened two stores and closed 30 locations, ending the period with 1,208 stores. Genesco did not repurchase shares during the quarter and retains 29.8 million dollars under its authorized repurchase programme.

Following the first quarter performance, Genesco board chair, president and chief executive officer Mimi Vaughn expressed confidence in the company's strategic initiatives. Based on the results, the group raised its full-year adjusted diluted earnings per share outlook to a range of 2 dollars to 2.40 dollars, up from the previous guidance of 1.90 dollars to 2.30 dollars. Total sales for the full year are still expected to be down 1 percent to flat, while YoY comparable sales are projected to increase between 1 percent and 2 percent.