Genesco Inc · Q2 2024 earnings

Briefing

Genesco reported a challenging operating environment in the second quarter, with some improvement in Journeys business trend, Schuh and Johnston & Murphy outperforming, and progress on Journeys store closures and cost reductions.

Genesco Inc. reported a 2% decrease in net sales to $523 million compared to Q2FY23. Comparable sales were down 2%, with stores down 6% and direct up 14%. GAAP EPS from continuing operations was ($2.79) vs. $0.59 last year, and non-GAAP EPS from continuing operations was ($0.85) vs. $0.59 last year. The company repurchased $22.9 million of stock, representing 8% of outstanding shares.

• Net sales decreased by 2% to $523 million compared to the previous year.
• Comparable sales declined by 2%, with store sales down 6% but direct sales up 14%.
• E-commerce sales accounted for 21% of retail sales, an increase from 18% in the previous year.
• Gross margin improved by 20 basis points.

Headline financials

Revenue & EPS history

The Company now expects sales to be down 2% to 4%, or down 3% to 5% excluding the 53rd week this year, compared to Fiscal 2023. Continues to expect adjusted diluted earnings per share from continuing operations in the range of $2.00 to $2.50, with an expectation that EPS will be near the mid-point of the range. Guidance assumes no further share repurchases and a tax rate of 24%.