Genesco Beats Q2 Expectations as Journeys Delivers Strong Back-to-School Sales

Improvements at Journeys helped Genesco achieve better-than-expected results in the second quarter.

The Nashville-based footwear company reported that net sales increased to $525 million, driven by a strong start to the back-to-school season. The sales gain was partially offset by location closures, decreased wholesale sales and a decline in store sales.

Net loss from continuing operations was $9.1 million, adding up to a loss of 83 cents per share, compared to a net loss of $9.6 million, or 85 cents per share the prior year. The results beat expectations of analysts surveyed by Yahoo, who were expecting a loss per share of $1.11 and revenues of $512.3 million. The results also beat internal expectations.

By banner, sales increased 4 percent at Journeys and 1 percent at Schuh and declined 9 percent at Johnston & Murphy and 13 percent at Genesco Brands. Comparable store sales declined 4 percent and comparable e-commerce sales increased 8 percent.

Genesco president, chief executive officer and board chair Mimi Vaughn said in a statement that the company delivered results that beat its expectations.

After reporting challenging first quarter results last year in May, Genesco announced it would close more than 100 underperforming Journeys stores in fiscal 2024, versus prior expectations to close 60 stores, to help cut costs at the retailer.

“Armed with a more elevated and diversified product assortment, Journeys capitalized on the early back-to-school demand, which drove a positive inflection in comparable sales as the quarter progressed,” Vaughn said. “Thus far in the third quarter, Journeys’ store traffic and sales trends have accelerated further, bolstering our confidence in the product pipeline for the back half and the initiatives underway to enhance the Journeys brand and experience for our consumers.”

Vaughn added that the company has adopted a more “conservative near-term view” for its non Journeys business and overall outlook given a “choppy” operating environment.

Genesco reaffirmed its earnings outlook for fiscal 2025 and still expects adjusted diluted earnings per share from continuing operations in the range of 60 cents to $1. The company raised its sales outlook for the year, and expects total sales to decrease between 1 percent and 2 percent compared to the prior year.

“Looking ahead, I feel confident that our strategic initiatives and efforts to improve the efficiency of our operating model will enable us to unlock our full earnings potential and create value for our shareholders,” Vaughn said.