Genesco 2026 Q1 Earnings Mixed Performance with Net Loss Narrowing 12.8%

Genesco reported its fiscal 2026 Q1 earnings on June 12th, 2025, showing a mixed performance. The company exceeded revenue expectations with a total revenue of $473.97 million, compared to the analyst consensus of $465.30 million. However, it reported an adjusted loss per share of $2.05, outperforming street expectations of a $2.09 loss. Genesco reaffirmed its full-year adjusted EPS guidance of $1.30 to $1.70, incorporating current tariff impacts. The company sees total sales rising 1%–2%, up from previous guidance.

Revenue

In fiscal 2026 Q1, Genesco's total revenue rose by 3.6% year-over-year to $473.97 million. This growth was driven by the Journeys Group, which contributed $272.63 million, while the Schuh Group added $95.92 million. Johnston & Murphy Group reported $76.84 million, and Genesco Brands Group generated $28.59 million in revenue. The corporate sector reported no revenue, leading to a consolidated total of $473.97 million.

Earnings/Net Income

Genesco successfully reduced its net loss, reporting a loss of $21.23 million for Q1 2026, compared to $24.35 million in Q1 2025. Earnings per share also improved with a loss of $2.02 per share versus $2.23 per share in the prior year, marking a 9.4% improvement. The EPS reduction, although positive, reflects ongoing challenges.

Post-Earnings Price Action Review

Genesco's strategy of purchasing shares when revenue misses and holding them for thirty days has yielded poor results, with a compound annual growth rate of -2.41%. This strategy has led to an excess return of -101.36%, a clear indication of underperformance compared to benchmarks. The negative Sharpe ratio of -0.04 further underscores the lack of risk-adjusted returns. The approach has not proven effective, suggesting that adjustments may be needed to align with market expectations and improve investor outcomes.

CEO Commentary

Mimi E. Vaughn, Genesco’s Board Chair, President, and CEO, expressed optimism about the company's strategic growth initiatives. She emphasized that the footwear-focused strategy, particularly with the Journeys segment, is positioned to deliver profitable growth and enhance shareholder value over the long term.

Guidance

For fiscal 2026, Genesco anticipates total sales to remain flat to increase by 1% compared to fiscal 2025. This forecast includes a foreign exchange negative impact of approximately $14 million and a closed store impact of approximately $30 million. The company projects adjusted diluted earnings per share from continuing operations between $1.30 and $1.70, assuming no further share repurchases and a 29% tax rate.

Additional News

In recent weeks, Genesco has been focusing on optimizing its store footprint, with plans to close 46 net stores in fiscal 2026, following 63 closures in FY25. The company also announced a key C-Level change with Cassandra E. Harris stepping into the role of Senior Vice President – Finance, CFO, and Principal Accounting Officer. Additionally, Genesco continued its share repurchase program, buying back 604,531 shares for $12.6 million during the quarter. These strategic moves are part of Genesco's broader efforts to streamline operations and enhance market competitiveness.