Genesco 2026 Q2 Earnings Wider Losses Amid Flat Revenue Growth

Genesco (GCO) reported its fiscal 2026 Q2 earnings on September 11, 2025. While the company posted a modest 4.0% revenue increase, it recorded a significant deepening of its net loss. The results reflect ongoing operational challenges and macroeconomic headwinds.

Genesco posted total revenue of $545.97 million in Q2 2026, a 4.0% increase from $525.19 million in the same period a year ago. The revenue growth was broad-based across its key segments, though the company did not raise its full-year guidance, maintaining a cautious outlook for the remainder of 2026.

Revenue
The company’s Journeys Group led the revenue performance with $318.19 million, followed by the Schuh Group contributing $126.59 million. The Johnston & Murphy Group generated $68.79 million, while the Genesco Brands Group added $32.39 million. Corporate & Other operations reported $0 in revenue, resulting in a consolidated total of $545.97 million.

Earnings/Net Income
Genesco’s losses widened significantly, with a net loss of $18.47 million in Q2 2026, representing an 84.9% increase in losses compared to $9.99 million in the prior year. On a per-share basis, the loss expanded to $1.79, a 96.7% increase from a $0.91 loss per share in 2025 Q2. The deteriorating profitability underscores the challenges the company faces in maintaining profitability amid soft consumer demand and elevated costs.

Price Action
Shares of Genesco edged up 2.58% during the latest trading day, 0.48% during the most recent full trading week, and surged 42.01% month-to-date. Despite the sharp month-to-date increase, post-earnings trading remains subdued, reflecting lingering investor concerns over the company's near-term profitability.

Post-Earnings Price Action Review
Following the earnings release, Genesco’s stock saw a modest uptick, with a 2.58% gain on the day and a 0.48% rise during the previous week. However, the stock’s strong 42.01% month-to-date performance suggests some investor confidence in the company’s long-term strategic initiatives. The mixed earnings results and lack of specific guidance have led to a cautious market response, with investors closely watching how the company navigates its current operational and financial challenges.

CEO Commentary
Genesco’s CEO, J. Thomas DeLorenzo, emphasized a mixed performance in Q2 2026, noting that soft consumer demand and inventory management issues continue to act as growth inhibitors. Despite ongoing investments in digital transformation and omnichannel integration, the company faces a challenging near-term environment. DeLorenzo stressed the importance of optimizing cost structures and driving profitability through disciplined execution. While expressing long-term confidence in the brand portfolio and strategic initiatives, he acknowledged the ongoing macroeconomic pressures.

Guidance
The CEO indicated that Genesco expects full-year 2026 revenue growth to remain below 2%, with no specific quantitative targets provided. The company is focusing on EBITDA margin improvement and maintaining its commitment to reducing debt and improving operating cash flow. No material CAPEX expansion was mentioned, reinforcing the current emphasis on cost control and financial discipline.

Additional News
On September 10, 2025, Nigeria’s Punch newspaper reported a range of news stories. Notably, a 18-year-old girl from Edo State rejected a human trafficking scam in Mali, refusing to engage in prostitution after traffickers attempted to deceive her. In business, Nigeria’s Dangote Refinery emphasized that union membership is voluntary and not compulsory, highlighting its stance on labor policies. Additionally, Air Peace faced scrutiny after its crew tested positive for alcohol and drugs, as reported by Nigeria’s NSIB.