Genesco 2026 Q3 Earnings Strong Turnaround with 128.3% Net Income Surge

Genesco (GCO) delivered a remarkable turnaround in fiscal 2026 Q3, reporting a 3.3% revenue increase to $616.22 million and reversing a 2025 Q3 net loss with $5.36 million in net income. The results far exceeded expectations, driven by improved operational efficiency and segment-specific growth.

Revenue

Journeys Group led with $376.71 million in revenue, anchoring Genesco’s performance, while the Schuh Group contributed $123.77 million. The Johnston & Murphy Group added $81.16 million, and Genesco Brands Group secured $34.59 million. Corporate & Other operations reported $0, aligning with consolidated revenue of $616.22 million.

Earnings/Net Income

Genesco returned to profitability with EPS of $0.52, a dramatic 129.5% improvement from a 2025 Q3 loss of $1.76. Net income surged 128.3% to $5.36 million, reversing a 2025 Q3 loss of $18.93 million. Genesco’s Q3 2026 net income surged 128.3% to $5.36 million, reversing a 2025 loss and reflecting a strong operational turnaround.

Price Action

GCO’s stock edged up 2.97% on the latest trading day but declined 0.62% for the week and 22.83% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying GCO after an earnings beat and holding for 30 days underperformed the benchmark, delivering a -37.82% return versus 86.38%. While the strategy showed no significant drawdowns, its Sharpe ratio of -0.15 underscored poor risk-adjusted returns.

CEO Commentary

CEO

Guidance

Genesco expects full-year 2026 revenue growth to align with current momentum, with operating margins expanding due to cost reductions. The company reiterated its commitment to disciplined capital allocation and operational flexibility.

Additional News

Genesco announced a $25 million share repurchase program on Dec 10th, 2025, reflecting confidence in its balance sheet strength. The board also approved a 5% dividend increase, effective Q1 2026. No major M&A activity or C-level executive changes were disclosed in the three-week period preceding the earnings release.