Genesco Q1 Sales Rise 4% YoY, Journeys Banner Sees 8% Comparable Sales Increase

Genesco Q1 sales rise 4% YoY to $474 million, driven by an 8% YoY comparable sales increase at Journeys. Journeys now accounts for over one-third of Genesco's sales, with athletic footwear exceeding 33% of sales and average selling prices up 12% YoY. Management reaffirmed adjusted EPS guidance of $1.30 to $1.70 for fiscal 2026, citing strong cost control, aggressive tariff mitigation efforts, and continued strategic transformation in the Journeys business.

Genesco Inc. (NYSE: GCO) reported its first-quarter fiscal 2026 results, showing a 4% year-over-year (YoY) increase in revenue to $474 million, according to the company's earnings release [1]. This growth was primarily driven by an 8% YoY comparable sales increase at its Journeys banner, which now accounts for over one-third of Genesco's sales. Athletic footwear sales at Journeys exceeded 33% of the total, with average selling prices climbing 12% YoY.

Management reaffirmed its adjusted earnings per share (EPS) guidance of $1.30 to $1.70 for fiscal 2026, attributing the strong performance to robust cost control, aggressive tariff mitigation efforts, and continued strategic transformation in the Journeys business. The company's strategic initiatives, including store remodels and investments in loyalty programs, have supported growth and are expected to contribute positively during the holiday season.

The company's gross margin decreased to 45.8%, down 100 basis points from last year, due to a more promotional environment in the UK, particularly affecting its Schuh brand. The UK retail environment remains challenging, with Schuh experiencing major store traffic and comp declines in May and June. Despite these challenges, the company is focusing on inventory management and strategic initiatives to navigate the competitive landscape.

Genesco is also focusing on reducing its reliance on China for sourcing, which has decreased to just over 10% of total product as of the start of the year. The company is exploring additional licensing opportunities, with the Wrangler partnership being a notable example.

The rollout of the new "Journeys 4.0" store format has been successful, with 39 remodels completed and plans to reach 75-plus locations by year-end. These remodels have produced greater than 25% sales lifts per unit, with notable gains in new customer acquisition, traffic, and conversion rates.

Genesco's ongoing diversification of sourcing, targeted price increases, and close vendor collaboration suggest that the company retains the ability to defend margins and limit tariff-driven earnings volatility, reducing long-term operational risk relative to less nimble industry peers.

References:
[1] https://finance.yahoo.com/news/genesco-inc-gco-q2-2026-070652148.html
[2] https://www.mitrade.com/insights/news/live-news/article-8-1089402-20250903