Genesco Inc. (NYSE:GCO) reported its fiscal 2026 third‑quarter results on December 4, 2025, showing net sales of $616 million for the three months ended November 1, 2025—a 3% year‑over‑year increase that reflects steady demand across its portfolio.
Comparable sales rose 3%, driven largely by a 6% gain at its Journeys banner, which continues to lead growth. Schuh, Johnston & Murphy, and the Genesco Brands Group posted modest gains, but the overall mix shift toward Journeys helped offset weaker performance in legacy segments.
Adjusted net income climbed 27% to $8.4 million, or $0.79 per share. The company’s full‑year adjusted earnings‑per‑share guidance was cut to approximately $0.95 from the prior $1.30‑$1.70 range. Analysts had expected $0.88 per share and $618.6 million in revenue, so Genesco missed EPS by $0.09 and revenue by about $2.6 million.
Gross margin contracted 100 basis points year‑over‑year to 46.8%. The decline stems from lower margins at the Genesco Brands Group—affected by tariff pressures and the exit of licensing agreements—and increased promotional activity at Schuh, which has been battling a challenging UK consumer environment.
E‑commerce sales fell 3% year‑over‑year, a reversal of the e‑commerce growth seen in prior quarters. Management noted that while Journeys continues to benefit from strong back‑to‑school demand, the company is navigating headwinds in its legacy brands and a softer overall retail climate.
"We delivered another quarter of top and bottom‑line growth, marking our fifth consecutive quarter of positive comparable sales increases," said Mimi E. Vaughn, Genesco’s CEO. The guidance cut signals management’s concern about continued pressure on sales and margins, especially in the Schuh business, and underscores the need for disciplined cost management and strategic focus on high‑margin segments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.