Genesco Inc. reported that its fourth‑quarter‑to‑date comparable sales grew 9% year‑over‑year, driven by a 10% increase in same‑store sales and a 9% lift in e‑commerce sales. The holiday season’s robust demand and effective execution across its retail and wholesale channels underpinned the lift, and the company raised its fiscal 2026 adjusted earnings‑per‑share guidance to a minimum of $1.30 per share, a significant improvement from the $0.95 guidance issued in Q3 FY26.
Journeys, Genesco’s flagship footwear retailer, delivered a double‑digit comparable growth of 12%, while Schuh’s comparable sales rose 6% but were supported by increased discounting in the U.K. market. The higher discounting at Schuh, combined with lower gross margins at the Genesco Brands Group, contributed to margin pressure across the portfolio. Despite these headwinds, the strong performance at Journeys helped offset the impact of promotional activity in the U.K. and maintained overall sales momentum.
The guidance revision reflects a recovery from the sharp cut made in December 2025, when management lowered FY26 guidance to $0.95 per share amid margin compression at Schuh and uncertainty in the U.K. market. The new minimum of $1.30 represents a 30% increase over the prior guidance and signals renewed confidence that the holiday‑season strength will translate into sustained profitability for the full year.
Management emphasized disciplined execution and cost controls as key drivers of the improved outlook. CEO Mimi Vaughn noted that “our holiday performance was driven by compelling assortments and exceptional execution, particularly at Journeys, and that we expect to maintain disciplined cost management as we finish the year.” She also highlighted the need to navigate the promotional environment in the U.K. and to continue focusing on margin improvement across the brands.
Analysts had expected FY26 adjusted EPS to be around $0.93. The upward revision to at least $1.30 per share represents a beat of $0.37 per share over the consensus estimate, underscoring the market’s surprise at the company’s ability to convert strong holiday sales into a higher earnings outlook.
The guidance raise, coupled with the strong comparable sales, positions Genesco to potentially exceed prior expectations for the fiscal year, while ongoing margin pressures at Schuh and the U.K. market remain a focus for management as it seeks to sustain growth and profitability.
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.