Genesco Inc. reported first-quarter Fiscal 2026 net sales of $474 million, a 4% increase compared to $458 million in the prior year, exceeding analyst expectations. The company achieved its third consecutive quarter of positive comparable sales, rising 5%, driven by an 8% increase at Journeys and a 7% increase in e-commerce comparable sales.
Despite the sales beat, the adjusted loss per share for the quarter was $2.05, missing the street view of a $2.00 loss. Gross margin decreased by 90 basis points to 46.7% (adjusted) due to shifts in brand mix, promotional activities at Schuh, and liquidation of products for sunsetting licenses at Genesco Brands.
Genesco reiterated its full-year Fiscal 2026 adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. The company noted an estimated $15 million in unmitigated cost increases from tariffs in its branded business, but is actively diversifying its supply chain and implementing mitigation strategies. Total debt increased to $121.0 million, primarily reflecting a 15% year-over-year increase in inventories to support Journeys' growth.
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