Genesco Inc. reaffirmed its outlook for fiscal year 2025 after it reported sales and earnings results that beat its expectations for the first quarter.
In the first quarter of fiscal 2025, the Nashville-based footwear company reported that net sales decreased 5 percent year over year to $458 million, driven by store closures, a decline in store sales and a decline in wholesale sales.
Net loss from continuing operations was $22.9 million, adding up to a loss of $2.10 per share, compared to a net loss of $18.7 million, or $1.59 per share the prior year. The results beat expectations of analysts surveyed by Yahoo, who were expecting a loss per share of $2.70 and revenues of $445.65 million. It also beat expectations of the company.
By banner, sales declined 5 percent at Journeys, 1 percent at Schuh, 4 percent at Johnston & Murphy and 25 percent at Genesco Brands. Comparable store sales declined 7 percent and comparable e-commerce sales jumped by 3 percent. E-commerce was responsible for 23 percent of total retail sales in Q1, up from 21 percent last year.
Genesco president, chief executive officer and board chair Mimi Vaughn said in a statement that the company delivered results that beat its expectations, despite “continued headwinds in the operating environment.” She noted that the Journeys business, headed by Foot Locker veteran Andy Gray as of November, led the company’s results in Q1.
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Genesco continued to bolster the Journeys team with the January hiring of former Foot Locker executive Chris Santaella as executive vice president and chief merchandising officer for the Journeys group.
“Our efforts to reduce costs and optimize our store portfolio are resulting in a leaner, more productive operating model, which will provide a nice profit tailwind as our sales improve,” Vaughn said. “While we have more work ahead of us, with an outstanding team in place, a strong track record of evolving and improving our businesses, and multiple initiatives already in progress, we are well positioned to unlock Journeys’ considerable earnings potential and drive value.”
Genesco reaffirmed its outlook for fiscal 2025 and still expects total sales in fiscal 2025 to decrease 2 to 3 percent compared to fiscal 2024. Adjusted diluted earnings per share from continuing operations are expected in the range of 60 cents to $1.
After reporting challenging first quarter results last year in May, Genesco announced it would close more than 100 underperforming Journeys stores in fiscal 2024, versus prior expectations to close 60 stores, to help cut costs at the retailer.
In Q1, the company said it closed 17 Journeys stores and said it is evaluating up to 50 Journeys store closures for this year.