Celebrating Genesco at 100

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we are diving into our December print issue, which includes a special section celebrating Genesco's 100th year in business. Plus, Foot Locker reported earnings for Q3.

Here's what you need to know.

Genesco CEO Mimi Vaughn Talks the Power of Reinvention as the Company Celebrates 100-Year Milestone

How do you reinvent a 100-year-old footwear powerhouse? It’s no small feat — but Genesco board chair, president and chief executive officer Mimi Vaughn is proving she’s up to the challenge.

In the years following the pandemic, the executive has taken many steps to reinvigorate the company’s business, from refreshing its nearly 175-year-old Johnston & Murphy brand to elevating its Schuh retail business in the U.K. market.

But last year, the company may have encountered its biggest challenge yet with the closure of roughly 100 Journeys stores. The swift action to right-size its fleet and mitigate consumer shifts in the marketplace was coupled with bringing in new leadership to invigorate the teen retailer. Now, early signs show these efforts may be working. In its most recent earnings report, Genesco said net sales increased to $525 million in the second quarter, driven by a strong start to the back-to-school season. Its retail division posted the biggest gains, with sales rising 4 percent at Journeys and 1 percent at Schuh, while Johnston & Murphy and Genesco Brands Group saw some declines.

Vaughn, who has been at the helm of the company since February 2020, spoke with FN in a rare interview about Genesco’s track record of evolution. Click here to read more about what she had to say.

Journeys’ President Andy Gray Talks New Store Design and Refreshed Brand Mix as Its Retail Evolution Continues

“Style-led, not sneakerhead,” is the name of the game at Journeys since Andy Gray took the helm of the Genesco-owned teen footwear retailer in January.

The new mantra, which was coined by the footwear industry veteran, serves as the basis of Journeys’ reinvention plan as it seeks to entice today’s youth with a focus on self-expression.

“It’s about, do these shoes allow consumers to express their own style, and are these the right silhouettes that they desire and will they serve the multiple occasions our customers are looking to wear these shoes to,” Gray, who came to Genesco after a more than two decade career at Foot Locker, said in an interview with FN last month.

The new leadership team at Journeys Group — which also includes another Foot Locker vet, Chris Santaella as EVP and chief merchandising officer; and Levi’s alum Stacy Doren as EVP and chief marketing officer — is working hard to transform the business. The core of Journeys’ reinvention is broken into two parts: product and store design.

Foot Locker Says Soft Consumer Trends, Heavy Promotions Led to Rocky Q3

Foot Locker Inc. on Wednesday downgraded its outlook for fiscal year 2024 after reporting Q3 sales and earnings that fell short of its expectations.

Mary Dillon, the sneaker retailer’s chief executive officer, told FN in an interview that weaker consumer demand and a highly promotional environment impacted Foot Locker’s results in the third quarter. She also noted that sales were generally slower outside of key shopping events like back-to-school and Thanksgiving weekend.

“We’re operating an environment that is temporarily impacting our business and offsetting some of the progress that we’re making,” Dillon told FN. “People are coming out to spend and then pulling back.”

The Nike effect: In a call with analysts, Foot Locker chief commercial officer Frank Bracken noted that among other challenges, the chain was “contending with some more recent softness” from Nike, its largest brand partner, which also impacted Q3 results.

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