CaryptosHeadlines Media Has Launched Its Native Token CHT.
Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT.
Join the Airdrop at the official website,
CryptosHeadlinesToken.com
In the fourth quarter of Fiscal 2025, Genesco Inc. reported a modest increase in net sales, reaching $746 million, up 1% from the previous year. This growth was achieved despite the quarter being one week shorter than the comparable period in Fiscal 2024. The company saw a significant 10% rise in comparable sales, with e-commerce sales surging by 18% and contributing 30% to total retail sales. This marks an increase from the previous year, where e-commerce accounted for 27% of retail sales.
The company’s operating income also saw a notable increase, climbing 24% to reach $46.1 million, which represents 6.2% of sales, compared to 5.0% in the previous year. Genesco’s gross margin improved by 60 basis points to 46.9%, attributed to reduced markdowns at Journeys and better margins at Genesco Brands and Johnston & Murphy. However, Schuh faced increased promotional activities, impacting its margins.
The company also achieved a reduction in selling and administrative expenses, which decreased by 60 basis points to 40.5% of sales. This was primarily due to reduced occupancy costs and selling salaries, although marketing and incentive compensation expenses saw an uptick.
Genesco’s Q4 Earnings Falls Short of Expectations
When comparing Genesco’s fourth-quarter performance with market expectations, the company reported a non-GAAP EPS of $3.26, which fell short of the anticipated $3.30. Despite this, the company showed a substantial improvement over the previous year’s non-GAAP EPS of $2.59. The reported GAAP EPS was $3.06, up from $1.84 in the prior year. Revenue for the quarter stood at $746 million, which did not meet the expected $780.43 million.
The shortfall in revenue can be partly attributed to the calendar shift, as Fiscal 2024 had an extra week. Adjusting for this, net sales would have increased by 7%, indicating a stronger underlying performance than the headline figures suggest. The Journeys Group was a significant contributor to the overall performance, with a 14% increase in comparable sales, offsetting declines in other segments like Schuh and Johnston & Murphy.
Join our Telegram group and never miss a breaking digital asset story.
Genesco Expets Sales to Remain Flat or Increase by 1% in FY’26
Looking ahead to Fiscal 2026, Genesco has set its sights on maintaining momentum. The company expects total sales to remain flat or increase by up to 1% compared to Fiscal 2025, considering a negative impact of approximately $14 million due to foreign exchange fluctuations and $30 million from store closures. The adjusted diluted earnings per share from continuing operations are projected to range between $1.30 and $1.70.
Genesco’s guidance assumes no further share repurchases and anticipates a tax rate of 29%. The company is focusing on its strategic growth initiatives, particularly within the Journeys segment, as it aims to return to historical sales and profit levels. The emphasis on its footwear-focused strategy and digital and omnichannel initiatives is expected to drive future growth and shareholder value.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
