Genesco Inc. (NYSE: GCO) reported its fiscal 2025 second-quarter results, exceeding expectations. The company, driven by the momentum in its Journeys business, reported total net sales of $525 million, up from $523 million in the same period last year.
Key Q2 Results
Genesco's second-quarter performance surpassed expectations, despite a 4% decline in store sales and the impact of net store closings. The actual revenue of $525 million exceeded the forecasted $508 million. The main driver was the Journeys business, which saw an 8% increase in e-commerce sales, while Schuh and Johnston & Murphy segments experienced declines of 2% and 5%, respectively. GAAP EPS was -$0.91, and Non-GAAP EPS was -$0.83, compared to the expected -$1.15.
Actions and Outlook
Mimi E. Vaughn, Genesco’s Board Chair, President, and CEO, highlighted the positive trajectory of the Journeys brand due to a more diverse product assortment and increased store traffic. Despite this, Vaughn noted ongoing challenges in the operating environment and maintained a conservative outlook for the company's other businesses. The company reaffirmed its fiscal 2025 EPS outlook and updated its sales guidance, now expecting total sales to decrease by 1-2% or remain flat compared to fiscal 2024, excluding the 53rd week.
Financial Health
Genesco's financial health remains robust, ending the quarter with $45.9 million in cash reserves and a significant reduction in total debt to $77.8 million from $131.5 million in the previous year. Substantial capital returns to shareholders included share repurchases worth $9.3 million.
Genesco continues its strong performance, driven by the success of the Journeys brand and efforts to enhance operational efficiency. The financial stability of the company remains solid, enabling it to pursue further growth and development despite the current industry challenges.
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