Genesco Q1 Sales Up 3% to $487M; Loss Narrows to $14.8M
GCO•Genesco cut its Q1 net loss to $14.8 million from $21.2 million a year earlier and boosted net sales 3% to $487 million, surpassing $467.6–$480 million forecasts. It posted 2% comparable‐sales growth, closed 30 stores, opened two, and launched a cost‐cutting plan for $40–50 million savings plus $23–25M tariff refunds.
1. Q1 Financial Summary
Genesco reported a net loss of $14.81 million ($1.42 per diluted share) in fiscal Q1 FY27 versus $21.23 million ($2.02) a year earlier, while net sales rose 3% to $487.03 million, exceeding analyst forecasts of $467.56–$480 million and sending shares up nearly 8% in pre-market trading.
2. Comparable Sales and Store Network
Comparable‐sales improved 2%, including a 3% rise in same‐store sales, driven by a 5% increase at Journeys, 6% at Johnston & Murphy and 4% at Genesco Brands, offset by a 5% decline at Schuh. The company opened two stores and closed 30, ending Q1 with 1,208 locations, down 4% year‐over‐year.
3. Future Outlook and Cost Initiatives
Genesco expects tariff refunds of $23 million–$25 million under the International Emergency Economic Powers Act and unveiled a cost reduction program aimed at generating $40 million–$50 million in savings by fiscal 2029. Management intends these measures to structurally lower costs, support margin expansion and leverage AI for operational efficiencies.
