Genesco Raises EPS Guidance as U.S. Comps Climb 5% and 7%
SCVL•Genesco posted its seventh quarter of positive comparable sales as Journeys comps rose 5% and Johnston & Murphy comps gained 7%, while SG&A leverage improved 60 basis points. U.K. Schuh comps fell 9% during a strategic reset, and full-year EPS guidance was raised to $2–$2.40 with a $40M–$50M cost program.
1. Strong North American Brands
Genesco’s U.S. operations delivered its seventh straight quarter of positive comps with Journeys up 5% on top of last year’s 8% gain and Johnston & Murphy accelerating 7%. The company also improved SG&A leverage by 60 basis points on only 2% overall comparable sales growth, highlighting operational efficiency.
2. Strategic U.K. Schuh Reset
The U.K. Schuh division saw a 9% comp decline as management curtailed promotions to rebuild full-price sales in a weak consumer market. This intentional slowdown pressured store traffic, with leadership acknowledging the turnaround will take longer than in North America.
3. Full-Year Guidance and Cost Program
Genesco raised full-year EPS expectations to $2.00–$2.40 and unveiled a $40 million–$50 million initiative to structurally reduce costs. Caution persists for the next quarter, with management forecasting an operating loss on par with or slightly worse than last year due to U.K. headwinds.
