Genesco said first-quarter fiscal 2027 net sales rose 3% to $487 million from $474 million a year earlier, while comparable sales increased 2% after a 5% gain in the prior-year quarter.
The company’s store sales rose 3%, while e-commerce was flat, compared with 7% e-commerce growth a year ago. Journeys posted a 5% comparable-sales increase, versus 8% in the prior-year quarter. Johnston & Murphy’s comparable sales rose 7%, reversing a 2% decline last year. Schuh’s comparable sales fell 9%, compared with a 1% gain a year ago.
Gross margin improved to 47.0% from 46.7%, a 30-basis-point increase. Selling and administrative expenses improved to 52.2% of sales from 52.5%, while adjusted selling and administrative expenses improved to 51.9% from 52.5%.
The company’s operating loss narrowed to $15.4 million from $28.1 million. Adjusted operating loss improved to $23.9 million from $27.9 million.
Genesco reported a loss from continuing operations of $14.8 million, versus a loss of $21.2 million a year earlier. Adjusted loss from continuing operations was $22.7 million, or $2.18 per share, compared with $21.5 million, or $2.05 per share, last year.
Cash at quarter-end was $27.1 million, up from $21.7 million a year earlier. Total debt fell to $45.3 million from $121.0 million. Inventories increased 6% year over year.
During the quarter, Genesco opened two stores and closed 30, ending with 1,208 stores, down from 1,256 a year earlier. Square footage declined 4%.
The company raised its full-year adjusted EPS outlook to $2.00 to $2.40 from $1.90 to $2.30. It also announced a new cost savings program expected to deliver $40 million to $50 million in savings between now and fiscal 2029. The market has reacted to these announcements by moving the company's shares 0.0% to a price of $37.18. For more information, read the company's full 8-K submission here.
