Shares of Genesco Inc. jumped nearly 20 percent in pre-market trading on Friday as its Journeys retail banner saw “exceptional” holiday performance.
The Nashville-based footwear company reported that net earnings in the fourth quarter were $47.6 million, up from $34.4 million in the same year-ago period. Net sales increased 7 percent to $799.9 million, or $4.44 per diluted share, compared with $745.9 million, or $3.13 per diluted share, in the fourth quarter of fiscal 2025. Earnings, adjusted for one-time gains and costs, were $3.74 per share.
This performance beat analysts’ expectations, which called for net sales in Q4 to be $777.75 million and earnings per share of $3.73, according to Yahoo Finance.
Genesco noted that the sales increase reflects a 9 percent increase in comparable sales, including a 9 percent increase in same store sales and an 8 percent increase in e-commerce comparable sales and a favorable foreign exchange impact.
The company further noted that the overall sales growth for the fourth quarter was driven by an increase of 10 percent at Journeys, 9 percent at Schuh and 2 percent at Johnston & Murphy, partially offset by a decrease of 27 percent or $10 million at Genesco Brands.
During the quarter, the company opened six stores and closed 15 stores. The company ended the quarter with 1,236 stores compared with 1,278 stores at the end of the fourth quarter last year, or a decrease of 3 percent. Square footage was down 2 percent on a year-over-year basis.
As for the full fiscal year 2026, net sales increased 5 percent to $2.4 billion compared to $2.3 billion in fiscal 2025. Net earnings for the year were $13.3 million, up from a net loss of $18.9 million the prior year.
The company said that its net sales increase for fiscal 2026 reflected a 6 percent increase in comparable sales, including a 6 percent increase in same store sales and a 4 percent increase in e-commerce comparable sales, and a favorable foreign exchange impact, partially offset by 42 net store closings and decreased wholesale sales.
Overall sales for fiscal 2026 were also driven by a 7 percent increase at Journeys and a 4 percent increase at Schuh, partially offset by a decrease of 4 percent at Genesco Brands, while sales at Johnston & Murphy were flat.
Genesco president, chief executive officer and board chair Mimi Vaughn said in a statement on Friday that she was upbeat about the firm’s showing, and she highlighted the company’s sixth consecutive quarter of positive comparable sales growth.
“Journeys once again led the way with double-digit comp growth on top of double digits last year, fueled by an exceptional holiday performance,” Vaughn noted. “Our strategic initiatives around product elevation and customer experience continue to resonate with teens, driving market share gains and positioning Journeys as the clear destination for style-led footwear. At the same time, Johnston & Murphy’s comparable sales improved in each successive month, while Schuh navigated a promotional U.K. environment and exited the year with clean inventories.”
Looking ahead, the company expects total sales for fiscal 2027 to be down 1 percent to flat compared to fiscal 2026 including a reduction in sales of approximately $30 million net due to the exit of licenses and approximately $30 million related to net store closures. However, the company does expect positive comparable sales of between 1 percent to 2 percent for the year.
“We are optimistic about fiscal 2027,” the CEO said. “We expect another year of comparable sales growth driven by our strategic growth plan and ongoing strength at Journeys, and improved acceleration at Johnston & Murphy as our product and marketing strategies gain more traction. These results will be partially offset by Schuh as we reset the promotional posture and apply the learnings from Journeys’ successful transformation. Our ‘Footwear First’ strategy, combined with our disciplined approach to cost management and inventory control, positions us well to deliver improved profitability and create meaningful shareholder value.”
