Genesco Inc. Reports 2.8% Net Sales Increase to $487M in Q1 Fiscal 2027

Genesco Inc. reported a net sales increase of 2.8% for the first quarter of Fiscal 2027, reaching $487.0 million compared to $473.9 million in the same period last year. The growth was driven by a 2% rise in comparable sales, which included a 3% increase in same-store sales. The Journeys Group segment performed particularly well, with a 5% increase in comparable sales, while the Schuh Group faced challenges, experiencing a 9% decline in comparable sales due to a weaker consumer market in the U.K. The Johnston & Murphy Group also saw a 7% increase in comparable sales, bolstered by effective marketing strategies.

The company's gross margin improved to 47.0%, up from 46.7% in the prior year, reflecting efficiencies in shipping and reduced promotional activities. Selling and administrative expenses rose by 2.2% to $254.4 million, but as a percentage of net sales, they decreased from 52.5% to 52.2%. This reduction was attributed to lower selling salaries and occupancy costs, alongside ongoing cost-saving initiatives. The operating loss narrowed to $15.4 million from $28.1 million in the previous year, indicating a positive trend in operational efficiency.

In terms of strategic developments, Genesco signed a multi-year licensing agreement with Kontoor Brands, Inc. to design and distribute footwear under the Wrangler brand, with the first collection expected to launch in Fall 2026. The company also completed the exit from its Levi's licensing business, which expired in May 2026. As of May 2, 2026, Genesco operated 1,208 retail stores across the U.S., Puerto Rico, Canada, and the U.K., reflecting a focus on optimizing its store footprint.

The company reported a net loss of $14.8 million, or $1.42 per diluted share, compared to a loss of $21.2 million, or $2.02 per diluted share, in the prior year. The effective income tax rate for the quarter was 6.8%, a decrease from 28.5% in the previous year, primarily due to changes in tax law and a lower expected tax rate. Looking ahead, Genesco anticipates continued challenges in the retail environment but remains focused on leveraging its brand strength and optimizing operations to drive future growth. The company expects to receive approximately $23 to $25 million in tariff refunds related to previous collections, which could positively impact liquidity in the near term.