Genesco Inc. Reports 4% Net Sales Increase to $546M in Q2 Fiscal 2026

Genesco Inc. reported a net sales increase of 4.0% to $546.0 million for the second quarter of Fiscal 2026, compared to $525.2 million in the same period last year. The growth was driven by a 4% rise in comparable sales, which included a 5% increase in same-store sales and a 1% increase in e-commerce sales. The Journeys Group segment performed particularly well, with a 9% increase in comparable sales, while the Schuh Group faced challenges, reporting a 4% decline in comparable sales due to a tough retail environment in the U.K. The company recorded a net loss of $18.5 million, or $1.79 per diluted share, compared to a net loss of $10.0 million, or $0.91 per diluted share, in the prior year.

In terms of profitability, Genesco's gross margin rose to $249.9 million, up from $245.6 million, but as a percentage of net sales, it decreased from 46.8% to 45.8%. This decline was attributed to increased promotional activity in the Schuh Group and lower margins in the Genesco Brands Group, which were impacted by the exit from certain licenses and tariffs. Selling and administrative expenses increased by 3.6% to $264.3 million, but as a percentage of net sales, they decreased slightly from 48.6% to 48.4%, reflecting cost-saving initiatives.

Operationally, Genesco's total assets increased to $1.42 billion as of August 2, 2025, compared to $1.38 billion a year earlier. The company operated 1,253 retail stores across the U.S., Puerto Rico, Canada, the U.K., and the Republic of Ireland. The company also signed a multi-year licensing agreement with Kontoor Brands, Inc. to design and distribute footwear under the Wrangler brand, with plans to launch the first collection in Fall 2026.

Looking ahead, Genesco anticipates continued challenges in the retail environment, particularly in the U.K. market. The company plans to focus on optimizing its store footprint and enhancing its e-commerce capabilities. Additionally, it expects to invest between $55 million and $65 million in capital expenditures for new stores and renovations in Fiscal 2026. The company remains committed to improving its operational efficiency and managing costs effectively to navigate the current market conditions.