GENESCO INC SEC 10-Q Report

Genesco Inc., a leading retailer and wholesaler of footwear, headwear, and accessories, has released its Form 10-Q report for the third quarter of Fiscal 2026. The report highlights the company's financial and operational performance, showcasing a mix of growth in net sales and strategic operational adjustments. The company continues to navigate a dynamic retail environment with a focus on optimizing its store portfolio and expanding its product offerings. Financial Highlights Net Sales: $616.2 million, increased 3.3% compared to the third quarter of Fiscal 2025, driven by a 3% increase in comparable sales and strong back-to-school sales in Journeys Group.Gross Margin: $288.6 million, increased 1.2% from the third quarter of Fiscal 2025, but decreased as a percentage of net sales from 47.8% to 46.8% due to lower margins at Genesco Brands Group and increased promotional activity at Schuh Group.Operating Income: $8.6 million, decreased from $10.2 million in the third quarter of Fiscal 2025, reflecting decreased gross margin as a percentage of net sales and higher asset impairment and other charges.Net Earnings (Loss): $5.4 million, compared to a net loss of $18.9 million in the third quarter of Fiscal 2025, reflecting improved performance and a lower effective tax rate.Diluted Earnings (Loss) Per Share: $0.50, compared to a diluted loss per share of $1.76 in the third quarter of Fiscal 2025, indicating a significant improvement in profitability. Business Highlights Revenue Segments: Journeys Group sales increased by 3.9% in the third quarter of Fiscal 2026, driven by a strong product assortment and increased same store sales, despite a decrease in the average number of stores.Schuh Group sales rose by 1.6%, benefiting from favorable foreign exchange rates and increased e-commerce sales, although same store sales declined.Johnston & Murphy Group saw a 3.4% increase in sales due to higher wholesale sales, despite a decrease in comparable sales.Genesco Brands Group's sales grew by 3.2%, primarily due to increased sales of Dockers and private label footwear. Geographical Performance: In the third quarter of Fiscal 2026, North America accounted for 80% of net sales, while the U.K. and ROI contributed 20%. Schuh Group faced a challenging retail environment in the U.K., with a 2% decrease in comparable sales, although e-commerce remained a strong channel, accounting for over 40% of sales.Sales Units: Journeys Group operated 974 stores at the end of the third quarter of Fiscal 2026, down from 1,028 stores in the previous year, reflecting a strategic focus on optimizing the store portfolio. Schuh Group operated 119 stores, a slight decrease from 122 stores in the prior year.Future Outlook: The company anticipates launching a new Wrangler footwear collection in Fall 2026 under a multi-year licensing agreement with Kontoor Brands, Inc. This strategic move is expected to expand the company's product offerings and market reach.Operational Efficiency: The company achieved a decrease in selling and administrative expenses as a percentage of net sales across several segments, reflecting successful cost-saving initiatives and improved operational efficiency. This was particularly evident in the Journeys Group, where expenses were leveraged due to increased revenue.SEC Filing: GENESCO INC [ GCO ] - 10-Q - Dec. 11, 2025