American retailer Genesco posts net sales of $458 mn in Q1 FY25

Breaking down the sales performance, the overall 5 per cent decline was driven by a 5 per cent decrease at Journeys, a 1 per cent decrease at Schuh, a 4 per cent decrease at Johnston & Murphy, and a significant 25 per cent, or $9 million, decrease at Genesco Brands. On a constant currency basis, Schuh sales were down 4 per cent for the first quarter this year, the company said in a press release.

Despite the drop in sales, the first quarter gross margin remained flat at 47.3 per cent compared to the same period last year. However, the adjusted gross margin for the first quarter saw an increase of 30 basis points as a percentage of sales compared to the previous year.

The company faced increased selling and administrative expenses for the first quarter this fiscal, rising by 220 basis points as a percentage of sales compared with last fiscal.

Genesco reported a GAAP operating loss of $32.1 million, or 7 per cent of sales, for the first quarter of Fiscal 2025, compared with a GAAP operating loss of $23 million, or 4.8 per cent of sales, in the first quarter of the previous year.

The GAAP loss from continuing operations was $24.3 million for the first quarter of fiscal 2025 (Q1 FY25), up from $18.9 million in the same period last year. When adjusted for excluded items, the first quarter loss from continuing operations was $22.9 million, or $2.10 per share, compared to $18.7 million, or $1.59 per share, in the first quarter of the last fiscal.

“Against continued headwinds in the operating environment, we executed to our strategic plan to deliver top and bottom-line results that were ahead of our expectations, led by our Journeys business. With new Journeys leadership in place, I am encouraged by the traction we are seeing thus far, as we work to dramatically accelerate the improvement, elevate our product assortments and enhance the experience for our consumers,” said Mimi E Vaughn, Genesco’s board chair, president and chief executive officer.

ALCHEMPro News Desk (DP)