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Genesco (GCO) investor relations material

Genesco Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary4 Dec, 2025

Executive summary

  • Achieved fifth consecutive quarter of positive comparable sales growth, with Q3 comps up 3% and Journeys leading with 6% comp growth and over 50% increase in operating income, despite headwinds from license exits, tariffs, and margin pressure at Schuh.

  • Q3 FY26 sales reached $616 million, up 3% year-over-year, with e-commerce representing 23% of retail sales and store comps up 5%.

  • Operating income and EPS improved significantly compared to the prior year, with non-GAAP EPS at $0.79 versus $0.61 last year.

  • Journeys' strategic initiatives, including the Life on Loud campaign and Nike brand launch, are driving market share gains and customer engagement.

  • Formation of Journeys Global Retail Group to drive synergies and growth across banners.

Financial highlights

  • Q3 revenue was $616 million, up 3% year-over-year, driven by 3% comp sales growth; store comps up 5%, e-commerce comps down 3%.

  • Gross margin declined 100 basis points to 46.8%, impacted by product liquidations, tariffs, and promotional activity at Schuh.

  • Adjusted operating income rose to $12.9 million from $10.3 million last year; adjusted EPS was $0.79 versus $0.61.

  • SG&A expense leveraged 140 basis points to 44.7% of sales, reflecting cost reductions, especially in rent and freight.

  • Free cash flow improved by nearly $5 million year-over-year; capital expenditures were $18 million, focused on store remodels and digital investments.

Outlook and guidance

  • Full-year adjusted EPS guidance lowered to approximately $0.95 (prior: $1.30–$1.70), reflecting higher tax rate and margin pressure at Schuh.

  • Full-year revenue growth expected at about 2% (prior: 3–4%), with comparable sales growth of about 3% (prior: 4–5%).

  • Gross margin projected to be down 100 basis points year-over-year, mainly due to Schuh and license exits.

  • SG&A expected to leverage about 100 basis points; capital expenditures planned at $55–$65 million.

  • No further share repurchases assumed in guidance.

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Frequently asked questions

Genesco Inc. is an old-fashioned shoe and boot maker that operates as a retailer and wholesaler of footwear, apparel, and accessories. The company sells fashion-oriented shoes under a range of brand names, including Johnston & Murphy, Dockers, Nautica Footwear, Laredo Western Boots, and Old Friend Footwear! It also licenses and markets its brands to foreign companies. Genesco sells its merchandise under various names through more than 2,500 retail stores in the US and Canada. Genesco Inc. was incorporated in 1924 and is headquartered in Nashville, Tennessee.

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