Genesco (GCO) investor relations material

Strategic business changes and growth initiatives

• Recent years saw significant strategic shifts, including store closures, cost reductions, and a focus on reinventing retail concepts, especially for the Journeys brand.

• Journeys targets a broader teen market, especially teen girls, with a diversified product assortment and increased brand awareness efforts.

• New store format (4.0) enhances customer experience, driving higher traffic, conversion, and average selling prices.

• Investments in digital and in-store environments, along with staff training, support a multi-pronged growth strategy.

• Expansion of new brand partnerships and scaling of high-demand brands like HOKA and Saucony are key growth drivers.

Consumer environment and market outlook

• Consumers are highly selective, seeking newness and value, with spending patterns expected to remain stable into 2025 and 2026.

• Higher average selling prices and conversion rates reflect demand for in-demand products.

• Tariff exposure is limited due to diversified sourcing, with mitigation efforts expected to reduce impact over time.

• Price increases have been minimal and thoughtfully managed to avoid significant margin hits.

• The UK market faces challenges with declining store traffic, but action plans focus on marketing and assortment improvements.

Store strategy and customer acquisition

• The 4.0 store format rollout is accelerating, targeting top-performing locations and aiming for 80+ stores this year, with further expansion planned.

• Remodeled stores show over 25% growth, and the strategy aims to attract new customers without alienating existing ones.

• Early results indicate most comp growth comes from existing customers, but new customer acquisition is increasing in 4.0 stores.

• Online and social media marketing, including influencer campaigns and style blogs, are integral to brand awareness.