Genesco (GCO) Q1 2026 earnings summary

Executive summary

• Net sales rose to $474 million, up 4% year-over-year, with comparable sales up 5% and e-commerce accounting for 23% of retail sales, led by Journeys' 8% comp increase and continued market share gains.

• All channels posted positive growth: stores up mid-single digits, online up 7%, and wholesale up 5%.

• Operating income and EPS improved year-over-year, driven by higher sales and expense leverage from cost reduction efforts.

• Top and bottom-line results exceeded expectations, and full-year EPS guidance was reaffirmed despite tariff and macroeconomic uncertainties.

• Consumer environment remains choppy, but compelling assortments and strategic initiatives are driving performance.

Financial highlights

• Gross margin was 46.7%, down 60–90 basis points year-over-year, mainly due to higher athletic mix and promotional activity.

• SG&A expense was $249 million, 52.5% of sales, leveraging 170 basis points year-over-year.

• Adjusted operating loss was $27.9 million, improved from $30 million loss last year; adjusted diluted loss per share was $2.05 vs. $2.10 last year.

• Adjusted EBITDA loss was $14.5 million, or -3.1% of sales, improved from $16.7 million last year.

• Inventory increased 15% year-over-year to $451 million to support Journeys growth.

Outlook and guidance

• Fiscal 2026 adjusted EPS guidance reiterated at $1.30–$1.70, including current tariffs.

• Total sales expected to rise 1%–2% year-over-year, with comparable sales up 2%–3%.

• Gross margin expected down 20–30 basis points for the year, offset by mitigation and retail margin improvement.

• Q2 sales expected slightly above last year, with positive Journeys comps offset by softness in other segments and store closures.

• Higher interest costs and tax rate (~29%) expected; positive free cash flow anticipated for the full year.