Genesco (GCO) Q4 2025 earnings summary

Executive summary

• Q4 revenue rose 1% to $746 million, with comparable sales up 10% and digital sales up 18%; gross margin expanded 60 bps and operating profit increased 24% year-over-year, driven by Journeys' outperformance and strategic initiatives.

• Full-year sales were flat at $2.3 billion, with digital penetration reaching 25% and loyalty program members surpassing 10 million.

• Adjusted Q4 EPS was $3.26, up from $2.59 last year; full-year adjusted EPS was $0.94.

• Cost savings program achieved $45–$50 million in annualized reductions.

Financial highlights

• Q4 net sales were $746 million (+1% YoY), with adjusted EPS of $3.26 and GAAP EPS of $3.06.

• Q4 gross margin was 46.9% (+60 bps YoY); full-year gross margin was 47.2% (-10 bps YoY).

• Q4 operating income (GAAP) was $46.1 million; non-GAAP was $47.9 million.

• Q4 inventory up 12% year-over-year, supporting Journeys growth and distribution model changes.

• Free cash flow of $103 million in Q4; year-end cash was $34 million with no debt outstanding.

Outlook and guidance

• Fiscal 2026 comp sales expected to rise 2–4%, with total sales projected flat to up 1%, including $30 million impact from store closures and $14 million FX headwind.

• Gross margin expected to decline 20–30 bps, with more pressure in Q1 due to product and channel mix.

• Fiscal 2026 adjusted EPS guidance is $1.30–$1.70, with most improvement in the back half of the year.

• Capital spend planned at $50–$65 million, focusing on 70 Journeys remodels, omni-channel, IT, and digital investments.