“We delivered another quarter that surpassed our top- and bottom-line expectations, as the improvement in our Journeys business continues to gain traction. Armed with a more elevated and diversified product assortment, Journeys capitalized on the early Back-to-School demand, which drove a positive inflection in comparable sales as the quarter progressed. Thus far in the third quarter, Journeys’ store traffic and sales trends have accelerated further (…). Looking ahead, I feel confident that our strategic initiatives and efforts to improve the efficiency of our operating model will enable us to unlock our full earnings potential and create value for our shareholders”, commented Mimi E. Vaughn, Genesco’s Board Chair, President, and Chief Executive Officer.

Second Quarter Results

Genesco’s net sales in the second quarter of fiscal 2025, which ended on the 3^rd of August,  reached  525 million US dollars, slightly up from 523 million US dollars in the same period of fiscal 2024. This growth includes an estimated 20 to 25 million US dollars attributed to shifting a strong week of back-to-school sales from the third to the second quarter due to the 53-week calendar change. Additionally, there was an 8% increase in e-commerce comparable sales, partially offset by declines in store sales, store closures, and reduced wholesale revenue.

Comparable Sales

The overall sales growth in the second quarter of the current fiscal year, as compared to the same period in the previous year, was primarily driven by a 4% increase at Journeys, Genesco’s main brand for teens, and a 1% rise at Schuh. However, this was partially offset by a 9% decline at Johnston & Murphy and a 13% (4 million US dollars) drop at Genesco Brands. On a constant currency basis, Schuh also saw a 1% year-on-year increase in sales in the second quarter of this year.

Store Closing and Cost Savings

In the second quarter of fiscal 2025, the company closed 12 Journeys stores, bringing the total number of closures to date to 29, with plans to assess up to 50 closures by the end of the fiscal year.

Considering all Genesco’s brands, the company ended the second quarter with 61 fewer stores when compared to the second quarter of the prior fiscal year. Additionally, its cost-saving initiative is on track to reduce annual operating costs by 45 to 50 million US dollars by the close of Fiscal 2025. This includes inventory control procedures, which kept total company inventory down by 8% and Journeys inventory down by  9% versus last year.

Full Year Outlook

Genesco now anticipates full year total sales to decline by 1% to 2%, as compared to the previous fiscal year, or remain flat to a 1% decrease, when excluding the extra 53^rd week in fiscal 2024, improving from the previous forecast of a 2% to 3% drop. 

Adjusted diluted earnings per share from continuing operations are still expected to range between 0.60 and 1.00 US dollars. This outlook assumes no additional share repurchases and a tax rate of 27%.