Genesco Pops On Earnings But Don’t Expect A Rally Genesco (NYSE:GCO) reported first-quarter fiscal 2027 results that exceeded its expectations, with management pointing to continued momentum at Journeys, improvement at Johnston & Murphy and early benefits from efforts to reduce…
omotions and improve profitability across the business. Mimi Vaughn, Genesco’s board chair, president, chief executive officer and interim chief financial officer, said the company delivered its seventh consecutive quarter of positive comparable sales. “Our beat was broad-based across sales, gross margin, and expense leverage, reflecting a high level of execution,” Vaughn said
Revenue rose 3% to $487 million in the quarter, supported by 2% overall comparable sales growth. Store comps increased 3%, while direct comps were flat, with the company citing reduced promotional activity at Schuh as a particular drag on the online channel. Adjusted gross margin improved 30 basis points to 47%, and adjusted SG&A expense leveraged 60 basis points to 51.9% of sales.
Adjusted operating loss improved to $23.9 million from a loss of $27.9 million a year earlier. Adjusted diluted loss per share was $2.18, compared with a loss of $2.05 last year. The company said earnings per share declined despite improved operating profit because of a lower adjusted tax rate this year, tied to a valuation allowance discussed on its prior earnings call.