Industry Overview - The holiday shopping season is crucial for retailers, with economic factors like persistent inflation and trade policies impacting revenues [1] - Deloitte projects U.S. holiday retail sales to increase by 2.9% to 3.4%, totaling approximately $1.61 trillion to $1.62 trillion, indicating a slower growth rate compared to the previous year's 4.2% [2][9] - E-commerce is expected to grow significantly, with a forecasted increase of 7% to 9%, leading to total online sales between $305 billion and $310.7 billion [4][9] Company Insights - **SharkNinja, Inc. (SN)**: Anticipated to benefit from consumer demand for value-driven deals, with a growth model focused on product innovation and a diversified supply chain. The Zacks Consensus Estimate suggests sales and EPS growth of 14.4% and 15.6%, respectively [3][10][11] - **Genesco Inc. (GCO)**: Experiencing strong momentum at Journeys, with a refreshed product mix and brand storytelling. The Zacks Consensus Estimate indicates sales and EPS growth of 3% and 67%, respectively [12][13] - **Casey's General Stores, Inc. (CASY)**: Leveraging scale and digital engagement to enhance its position in convenience retail, with a Zacks Consensus Estimate forecasting sales and EPS growth of 10.7% and 8.7%, respectively [14][15] - **Sprouts Farmers Market, Inc. (SFM)**: Focused on organic products and customer engagement through loyalty programs, with a Zacks Consensus Estimate suggesting sales and EPS growth of 15.7% and 40.8%, respectively [16][17]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q%20Filing%20Information) This section provides key administrative details regarding the company's Form 10-Q filing and stock information - Genesco Inc. (GCO) is an accelerated filer on the New York Stock Exchange[2](index=2&type=chunk) - As of August 29, 2025, there were **10.8 million shares** of common stock outstanding[2](index=2&type=chunk) [Part I. Financial Information](index=2&type=section&id=Part%20I.%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and management's analysis [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%3A) This section presents the unaudited condensed consolidated financial statements of Genesco Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive loss, cash flows, and equity, along with accompanying notes for the specified interim periods [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $40,989 | $34,007 | $45,855 | | Total current assets | $645,891 | $608,756 | $606,720 | | Total Assets | $1,421,925 | $1,335,536 | $1,383,751 | | Total current liabilities | $414,355 | $379,782 | $395,663 | | Total liabilities | $915,553 | $788,566 | $851,129 | | Total equity | $506,372 | $546,970 | $532,622 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss over specific interim periods Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $545,965 | $525,188 | $1,019,938 | $982,785 | | Gross margin | $249,949 | $245,639 | $471,130 | $461,920 | | Operating loss | $(14,440) | $(10,274) | $(42,585) | $(42,402) | | Net Loss | $(18,471) | $(9,992) | $(39,698) | $(34,339) | | Basic loss per common share | $(1.79) | $(0.91) | $(3.82) | $(3.14) | | Diluted loss per common share | $(1.79) | $(0.91) | $(3.82) | $(3.14) | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the company's net loss and other comprehensive income or loss components Condensed Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Metric | Three Months Ended Aug 2, 2025 | Three Months Ended Aug 3, 2024 | Six Months Ended Aug 2, 2025 | Six Months Ended Aug 3, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(18,471) | $(9,992) | $(39,698) | $(34,339) | | Total other comprehensive income | $280 | $1,393 | $7,004 | $458 | | Comprehensive Loss | $(18,191) | $(8,599) | $(32,694) | $(33,881) | - Foreign currency translation adjustments significantly increased to **$6,811 thousand** for the six months ended August 2, 2025, compared to **$399 thousand** for the same period in 2024[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended, in thousands) | Cash Flow Activity | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(14,693) | $(6,029) | | Net cash used in investing activities | $(33,580) | $(14,274) | | Net cash provided by financing activities | $54,886 | $30,922 | | Net increase in cash | $6,982 | $10,700 | | Cash at end of period | $40,989 | $45,855 | - Capital expenditures more than doubled to **$33,580 thousand** for the six months ended August 2, 2025, from **$14,274 thousand** in the prior year[19](index=19&type=chunk) [Condensed Consolidated Statements of Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section details changes in the company's equity, including retained earnings and accumulated other comprehensive loss Condensed Consolidated Statements of Equity Highlights (in thousands) | Metric | Balance August 2, 2025 | Balance August 3, 2024 | | :--- | :--- | :--- | | Total Equity | $506,372 | $532,622 | | Retained Earnings | $212,977 | $251,351 | | Accumulated Other Comprehensive Loss | $(38,420) | $(39,166) | | Shares repurchased (6 months) | $(12,566) | $(9,349) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the figures presented in the condensed consolidated financial statements, covering significant accounting policies, segment information, and other relevant financial details [Note 1: Summary of Significant Accounting Policies](index=10&type=section&id=Note%201%20Summary%20of%20Significant%20Accounting%20Policies) This note describes the company's key accounting principles, business segments, and recent tax law impacts - Genesco operates four reportable business segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands Group, distributing footwear, apparel, and accessories through retail stores and e-commerce[24](index=24&type=chunk)[25](index=25&type=chunk) - The company is exiting the licensed Levi's brand business during Fiscal 2026 due to license expiration[25](index=25&type=chunk) - A new multi-year licensing agreement was signed with Kontoor Brands, Inc. for Wrangler footwear, with the first collection launching in Fall 2026[26](index=26&type=chunk) - The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, which is expected to materially decrease the U.S. current tax liability and effective income tax rate for Fiscal 2026[34](index=34&type=chunk) - The effective income tax rate for the first six months of Fiscal 2026 was **13.2%**, down from **28.5%** in Q1 Fiscal 2026 before the OBBBA enactment[34](index=34&type=chunk) [Note 2: Goodwill and Other Intangible Assets](index=12&type=section&id=Note%202%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides details on the company's goodwill and other intangible assets Goodwill and Net Other Intangibles (in thousands) | Metric | August 2, 2025 | February 1, 2025 | | :--- | :--- | :--- | | Goodwill | $9,336 | $8,863 | | Net Other Intangibles | $27,408 | $26,059 | [Note 3: Inventories](index=13&type=section&id=Note%203%20Inventories) This note details the composition and valuation of the company's inventory balances Total Inventories (in thousands) | Metric | August 2, 2025 | February 1, 2025 | | :--- | :--- | :--- | | Wholesale finished goods | $80,610 | $82,784 | | Retail merchandise | $420,398 | $342,440 | | Total Inventories | $501,008 | $425,224 | [Note 4: Fair Value](index=13&type=section&id=Note%204%20Fair%20Value) This note presents the fair value measurements of the company's financial instruments Fair Value of Long-Term Debt (in thousands) | Metric | August 2, 2025 (Fair Value) | February 1, 2025 (Fair Value) | | :--- | :--- | :--- | | U.S. Revolver Borrowings | $57,775 | $— | | U.K. Revolver Borrowings | $13,289 | $— | | Total Long-Term Debt | $71,064 | $— | - The company held **$6.7 million** in investments measured using Level 1 inputs within the fair value hierarchy as of August 2, 2025[38](index=38&type=chunk) [Note 5: Long-Term Debt](index=13&type=section&id=Note%205%20Long-Term%20Debt) This note outlines the company's long-term debt obligations and available credit facilities - Total revolver borrowings outstanding as of August 2, 2025, were **$70.952 million**, comprising **$53.4 million** U.S., **$4.3 million** CAD, and **$13.3 million** U.K. borrowings[39](index=39&type=chunk) - Excess availability under the Credit Facility was **$268.6 million** at August 2, 2025[39](index=39&type=chunk) [Note 6: Earnings Per Share](index=14&type=section&id=Note%206%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share and share repurchase activity Weighted-Average Shares Outstanding (in thousands) | Period | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | Three Months Ended (Basic & Diluted) | 10,294 | 10,942 | | Six Months Ended (Basic & Diluted) | 10,394 | 10,936 | - The company repurchased **604,531 shares** of common stock for **$12.6 million** (average **$20.79/share**) during the first six months of Fiscal 2026[41](index=41&type=chunk) - As of August 2, 2025, **$29.8 million** remained under the expanded share repurchase authorization[41](index=41&type=chunk) [Note 7: Legal Proceedings](index=14&type=section&id=Note%207%20Legal%20Proceedings) This note discloses information regarding the company's legal and environmental contingencies - The company has accrued **$2.0 million** for environmental contingencies as of August 2, 2025[43](index=43&type=chunk) - Future obligations related to environmental matters are not expected to have a material effect on consolidated financial condition or results of operations[42](index=42&type=chunk)[44](index=44&type=chunk) [Note 8: Business Segment Information](index=16&type=section&id=Note%208%20Business%20Segment%20Information) This note provides detailed financial performance data for each of the company's operating segments Segment Sales and Operating Income (Loss) - Three Months Ended August 2, 2025 (in thousands) | Segment | Sales | Segment Operating Income (Loss) | | :--- | :--- | :--- | | Journeys Group | $318,189 | $(4,999) | | Schuh Group | $126,595 | $(11) | | Johnston & Murphy Group | $68,789 | $(1,782) | | Genesco Brands Group | $32,392 | $653 | | Corporate & Other | $— | $(8,301) | | Consolidated | $545,965 | $(14,440) | Segment Sales and Operating Income (Loss) - Six Months Ended August 2, 2025 (in thousands) | Segment | Sales | Segment Operating Income (Loss) | | :--- | :--- | :--- | | Journeys Group | $590,823 | $(20,282) | | Schuh Group | $222,510 | $(6,142) | | Johnston & Murphy Group | $145,628 | $(1,282) | | Genesco Brands Group | $60,977 | $1,351 | | Corporate & Other | $— | $(16,230) | | Consolidated | $1,019,938 | $(42,585) | - North America accounted for **77%** of net sales in Q2 FY26 and **78%** in the first six months of FY26, with the U.K. (including ROI) making up the remainder[45](index=45&type=chunk)[49](index=49&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and cash flows, offering insights into performance drivers, key trends, and future outlook [Summary of Results of Operations](index=23&type=section&id=Summary%20of%20Results%20of%20Operations) This section summarizes the company's financial performance, including sales, margins, and net loss for the period - Net sales increased **4.0%** to **$546.0 million** in Q2 FY26, driven by a **4%** increase in comparable sales (**5%** store, **1%** e-commerce) and favorable foreign exchange[55](index=55&type=chunk) - Gross margin decreased as a percentage of net sales from **46.8%** in Q2 FY25 to **45.8%** in Q2 FY26, primarily due to increased promotional activity at Schuh Group and lower margins at Genesco Brands Group[56](index=56&type=chunk) - Operating margin was **(2.6)%** in Q2 FY26, down from **(2.0)%** in Q2 FY25, reflecting decreased gross margin as a percentage of net sales, partially offset by decreased expenses[58](index=58&type=chunk) - Net loss in Q2 FY26 was **$18.5 million**, or **$1.79** diluted loss per share, compared to a net loss of **$10.0 million**, or **$0.91** diluted loss per share, in Q2 FY25[61](index=61&type=chunk) - The effective income tax rate in Q2 FY26 was **(15.0)%**, compared to **15.2%** in Q2 FY25, due to the impact of the OBBBA tax law changes[60](index=60&type=chunk) [Critical Accounting Estimates](index=23&type=section&id=Critical%20Accounting%20Estimates) This section discusses the company's significant accounting estimates and policies - There have been no significant changes in critical accounting estimates or significant accounting policies since the end of Fiscal 2025[64](index=64&type=chunk) [Key Performance Indicators](index=25&type=section&id=Key%20Performance%20Indicators) This section defines and lists the primary metrics used to evaluate the company's operational performance - Key performance indicators include comparable sales, net sales, gross margin, operating income, and operating margin[65](index=65&type=chunk) - Comparable sales are defined as sales from stores open longer than one year ('same store sales') and sales from websites/catalogs operated longer than one year ('comparable e-commerce sales')[66](index=66&type=chunk) [Results of Operations – Second Quarter of Fiscal 2026 Compared to Second Quarter of Fiscal 2025](index=25&type=section&id=Results%20of%20Operations%20%E2%80%93%20Second%20Quarter%20of%20Fiscal%202026%20Compared%20to%20Second%20Quarter%20of%20Fiscal%202025) This section provides a detailed analysis of the financial performance of each business segment and corporate expenses for the second quarter of Fiscal 2026 compared to the prior year [Journeys Group](index=25&type=section&id=Journeys%20Group%20%28Q2%29) This section analyzes the Journeys Group's sales, gross margin, and operating income for the second quarter Journeys Group Performance (Three Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $318,189 | $298,846 | 6.5% | | Gross margin % of sales | 48.8% | 48.6% | +0.2 pp | | Operating loss | $(4,999) | $(11,151) | 55.2% | | Operating margin | (1.6)% | (3.7)% | +2.1 pp | - Comparable sales increased **9%**, driven by strength in product assortment across athletic and casual brands, with noteworthy gains in conversion and transaction size[68](index=68&type=chunk) - Operating margin improved by **210 basis points**, primarily due to a **190 basis point** decrease in selling and administrative expenses as a percentage of net sales, reflecting expense leverage and cost savings initiatives[70](index=70&type=chunk) - The group operated **984 stores** at the end of Q2 FY26, a decrease from **1,039 stores** in Q2 FY25, reflecting store optimization efforts[69](index=69&type=chunk) [Schuh Group](index=27&type=section&id=Schuh%20Group%20%28Q2%29) This section analyzes the Schuh Group's sales, gross margin, and operating income for the second quarter Schuh Group Performance (Three Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $126,595 | $124,561 | 1.6% | | Gross margin % of sales | 38.9% | 42.1% | -3.2 pp | | Operating income (loss) | $(11) | $7,339 | NM | | Operating margin | (0.0)% | 5.9% | -5.9 pp | - Net sales included a favorable foreign exchange impact of **$6.8 million**, but total comparable sales decreased **4%** (**4%** decrease on a local currency basis) due to a challenging U.K. retail environment[71](index=71&type=chunk) - Operating margin decreased by **590 basis points**, driven by a **320 basis point** decrease in gross margin (due to increased promotional activity and brand mix changes) and a **270 basis point** increase in selling and administrative expenses as a percentage of net sales (due to deleverage on lower store sales)[72](index=72&type=chunk) - E-commerce remains a key channel, accounting for over **40%** of sales[71](index=71&type=chunk) [Johnston & Murphy Group](index=27&type=section&id=Johnston%20%26%20Murphy%20Group%20%28Q2%29) This section analyzes the Johnston & Murphy Group's sales, gross margin, and operating income for the second quarter Johnston & Murphy Group Performance (Three Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $68,789 | $71,037 | (3.2)% | | Gross margin % of sales | 54.0% | 52.5% | +1.5 pp | | Operating loss | $(1,782) | $(403) | (342.2)% | | Operating margin | (2.6)% | (0.6)% | -2.0 pp | - Net sales decreased primarily due to decreased wholesale sales and a **3%** decrease in average store count, despite a **1%** increase in total comparable sales[73](index=73&type=chunk) - Operating margin decreased by **200 basis points**, mainly due to a **360 basis point** increase in selling and administrative expenses as a percentage of net sales (deleverage from decreased revenue, higher depreciation, credit card, and occupancy expenses)[76](index=76&type=chunk) - Gross margin as a percentage of net sales increased by **150 basis points**, reflecting improved costs from sourcing optimization, lower retail markdowns, and price increases[76](index=76&type=chunk) [Genesco Brands Group](index=29&type=section&id=Genesco%20Brands%20Group%20%28Q2%29) This section analyzes the Genesco Brands Group's sales, gross margin, and operating income for the second quarter Genesco Brands Group Performance (Three Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $32,392 | $30,744 | 5.4% | | Gross margin % of sales | 25.3% | 34.8% | -9.5 pp | | Operating income | $653 | $2,672 | (75.6)% | | Operating margin | 2.0% | 8.7% | -6.7 pp | - Net sales increased primarily due to higher sales of Levi's and private label footwear, partially offset by decreased Dockers and other licensed footwear sales[77](index=77&type=chunk) - Operating margin decreased by **670 basis points**, mainly due to a significant decrease in gross margin as a percentage of net sales from higher closeout sales related to license exits and tariff impacts[78](index=78&type=chunk) [Corporate, Interest Expenses and Other Charges](index=29&type=section&id=Corporate%2C%20Interest%20Expenses%20and%20Other%20Charges%20%28Q2%29) This section details corporate overhead, net interest expense, and other unallocated charges for the second quarter - Corporate and other expense was **$8.3 million** in Q2 FY26, a slight decrease from **$8.7 million** in Q2 FY25, excluding asset impairment and severance charges[79](index=79&type=chunk) - Net interest expense increased **8.5%** to **$1.5 million** in Q2 FY26, primarily due to increased revolver borrowings in the U.K.[80](index=80&type=chunk) [Results of Operations – First Six Months of Fiscal 2026 Compared to First Six Months of Fiscal 2025](index=31&type=section&id=Results%20of%20Operations%20%E2%80%93%20First%20Six%20Months%20of%20Fiscal%202026%20Compared%20to%20First%20Six%20Months%20of%20Fiscal%202025) This section provides a detailed analysis of the financial performance of each business segment and corporate expenses for the first six months of Fiscal 2026 compared to the prior year [Journeys Group](index=33&type=section&id=Journeys%20Group%20%286M%29) This section analyzes the Journeys Group's sales, gross margin, and operating income for the first six months Journeys Group Performance (Six Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $590,823 | $558,291 | 5.8% | | Gross margin % of sales | 48.8% | 48.9% | -0.1 pp | | Operating loss | $(20,282) | $(29,973) | 32.3% | | Operating margin | (3.4)% | (5.4)% | +2.0 pp | - Comparable sales increased **9%**, with gains in both store and e-commerce channels, driven by strong product assortment and improved conversion and transaction size[88](index=88&type=chunk) - Operating margin improved by **200 basis points**, primarily due to decreased selling and administrative expenses as a percentage of net sales, reflecting expense leverage from increased revenue and cost savings initiatives[89](index=89&type=chunk) [Schuh Group](index=33&type=section&id=Schuh%20Group%20%286M%29) This section analyzes the Schuh Group's sales, gross margin, and operating income for the first six months Schuh Group Performance (Six Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $222,510 | $216,910 | 2.6% | | Gross margin % of sales | 39.3% | 41.8% | -2.5 pp | | Operating income (loss) | $(6,142) | $1,443 | NM | | Operating margin | (2.8)% | 0.7% | -3.5 pp | - Net sales increased **2.6%**, including a **$9.1 million** favorable foreign exchange impact, but total comparable sales decreased **2%** (**2%** decrease on a local currency basis) due to a challenging U.K. retail environment[90](index=90&type=chunk) - Operating margin decreased by **350 basis points**, primarily due to decreased gross margin (increased promotional activity and brand mix changes) and increased selling and administrative expenses as a percentage of net sales (deleverage)[91](index=91&type=chunk) - E-commerce accounted for over **40%** of sales[90](index=90&type=chunk) [Johnston & Murphy Group](index=35&type=section&id=Johnston%20%26%20Murphy%20Group%20%286M%29) This section analyzes the Johnston & Murphy Group's sales, gross margin, and operating income for the first six months Johnston & Murphy Group Performance (Six Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $145,628 | $150,244 | (3.1)% | | Gross margin % of sales | 53.8% | 53.2% | +0.6 pp | | Operating income (loss) | $(1,282) | $1,952 | NM | | Operating margin | (0.9)% | 1.3% | -2.2 pp | - Net sales decreased **3.1%** due to lower same-store sales, decreased wholesale sales, and a **3%** decrease in average store count, while total comparable sales were flat[92](index=92&type=chunk) - Operating margin decreased by **220 basis points**, primarily due to increased selling and administrative expenses as a percentage of net sales (deleverage from decreased revenue, higher depreciation, and compensation expenses, and increased marketing)[93](index=93&type=chunk) - Gross margin as a percentage of net sales increased, reflecting improved initial margins from sourcing optimization and price increases[93](index=93&type=chunk) [Genesco Brands Group](index=35&type=section&id=Genesco%20Brands%20Group%20%286M%29) This section analyzes the Genesco Brands Group's sales, gross margin, and operating income for the first six months Genesco Brands Group Performance (Six Months Ended, in thousands) | Metric | August 2, 2025 | August 3, 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $60,977 | $57,340 | 6.3% | | Gross margin % of sales | 27.8% | 32.4% | -4.6 pp | | Operating income | $1,351 | $1,686 | (19.9)% | | Operating margin | 2.2% | 2.9% | -0.7 pp | - Net sales increased **6.3%**, primarily driven by increased sales of Levi's and private label footwear[94](index=94&type=chunk) - Operating margin decreased by **70 basis points**, mainly due to decreased gross margin as a percentage of net sales from higher closeout sales related to license exits, tariff impacts, and unfavorable sales mix[95](index=95&type=chunk) [Corporate, Interest Expenses and Other Charges](index=36&type=section&id=Corporate%2C%20Interest%20Expenses%20and%20Other%20Charges%20%286M%29) This section details corporate overhead, net interest expense, and other unallocated charges for the first six months - Corporate and other expense was **$16.2 million** in the first six months of Fiscal 2026, a decrease from **$17.5 million** in the prior year, excluding asset impairment and severance charges, primarily due to decreased professional fees and performance-based compensation[96](index=96&type=chunk) - Net interest expense increased **25.2%** to **$2.8 million** in the first six months of Fiscal 2026, primarily due to increased revolver borrowings in the U.K. and North America[97](index=97&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity sources, working capital trends, and future capital needs, including cash flow changes, credit facilities, tax refunds, capital expenditures, and share repurchases [Working Capital](index=36&type=section&id=Working%20Capital) This section discusses the company's working capital trends and cash flow activities - The business is seasonal, with working capital investment typically peaking in summer and fall for back-to-school and holiday selling seasons[98](index=98&type=chunk) Cash Flow Changes (Six Months Ended, in thousands) | Cash Flow Activity | August 2, 2025 | August 3, 2024 | Increase (Decrease) | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | $(14,693) | $(6,029) | $(8,664) | | Net cash used in investing activities | $(33,580) | $(14,274) | $(19,306) | | Net cash provided by financing activities | $54,886 | $30,922 | $23,964 | | Net increase in cash | $6,982 | $10,700 | $(3,718) | - Cash used in investing activities increased by **$19.3 million**, primarily due to increased capital expenditures for retail stores[100](index=100&type=chunk) - Cash provided by financing activities increased by **$24.0 million**, reflecting increased net borrowings, partially offset by increased share repurchases[101](index=101&type=chunk) [Sources of Liquidity and Future Capital Needs](index=36&type=section&id=Sources%20of%20Liquidity%20and%20Future%20Capital%20Needs) This section identifies the company's primary liquidity sources and projected capital requirements - Principal sources of liquidity are cash flow from operations, cash on hand, and credit facilities[102](index=102&type=chunk) - As of August 2, 2025, the company had **$53.4 million** in U.S. revolver borrowings, **$4.3 million** in Canadian revolver borrowings, and **$13.3 million** in U.K. revolver borrowings[103](index=103&type=chunk) - The company received **$58.3 million** of a **$60.2 million** U.S. Federal tax refund during Q2 FY26, with the remaining **$1.9 million** expected within 12 months[107](index=107&type=chunk) - Management believes current liquidity sources will be sufficient to support needs in Fiscal 2026 and the foreseeable future[106](index=106&type=chunk) [Contractual Obligations](index=38&type=section&id=Contractual%20Obligations) This section outlines the company's contractual commitments and their changes over time - Contractual obligations increased **21%** at August 2, 2025, compared to February 1, 2025, primarily due to increased long-term debt and lease obligations[108](index=108&type=chunk) [Capital Expenditures](index=38&type=section&id=Capital%20Expenditures) This section details the company's planned capital investments for the current fiscal year - Total capital expenditures for Fiscal 2026 are expected to be approximately **$55 million to $65 million**, with **75%** allocated to new stores and renovations[109](index=109&type=chunk) [Common Stock Repurchases](index=38&type=section&id=Common%20Stock%20Repurchases) This section reports on the company's share repurchase activities and remaining authorization - The company repurchased **604,531 shares** of common stock for **$12.6 million** during the first six months of Fiscal 2026[110](index=110&type=chunk) - As of August 2, 2025, **$29.8 million** remained under the expanded share repurchase authorization[110](index=110&type=chunk) [Environmental and Other Contingencies](index=38&type=section&id=Environmental%20and%20Other%20Contingencies) This section addresses potential financial impacts from environmental and legal contingencies - The company is subject to loss contingencies related to environmental and legal matters, as disclosed in Note 7 of the financial statements[111](index=111&type=chunk) [New Accounting Pronouncements (MD&A)](index=38&type=section&id=New%20Accounting%20Pronouncements%20%28MD%26A%29) This section refers to disclosures on new accounting standards in the financial statements notes - Descriptions of recently issued and adopted accounting pronouncements are included in Note 1 to the Condensed Consolidated Financial Statements[112](index=112&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section incorporates by reference the market risk disclosures from the company's Annual Report on Form 10-K for Fiscal 2025, stating no material changes to market risk exposure - There have been no material changes to the company's exposure to market risks since the Annual Report on Form 10-K for Fiscal 2025[113](index=113&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of August 2, 2025, and reports no material changes in internal control over financial reporting during the second quarter of Fiscal 2026 [Evaluation of Disclosure Controls and Procedures](index=39&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of August 2, 2025[115](index=115&type=chunk) [Changes in Internal Control Over Financial Reporting](index=39&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section reports on any material changes to the company's internal control over financial reporting - No changes in internal control over financial reporting occurred during Q2 FY26 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[116](index=116&type=chunk) [Part II. Other Information](index=40&type=section&id=Part%20II.%20Other%20Information) This part includes additional disclosures on legal matters, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings%20%28Part%20II%29) This section incorporates by reference the legal proceedings information from Note 7 of the Condensed Consolidated Financial Statements, which states that no material effect on financial condition or results of operations is expected from current legal matters - Information regarding legal proceedings is incorporated by reference from Note 7 to the Condensed Consolidated Financial Statements[119](index=119&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors outlined in the company's Annual Report on Form 10-K for Fiscal 2025 and highlights new or updated risks, particularly concerning government actions and tariffs - Government actions and regulations, including tariffs, export restrictions, and other trade protection measures, may materially increase costs, reduce margins, and potentially reduce consumer demand[122](index=122&type=chunk) - The company is actively mitigating cost pressure by diversifying suppliers, re-sourcing to lower-tariff countries, identifying cost reductions, and planning strategic price increases[122](index=122&type=chunk) - The specific impact of current and potential tariffs on business, results of operations, cash flows, and financial condition is uncertain but could be material[123](index=123&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security repurchases, specifically shares withheld for taxes, and the remaining authorization under its share repurchase program - **23,765 shares** were withheld from vested restricted stock to satisfy tax requirements in July 2025, at an average price of **$20.83 per share**[125](index=125&type=chunk) - As of August 2, 2025, **$29.755 million** remained under the share repurchase authorization[125](index=125&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of Fiscal 2026 - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of Fiscal 2026[126](index=126&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including certifications, performance share unit agreements, and XBRL formatted financial data - Exhibits include certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act[127](index=127&type=chunk) - The financial statements are formatted in Inline XBRL (eXtensible Business Reporting Language)[127](index=127&type=chunk) [Signature](index=44&type=section&id=Signature) This section provides the official signature and date of filing for the Form 10-Q report - The report was signed by Cassandra E. Harris, Senior Vice President - Finance and Chief Financial Officer, on September 11, 2025[130](index=130&type=chunk)

Question-and-Answer SessionMimi VaughnChairman, President & CEO Sure, sure. It's a great question. And for those of you who don't know our brands, we have a branded side of our business and also a retail side of our business. Our brands, we both own brands and we license brands through Johnston & Murphy and through Genesco Brands Group. And then we have a terrific retail business that sells all the hottest brands to really young people. We have strategically well-positioned businesses. We're coming off of a ...

Financial Data and Key Metrics Changes - The company reported strong performance with positive comparable sales, particularly in the Journeys business, which achieved high single to double-digit comps over the last four quarters, currently on a run rate of about 10% [4][10] - The company expects to unlock significant earnings potential that has been given up over the past few years, indicating a focus on growth and profitability [5][75] Business Line Data and Key Metrics Changes - The Journeys business has been a major driver of growth, with a focus on serving a larger customer market, particularly targeting the teen girl demographic [6][22] - The company has seen elevated average selling prices (ASPs) and improved product assortment, contributing to positive comp growth in Journeys [24][25] - The new store format, referred to as 4.0, has resulted in over 25% growth in remodeled stores, enhancing the shopping experience and driving higher traffic and conversion rates [31][36] Market Data and Key Metrics Changes - The retail environment is characterized by selective consumer spending, with customers being well-informed and willing to pay for desired products [10][11] - The company has diversified its sourcing to mitigate tariff impacts, with less than 10% dependence on China, resulting in a relatively low exposure to current tariff regimes [15][17] Company Strategy and Development Direction - The company is focused on strategic repositioning and growth plans, particularly in the Journeys segment, which includes enhancing brand awareness and product assortment [6][26] - The 4.0 store format is a key part of the strategy, aimed at attracting new customers while retaining existing ones, with plans to roll out more stores in the coming years [40][41] - The company is also investing in marketing and brand development to reach a broader audience and enhance customer engagement [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong performance into the back half of the year, driven by in-demand products and effective marketing strategies [12][13] - The company is prepared for potential challenges in 2026, emphasizing the importance of product freshness and consumer engagement [13][66] - Management highlighted the need for ongoing innovation in product development to meet changing consumer preferences and market demands [61][62] Other Important Information - The company is actively working on diversifying its brand partnerships, introducing new brands like HOKA and Saucony to align with consumer interests [46][48] - The company has seen a shift in consumer preferences towards lifestyle and casual footwear, with a focus on diverse product offerings [50][51] Q&A Session Summary Question: Expectations for the environment in the upcoming periods - Management noted that consumers are selective and well-informed, leading to higher average selling prices and conversion rates [10][11] Question: Update on tariff impacts - The company has limited exposure to tariffs, with mitigation strategies in place to manage costs effectively [15][17] Question: Drivers of comp improvements in Journeys - The focus on product assortment, brand awareness, and an elevated shopping environment are key drivers of comp growth [22][24] Question: Expectations for pricing and promotions - Management indicated that pricing strategies are being adjusted to offset cost headwinds, with a focus on maintaining product desirability [64][66] Question: Opportunities for SG&A efficiencies - The company is focused on balancing cost efficiencies with growth investments, expecting to leverage fixed costs through increased sales [68][70]

Core Viewpoint - Genesco Inc. reported strong momentum in comparable sales during the second quarter of fiscal year 2026, indicating positive performance trends in the retail sector [6]. Group 1: Earnings Call Overview - The earnings call for Genesco Inc. took place on August 28, 2025, at 8:30 AM ET, with key participants including the CFO and CEO [1]. - The call included forward-looking statements, with a reminder that actual results may differ from expectations [3]. - Non-GAAP financial measures were discussed, with reconciliations provided in the earnings release and on the company's website [4].

Financial Data and Key Metrics Changes - Total revenue for Q2 was $546 million, up 4% compared to last year, driven by overall comparable sales growth of 4% [27] - Gross margin for the quarter was 45.8%, down 100 basis points compared to last year, impacted by a more promotional environment in the UK and higher tariffs [28] - Adjusted operating loss for the quarter was $14.3 million, compared to a loss of $9.3 million a year ago [29] - Free cash flow for the quarter was $72 million, compared to $20 million in the same period last year [30] Business Line Data and Key Metrics Changes - Journeys reported a 9% comparable sales growth, while Johnston and Murphy had a 1% comp growth, partially offset by a 4% decline at Schuh [27] - Journeys delivered significant SG&A leverage of about 200 basis points due to strong comp results and store fleet optimization efforts [29] - Johnston and Murphy saw positive comp sales in full-price stores and digital channels, driven by gains in conversion and transaction size [18] Market Data and Key Metrics Changes - The UK retail environment remains challenging, with Schuh experiencing comp declines in May and June, but positive trends in July and August [14][15] - The consumer environment is characterized by cautious spending, with purchases driven by necessity rather than discretionary shopping [14] Company Strategy and Development Direction - The company is focused on broadening the customer base for Journeys, targeting a market that is six to seven times larger than historically served [42] - The strategic plan includes enhancing product offerings, improving customer experience through store remodels, and increasing brand awareness [20][23] - The company is also working on a new footwear partnership with Wrangler, aiming to build the footwear category from the ground up [19][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from back-to-school shopping and the potential for improved sales and profits during the holiday season [25] - The company is mindful of external uncertainties, particularly regarding tariffs and consumer sentiment, but remains optimistic about achieving its full-year adjusted EPS guidance of $1.3 to $1.7 [26][32] Other Important Information - The company has opened 55 Journeys four-point-zero stores, which have shown a sales lift of more than 25% [23][70] - The company plans to continue investing in store remodels and digital initiatives to enhance customer experience [31][32] Q&A Session Summary Question: About the product pivot at Journeys - Management noted that the product assortment has improved significantly, with a focus on casual, canvas, and athletic styles, leading to double-digit growth [39][40] Question: Targeting a wider audience at Journeys - The company is in the early stages of broadening its customer base and has developed marketing strategies to reach this wider audience [42][44] Question: Performance of Schuh - Schuh experienced negative comps in the quarter but saw improvements in July and August, with expectations of continued volatility in the UK market [50][52] Question: New brand introductions - New brands have positively impacted customer reactions, with a focus on lifestyle running and other categories important to the teen customer [57][60] Question: Long-term ticket and transaction dynamics - The company is seeing elevated price points across both casual and athletic categories, with consumers willing to pay for must-have products [62][64] Question: Performance of four-point-zero stores - The remodels have attracted new customers and significantly increased sales, with plans to expand the number of remodeled stores [71][72] Question: Outlook for the UK market - Management anticipates a quieter period between back-to-school and holiday shopping, but is focused on product assortment and execution to navigate the market [76][78]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $546 million, up 4% compared to last year, driven by overall comparable sales growth of 4% [26] - Adjusted operating loss for the quarter was $14.3 million, compared to a loss of $9.3 million a year ago [28] - Adjusted diluted loss per share was $1.14 versus a loss of $0.83 a year ago [28] - Free cash flow for the quarter was $72 million, compared to $20 million in the same period last year [29] - Gross margin for the quarter was 45.8%, down 100 basis points compared to last year [27] Business Line Data and Key Metrics Changes - Journeys experienced a 9% comp growth, while Johnston and Murphy had a 1% comp growth, and Schuh saw a 4% decline in comps [26] - Journeys delivered significant SG&A leverage of about 200 basis points due to strong comp results and store fleet optimization [28] - Johnston and Murphy's comp sales in full-price stores and digital channels were positive, driven by gains in conversion and transaction size [15] Market Data and Key Metrics Changes - The UK retail environment remains challenging, with Schuh experiencing comp declines in May and June, but positive trends in July and August [12][14] - The consumer environment is characterized by cautious spending, with customers shopping when there is a reason to do so [5] Company Strategy and Development Direction - The company is focused on broadening the customer base for Journeys, targeting a market that is six to seven times larger than its historical audience [43] - The strategic plan includes enhancing product offerings, improving customer experience through store remodels, and increasing brand awareness [19][22] - The company is committed to elevating its product assortment and has introduced new brands to capture market interest [57][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from the back-to-school season and the potential for improved sales and profits during the holiday season [24] - The company is aware of the challenges posed by tariffs and the uncertain consumer environment, particularly in the UK [25][32] - Management reiterated full-year adjusted EPS guidance of $1.3 to $1.7, reflecting higher sales projections and better expense leverage [33] Other Important Information - The company has opened 55 Journeys four-point-zero stores, which have shown a sales lift of more than 25% [22][70] - The Wrangler partnership is expected to provide significant growth opportunities in the footwear category, with a product launch planned for fall 2026 [18][79] Q&A Session Summary Question: How is the product pivot at Journeys performing? - Management noted that the product assortment has diversified significantly, leading to strong performance for back-to-school [38][41] Question: What is the status of targeting a wider audience at Journeys? - The company is in the early stages of broadening its customer base and has developed marketing strategies to reach this wider audience [43][45] Question: Is Journeys running double-digit comps through early Q3? - Yes, Journeys is running double-digit comps, building on last year's strong performance [47][49] Question: What is the outlook for Schuh in the UK market? - Schuh experienced negative comps in the quarter but saw improvements in July and August, with expectations of continued volatility [50][52] Question: How are new brand introductions performing? - New brands have positively impacted customer reactions and are validating Journeys' position in categories where it previously lacked strength [56][58] Question: What is the growth potential for the Wrangler partnership? - The Wrangler partnership is seen as a significant opportunity, with plans to introduce a diverse range of footwear styles [78][79]

Financial Performance - Genesco reported a quarterly loss of $1.14 per share, better than the Zacks Consensus Estimate of a loss of $1.25, but worse than a loss of $0.83 per share a year ago, indicating an earnings surprise of +8.80% [1] - The company posted revenues of $545.97 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.55% and showing an increase from $525.19 million year-over-year [2] Stock Performance - Genesco shares have declined approximately 22.8% since the beginning of the year, contrasting with the S&P 500's gain of 10.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.06 on revenues of $602.02 million, and for the current fiscal year, it is $1.56 on revenues of $2.36 billion [7] Industry Outlook - The Retail - Apparel and Shoes industry, to which Genesco belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Genesco's stock performance [5]

Financial Performance - Sales reached $546 million, a 4% increase compared to Q2 FY2025 [7] - E-commerce sales accounted for 22% of total retail sales [7] - Gross margin was 458%, a decrease of 100 basis points compared to Q2 FY2025 [7] - GAAP EPS was ($179) and Non-GAAP EPS was ($114) [7] - The company is reiterating its full-year EPS outlook inclusive of tariffs and raising sales [8] Segment Performance - Journeys Group comps increased by 9% [7, 43, 44] - Schuh Group comps decreased by 4% [43] - Johnston & Murphy Group comps increased by 1% [43] Strategic Initiatives - The company is focused on creating leading footwear brands and becoming the destination for consumers' favorite fashion footwear [10] - Key strategic initiatives include maximizing physical and digital presence, deepening consumer insights, reshaping the cost base, pursuing growth and acquisitions, accelerating digital capabilities, and intensifying product innovation [12] - Journeys is expanding its reach among teens with a focus on females [17] Capital Allocation - Total liquidity is approximately $322 million [46] - Inventory is $501 million, an 11% increase compared to Q2 FY2025 [46] - Capital expenditures were $15 million, with approximately 80% allocated to stores and 20% to other areas [46]

[Fiscal 2026 Second Quarter Highlights](index=1&type=section&id=Fiscal%202026%20Second%20Quarter%20Highlights) Genesco exceeded expectations with positive comparable sales, though GAAP and Non-GAAP EPS declined [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Genesco exceeded expectations with 4% net sales growth and positive comparable sales, despite lower GAAP and Non-GAAP EPS Q2 FY26 Key Financial Metrics | Metric | Q2 FY26 | Q2 FY25 | | :---------------- | :------ | :------ | | GAAP EPS | ($1.79) | ($0.91) | | Non-GAAP EPS | ($1.14) | ($0.83) | | Net Sales | $546 million | $525 million | | Comparable Sales | +4% | -2% | | Journeys Comp Sales | +9% | -1% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted Journeys' strong comparable sales, raising revenue outlook while reiterating adjusted EPS guidance - Journeys achieved **high-single digit comparable sales increase**, driven by a strategic plan focused on product elevation, enhanced customer experience, and strengthened brand positioning, outperforming the market and increasing share[2](index=2&type=chunk) - The back-to-school season in the third quarter started very well, with Journeys showing positive comparable sales growth over last year's positive comps[2](index=2&type=chunk) - The company is raising its full-year revenue outlook due to Journeys' strong year-to-date performance, which is expected to offset additional gross margin pressure from higher tariffs and a promotional U.K. marketplace, while reiterating full-year adjusted EPS guidance of **$1.30 to $1.70**[4](index=4&type=chunk) [Second Quarter Fiscal 2026 Financial Performance](index=2&type=section&id=Second%20Quarter%20Fiscal%202026%20Financial%20Performance) Net sales grew 4% driven by comparable sales, but gross margin and operating income declined [Net Sales and Comparable Sales](index=2&type=section&id=Net%20Sales%20and%20Comparable%20Sales) Net sales rose 4% to $546 million, driven by a 4% comparable sales increase led by Journeys Group's 9% growth [Overall Sales Performance](index=2&type=section&id=Overall%20Sales%20Performance) Q2 FY26 net sales increased 4% to $546 million, driven by 4% comparable sales growth, including 5% same-store sales Q2 FY26 Sales Performance Overview | Metric | Q2 FY26 | Q2 FY25 | Change | | :-------------------------- | :------ | :------ | :----- | | Net Sales | $546 million | $525 million | +4% | | Comparable Sales | +4% | (2)% | +6% pts| | Same Store Sales | +5% | (4)% | +9% pts| | Comparable E-commerce Sales | +1% | 8% | -7% pts| [Comparable Sales by Group](index=2&type=section&id=Comparable%20Sales%20by%20Group) Journeys Group achieved 9% comparable sales growth, offsetting declines or minimal increases in other segments Q2 FY26 Comparable Sales by Group | Group | 2QFY26 Comparable Sales | 2QFY25 Comparable Sales | | :---------------------- | :---------------------- | :---------------------- | | Journeys Group | 9% | (1)% | | Schuh Group | (4)% | (2)% | | Johnston & Murphy Group | 1% | (5)% | | Total Genesco | 4% | (2)% | - The overall 4% sales increase was driven by a 6% increase at Journeys, 2% at Schuh, and 5% at Genesco Brands, partially offset by a 3% decrease at Johnston & Murphy[6](index=6&type=chunk) [Gross Margin](index=2&type=section&id=Gross%20Margin) Gross margin decreased 100 bps to 45.8%, impacted by Schuh promotions and Genesco Brands' tariffs, partially offset by Johnston & Murphy Q2 Gross Margin Performance | Metric | Q2 FY26 | Q2 FY25 | Change (bps) | | :---------- | :------ | :------ | :----------- | | Gross Margin | 45.8% | 46.8% | -100 | - The decrease in gross margin was primarily due to increased promotional activity at Schuh and lower margins at Genesco Brands (related to license exits and tariffs), partially offset by increased margins at Johnston & Murphy (from price increases, lower retail markdowns, and sourcing optimization)[7](index=7&type=chunk) [Selling and Administrative Expenses](index=3&type=section&id=Selling%20and%20Administrative%20Expenses) Selling and administrative expenses decreased 20 bps to 48.4% of sales, driven by lower occupancy costs, despite increased marketing Q2 Selling and Administrative Expenses | Metric | Q2 FY26 | Q2 FY25 | Change (bps) | | :-------------------------------- | :------ | :------ | :----------- | | Selling and Administrative Expenses | 48.4% | 48.6% | -20 | - The decrease in selling and administrative expenses as a percentage of sales primarily reflects decreased occupancy and other expenses, partially offset by increased marketing expense and an unfavorable comparison to a credit for certain non-income taxes last year[8](index=8&type=chunk) [Operating Loss](index=3&type=section&id=Operating%20Loss) GAAP operating loss widened to $14.4 million (2.6% of sales) in Q2 FY26, with adjusted operating loss also increasing Q2 Operating Loss Summary | Metric | Q2 FY26 | Q2 FY25 | | :-------------------- | :-------- | :-------- | | GAAP Operating Loss | ($14.4 million) | ($10.3 million) | | GAAP Operating Margin | -2.6% | -2.0% | | Adjusted Operating Loss | ($14.3 million) | ($9.3 million) | | Adjusted Operating Margin | -2.6% | -1.8% | [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense) Effective tax rate was -15.0% in Q2 FY26; adjusted tax rate rose to 26.5% due to higher expected rate and valuation allowance Q2 Income Tax Rates | Metric | Q2 FY26 | Q2 FY25 | | :---------------- | :------ | :------ | | Effective Tax Rate | -15.0% | 15.2% | | Adjusted Tax Rate | 26.5% | 15.1% | - The higher adjusted tax rate for Q2 FY26 compared to Q2 FY25 reflects a higher expected tax rate for Fiscal 2026 due to the impact of the valuation allowance in certain jurisdictions. The divergence between effective and adjusted tax rates is due to income tax law changes under the OBBBA[10](index=10&type=chunk) [Loss from Continuing Operations](index=3&type=section&id=Loss%20from%20Continuing%20Operations) GAAP loss from continuing operations increased to $18.5 million ($1.79 per share), with adjusted loss also widening to $11.7 million Q2 Loss from Continuing Operations | Metric | Q2 FY26 | Q2 FY25 | | :-------------------------------- | :-------- | :-------- | | GAAP Loss from Continuing Operations | ($18.5 million) | ($9.9 million) | | GAAP EPS from Continuing Operations | ($1.79) | ($0.91) | | Adjusted Loss from Continuing Operations | ($11.7 million) | ($9.1 million) | | Adjusted EPS from Continuing Operations | ($1.14) | ($0.83) | [Financial Position and Capital Activities](index=3&type=section&id=Financial%20Position%20and%20Capital%20Activities) Cash and debt decreased, while inventories rose 11% year-over-year, driven by Journeys, Schuh, and Johnston & Murphy [Cash, Borrowings and Inventory](index=3&type=section&id=Cash%2C%20Borrowings%20and%20Inventory) Cash and total debt decreased, while inventories increased 11% year-over-year, driven by Journeys, Schuh, and Johnston & Murphy Cash, Borrowings and Inventory (YoY) | Metric | Aug 2, 2025 | Aug 3, 2024 | Change | | :---------- | :---------- | :---------- | :----- | | Cash | $41.0 million | $45.9 million | -10.7% | | Total Debt | $71.0 million | $77.8 million | -8.7% | | Inventories | $501.0 million | $450.2 million | +11.3% | - The **11% year-over-year increase in inventories** reflects higher inventory levels at Journeys, Schuh, and Johnston & Murphy, partially offset by a decrease at Genesco Brands[12](index=12&type=chunk) [Capital Expenditures and Store Activity](index=4&type=section&id=Capital%20Expenditures%20and%20Store%20Activity) Q2 FY26 capital expenditures were $15 million, with 9 stores opened and 12 closed, resulting in a 5% YoY store count decrease Q2 Capital Expenditures and Store Activity | Metric | Q2 FY26 | | :-------------------------- | :------ | | Capital Expenditures | $15 million | | Depreciation & Amortization | $13 million | | Stores Opened | 9 | | Stores Closed | 12 | | Total Stores (End of Q2) | 1,253 | | YoY Store Count Change | -5% | | YoY Square Footage Change | -3% | [Share Repurchases](index=4&type=section&id=Share%20Repurchases) No shares were repurchased in Q2 FY26, leaving $29.8 million available on the share repurchase authorization - **No shares were repurchased** during the second quarter of Fiscal 2026[14](index=14&type=chunk) - The company has **$29.8 million remaining** on its expanded share repurchase authorization announced in June 2023[14](index=14&type=chunk) [Fiscal 2026 Outlook](index=4&type=section&id=Fiscal%202026%20Outlook) Genesco raised full-year sales and comparable sales outlooks, while reiterating adjusted diluted EPS guidance of $1.30 to $1.70 Fiscal 2026 Outlook Update | Metric | New FY26 Guidance | Prior FY26 Guidance | | :------------------------------------ | :---------------- | :------------------ | | Total Sales Growth | Up 3% to 4% | Up 1% to 2% | | Comparable Sales Growth | Up 4% to 5% | Up 2% to 3% | | Adjusted Diluted EPS (Continuing Ops) | $1.30 to $1.70 | $1.30 to $1.70 | - Guidance assumes no further share repurchases and a tax rate of 29% excluding the tax impact of OBBBA[15](index=15&type=chunk) [Corporate Information](index=5&type=section&id=Corporate%20Information) Provides investor relations details, safe harbor statements, company overview, and contact information [Investor Relations and Presentations](index=5&type=section&id=Investor%20Relations%20and%20Presentations) Detailed Q2 results and presentations are available on the investor relations website, including upcoming conference calls and webcasts - Detailed financial commentary and a supplemental financial presentation of second-quarter results are available on the company's website in the investor relations section[16](index=16&type=chunk) - A live conference call was scheduled for August 28, 2025, at 7:30 a.m. (Central time), accessible via the company's website[16](index=16&type=chunk) - Genesco's management team will present at the Goldman Sachs 32nd Annual Global Retailing Conference on September 4, 2025, at 8:55 a.m. (Eastern Time), with an audio webcast available[17](index=17&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) This statement cautions that forward-looking results may differ materially due to market, economic, and operational risks, with no obligation to update - The release contains forward-looking statements regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, and cost reductions[18](index=18&type=chunk) - Actual results could vary materially from expectations due to factors such as weakness in store traffic, tariffs, ability to pass on price increases, operational restrictions, promotional activity, supply chain disruptions, fuel costs, foreign exchange rates, civil disturbances, and economic conditions[18](index=18&type=chunk)[19](index=19&type=chunk) - Genesco undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date of the release or the occurrence of unanticipated events[20](index=20&type=chunk) [About Genesco Inc.](index=7&type=section&id=About%20Genesco%20Inc.) Genesco Inc. is a footwear-focused company operating over 1,250 retail stores and e-commerce sites across distinct brands like Journeys and Johnston & Murphy - Genesco Inc. (NYSE: GCO) is a footwear-focused company with distinctively positioned retail and lifestyle brands and proven omnichannel capabilities, operating over 1,250 retail stores and branded e-commerce websites[21](index=21&type=chunk) - Key brands include Journeys, Little Burgundy, and Schuh (serving teens, kids, young adults in U.S., Canada, U.K.), Johnston & Murphy (premium footwear, apparel, accessories for affluent men and women in U.S., Canada), and Genesco Brands Group (licensed lifestyle footwear under brands like Wrangler, Dockers, Starter, PONY)[21](index=21&type=chunk) - Founded in 1924, Genesco is based in Nashville, Tennessee[21](index=21&type=chunk) [Contacts](index=7&type=section&id=Contacts) Provides contact information for Genesco's financial and media inquiries - Financial Contact: Sandra Harris, SVP Finance, Chief Financial Officer, (615) 367-7578, SHarris2@genesco.com[22](index=22&type=chunk) - Media Contact: Claire S. McCall, (615) 367-8283, cmccall@genesco.com[22](index=22&type=chunk) [Unaudited Financial Statements](index=8&type=section&id=Unaudited%20Financial%20Statements) Presents detailed unaudited financial statements including operations, balance sheets, and segment performance [Condensed Consolidated Statements of Operations (Q2)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Q2%29) Presents unaudited condensed consolidated statements of operations for Q2 FY26 and FY25, detailing sales, margins, expenses, and net loss Condensed Consolidated Statements of Operations (Q2, in thousands) | Metric | Q2 FY26 (Aug 2, 2025) | Q2 FY25 (Aug 3, 2024) | | :------------------------------------ | :-------------------- | :-------------------- | | Net sales | $545,965 | $525,188 | | Gross margin | $249,949 (45.8%) | $245,639 (46.8%) | | Selling and administrative expenses | $264,265 (48.4%) | $255,135 (48.6%) | | Operating loss | ($14,440) (-2.6%) | ($10,274) (-2.0%) | | Loss from continuing operations | ($18,456) (-3.4%) | ($9,929) (-1.9%) | | Net Loss | ($18,471) (-3.4%) | ($9,992) (-1.9%) | | Diluted loss per share | ($1.79) | ($0.91) | [Condensed Consolidated Statements of Operations (Six Months)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Six%20Months%29) Provides unaudited condensed consolidated statements of operations for the six months ended August 2, 2025, and August 3, 2024 Condensed Consolidated Statements of Operations (Six Months, in thousands) | Metric | Six Months FY26 (Aug 2, 2025) | Six Months FY25 (Aug 3, 2024) | | :------------------------------------ | :---------------------------- | :---------------------------- | | Net sales | $1,019,938 | $982,785 | | Gross margin | $471,130 (46.2%) | $461,920 (47.0%) | | Selling and administrative expenses | $513,300 (50.3%) | $502,966 (51.2%) | | Operating loss | ($42,585) (-4.2%) | ($42,402) (-4.3%) | | Loss from continuing operations | ($39,668) (-3.9%) | ($34,217) (-3.5%) | | Net Loss | ($39,698) (-3.9%) | ($34,339) (-3.5%) | | Diluted loss per share | ($3.82) | ($3.14) | [Sales/Earnings Summary by Segment (Q2)](index=11&type=section&id=Sales%2FEarnings%20Summary%20by%20Segment%20%28Q2%29) Details Q2 FY26 and FY25 sales and operating income (loss) by segment: Journeys, Schuh, Johnston & Murphy, and Genesco Brands Sales/Earnings Summary by Segment (Q2, in thousands) | Segment | Q2 FY26 Sales | Q2 FY25 Sales | Q2 FY26 Operating Income (Loss) | Q2 FY25 Operating Income (Loss) | | :--------------------- | :------------ | :------------ | :------------------------------ | :------------------------------ | | Journeys Group | $318,189 | $298,846 | ($4,999) | ($11,151) | | Schuh Group | $126,595 | $124,561 | ($11) | $7,339 | | Johnston & Murphy Group| $68,789 | $71,037 | ($1,782) | ($403) | | Genesco Brands Group | $32,392 | $30,744 | $653 | $2,672 | | Net Sales | $545,965 | $525,188 | | | | Total Operating Loss | | | ($14,440) | ($10,274) | [Sales/Earnings Summary by Segment (Six Months)](index=13&type=section&id=Sales%2FEarnings%20Summary%20by%20Segment%20%28Six%20Months%29) Provides segment-wise sales and operating income (loss) breakdown for the six months ended August 2, 2025, and August 3, 2024 Sales/Earnings Summary by Segment (Six Months, in thousands) | Segment | Six Months FY26 Sales | Six Months FY25 Sales | Six Months FY26 Operating Income (Loss) | Six Months FY25 Operating Income (Loss) | | :--------------------- | :-------------------- | :-------------------- | :-------------------------------------- | :-------------------------------------- | | Journeys Group | $590,823 | $558,291 | ($20,282) | ($29,973) | | Schuh Group | $222,510 | $216,910 | ($6,142) | $1,443 | | Johnston & Murphy Group| $145,628 | $150,244 | ($1,282) | $1,952 | | Genesco Brands Group | $60,977 | $57,340 | $1,351 | $1,686 | | Net Sales | $1,019,938 | $982,785 | | | | Total Operating Loss | | | ($42,585) | ($42,402) | [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents unaudited condensed consolidated balance sheets as of August 2, 2025, and August 3, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Metric | August 2, 2025 | August 3, 2024 | | :-------------------- | :------------- | :------------- | | Cash | $40,989 | $45,855 | | Inventories | $501,008 | $450,187 | | Total current assets | $645,891 | $606,720 | | Total Assets | $1,421,925 | $1,383,751 | | Total current liabilities | $414,355 | $395,663 | | Long-term debt | $57,677 | $77,839 | | Equity | $506,372 | $532,622 | | Total Liabilities and Equity | $1,421,925 | $1,383,751 | [Store Count Activity](index=15&type=section&id=Store%20Count%20Activity) Details store openings and closings by group (Journeys, Schuh, Johnston & Murphy) and total retail store count for various periods Store Count Activity (Total Retail Stores) | Group | Balance 02/03/24 | Open | Close | Balance 08/02/25 | | :---------------------- | :--------------- | :--- | :---- | :--------------- | | Journeys Group | 1,063 | 10 | 92 | 984 | | Schuh Group | 122 | 5 | 7 | 120 | | Johnston & Murphy Group | 156 | 7 | 14 | 149 | | Total Retail Stores | 1,341 | 22 | 113 | 1,253 | [Comparable Sales (Detailed)](index=15&type=section&id=Comparable%20Sales%20%28Detailed%29) Detailed comparable sales performance by group and channel, including same-store and e-commerce sales for Q2 and six months Comparable Sales Performance by Group and Channel | Metric | Q2 FY26 | Q2 FY25 | Six Months FY26 | Six Months FY25 | | :-------------------------- | :------ | :------ | :-------------- | :-------------- | | Journeys Group | 9% | -1% | 9% | -3% | | Schuh Group | -4% | -2% | -2% | -4% | | Johnston & Murphy Group | 1% | -5% | 0% | -4% | | Total Comparable Sales | 4% | -2% | 5% | -3% | | Same Store Sales | 5% | -4% | 5% | -6% | | Comparable E-commerce Sales | 1% | 8% | 4% | 6% | [Non-GAAP Financial Reconciliations](index=16&type=section&id=Non-GAAP%20Financial%20Reconciliations) Reconciles GAAP to adjusted financial metrics, detailing non-recurring items and tax impacts [Adjustments to Reported Loss from Continuing Operations (Q2)](index=16&type=section&id=Adjustments%20to%20Reported%20Loss%20from%20Continuing%20Operations%20%28Q2%29) Reconciles Q2 GAAP loss from continuing operations to adjusted loss, detailing adjustments for severance, impairments, and OBBBA tax impacts Q2 Adjustments to Loss from Continuing Operations (in thousands, except per share) | Metric | Q2 FY26 (Aug 2, 2025) | Q2 FY25 (Aug 3, 2024) | | :-------------------------------------- | :-------------------- | :-------------------- | | Loss from continuing operations, as reported | ($18,456) ($1.79/share) | ($9,929) ($0.91/share) | | Severance (net of tax) | $88 ($0.00/share) | $512 ($0.05/share) | | OBBBA Tax Impact (net of tax) | $6,849 ($0.66/share) | — | | Adjusted loss from continuing operations | ($11,708) ($1.14/share) | ($9,131) ($0.83/share) | | Adjusted tax rate | 26.5% | 15.1% | [Adjustments to Reported Loss from Continuing Operations (Six Months)](index=17&type=section&id=Adjustments%20to%20Reported%20Loss%20from%20Continuing%20Operations%20%28Six%20Months%29) Reconciles six-month GAAP loss from continuing operations to adjusted loss, outlining similar adjustments as the quarterly reconciliation Six Months Adjustments to Loss from Continuing Operations (in thousands, except per share) | Metric | Six Months FY26 (Aug 2, 2025) | Six Months FY25 (Aug 3, 2024) | | :-------------------------------------- | :---------------------------- | :---------------------------- | | Loss from continuing operations, as reported | ($39,668) ($3.82/share) | ($34,217) ($3.13/share) | | Distribution model transition (net of tax) | — | $1,327 ($0.12/share) | | Severance (net of tax) | $273 ($0.03/share) | $755 ($0.07/share) | | OBBBA Tax Impact (net of tax) | $6,849 ($0.66/share) | — | | Adjusted loss from continuing operations | ($33,238) ($3.20/share) | ($32,062) ($2.93/share) | | Adjusted tax rate | 26.6% | 23.2% | [Adjustments to Reported Operating Income (Loss) and Gross Margin (Q2)](index=18&type=section&id=Adjustments%20to%20Reported%20Operating%20Income%20%28Loss%29%20and%20Gross%20Margin%20%28Q2%29) Details Q2 adjustments to reported operating income (loss) and gross margin, including severance, asset impairments, and transition charges Q2 Adjustments to Operating Income (Loss) and Gross Margin (in thousands) | Metric | Q2 FY26 Operating Loss (Reported) | Q2 FY26 Operating Loss (Adjusted) | Q2 FY25 Operating Loss (Reported) | Q2 FY25 Operating Loss (Adjusted) | | :-------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Total Operating Loss | ($14,440) | ($14,316) | ($10,274) | ($9,327) | | % of sales | -2.6% | -2.6% | -2.0% | -1.8% | | Adjusted EBITDA | | ($842) | | $3,842 | | Gross margin, as reported | $249,949 (45.8%) | $249,949 (45.8%) | $245,639 (46.8%) | $245,808 (46.8%) | [Adjustments to Reported Operating Income (Loss) and Gross Margin (Six Months)](index=19&type=section&id=Adjustments%20to%20Reported%20Operating%20Income%20%28Loss%29%20and%20Gross%20Margin%20%28Six%20Months%29) Reconciles six-month reported operating income (loss) and gross margin, including adjustments for distribution model transition and impairments Six Months Adjustments to Operating Income (Loss) and Gross Margin (in thousands) | Metric | Six Months FY26 Operating Loss (Reported) | Six Months FY26 Operating Loss (Adjusted) | Six Months FY25 Operating Loss (Reported) | Six Months FY25 Operating Loss (Adjusted) | | :-------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------------------------------- | | Total Operating Loss | ($42,585) | ($42,170) | ($42,402) | ($39,296) | | % of sales | -4.2% | -4.1% | -4.3% | -4.0% | | Adjusted EBITDA | | ($15,303) | | ($12,890) | | Gross margin, as reported | $471,130 (46.2%) | $471,130 (46.2%) | $461,920 (47.0%) | $463,670 (47.2%) | [Adjustments to Forecasted Earnings from Continuing Operations (FY26)](index=20&type=section&id=Adjustments%20to%20Forecasted%20Earnings%20from%20Continuing%20Operations%20%28FY26%29) Reconciles forecasted FY26 GAAP earnings from continuing operations to adjusted forecasted earnings, including asset impairments and other adjustments FY26 Adjustments to Forecasted Earnings from Continuing Operations (in millions, except per share) | Metric | High Guidance FY26 | Low Guidance FY26 | | :------------------------------------- | :----------------- | :---------------- | | Forecasted earnings from continuing operations | $17.1 ($1.62/share) | $12.6 ($1.19/share) | | Asset impairments and other adjustments | $0.8 ($0.08/share) | $1.2 ($0.11/share) | | Adjusted forecasted earnings from continuing operations | $17.9 ($1.70/share) | $13.8 ($1.30/share) | | Forecasted tax rate | ~29% | ~29% |