Genesco(GCO)2025-06-04 11:05Financial Performance - Net sales for Q1 FY26 were $474 million, a 4% increase compared to $458 million in Q1 FY25[6] - Comparable sales increased by 5%, with e-commerce sales up 7% and same-store sales up 5%[4] - GAAP EPS was ($2.02) and Non-GAAP EPS was ($2.05), compared to GAAP EPS of ($2.22) and Non-GAAP EPS of ($2.10) in the previous year[4] - Net sales for Q1 2025 were $473.973 million, a 3.0% increase from $457.597 million in Q1 2024[25] - Operating loss for Q1 2025 was $28.145 million, an improvement from a loss of $32.128 million in Q1 2024[25] - Net loss for Q1 2025 was $21.227 million, compared to a net loss of $24.347 million in Q1 2024, resulting in a basic loss per share of $2.02[25] Store Operations - The company opened 4 stores and closed 26 stores, ending the quarter with 1,256 stores, a 5% decrease from the previous year[15] - The company closed 26 stores in Q1 2025, resulting in a total of 1,256 retail stores[31] Margins and Expenses - Gross margin for Q1 FY26 was 46.7%, down from 47.3% in Q1 FY25, primarily due to changes in brand mix and promotional activity[9] - Selling and administrative expenses decreased by 170 basis points to 52.5% of sales compared to the previous year[10] - Gross margin decreased to 46.7% in Q1 2025 from 47.3% in Q1 2024, with a gross margin charge of $1.6 million related to a distribution model transition[25] - Reported gross margin for Q1 2025 was $221.181 million, representing 46.7% of sales, compared to $216.281 million and 47.3% in Q1 2024[40] - Adjusted gross margin for Q1 2025 was $221.181 million, or 46.7% of sales, down from $217.862 million and 47.6% in Q1 2024[40] Debt and Assets - Total debt increased to $121 million, up from $59.4 million year-over-year, primarily due to a 15% increase in inventories[14] - Total current assets increased to $633.314 million in Q1 2025 from $508.040 million in Q1 2024[29] - Total assets grew to $1.404591 billion in Q1 2025, compared to $1.307417 billion in Q1 2024[29] Future Projections - The company expects adjusted diluted EPS for FY26 to be in the range of $1.30 to $1.70, factoring in current tariffs[5] - Forecasted earnings from continuing operations for Fiscal 2026 range from $12.5 million ($1.17 per share) to $17.0 million ($1.61 per share) net of tax[42] - Adjusted forecasted earnings from continuing operations for Fiscal 2026 are estimated at $13.8 million ($1.30 per share) to $18.0 million ($1.70 per share) net of tax[42] - The forecasted tax rate for Fiscal 2026 is approximately 29%[42] - The share count for Fiscal 2026 reflects 10.6 million shares, including common stock equivalents[42] Share Repurchase - The company repurchased 604,531 shares for $12.6 million during the quarter, with $29.8 million remaining on its share repurchase authorization[16] Tax Rate - The effective tax rate for Q1 FY26 was 28.5%, compared to 26.7% in the same quarter last year[12]