Genesco Lowers Guidance After a ‘Meaningful Pullback’ in Sales Following Back-to-school

Core Insights - Genesco is managing expectations for the year due to a noticeable slowdown in sales after the back-to-school season, with a meaningful pullback noted in the latter half of the third quarter [1] - Despite the slowdown, sales trends improved during Black Friday and Cyber Monday, contributing to a positive start to the fourth quarter, although shares fell nearly 26 percent in pre-market trading [2] Financial Performance - In the third quarter of fiscal 2026, Genesco reported net sales of $616 million, a 3 percent increase from $596 million in the same quarter of fiscal 2025, with net earnings of $5.36 million compared to a net loss of $18.9 million in the prior year [3] - The sales increase was driven by a 5 percent rise in same-store sales, an increase in wholesale sales, and favorable foreign exchange impacts, partially offset by net store closings and a 3 percent decrease in e-commerce comparable sales [4] Segment Performance - Sales growth in the third quarter was driven by a 4 percent increase at Journeys, a 2 percent increase at Schuh, a 3 percent increase at Johnston & Murphy, and a 3 percent increase at Genesco Brands [5] - The company opened four stores and closed 12 during the quarter, ending with 1,245 stores, a 4 percent decrease from 1,302 stores a year ago, with square footage down 3 percent year-over-year [6] Strategic Initiatives - The third quarter performance highlighted the effectiveness of Genesco's strategic initiatives, particularly at Journeys, which delivered strong double-digit comparable sales growth during back-to-school, reinforcing the brand's market share and positioning as a destination for style-led teen footwear [7]