Core Viewpoint - Genesco Inc. will report its financial results for the fourth quarter of fiscal 2026 on March 6, 2026, before market opening, and will hold a conference call at 7:30 a.m. Central time on the same day [1]. Company Overview - Genesco Inc. is a footwear-focused company with a diverse portfolio of retail and lifestyle brands, operating over 1,240 retail stores and branded e-commerce websites [1]. - The company's brands include Journeys, Little Burgundy, and Schuh, targeting teens, kids, and young adults with fashion footwear inspired by youth culture in the U.S., Canada, and the U.K. [1]. - Johnston & Murphy caters to affluent men and women with premium footwear, apparel, and accessories in the U.S. and Canada [1]. - Genesco Brands Group sells branded lifestyle footwear to leading retailers under licensed brands such as Wrangler, Dockers, and Starter [1]. - Founded in 1924, Genesco is headquartered in Nashville, Tennessee [1]. Financial Communication - A summary of the fourth quarter fiscal 2026 results will be available on Genesco's website on March 6, 2026 [1]. - An audio archive of the conference call will be accessible for up to one year [1]. - A live audio webcast of the conference call will also be available on the company's investor relations page [1].

Executive Changes in Footwear Firms - The footwear industry is experiencing significant executive changes, particularly in the chief financial officer (CFO) positions at companies like Caleres, Genesco, On, and Designer Brands, which will influence their operations in the upcoming year [1] - The changes are driven by various factors, including the pursuit of new job opportunities and the need for fresh initiatives within the companies [1] Shoe Carnival Inc. - W. Kerry Jackson was appointed as executive vice president and CFO in September 2022, returning to the role after retiring from it in May 2023 [2] - Jackson's return is part of a strategic plan to enhance Shoe Carnival's business development efforts, with a goal of expanding to over 215 stores by July 2026 [4] Designer Brands Inc. (DBI) - Jared Poff left his position as executive vice president and CFO to become CFO at Family Dollar, leading to the appointment of Sheamus Toal as the new CFO at DBI [5] - Toal, who has a strong background in financial expertise and operational leadership, was previously the COO and CFO at The Children's Place and has experience as CFO and CEO at New York & Co [6] - The hiring of Toal follows a series of layoffs at DBI aimed at simplifying the organizational structure and improving operational efficiency [6]

Core Insights - The article emphasizes the importance of a proven ranking system that focuses on earnings estimates and revisions to identify winning stocks, while also considering various investment strategies such as value, growth, and momentum [1] Value Investing - Value investing is highlighted as a popular and successful strategy across different market environments, utilizing various valuation metrics to identify undervalued stocks [2] Zacks Rank and Style Scores - The Zacks Rank and the innovative Style Scores system are tools for investors to find stocks with specific traits, particularly in the "Value" category, where stocks with high Zacks Ranks and "A" grades for Value are considered high-quality [3] Genesco (GCO) - Genesco (GCO) has a Zacks Rank of 2 (Buy) and an A for Value, with a Forward P/E ratio of 16.91, compared to the industry average of 18.26. Over the past year, GCO's Forward P/E has fluctuated between 8.43 and 42.65, with a median of 15.89 [4] - GCO's P/CF ratio is 11.89, which is attractive compared to the industry's average P/CF of 17.48. Its P/CF has ranged from 5.49 to 17.26 over the past year, with a median of 7.39 [5] J.Jill (JILL) - J.Jill (JILL) is identified as another strong stock in the Retail - Apparel and Shoes sector, holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A. JILL has a P/B ratio of 2.26, significantly lower than the industry's price-to-book ratio of 7.06. Its P/B has varied from 1.85 to 4.27 over the past year, with a median of 2.77 [6] Conclusion on Value Stocks - Both Genesco and J.Jill are presented as impressive value stocks, likely undervalued at the moment, supported by strong earnings outlooks [7]

Core Insights - Genesco has announced a strategic transformation of its information technology operations aimed at enhancing efficiency and supporting future growth [1] Group 1: Strategic Transformation - The company is focusing on modernizing its IT infrastructure to improve operational efficiency and agility [1] - This transformation is expected to streamline processes and reduce costs, ultimately benefiting the company's bottom line [1] - Genesco plans to invest in advanced technologies to support its strategic objectives and enhance customer experience [1]

Core Insights - Genesco Inc. (GCO) shares increased by 8.1% following strong holiday season performance, with a 9% rise in comparable sales for the fourth-quarter-to-date period ending December 27, 2025 [1][8] Sales Performance - Same-store sales rose by 10%, while comparable e-commerce sales increased by 9%, indicating the effectiveness of the company's omnichannel strategy [2] - The Journeys Group led growth with a 12% year-over-year increase in comparable sales, while the Schuh Group reported a 6% increase and Johnston & Murphy saw a marginal rise of 1% [2][8] Holiday Season Impact - The holiday season significantly boosted Genesco's sales, driven by strong consumer demand and effective operational execution, with the Journeys Group achieving double-digit growth [3] - The Schuh Group's results exceeded expectations, although growth was primarily due to heavy markdowns to remain competitive in the U.K. footwear market [4] Earnings Forecast - Following the strong holiday results, Genesco raised its fiscal 2026 adjusted earnings forecast to at least $1.30 per share, up from a previous estimate of $0.95, marking a substantial increase from the $0.94 earned in fiscal 2025 [5][8] Operational Strategy - To address volatile consumer behavior and demand fluctuations, management is focusing on operational discipline and stringent cost controls as the year concludes [6]

Financial Data and Key Metrics Changes - The company reported a significant comp increase of 9% for the quarter, building on a 10% comp from the previous year, indicating strong sales momentum [11][14] - Online sales rebounded with a 9% comp increase, while store comps were up 10%, showcasing a balanced recovery across channels [11][12] - Johnston & Murphy also achieved positive comps, contributing to overall positive performance across all business lines [12] Business Line Data and Key Metrics Changes - Journeys achieved a 12% comp increase on top of a 14% from last year, driven by strong full-price selling and a successful assortment strategy [12] - Schuh in the U.K. reported a 6% comp increase, although this was influenced by promotional activities in a challenging market environment [12] - Johnston & Murphy's performance was bolstered by newness in the assortment, particularly in apparel, which became a key driver of sales [13] Market Data and Key Metrics Changes - The consumer environment is characterized by volatility, with demand concentrating around key shopping moments, leading to a well-educated consumer base that is selective in purchasing [8][9] - Price increases have been accepted by consumers, who are now more discerning in their choices, impacting overall shopping behavior positively [9] Company Strategy and Development Direction - The company is focused on serving the teen market through Journeys, emphasizing product leadership and a strong brand proposition [17][18] - A strategic growth plan has been implemented to enhance the customer experience, including a new store remodel (4.0) that has shown a 25% increase in performance [19][22] - The company is also working on a global retail strategy by uniting Journeys and Schuh to leverage insights across markets and enhance brand collaboration [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustainable growth opportunities within Journeys and other business lines, despite ongoing challenges in the U.K. market [43] - There is a focus on recapturing margins affected by tariffs and other pressures, with expectations of meaningful earnings growth in the coming year [36][37] Other Important Information - The company plans to invest approximately $55 million to $60 million in capital expenditures, focusing on expanding the 4.0 store concept [39] - The collaboration with Peyton Manning as a brand ambassador has already shown positive impacts on store and online traffic [31][32] Q&A Session Summary Question: How is the consumer environment affecting business operations? - Management noted that consumers are stretched and selective, with a focus on newness and freshness driving shopping behavior [8] Question: What were the key drivers of performance at Journeys? - The key drivers included serving an underserved market, enhancing product assortment, and improving customer experience through store remodels [17][19] Question: What is the outlook for margins and profitability? - Management expects to recapture margins over time, despite ongoing tariff pressures, and anticipates positive comps to continue [36][37] Question: Can you elaborate on the capital allocation strategy? - The company plans to maintain its capital expenditure levels while investing in growth initiatives like the 4.0 store rollout [39]

Financial Data and Key Metrics Changes - The company reported a significant comp increase of 9% for the quarter, building on a 10% comp from the previous year, indicating strong sales momentum [11][14] - Online sales rebounded with a 9% comp increase, while store comps were up 10%, showcasing a balanced recovery across channels [11][12] - Johnston & Murphy also achieved positive comps, contributing to overall positive performance across all business lines [12] Business Line Data and Key Metrics Changes - Journeys achieved a remarkable 12% comp increase, following a 14% increase last year, driven by full-price selling and a strong assortment [12] - The schuh business in the U.K. reported a 6% comp increase, although it faced a more promotional environment [12] - Johnston & Murphy's performance was bolstered by newness in the assortment, particularly in apparel, which became a key driver of sales [13] Market Data and Key Metrics Changes - The consumer environment remains volatile, with consumers being more selective and responsive to newness and freshness in products [8][9] - Price increases have been accepted by consumers, with double-digit growth observed in certain categories, indicating a shift in shopping behavior [9][10] - The U.K. market remains challenging, but the company is implementing strategies to clean up inventory and optimize performance [23][24] Company Strategy and Development Direction - The company is focused on serving the underserved teen market, particularly through Journeys, by enhancing product assortment and brand relationships [17][18] - A strategic growth plan has been implemented to elevate the Journeys brand and improve customer experience through store remodels [19][20] - The formation of the Journeys Global Retail Group aims to leverage insights across markets to enhance product offerings and brand collaboration [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in recapturing margins despite ongoing tariff pressures and anticipated lower sales [36] - The company expects to continue positive comps and is optimistic about sustainable growth opportunities within Journeys and other business lines [43] - The rollout of the 4.0 store model is expected to drive future growth, with plans to expand this model to 30%-40% of the fleet [22] Other Important Information - The collaboration with Peyton Manning as a brand ambassador has already shown positive impacts on store and online traffic [31][32] - The company plans to maintain capital expenditures around $55 million-$60 million to support ongoing business initiatives [39] Q&A Session Summary Question: How is the consumer environment affecting business operations? - Management noted that consumers are stretched and selective, with a focus on newness driving shopping behavior [8] Question: What were the key drivers of performance at Journeys? - The performance was driven by serving an underserved market, enhancing product assortment, and improving customer experience [17][19] Question: What is the outlook for margins and profitability? - Management expects to recapture margins over time, despite some ongoing pressures, and anticipates meaningful earnings growth [36] Question: Can you elaborate on the capital allocation strategy? - The company plans to continue investing in the business, particularly in the rollout of the 4.0 store model [39]

Financial Data and Key Metrics Changes - The company reported a 9% comparable sales increase, building on a 10% increase from the previous year, indicating strong momentum in sales performance [11][12] - Online sales rebounded with a 9% increase, while store sales also performed well with a 10% increase [11][12] - The company anticipates capturing margin improvements in the upcoming year despite ongoing tariff pressures [38][39] Business Line Data and Key Metrics Changes - Journeys achieved a 12% comparable sales increase, following a 14% increase last year, driven by strong full-price selling and a successful assortment [12][13] - Johnston & Murphy also reported positive comparable sales, with apparel being a standout category [13][30] - The schuh business in the U.K. saw a 6% increase in comparable sales, although it faced a more promotional environment [12][24] Market Data and Key Metrics Changes - The consumer environment is characterized by volatility, with demand concentrating around key shopping moments, leading to a well-educated consumer base that is selective in purchasing [7][9] - Price increases have been accepted by consumers, who are now more discerning about their purchases [9][10] Company Strategy and Development Direction - The company is focused on serving the underserved teen market, particularly through Journeys, by enhancing product assortment and brand relationships [18][20] - A strategic growth plan has been implemented to improve customer experience and store aesthetics, with the rollout of the 4.0 store model expected to drive sustainable growth [19][23] - The formation of the Journeys Global Retail Group aims to leverage insights across markets to better serve the teen demographic [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business momentum and earnings potential, particularly within Journeys, while acknowledging challenges in the U.K. market [44] - There is a focus on optimizing the store fleet and improving profitability, with expectations of meaningful earnings growth despite some anticipated sales declines [39][41] Other Important Information - The collaboration with Peyton Manning is expected to enhance brand awareness and drive traffic to stores and online platforms [32][34] - The company plans to maintain capital expenditures around $55 million to $60 million, with potential increases to support the 4.0 store rollout [41] Q&A Session Summary Question: How is the consumer environment affecting business operations? - Management noted that consumers are stretched and selective, with a focus on newness and freshness driving shopping behavior [7] Question: What were the key drivers of the holiday sales performance? - The holiday results exceeded expectations, with strong online and store sales, particularly in the Journeys segment [11][12] Question: What is the outlook for margins and profitability? - Management expects to recapture some margin improvements next year, despite ongoing tariff pressures and a timing gap in product licensing [38][39] Question: Can you elaborate on the schuh business and its turnaround strategy? - The schuh business is undergoing a reset, focusing on better serving the U.K. market and optimizing the store portfolio [24][26]

Summary of Genesco Conference Call Company Overview - **Company**: Genesco - **Industry**: Footwear Retail - **Brands**: Journeys, Schuh, Johnston & Murphy Key Insights on Consumer Trends - The consumer environment shows peaks and troughs, with shopping activity increasing during specific events like back-to-school, leading to record double-digit comps for Journeys [4][8] - There is a notable shift towards athletic footwear, with significant growth in athletic brands compared to casual ones [5][6] - The consumer is willing to spend more on desired products, reflected in the increase in average selling prices (ASPs) [4] Product Category Trends - Growth observed in casual and athletic brands, with a pronounced interest in athletic wear year-round [5] - Boots are seeing early signs of increased demand, although the performance is brand-specific [6] - A shift in consumer color preferences from white to brown athletic shoes has been noted [12] Financial Performance - Journeys achieved a 6% comp growth with over 50% increase in operating income, despite challenges from tariffs and promotional activities in Schuh [8][10] - The company is not a promotional retailer in the U.S., focusing on full-price selling due to strong product assortment [9] - In the U.K., a more promotional environment is anticipated due to weaker consumer demand and competition [10][11] Strategic Initiatives - **Journeys**: Focus on unique consumer positioning targeting the underserved teen girl market, expanding brand assortment, and introducing premium products [18][19] - **Johnston & Murphy**: Transitioning to a lifestyle brand with a focus on comfort and technology in products, alongside a new collaboration with Peyton Manning to boost brand awareness [38][40] - **Schuh**: Plans to enhance marketing and product positioning to improve performance in a challenging U.K. market [42][46] Marketing and Brand Awareness - Increased investment in brand marketing, including campaigns like "Life On Loud" to attract new customers [27][28] - The introduction of Nike into the Journeys assortment is expected to drive traffic and engagement [24][25] Operational Efficiency - The company has leveraged SG&A efficiencies, with plans to continue optimizing store productivity, particularly in Schuh [47][48] - Anticipated margin compression due to tariffs and promotional activities, with strategies in place to improve gross margins moving forward [51][52] Future Outlook - Priorities include continuing growth at Journeys, turning around Schuh, and expanding Johnston & Murphy [49][50] - The company sees potential for significant earnings growth through operational leverage and improved market positioning [53] Additional Insights - The opportunity for upside in the business model is highlighted as an underrated aspect of Genesco's story, with small improvements leading to substantial results [53]

Financial Performance - Net sales increased by 3.3% to $616.2 million in Q3 Fiscal 2026, compared to $596.3 million in Q3 Fiscal 2025, driven by a 3% increase in comparable sales and a 5% increase in same store sales[58]. - Gross margin rose by 1.2% to $288.6 million, but as a percentage of net sales, it decreased from 47.8% in Q3 Fiscal 2025 to 46.8% in Q3 Fiscal 2026[59]. - Selling and administrative expenses increased by 0.3% to $275.7 million, while as a percentage of net sales, it decreased from 46.1% to 44.7%[60]. - Operating margin decreased to 1.4% in Q3 Fiscal 2026 from 1.7% in Q3 Fiscal 2025, primarily due to lower gross margin and higher asset impairment charges[61]. - Net earnings for Q3 Fiscal 2026 were $5.4 million, or $0.50 diluted earnings per share, compared to a net loss of $18.9 million, or $1.76 diluted loss per share, in Q3 Fiscal 2025[64]. Segment Performance - Journeys Group net sales increased by 3.9% to $376.7 million, with an operating margin improvement of 190 basis points to 5.5%[69][71]. - Schuh Group net sales rose by 1.6% to $123.8 million, but operating income fell by 78.6% to $669,000, resulting in an operating margin of 0.5%[74][75]. - Johnston & Murphy Group net sales increased by 3.4% to $81.2 million, but experienced an operating loss of $595,000, with an operating margin of (0.7)%[76][77]. - Genesco Brands Group's net sales increased 3.2% to $34.6 million for Q3 Fiscal 2026 from $33.5 million in Q3 Fiscal 2025, driven by higher footwear sales of Dockers and private label[78]. - Gross margin decreased by 34.9% to $7.7 million in Q3 Fiscal 2026, with gross margin as a percentage of net sales dropping from 35.5% to 22.4%[78]. - Operating income fell 85.5% to $541,000 in Q3 Fiscal 2026, resulting in an operating margin decline from 11.1% to 1.6%[78]. Year-to-Date Performance - For the first nine months of Fiscal 2026, net sales increased 3.6% to $1.64 billion, with a 4% increase in comparable sales[82]. - Gross margin for the first nine months of Fiscal 2026 increased 1.7% to $759.8 million, but decreased as a percentage of net sales from 47.3% to 46.4%[83]. - Selling and administrative expenses for the first nine months of Fiscal 2026 rose 1.4% to $789.0 million, but decreased as a percentage of net sales from 49.3% to 48.2%[86]. - The net loss for the first nine months of Fiscal 2026 was $34.3 million, or $3.31 diluted loss per share, compared to a net loss of $53.3 million, or $4.90 diluted loss per share, in the same period last year[90]. - Journeys Group net sales increased 5.1% to $967.5 million in the first nine months of Fiscal 2026, with an 8% increase in comparable sales[91]. - Schuh Group net sales increased 2.2% to $346.3 million, but total comparable sales decreased 2% due to a challenging retail environment in the U.K.[93]. - Johnston & Murphy Group net sales decreased 0.8% to $226.8 million, primarily due to decreased same store sales and a 3% decrease in the average number of stores[95]. Expenses and Cash Flow - Corporate and other expenses for the first nine months of Fiscal 2026 were $28.8 million, up from $27.2 million in the same period of Fiscal 2025, with asset impairment and other charges of $4.7 million included in Fiscal 2026[99]. - Net interest expense increased by 6.8% to $3.7 million in the first nine months of Fiscal 2026, compared to $3.4 million in the same period of Fiscal 2025, primarily due to increased borrowings in the U.K.[100]. - Net cash used in operating activities decreased by $1.5 million to $(27,597) thousand in the first nine months of Fiscal 2026 compared to $(29,108) thousand in Fiscal 2025[103]. - Net cash used in investing activities increased by $24.8 million to $(52,185) thousand in the first nine months of Fiscal 2026, reflecting higher capital expenditures related to retail store investments[103]. - Cash provided by financing activities increased by $17.9 million to $72,435 thousand in the first nine months of Fiscal 2026, primarily due to increased net borrowings[104]. Capital Expenditures and Obligations - Total capital expenditures for Fiscal 2026 are expected to be approximately $55 to $65 million, with about 80% allocated for new stores and renovations[111]. - The company repurchased 604,531 shares of common stock for $12.6 million at an average cost of $20.79 per share during the first nine months of Fiscal 2026[112]. - Contractual obligations increased by 26% compared to February 1, 2025, primarily due to increased long-term debt and lease obligations[110]. - As of November 1, 2025, the company had $65.0 million in U.S. revolver borrowings and was in compliance with all relevant terms of the Credit Facility[106]. - The company expects to meet its liquidity needs in Fiscal 2026 through cash on hand, cash from operations, and borrowings under its Credit Facility[107].