February 1, 2026 11:01 PM GMT Internet and Retail | North America Agentic Commerce Tracker: Where Are We Seeing Early Agentic Adoption? M Our recurring agentic tracker shows AI platform adoption and commercial behavior continue to inch up with ChatGPT leading among younger people. Retailer-specific agents (AMZN/WMT) have smaller user bases but similar/higher purchase adoption, speaking to their opportunity too. Key Takeaways Tracking the Multi-Year Path to ~$385bn of Agentic Commerce: As detailed in Agentic ...

Financial Data and Key Metrics Changes - Total revenue for the quarter was $616 million, up 3% compared to last year, driven by overall comparable sales growth of 3% [22] - Adjusted operating income for the quarter was $12.9 million, above last year's $10.3 million, resulting in adjusted diluted earnings per share of $0.79 compared to $0.61 in the same period last year [24] - Gross margin for the quarter was 46.8%, down 100 basis points from last year, primarily due to product liquidations and tariff cost increases [22][23] Business Line Data and Key Metrics Changes - Journeys achieved 6% comparable sales growth and more than a 50% increase in operating income, marking its fifth consecutive quarter of positive comp growth [4][22] - SHU experienced a 2% decline in comparable sales, with overall comps taking a step back due to traffic declines despite gains in store conversion and average transaction size [11][22] - Johnston & Murphy's overall sales increased year over year, reflecting growth in the wholesale channel, but overall comps declined due to softer e-commerce trends [13][22] Market Data and Key Metrics Changes - Total comparable sales increased 3%, with store comps up 5%, while e-commerce comps declined 3% on top of 15% comp growth last year [22] - The U.K. retail environment remains challenging, with customers focused on must-have items or seeking deals, impacting SHU's performance [11][12] Company Strategy and Development Direction - The company is focusing on building awareness of the Journeys brand through impactful campaigns and has formed the Journeys Global Retail Group to enhance market positioning [8][9] - Strategic initiatives include product elevation and diversification, investing in brand awareness, and enhancing customer experience through new store formats [17][19] - The company is preparing for growth with the Fall 2026 footwear launch for the Wrangler brand, following the exit of the Levi's license [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are pressures in the U.K. market, Journeys remains on track for an outstanding year with mid-single-digit comp growth projected [20][21] - The consumer environment is selective, with customers willing to pay for desired items but conserving spending during non-peak times [5][6] - Management expressed optimism for robust sales during peak shopping periods, supported by strong product assortments and marketing initiatives [37][38] Other Important Information - Free cash flow for the quarter improved nearly $5 million year over year, and capital expenditures totaled $18 million focused on store remodels and digital investments [24][25] - The company ended the quarter with 1,245 stores, having opened four and closed twelve, with a focus on expanding the Journeys 4.0 store format [25] Q&A Session Summary Question: Outlook for Journeys in Q4 - Management expects positive comps for Journeys in Q4, despite moderating e-commerce growth due to strong comparisons from last year [32][33] Question: Performance of 4.0 Stores - The 4.0 stores continue to perform strongly, with higher transaction sizes and conversion rates compared to the rest of the store fleet [34][35] Question: Demand Trends Between Canvas and Athletic - Athletic footwear is seeing more year-round demand, while canvas is not as strong; innovation is expected to focus more on athletic styles [40][41] Question: Pullback in Consumer Spending - Higher-income customers are spending more, while overall consumer behavior shows a tendency to conserve cash for essential purchases [44] Question: Future Brand Portfolio Expansion - The company is pursuing a strategy of diversification in its brand portfolio, introducing new brands to validate and strengthen its market position [46][49]