US footwear retailer Allbirds plans to close all its remaining full-price shops in the US by the end of next month. According to the company, the closure is part of its effort to streamline operations and focus on lower-cost growth channels. The company said it will retain two outlet locations in the US and continue running two full-price stores in London, UK. The shift is designed to free up resources for its online business, wholesale relationships and overseas distributors, which it views as offerin ...

UK-based footwear retailer Schuh has named Laura King as its new chief marketing officer. In her new role, King will lead the marketing, creative, visual merchandising, brand partnerships, purpose, public relations, talent and community departments at the Genesco-owned retailer. She joins the existing five members of the leadership team, including Colin Temple, president of Schuh. More from WWD “In an increasingly demanding and fast-paced market, the focus on creating inspiring brand experiences and sto ...

Economic Outlook - The U.S. economy is expected to continue strong growth in 2026, supported by fiscal policy, interest rate cuts, and productivity gains from AI, despite concerns over slow job growth [1] - Lower-income consumers may benefit from significant tax refunds projected between $60 billion and $80 billion, potentially increasing spending on discretionary goods [2] - Consumer spending showed resilience with a 4.7% increase during the holiday season from October to December, although there are concerns about inflation and the struggles of lower-income families [2] Retail Industry Insights - The NRF Big Show highlighted a positive outlook for retail, driven by resilient consumer spending, the rise of AI, and expectations for retail gains following a decent 2025 holiday season [4] - JD Sports is leveraging agentic commerce and generative engine optimization to enhance customer engagement and streamline operations, with 20% of sales coming from online channels [23][25] - Companies like LVMH are focusing on integrating AI to enhance customer experiences while maintaining the human touch, emphasizing creativity and operational efficiency [13][14] Technology and Innovation - Ralph Lauren is utilizing technology to modernize its brand philosophy and enhance customer engagement through the Ask Ralph virtual shopping assistant [6][7] - Adidas and Amazon are collaborating to improve fulfillment standards, achieving faster delivery times and higher conversion rates through synchronized inventory management [9][11][12] - Companies are increasingly adopting AI for efficiency and business development, with LVMH focusing on enhancing creativity and customer engagement through AI applications [14][17] Consumer Behavior and Market Trends - The retail landscape is witnessing a shift where product offerings must earn their place in the market, with brands like Aeropostale successfully collaborating with influencers to drive sales [21][22] - The balance between digital and physical retail is crucial, as brands like Rothy's emphasize sustainability and innovation while navigating market trends [8] - The integration of AI in retail is seen as a means to enhance customer experiences rather than replace human roles, with industry leaders advocating for proactive engagement with AI technologies [31]

Core Insights - Genesco is transforming its information technology operating model to support long-term growth strategy [1] - The transformation is based on a comprehensive review of IT operations and aims to enhance customer service and organizational flexibility [2] IT Transformation - The company is partnering with a leading global technology provider and adopting new tools to improve speed, scalability, and AI-enabled innovation [2] - The full transformation is expected to be implemented in phases over the next 12 to 18 months, with some positions in the IT organization potentially impacted [3] Sales Performance - Comparable sales increased by 9 percent for the fourth quarter-to-date period ended December 27, including both stores and direct sales [3] - Same store sales rose by 10 percent, while e-commerce comparable sales increased by 9 percent during the same period [4] - The Journeys Group saw a 12 percent increase in comparable sales, while the Schuh Group and Johnston & Murphy Group rose by 6 percent and 1 percent, respectively [4] Holiday Performance - The company reported strong holiday performance driven by compelling assortments and exceptional execution, leading to double-digit comparable sales increases in December [5]

Core Insights - Genesco (GCO) reported a 9% increase in comparable sales for the quarter-to-date period ending December 27, 2025, with same store sales rising by 10% and e-commerce sales also increasing by 9% [1] - The company's Journeys brand experienced a double-digit comparable sales increase, benefiting from strong holiday performance and effective execution during peak demand periods [1] - Schuh's sales exceeded expectations but were driven by increased discounting in a highly promotional U.K. footwear market, indicating a need for cleaner inventories [1] - Genesco anticipates full-year adjusted earnings to be at least $1.30 per share, reflecting a significant improvement from previous forecasts, despite margin pressures at Schuh [1] - The company emphasizes disciplined execution and cost controls in response to volatile consumer demand concentrated around key shopping moments [1] Sales Performance - Comparable sales increased by 9% for the quarter-to-date period [1] - Same store sales rose by 10% [1] - E-commerce sales also saw a 9% increase [1] Brand Performance - Journeys achieved a double-digit comparable sales increase, indicating strong holiday performance [1] - Schuh's top-line results were above expectations, but sales growth was attributed to increased discounting [1] Financial Outlook - Full-year adjusted earnings are expected to be at least $1.30 per share, marking a meaningful improvement [1] - The company plans to provide a comprehensive business update and outlook for the next year during the fourth quarter and full-year results report [1]

Financial Data and Key Metrics Changes - The company achieved a merchandise margin expansion of 110 basis points, exceeding the guidance of 30 basis points year-over-year [3][4] - Over the past seven years, the company has seen a total of 700 basis points of merchandise margin expansion [5] Business Line Data and Key Metrics Changes - The exclusive brand penetration met expectations, contributing to growth but not the margin beat [3] - The work boot business showed mid-single-digit comparable sales growth, attributed to digital marketing and re-merchandising efforts [10][11] Market Data and Key Metrics Changes - The Total Addressable Market (TAM) was increased from $40 billion to $58 billion, influenced by the Country Lifestyle segment and the addition of denim [22][23] - The company is expanding its store count target from 900 to 1,200, with an average new store volume of approximately $3.2 million [24][25] Company Strategy and Development Direction - The company is focusing on building a proper sourcing team for exclusive brands and enhancing marketing efforts for these brands [7][10] - The strategy includes targeting the Country Lifestyle customer through partnerships with mainstream events like NASCAR and the NFL [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic landscape, noting that tax refunds and reduced withholdings could positively impact their core customer [43][44] - The company aims to achieve a mid-teens EBIT margin over time, currently tracking around 13% for the fiscal year [38] Other Important Information - The company is leveraging social media, particularly TikTok, to market its stores and products, focusing on authenticity and everyday creators rather than professional influencers [34][36] Q&A Session Summary Question: What are the drivers behind the merchandise margin expansion? - The company attributed the margin expansion to better buying economies of scale, lower markdowns, and improved inventory management [4][3] Question: How is the new sourcing team adapting to tariffs? - The sourcing team is navigating tariff challenges and is about two-thirds built, focusing on preserving margins while adapting to changing conditions [9][12] Question: What is the approach to pricing in relation to tariffs? - The company plans to implement low single-digit price increases on exclusive brands post-holiday to preserve margin rates [16] Question: How is the company expanding its customer base? - The company is targeting the Country Lifestyle customer and has adjusted marketing strategies to reach this demographic [19][20] Question: What are the expectations for store growth? - The company expects to maintain a store growth rate of 12%-15% for the foreseeable future, with new stores opening in both legacy and new markets [29][32]

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]

Store Expansion Plans - Numerous footwear retailers and brands are planning ambitious store expansions as 2026 begins [1] - Academy Sports + Outdoors aims to open 20 to 25 new stores in 2026, with 80% in existing markets and 20% in new markets [2] - Birkenstock plans to open about 40 new stores in 2026, targeting a total of 150 stores ahead of schedule [3] - Boot Barn believes it can operate 1,200 stores in the U.S., increasing its previous estimate of 900, with 70 new stores opened by the end of fiscal year 2026 [4] - Clarks plans to expand its Cloudsteppers concept, aiming for a total of 12 locations by the end of 2026, with three new stores opening in Q1 2026 [5]

Core Viewpoint - The company is undergoing a transformation by converting its Shoe Carnival stores into Shoe Station stores, which is expected to yield positive results over the next few years [1]. Group 1: Company Transition - The transition from Shoe Carnival to Shoe Station is a strategic move aimed at enhancing the company's market position and operational efficiency [1]. Group 2: Analyst Background - The author has a background in writing for financial publications and focuses on sectors such as restaurants, retailers, and food manufacturers, emphasizing long-term investment opportunities [1].