Genesco(US:GCO)2025-12-04 13:30Financial Performance - Q3 FY26 sales reached $616 million, a 3% increase compared to Q3 FY25[7] - E-commerce accounted for 23% of total retail sales in Q3 FY26[7] - The gross margin was 46.8%, a decrease of 100 basis points compared to Q3 FY25[7] - Selling, General & Administrative (SG&A) expenses were $276 million, representing 44.7% of sales, a leverage of 140 basis points versus Q3 FY25[7] - GAAP earnings per share (EPS) was $0.51, while non-GAAP EPS was $0.79[7] - GAAP operating income was $8.6 million, and non-GAAP operating income was $12.9 million[7] Segment Performance - Journeys Group experienced a comparable sales increase of 6%[7] - Stores saw a comparable sales increase of 5%[7] - E-commerce sales decreased by 3%[7] Strategic Initiatives and Outlook - The company is shifting its marketing strategy towards brand awareness, exemplified by Journeys' "Life on Loud" campaign, which surpassed 70 million social views[8] - The company is revising its FY26 outlook, lowering guidance for non-GAAP EPS to approximately $0.95 and total sales growth to approximately 2%[61] - Comparable sales are expected to grow by approximately 3%[61] - Capital expenditures are projected to be between $55 million and $65 million, with approximately 80% allocated to stores and 20% to other areas[61]