NASHVILLE - Genesco Inc . (NYSE: NYSE:GCO), a specialty footwear retailer, disclosed a 4% decline in comparable sales for the quarter-to-date period ending December 30, 2023. This includes a 6% decrease in same-store sales and a 3% increase in e-commerce sales. The company's Journeys Group experienced a 6% drop, while Schuh Group saw a 5% decrease, and Johnston & Murphy Group reported an 11% increase.
Mimi E. Vaughn, Genesco's board chair, president, and CEO, commented on the sales performance, noting a slowdown as the holiday season approached. She attributed the sluggish sales to inconsistent consumer shopping patterns, which were particularly evident at Journeys. Despite a promotional approach, interest in boots, a significant part of the winter product line, was lower than expected. In contrast, Johnston & Murphy sustained strong performance, and online sales continued to grow.
As a result of the weaker-than-anticipated sales, Genesco has revised its adjusted earnings per share (EPS) forecast for fiscal 2024 to a range of $0.65 to $0.85, a significant cut from the previous estimate of $1.50 to $2.00. The company anticipates that the final figure will be near the midpoint of the revised range.
Looking ahead, Vaughn stated that Genesco is positioned to enter fiscal 2025 with clean inventories and plans to realign merchandise assortments with consumer demand while reshaping the cost base. These efforts are part of broader strategic initiatives aimed at driving long-term value, particularly within the Journeys business.
The information in this article is based on a press release statement from Genesco Inc.
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