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Aug 02, 2025
Genesco Q2 2026 Earnings Report
Genesco reported stronger-than-expected Q2 results, driven by a 9% comp sales increase at Journeys and raised full-year sales outlook.
Key Takeaways
Genesco delivered a solid Q2 FY2026, with revenue up 4% year-over-year. The Journeys Group led performance with 9% comp sales growth, while the company raised its full-year sales guidance despite continued margin pressures from tariffs and promotional activity in the U.K.
Total revenue grew 4% YoY to $546M, beating expectations.
Journeys comparable sales rose 9%, lifting overall comp sales by 4%.
GAAP EPS was -$1.79; adjusted EPS came in at -$1.14.
Gross margin contracted to 45.8% due to U.K. promotions and tariff impact.
Revenue by Segment
Forward Guidance
Genesco raised its FY26 sales outlook, expecting 3-4% revenue growth and maintained adjusted EPS guidance of $1.30 to $1.70.
Positive Outlook
- Full-year revenue growth forecast raised to 3-4%.
- Comparable sales growth expected to be 4-5%.
- EPS guidance maintained at $1.30 to $1.70.
- Strong momentum at Journeys driven by teen-focused strategy.
- Digital sales remained steady and supportive of omni-channel growth.
Challenges Ahead
- Gross margin pressure from higher tariffs and promotional U.K. market.
- Adjusted tax rate increased to 26.5% from 15.1% last year.
- Inventory levels up 11% YoY.
- Schuh Group saw a 4% comp sales decline.
- No share repurchases in the quarter despite authorization remaining.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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