Revenue and Segment Performance
Genesco reported a 7% increase in fourth-quarter net sales to $800 million for Fiscal 2026. This was driven by a 9% increase in comparable sales, encompassing a 9% rise in same-store sales and an 8% increase in e-commerce. E-commerce represented 31% of retail sales. The Journeys Group led performance with a 10% overall sales increase and a 12% comparable sales gain. Schuh and Johnston & Murphy posted sales increases of 9% and 2%, respectively, offsetting a 27% decline in Genesco Brands. Full-year net sales reached $2.4 billion, a 5% year-over-year increase fueled by a 6% rise in comparable sales.
Profitability and Margins
The company recorded fourth-quarter GAAP earnings per share of $4.43 and Non-GAAP earnings per share of $3.74. GAAP operating income reached $51.3 million, or 6.4% of sales, improving from $46.1 million in the prior year. This was supported by selling and administrative expenses decreasing 140 basis points to 39.1% of sales. Adjusted gross margin contracted by 90 basis points to 46.0%, impacted by promotional activity at Schuh and tariff pressures at Genesco Brands. Full-year GAAP operating income increased to $17.3 million.
Balance Sheet and Outlook
Genesco ended Fiscal 2026 with $105.4 million in cash and minimal debt of $3.4 million. Inventory levels increased 2% year-over-year, reflecting higher stock at Journeys and Johnston & Murphy. For Fiscal 2027, management anticipates positive comparable sales growth of 1% to 2%. Total sales are expected to be down 1% to flat, factoring in reductions from license exits and store closures. The company projects adjusted diluted earnings per share to range between $1.90 and $2.30.