Genesco, the Nashville-based footwear retailer, raised its full-year profit outlook for fiscal 2027 even as second-quarter net sales fell 3% to $530 million, hurt by store closures, reduced licensed sales, fewer online discounts at Schuh, and negative currency effects. Comparable sales rose 1%, with Johnston & Murphy up 5% and Journeys up 2%, while adjusted gross margin improved to 47.2% from 45.8% a year earlier. The company narrowed its adjusted operating loss to $8.3 million from $14.3 million, and on a GAAP basis swung to operating income of $3.6 million from a loss of $14.4 million. For the full year, Genesco now expects comparable sales to be flat, down from prior guidance of 1% to 2% growth, and total sales to decline about 2%, but it sees operating income at the upper end of its earlier $34 million to $40 million range. CEO Mimi Vaughn attributed the sales decline to strategic actions and expressed confidence in the company's Footwear First strategy.
Genesco IncGenesco raised its FY27 profit outlook and narrowed its adjusted operating loss, with operating income seen at the upper end of guidance.
