Journeys Turnaround Continues to Contribute to Genesco Wins in Q3
Stephen Garner
Senior Editor
Shares for Genesco jumped nearly 8 percent in pre-market trading on Friday as the company reported positive results driven by continued growth at Journeys in the third quarter.
According to the Nashville-based footwear company, total net sales in the third quarter of fiscal 2025 increased 3 percent to $596 million, up from $579 million the year prior. Loss from continuing operations was $18.8 million in the third quarter compared to earnings from continuing operations of $6.6 million in the prior year.
Genesco noted in its earnings release that this sales increase reflects a 6 percent bump in comparable sales, including a 15 percent rise in e-commerce comparable sales and a 4 percent increase in same store sales.
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The company further noted that overall sales increase for the third quarter was driven by an increase of 4 percent at Journeys, an increase of 3 percent at Schuh and a 10 percent increase at Genesco Brands, partially offset by a decrease of 4 percent at Johnston & Murphy.
Genesco president, chief executive officer and board chair Mimi Vaughn said in a statement that the company’s quarterly performance once again exceeded expectations and marked a return to positive overall comparable sales.
“Following a strong start to the third quarter including the heart of back-to-school, sales trends at Journeys remained robust in September and October, fueling a double-digit comp gain for the business,” Vaughn said. “This result was driven by the initial phase of Journeys’ strategic growth plan which has focused on elevating the consumer experience including improving the product assortment and visually resetting our stores. Earnings per share would have been stronger without the shift of an important back-to-school week into the second quarter this year.”
The CEO added that the company is satisfied with Journeys’ start to the fourth quarter including the important Black Friday and Cyber Monday period, especially as demand for several discretionary categories including footwear continues to be very selective and event driven.
And based on the current variability of consumer demand and shopping trends, Vaughn noted that Genesco has adopted a more cautious view for Schuh and Johnston & Murphy over the remainder of this year.
“We are in the very early innings of returning Journeys and the overall company to historical rates of sales and profitability,” the CEO continued. “With the progress we’ve recently made, and our track record of successfully evolving our businesses in response to changing consumer preferences and purchasing behavior, I feel confident we have the experience and strategies to drive profitable growth across the company and create greater value for our shareholders over the near- and long-term.”
Following its third quarter performance, Genesco said it is raising its yearly guidance. The shoe company now expects total sales to be down 1 percent to flat compared to fiscal 2024, or flat to up 1 percent excluding the 53rd week in fiscal 2024 versus prior expectations for a total sales decrease of 1 percent to 2 percent, or flat to down 1 percent excluding the 53rd week in fiscal 2024.
Genesco also revised its adjusted diluted earnings per share for the year, and now expects EPS from continuing operations in the range of 80 cents to $1.00 versus prior guidance of 60 cents to $1.00.
