Genesco saw sales dip in the second quarter as the company continued to experience a “challenging operating environment.”
In the second quarter of fiscal 2024, the Nashville-based footwear company reported net sales of $523 million, a decrease of 2 percent from $535 million in the same period last year.
Genesco noted that overall sales decline was driven by a decrease of 11 percent at Journeys and a 7 percent decrease at Genesco Brands, partially offset by a 14 percent increase in e-commerce comparable sales.
However, Genesco president, CEO and board chair Mimi Vaughn said in a statement that the company is “encouraged” to see some improvement in its Journeys business as the quarter progressed, leading it to deliver results ahead of prior expectations, as it continues to make progress on its plans to close roughly 100 Journeys stores and reduce costs by $40 million.
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In the meantime, Vaughn noted that Schuh and Johnston & Murphy “continue to outperform,” each delivering another quarter of record sales despite the challenging backdrop. More specifically, Shuh reported a 21 percent increase in the second quarter, while Johnston & Murphy saw sales increase by 4 percent in the period.
Looking ahead into the third quarter, sales are seeing some improvement. “Thus far in the third quarter, sales trends for the back-to-school season improved a little further with consumers shopping when there is a reason and much closer to need,” Vaughn said in a statement. “Given the ongoing lack of visibility into consumer demand patterns in the near-term and other pressures, we are maintaining our cautious view and reiterating our outlook for fiscal 2024.”
For full fiscal year 2024, the company expects net sales to be down 2 percent to 4 percent ,or down 3 percent to 5 percent excluding the 53rd week this year, compared to fiscal 2023.
“Moving forward, I remain confident that we are implementing the right strategic initiatives to weather the current environment, including specific actions to elevate and accelerate Journeys performance and evolve it for the longer term to drive value in an even stronger competitive position,” Vaughn added.
The company’s latest earnings come one day after it announced longtime Journeys executive Mario Gallione would retire next year.
