Genesco’s Q1 FY25 net sales totaled $458 million, showing a 5% decline from the previous year. This drop was attributed to lower store and wholesale sales, alongside net store closures. However, e-commerce sales increased by 3%. The company reported a GAAP operating loss of $32.1 million and a GAAP loss from continuing operations of $24.3 million.
US-based retailer Genesco Inc reported a 5% decrease in net sales to $458 million in Q1 FY25 compared to the same period in FY24. The decline was due to lower store and wholesale sales, as well as net store closings, partially offset by a 3% increase in e-commerce comparable sales and a positive foreign exchange impact. Journeys saw a 5% decrease, Schuh 1%, Johnston & Murphy 4%, and Genesco Brands a significant 25% decrease. Schuh sales were down 4% on a constant currency basis. The company attributed the overall decline to various factors but highlighted the growth in e-commerce as a positive aspect of their performance.
The first quarter gross margin for the company stayed steady at 47.3% despite a decrease in sales. Additionally, the adjusted gross margin rose by 30 basis points in comparison to the previous year.
Genesco’s selling and administrative expenses increased by 220 basis points as a percentage of sales in the first quarter of Fiscal 2025. The company reported a GAAP operating loss of $32.1 million, or 7 per cent of sales, compared to a loss of $23 million, or 4.8 per cent of sales, in the previous year. The GAAP loss from continuing operations was $24.3 million for Q1 FY25, up from $18.9 million in the same period last year. Adjusted for excluded items, the loss from continuing operations was $22.9 million, or $2.10 per share, compared to $18.7 million, or $1.59 per share, in the previous year’s first quarter.
Despite challenges faced in the operating environment, Genesco exceeded expectations by delivering strong financial results, particularly in their Journeys business. With new leadership in place, the company is focused on driving improvement, enhancing product offerings, and improving the overall consumer experience. Mimi E Vaughn, the CEO, expressed optimism about the progress made so far.
