Genesco (GCO) Fiscal Q2 2027 Earnings Call: Margin Gains Support EPS Outlook
Source Tradingkey
Key Takeaways
- Genesco’s fiscal Q2 2027 revenue declined 3% year over year to $530 million, while comparable sales fell 1%. Store comps increased 1%, but e-commerce comps declined 6%.
- Adjusted gross margin expanded 140 basis points to 47.2%. Adjusted operating loss narrowed to $8 million from $14 million, and adjusted diluted loss per share improved to $0.83 from $1.14.
- Journeys posted a 2% comparable-sales increase, its eighth consecutive positive quarter. Johnston & Murphy comps rose 4%, while schuh comps declined 9% as the company reduced promotions.
- Genesco received approximately $22 million of tariff refunds, which were excluded from adjusted results. The company said the proceeds would be allocated in line with its growth and shareholder-return priorities.
- Management now expects fiscal 2027 adjusted diluted EPS at the high end of its previous $2.00-$2.40 range, despite lowering its full-year comparable-sales assumption to flat.
- The company expects up to $20 million of structural cost savings in fiscal 2027, followed by another $20 million to $30 million over the subsequent two years.
Core Financial Data
| Metric | Fiscal Q2 2027 | Year-over-year change / context |
|---|---|---|
| Revenue | $530 million | Down 3% |
| Total comparable sales | — | Down 1% |
| Store comparable sales | — | Up 1% |
| E-commerce comparable sales | — | Down 6% |
| Adjusted gross margin | 47.2% | Up 140 basis points |
| Adjusted operating expenses | — | Down approximately $6 million |
| Adjusted SG&A as a percentage of sales | 48.8% | Deleveraged 40 basis points |
| Adjusted operating loss | $8 million | Improved from a $14 million loss |
| Adjusted diluted loss per share | $0.83 | Improved from $1.14 |
| Quarter-end inventory | — | Up 8% |
| Capital expenditures | $17 million | Focused mainly on Journeys 4.0 and growth initiatives |
| Quarter-end store count | 1,186 | Three openings and 25 closures during the quarter |
Business and Operating Performance
Journeys
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