In This Article:
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Revenue: $746 million, up approximately 1%.
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Comparable Sales: Increased 10%, with Stores up 6% and Digital up 18%.
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Gross Margin: Improved by 60 basis points.
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Operating Profit: Increased 24%.
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Adjusted EPS: $3.26, compared to last year's $2.59.
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Journeys Comparable Sales: Up 14%.
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Schuh Comparable Sales: Up 2%.
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Johnston & Murphy Comparable Sales: Flat.
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Store Closures: 64 Journeys store closures.
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Free Cash Flow: Approximately $103 million in the fourth quarter.
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Inventory: Up 12% from last year.
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Capital Expenditures: $14 million in the fourth quarter.
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Total Stores: Ended with 1,278 total stores.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Genesco Inc (NYSE:GCO) delivered a strong finish to the year with revenue and gross margins exceeding expectations and operating profit at the high end of forecasts.
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Journeys' performance significantly outpaced the overall market, with comparable sales increasing by double digits for the second consecutive quarter.
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Digital business grew by double digits, expanding digital penetration to 25% and effectively doubling the size of this channel over the last five years.
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The company achieved its target run rate of annualized cost savings, realigning its cost base over the past two years.
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Genesco Brands Group contributed significantly to performance, with efforts to simplify the license portfolio leading to more profit despite lower sales.
Negative Points
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The consumer environment remains choppy, with consumers being selective and shopping only when there's a reason.
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Schuh faced a challenging and highly promotional declining UK footwear market, resulting in flat top-line performance and a step back in profitability.
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Johnston & Murphy faced headwinds with a slowdown in demand for men's non-athletic premium footwear, impacting sales and operating profit.
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The company is navigating a fluid external environment with uncertainties around the economy, tariffs, and other factors.
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Gross margin is expected to be down 20 to 30 basis points in fiscal '26, driven by product and channel mix shifts and the impact of exiting certain licenses.
Q & A Highlights
Q: Can you elaborate on the start of the first quarter and the impact of February's weather on sales? A: Mimi Vaughn, CEO, explained that February was challenging due to unexpected snow and cold weather in the South, affecting sales. However, strong consumer turnout during Valentine's Day and tax refund periods helped balance the month. Overall, the start of the year was positive, with consumers shopping when motivated by events.