Thu, Jun 12, 1:44 PM (31 days ago)
**Genesco Inc. (GCO) Q1 2026 Financial Summary** Genesco Inc. (GCO) reported a mixed quarter with increased revenue but continued losses. Here are the key points: **Financial Performance:** - **Revenue:** Net sales increased by 3.6% to $474.0 million (474,000) compared to $457.6 million (457,600) in the prior year, driven by a 5% increase in comparable sales and increased wholesale sales. - **Profit Margins:** Gross margin increased by 2.3% to $221.2 million (221,200) but decreased as a percentage of net sales from 47.3% to 46.7%. - **Operating Loss:** The operating loss narrowed to $28.1 million (28,100) from $32.1 million (32,100) in the prior year, reflecting improved operating margins in some segments. - **Net Loss:** The net loss was $21.2 million (21,200), or $2.02 per share, compared to $24.3 million (24,300), or $2.23 per share, in the prior year. - **Cash Flow:** Net cash used in operating activities was $101.0 million (101,000), significantly higher than the $33.7 million (33,700) in the prior year, due to changes in working capital and other factors. **Segment Performance:** - **Journeys Group:** Sales increased by 5.1% with an 8% increase in comparable sales, driven by a strong product assortment. - **Schuh Group:** Sales increased by 3.9% with a 1% increase in comparable sales, benefiting from product elevation and improved brand access. - **Johnston & Murphy Group:** Sales decreased by 3.0% due to a 2% decrease in comparable sales, but saw growth in conversion rates and transaction size. - **Genesco Brands Group:** Sales increased by 7.5%, primarily due to increased sales of Levi's footwear. **Future Outlook and Uncertainties:** - Genesco faces several uncertainties, including tariffs, geopolitical events, and changes in consumer spending patterns. - The company is actively monitoring the impact of tariffs and taking actions to mitigate cost pressures. - Genesco expects to receive the remaining balance of a $60.0 million tax refund in the second quarter of 2026. - Capital expenditures for Fiscal 2026 are expected to be approximately $50-$65 million, with a focus on new stores, renovations, and other initiatives. **Share Repurchases:** - Genesco repurchased 604,531 shares of common stock during the first quarter of Fiscal 2026 at a cost of $12.6 million, with $29.8 million remaining under the share repurchase authorization. **Conclusion:** Genesco Inc. showed signs of improvement in revenue and operating margins but continues to face challenges in achieving profitability. The company is taking steps to mitigate risks and invest in growth initiatives, but uncertainties remain regarding the impact of external factors on its financial performance.