Q1 2025 Genesco Inc Earnings Call Transcript
Key Points
- Genesco Inc (GCO) delivered first-quarter top and bottom-line results ahead of their most recent guidance.
- Sales at Journeys exceeded expectations, contributing positively to overall performance.
- Clean inventories and cost reduction efforts helped improve gross margins.
- Journeys' digital business posted double-digit growth, indicating strong online engagement.
- The company is making significant progress with its cost-saving initiatives, targeting a reduction in the annualized run rate of $45 million to $50 million by the end of fiscal year '25.
- The consumer environment remains choppy, with ongoing inflationary pressures affecting consumer behavior.
- Schuh and Johnston & Murphy faced pressure due to robust multiyear comparisons and a delayed start to the spring selling season.
- The company expects continued top-line pressure in Q2, with a low single-digit sales decline anticipated.
- SG&A expenses increased by 220 basis points compared to last year, driven by sales deleverage and increased variable expenses.
- Genesco Inc (GCO) is maintaining a cautious view on the wholesale business, anticipating potential challenges in reorder rates from wholesale accounts.
Good day, everyone, and welcome to the Genesco, first quarter. Fiscal 2025 conference call. Just a reminder, today's call is being recorded. I'll now turn the call over to Darryl MacQuarrie, Senior Director of FP&A. Please go ahead, sir.
Good morning, everyone, and thank you for joining us to discuss our first quarter. Fiscal '25 results are participants on the call expect to make forward-looking statements reflecting our expectations as of today, but actual results could be different.
Genesco refers you to this morning's earnings release and the company's SEC filings, including its most recent 10-K and 10-Q filings for some of the factors that could cause differences from the expectations reflected in the forward-looking statements made today.
Participants also expect to refer to certain adjusted financial measures during the call, all non-GAAP financial measures are reconciled to their GAAP counterparts in the attachments to this morning's press release and in schedules
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