Q2 2025 Genesco Inc Earnings Call Transcript
Key Points
- Genesco Inc (GCO) delivered top and bottom line results ahead of expectations for the second quarter.
- Journeys' digital business saw high single-digit growth, contributing positively to overall performance.
- The company successfully optimized its store footprint and reduced costs, improving profitability.
- Journeys' product assortment resonated well, driving strong sequential sales improvement and positive comps in July and August.
- Genesco Inc (GCO) has a solid record of managing well through adverse economic and fashion cycles, evolving with customer preferences.
- Johnston & Murphy faced pressure due to robust multiyear comparisons and a softening men's premium non-athletic footwear market.
- Schuh experienced a tough summer season with higher cost of living impacting consumer purchases and increased promotional activity affecting gross margins.
- Overall adjusted gross margin was down 90 basis points compared to last year, with specific declines in Journeys and Schuh divisions.
- The consumer remains selective about purchases, impacting non-peak shopping periods and leading to cautious outlooks for Schuh and J&M.
- Genesco Inc (GCO) expects fiscal 2025 total sales to decrease 1% to 2%, with adjusted gross margin rates down 10 to 20 basis points for the year.
Good day, everyone, and welcome to the Genesco second-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 second quarter fiscal 2025 results. 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
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