Genesco Inc. reported its financial results for the second quarter and first six months of Fiscal 2025, ending August 3, 2024. The company achieved net sales of $525.2 million for the three months, a slight increase of 0.4% from $523.0 million in the same period of the previous fiscal year. However, net sales for the first six months decreased by 2.3% to $982.8 million from $1.006 billion in the prior year.

The increase in quarterly sales was attributed to a shift in back-to-school sales, contributing approximately $20 million to $25 million, alongside an 8% rise in e-commerce comparable sales. The Journeys Group saw a 4% increase in sales, while the Schuh Group's sales rose by 1%. Conversely, the Johnston & Murphy Group and Genesco Brands Group experienced declines of 9% and 13%, respectively.

Despite the increase in sales, Genesco reported a net loss of $10.0 million for the second quarter, significantly improved from a net loss of $31.7 million in the same quarter of Fiscal 2024. For the first six months, the net loss was $34.3 million, compared to $50.6 million in the prior year. The basic loss per share for the second quarter was $0.91, down from $2.79 a year earlier.

Operating losses also improved, with a loss of $10.3 million for the second quarter, compared to a loss of $38.6 million in the same period last year. The operating margin for the first six months was a loss of 4.3%, an improvement from a loss of 6.1% in the previous year.

Selling and administrative expenses decreased by 1.7% to $255.1 million in the second quarter, reflecting cost-saving initiatives and a reduction in occupancy costs. The gross margin for the second quarter was $245.6 million, down from $249.5 million, resulting in a decrease in gross margin percentage from 47.7% to 46.8%.

Genesco's total inventories increased to $450.2 million as of August 3, 2024, up from $378.9 million in February 2024. The company reported long-term debt of $75.1 million in U.S. revolver borrowings and $2.7 million related to GCO Canada ULC.

In terms of strategic developments, Genesco repurchased 381,711 shares at a cost of $9.3 million during the second quarter, with $42.8 million remaining under its share repurchase authorization. The company continues to evaluate store closures, having closed 29 stores in the first half of Fiscal 2025, with plans for up to 50 closures for the year.