Genesco Inc. Reports Flat Net Sales of $2.3 Billion for Fiscal Year Ending February 2025

Genesco Inc. reported flat net sales of $2.3 billion for the fiscal year ending February 1, 2025, compared to $2.32 billion in the previous fiscal year, which included an extra week of sales. Excluding the impact of the 53rd week in Fiscal 2024, net sales increased by 1.1%. The company experienced a 3% increase in total comparable sales, driven by a 12% rise in e-commerce sales, while same-store sales remained flat. The Journeys Group, which accounted for 60% of total sales, saw a 3% increase, but this was offset by a 6% decline in sales from the Johnston & Murphy Group and an 11% decrease in the Genesco Brands Group.

The company's gross margin slightly decreased to 47.2% from 47.3% in the prior year, while selling and administrative expenses also decreased as a percentage of net sales, from 46.5% to 46.4%. Operating margin improved to 0.6%, up from a loss of 0.6% in the previous year, primarily due to a non-cash goodwill impairment charge of $28.5 million recorded in Fiscal 2024. The effective income tax rate surged to 309.6% in Fiscal 2025, largely due to a $26.2 million valuation allowance, resulting in a diluted loss per share of $1.80, an improvement from a loss of $2.10 per share in the prior year.

Operationally, Genesco closed a net of 63 stores during the fiscal year, ending with 1,278 retail locations across the U.S., Canada, and the U.K. The company plans to open approximately 22 new stores while closing around 68 in Fiscal 2026. The workforce comprised approximately 18,000 employees, with a significant portion in retail positions. The company continues to focus on enhancing its digital capabilities and optimizing its store footprint to adapt to changing consumer behaviors.

Looking ahead, Genesco anticipates ongoing challenges due to inflationary pressures and economic uncertainty affecting consumer discretionary spending. The company aims to leverage its direct-to-consumer capabilities and enhance its product offerings to meet evolving customer preferences. Management remains cautious about the retail environment, particularly regarding potential impacts from geopolitical events and supply chain disruptions. The company expects to continue its strategic initiatives to drive growth and improve profitability in the coming fiscal year.