Genesco Inc. Reports Strong Q2 Sales Growth

Genesco ( (GCO) ) has released its Q2 earnings. Here is a breakdown of the information Genesco presented to its investors.

Genesco Inc. is a Nashville-based footwear company known for its diverse retail and lifestyle brands, including Journeys, Schuh, and Johnston & Murphy, with a strong presence in the U.S., Canada, and the U.K. In its fiscal 2026 second quarter report, Genesco Inc. announced a 4% increase in net sales, reaching $546 million, and a notable 9% rise in Journeys’ comparable sales, marking the fourth consecutive quarter of positive growth. Despite a GAAP EPS loss of $1.79, the company raised its full-year sales outlook, driven by strong performance in key segments.

The company’s financial performance was highlighted by a 4% increase in comparable sales, with store sales up 5% and e-commerce sales up 1%. However, the gross margin decreased by 100 basis points to 45.8%, primarily due to increased promotional activities and tariff impacts. Genesco’s operating loss widened to $14.4 million, compared to $10.3 million in the previous year, while cash reserves slightly decreased to $41 million.

Genesco’s strategic focus on product elevation and enhanced customer experience has resonated well, particularly with its teen customer base. The company also reported an increase in inventory levels by 11% and a reduction in total store count by 5% year-over-year. Despite challenges, such as higher tariffs and a competitive U.K. market, Genesco remains optimistic about its ability to navigate the current economic environment.

Looking ahead, Genesco has raised its full-year revenue outlook, expecting total sales to increase by 3% to 4% compared to the previous fiscal year. The company remains confident in its strategic initiatives and market positioning, aiming to build on its current momentum as it approaches the holiday season.