US retailer Genesco reported net sales of $458 million in Q1FY25

US footwear and accessories retailer Genesco Inc reported net sales of $458 million in the first quarter of fiscal 2025 (Q1FY25). This represents a 5% decline from the $483 million reported in the first quarter of fiscal 2024. The sales decline was attributed to a decline in store sales, reduced wholesale sales and the impact of net store closures, although these were partially offset by a 3% increase in comparable sales in e-commerce and the favorable impact of currency exchange rates.

Based on sales results, the overall 5% decline was due to a 5% decline in Journeys, a 1% decline in Schuh, a 4% decline in Johnston & Murphy, and a significant decline of 25%, or $9. million, a decline in Genesco Brands. On a constant currency basis, Schuh sales fell 4 percent in the first quarter of this year, the company said in a news release.

Genesco reported Q1 FY25 net sales of $458 million, down 5 percent from Q1 FY24. The decline was due to lower store and wholesale sales and net store closures, partially offset by a 3 percent increase e-commerce sales. The company incurred a GAAP operating loss of $32.1 million and a GAAP loss from continuing operations of $24.3 million.

Despite the decline in sales, gross margin in the first quarter remained unchanged at 47.3% compared to the same period last year. However, adjusted gross margin for the first quarter saw an increase of 30 basis points as a percentage of sales compared to the prior year.

During the first quarter of the current fiscal year, the company faced increased selling and administrative expenses, which increased by 220 basis points as a percentage of sales compared to the last fiscal year.

Genesco reported a GAAP operating loss of $32.1 million, or 7% of sales, for the first quarter of fiscal 2025 compared to a GAAP operating loss of $23 million, or 4.8% of sales, in the first quarter quarter of the previous year.

GAAP loss from continuing operations was $24.3 million for the first quarter of fiscal 2025 (Q1FY25), compared to $18.9 million for the same period last year. Adjusted for excluded items, first-quarter loss from continuing operations was $22.9 million, or $2.10 per share, compared to $18.7 million, or $1.59 per share, in the first quarter of the last fiscal year.

“Despite ongoing challenges in the operating environment, we executed our strategic plan to deliver financial performance and revenues that exceeded our expectations, led by our Journeys division. “With Journeys’ new leadership, I am encouraged by the outlook we see so far as we work to dramatically accelerate improvements, enhance our product portfolio and enhance our consumer experiences,” he said Mimi E Vaughn, chairman of the board, president and CEO of Genesco.

Fiber2Fashion Information Desk (DP)