Genesco Adopts Cautious Outlook for Fiscal Year 2024 After Weak Holiday Season

Genesco delivered Q4 results in line with its conservative outlook.

The footwear firm behind Journeys, Johnston & Murphy and Schuh reported Q4 net sales of $725 million, flat over last year, due to foreign exchange headwinds in its European Schuh business and decreased wholesale sales. GAAP earnings per share from continuing operations was $3.23. By brand, sales were down 2% at Journeys, up 17% at Johnston & Murphy and up 7% at Schuh. Total comparable sales increased 5% in Q4.

Genesco CEO Mimi Vaughn said in a statement that the company’s results were impacted by “new headwinds” from a rapidly shifting consumer demand environment. At the same time, the company also lapped a strong prior year with more discretionary spending and less inventory.

“For fiscal 2024, we have a number of initiatives planned to drive growth as well as more immediate actions to reshape our cost structure to better align with consumer behavior,” Vaughn said. “Given the macroeconomic uncertainty, we believe it is prudent to adopt a cautious view for the current year.”

The Nashville, Tenn.-based company’s full year results were largely in line with its previously trimmed guideline from December, when the company warned of a tough holiday season impacted by inflation and declining demand. Net sales were $2.4 billion, down 2% compared to last year and up 9% over fiscal year 2020. GAAP EPS from continuing operations was $5.69 versus $7.92 last year. 

Genesco expects adjusted earnings per share to be between $5.10 and $5.90 for fiscal 2024, with most of the progress coming in the second half of the year. Sales are expected to be between flat and up to 2% or down 1% to up 1% when  excluding the 53rd week this year.

“With some additional pressure expected on sales this year, especially in the first half, we are balancing our focus on investing for the future and driving down costs as we expect some of the recent cost pressures to persist in the near-term,” Genesco CFO Thomas A. George said in a statement. “We believe we are taking the necessary steps to best serve our customers and our shareholders in this turbulent market.”