Footwear retailer Genesco Inc. (NYSE:GCO) delivered stronger-than-expected first quarter results on Wednesday and reaffirmed its earnings outlook for the full fiscal year, prompting a modest premarket share gain of 0.89%.
For the quarter ended May 3, Genesco reported an adjusted net loss of $2.05 per share – slightly narrower than the $2.10 per-share loss recorded a year earlier. Total revenue climbed 4% year-over-year to $474 million, supported by a solid uptick in store traffic and e-commerce.
Comparable sales rose 5% overall, with the Journeys brand leading the way with an 8% increase. Online sales also saw healthy growth, rising 7% and accounting for 23% of total retail revenue.
“We’re off to a strong start in fiscal 2026, exceeding our internal expectations on both the top and bottom lines,” said CEO Mimi Vaughn. She noted this marked the third straight quarter of positive comp sales growth, signaling continued consumer engagement with Genesco’s core brands.
The company held firm on its adjusted full-year earnings guidance, expecting EPS in the range of $1.30 to $1.70. It now anticipates total annual sales growth between 1% and 2%, a slight upgrade from its prior projection of flat to 1% growth, even as it factors in the effects of current tariff measures.
While gross margin declined by 90 basis points to 46.7%, largely due to shifts in brand mix and promotional strategies, Genesco benefited from improved cost controls. Selling and administrative expenses were down 170 basis points as a percentage of sales.
“Despite an increasingly volatile consumer backdrop and added pressure from tariffs, our diversified sourcing strategy and proactive mitigation efforts position us well to navigate the headwinds,” Vaughn added.
During the quarter, Genesco repurchased 604,531 shares worth $12.6 million. The company ended the period operating 1,256 stores – down 5% from the 1,321 it operated a year earlier.