Genesco Inc. Q3 FY2026 earnings call

• Journeys delivered 6% comp growth and over 50% operating income increase in back-to-school quarter. - Launched Life on Loud brand campaign for Journeys with over 70 million social views. - Formed Journeys Global Retail Group uniting Journeys, Schuh, and Little Burgundy. - Johnston and Murphy introduced Peyton Manning as brand ambassador with double-digit traffic increase. - Invested in Journeys 4.0 store remodels with over 76 stores and expecting over 80 by year-end. - Focused on product elevation, brand investment, and customer experience improvement across segments.

Total comparable sales increased 3% with store comps up 5% and e-commerce comp modestly down. Journeys achieved 6% comp growth and over 50% increase in operating income. Schuh faced UK market challenges with higher promotional activity and comps down. Johnston and Murphy had overall sales growth but comps down due to e-commerce trends and gross margins pressured by channel mix and tariffs. Genesco Brands Group was impacted by license exits, tariffs, and gross margin pressure. Journeys contributed 6% comp growth and over 50% operating income increase, Schuh's revenue contribution was affected by UK market, Johnston and Murphy's revenue contribution had e-commerce and channel mix impacts, and Genesco Brands Group's revenue contribution was hit by license exits and tariffs.

• Lowered full-year adjusted EPS guidance to approximately $0.95 due to Schuh's challenging UK market, conservative sales assumptions, and margin pressure. - Projected total revenue growth of about 2%, comparable sales growth of about 3%, mid-single-digit comp growth at Journeys. - Gross margin expected to be down approximately 100 basis points year over year. - Capital expenditures of $55 million to $65 million for growth initiatives. - Expected positive free cash flow for the full year.

• Challenging UK market for Schuh with heightened promotional activity and traffic declines. - Tariff pressures affecting branded business. - Impact of license exits in Genesco Brands Group leading to gross margin pressure. - Consumer pullback in non-peak shopping times affecting sales.

Q: About Journeys' fourth quarter outlook and comps.

A: Journeys was positive in November comps, saw strengthening into holiday with record Black Friday, expecting positive holiday with strong assortment.

Q: Color on Canvas and Athletic demand trends.

A: Consumer moving toward athletic footwear year-round, Canvas not as strongly in demand, more innovation on athletic lifestyle side.

Q: Margin improvement opportunities.

A: Exit of Levi's license is one-time, managing tariffs over time, rightsizing inventory and strengthening assortment in Schuh.

Q: Marketing and ad spend.

A: Shifting spend to brand marketing and top-of-funnel activities like Life on Loud campaign and Peyton Manning partnership to build awareness.