Genesco Inc (GCO) Q2 2026 Earnings Report

Genesco delivered a mid-single-digit top-line result in Q2 FY2026 (QQ2 2026) with total revenue of $546 million, up 4% year over year, driven by another solid comp performance at Journeys (+9% to +10% trailing 12 months) and modest growth at Johnston & Murphy, offset by continued pressure at Schuh in the U.K. The quarter showcased a meaningful strategic inflection: Journeys’ 4.0 remodels and product elevation program are driving higher transaction values and stronger store conversions, with Journeys’ comp momentum sustaining into Q3. Genesco also advanced its brand portfolio through licensing changes and the Wrangler footwear collaboration, signaling a longer-term shift toward higher-margin, premium product and a broader teen audience. However, profitability remained under pressure from tariff headwinds and promotional dynamics in Schuh’s U.K. market, contributing to a GAAP operating loss of $11.5 million and a net loss of $18.5 million for the quarter, alongside a negative GAAP EPS of $1.79 and an adjusted loss per share of $1.14. The company reaffirmed full-year guidance (adjusted EPS $1.30–$1.70; revenue +3–4%; comp sales +4–5%), highlighting improving top-line trends and SG&A leverage, offset by gross-margin deleverage and tariff-related cost pressures. Free cash flow was robust at $72 million, supported by a U.S. tax refund, and Genesco maintained a disciplined capex plan focused on remodels, new stores, and digital initiatives. The quarter also featured a sizable store base (1,253 stores) with 57 Journeys 4.0 locations, underscoring the scale of the Journeys transformation as a structural growth lever.”,