Genesco's fourth-quarter performance exceeded expectations, with the stock soaring 9%

LootboxPhobia · 2026-03-06T17:14:03+00:00

Genesco Inc. exceeded expectations in the fourth quarter, with earnings per share of $3.74 and revenue of $800 million, a 7% year-over-year increase. Comparable sales grew by 9%, with Journeys increasing by 12%. For fiscal year 2027, the forecasted earnings per share are between $1.90 and $2.30, with sales expected to remain roughly flat. The CEO stated that positive comparable sales were achieved throughout the year.

LootboxPhobia

2026-03-06 17:14:03

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Nashville, Tennessee - Genesco Inc. (NYSE:GCO) reported fourth-quarter results on Friday that exceeded Wall Street expectations, marking the company’s strongest quarterly comparable sales performance of the year.

Following the earnings release, the company’s stock surged 9.24% in pre-market trading.

For the quarter ending January 31, 2026, the company reported adjusted earnings per share of $3.74, beating analyst consensus estimates of $3.47 by $0.27. Revenue reached $800 million, up 7% year-over-year, surpassing the $777.75 million forecast.

This strong performance marked the sixth consecutive quarter of positive comparable sales, with overall comparable sales increasing 9%. Journeys’ comparable sales rose 12%, building on last year’s double-digit growth.

For fiscal 2027, Genesco issued an EPS guidance of $1.90 to $2.30, with a midpoint of $2.10, exceeding the analyst consensus of $1.93. The company expects total sales to decline or remain flat compared to fiscal 2026, with comparable sales projected to grow 1% to 2%.

Gross margin is expected to expand by 50 to 60 basis points, while selling and administrative expenses are forecasted to deleverage by 10 to 30 basis points.

CEO Mimi Vaughn stated, “We achieved positive comparable sales in every quarter of the year.”

For the full fiscal year 2026, the company reported overall comparable sales growth of 6%, with Journeys’ comparable sales increasing 9%.

In Q4, store comparable sales grew 9%, e-commerce comparable sales increased 8%, and digital channels accounted for 31% of retail sales. Selling and administrative expenses were leveraged by 140 basis points in this quarter, decreasing to 39.1% of sales.

Journeys’ operating income expanded by 240 basis points during this period.

For fiscal 2026, adjusted EPS grew 54% to $1.45, with revenue reaching $2.4 billion, up 5% year-over-year. The company’s year-end inventory increased by only 2%, and total liquidity was approximately $437 million.

Looking ahead to fiscal 2027, Genesco expects to close about 52 stores and anticipates that sales of Genesco Brands Group will decrease by approximately $30 million due to license exits.

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