Genesco noted that this fall was driven by decreased store sales in Journeys Group, decreased wholesale sales and foreign exchange pressure, partially offset by a 5% increase in e-commerce sales and strong store performance at Schuh and Johnston & Murphy.

Sales were down by 13% at Journeys and 25% at Genesco Brands, partially offset by an increase of 6% at Schuh and an increase of 16% at Johnston & Murphy.

The first quarter gross margin was 47.3%, which the company attributed to a more normalised promotional environment and increased markdowns at Journeys, which offset improved margins in the remaining businesses.

Genesco reported a GAAP operating loss for the first quarter of US$23 million or 4.8% of sales, against an operating income of US$8.2 million, or 1.6% of sales, in the first quarter of the 2023 financial year.

Looking forward the company expects to close more than 100 Journeys stores in fiscal 2024, previously expecting to just close 60. Sales are expected to be down by 4-5% in the full financial year.

Mimi E Vaughn, Genesco’s Board Chair, President and CEO, said; “Following a positive end to the holiday season, the first quarter proved considerably more challenging than we anticipated. Consumer demand at Journeys dropped off significantly early in the quarter and did not improve as we changed seasons in the latter part of March and into April, offsetting another quarter of record sales at Schuh and Johnston & Murphy.

“In response, we are taking swift actions to mitigate the consumer shift in the marketplace, including closing more underperforming Journeys stores, reducing our cost base further, and working to quickly refine our product assortment. However, given the ongoing uncertainty around near-term consumer behaviour, we are taking a much more conservative view and revising our outlook for the remainder of Fiscal 2024.”