Net sales for Genesco up 25% in Q3

United States
Published:  07 December, 2021
Credit: Schuh

The U.S. headquartered retailer of branded footwear and accessories has reported its third quarter 2022 financial results, with net sales increasing year-on-year to US$601 million, 12% up from the same period two years ago.

The sales increase from fiscal 2020, reflecting strong back-to-school sales, was driven by a 79% increase in e-commerce sales, increased wholesale sales, like-for-like store sales slightly above 2020 levels, and the positive impact of changes in foreign exchange rates, the company reports.

Overall sales for the third quarter this year compared to the third quarter of fiscal 2021 were up 20% at Journeys, 33% at Schuh, 69% at Johnston & Murphy and 6% at Licensed Brands. Overall sales compared to the third quarter of fiscal 2020 were up 7% at Journeys, 29% at Schuh and 103% at Licensed Brands, partially offset by an 8% decrease in Johnston & Murphy sales.

Third quarter gross margin was 49.2%, compared with 47.1% last year and flat compared with the third quarter of fiscal 2020 at 49.2%. Although the increased e-commerce and wholesale mix, as well as freight and logistics cost increases put pressure on the fiscal 2020 gross margin comparison, the company says, this was mitigated by fewer markdowns at Journeys and Johnston & Murphy.

Fiscal 2022 outlook

For the full 2022 financial year, Genesco has forecast sales growth of 9-11% compared with 2020, with adjusted diluted earnings per share from continuing operations in the range of US$6.40 to US$6.90, which represents growth of approximately 45% at the mid-point compared to fiscal 2020, with an expectation that earnings per share for the year will be near the mid-point of the range.