Genesco reports sales down 44%

Worldwide
Published:  24 June, 2020

The U.S. retailer and wholesaler of footwear, apparel and accessories, said net sales decreased 44% to US$279 million for the first quarter of the Group’s fiscal 2021.

According to Genesco, the sales decrease for the three months ended May 2, 2020, was driven by the closure of stores for the back half of the first quarter as a result of the Covid-19 global pandemic, lower wholesale sales and lower exchange rates, partially offset by digital comp growth of 64%. First quarter gross margin was 43% in the quarter, down 640 basis points compared with 49.4% in the previous fiscal year. The Group attributed the decrease as a percentage of sales primarily to higher shipping and warehouse expense in all divisions, driven by the increase in penetration of e-commerce and an increase in inventory reserves at Journeys, higher penetration of sale product at Schuh, and more markdowns at Johnston & Murphy.

Genesco's GAAP operating loss for the first quarter was US$156 million, or 55.9% of sales this year compared with operating income of US$9.1 million, or 1.8% of sales in the previous year. GAAP loss from continuing operations totalled US$134.6 million compared with earnings from continuing operations of US$6.5 million in the first quarter of fiscal 2020. GAAP loss from continuing operations per diluted share was US$9.54 compared with earnings from continuing operations per diluted share of US$0.36 in the first quarter of the previous fiscal year. 

The Group’s portfolio of brands across the U.S., Canada, the UK and the Republic of Ireland includes Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy and Johnston & Murphy.