Genesco’s net sales down 20% in fiscal second quarter

Worldwide
Published:  09 September, 2020

The U.S. headquartered retailer of branded footwear and accessories has reported net sales down 20%, year-on-year, to US$391 million, with stores open about 70% of days.

Genesco said the sales decrease for the three months ended August 30, 2020, was driven by store closures, a later start to back-to-school, lower store comps and lower wholesale sales, partially offset by digital comp growth of 144%. As a result of the store closures and gradual reopening of stores in response to Covid-19, the company said it has not included second quarter Fiscal 2021 comparable sales, except for comparable direct sales, as it believes that overall sales are a more meaningful metric during this period.

Second quarter gross margin was 42.7%, down 590 basis points, compared with 48.6% in the same quarter of the previous year. GAAP operating loss for the second quarter was US$22 million, or 5.6% of sales compared with operating income of US$3 million, or 0.6% of sales in the second quarter of the previous fiscal year. The GAAP loss from continuing operations in the quarter amounted to US$18.9 million, compared with earnings from continuing operations of US$0.8 million in the second quarter of the previous fiscal year.

Genesco sells footwear and accessories in more than 1,475 retail stores through the U.S., Canada, UK and the Republic of Ireland, principally under the names Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, Johnston & Murphy.