Genesco first quarter net sales increased 93%

United States
Published:  10 June, 2021
Credit: Schuh

The U.S. headquartered retailer of branded footwear and accessories has reported its results for the first quarter of fiscal 2022, with net sales increasing 93% to US$539 million from US$279 million in the same period in fiscal 2021.

The net sales increase was driven by increased store sales resulting from store closures in the latter half of the first quarter in 2021 due to the pandemic, digital growth of 43% and increased wholesale sales.
Stores were open about 90% of possible days in the first quarter of fiscal 2022 as compared to 50% in the first quarter fiscal 2021. As a result of store closures in response to the Covid-19 pandemic, the company has not included first quarter comparable sales for this year or last year, except for comparable direct sales, as it feels that overall sales is a more meaningful metric for these periods. Comparable direct sales for the first quarter of fiscal 2022 were 43% as compared to 64% for the first quarter of fiscal 2021.

Overall sales were up 123% at Journeys, up 46% at Schuh, up 26% at Johnston & Murphy and up 84% at Licensed Brands. Overall sales were up 9% compared with the first quarter of fiscal 2020, with Journeys sales up 16% and Licensed Brands sales up 122%, partially off-set by an 11% decrease in Schuh sales and a 35% decrease in Johnston & Murphy sales.

Genesco's GAAP operating income for the first quarter was US$15.5 million compared with an operating loss of US$156 million and an operating income of US$9.1 million. Adjusted operating margin was 3.5% of sales in the first quarter of fiscal 2022, down 24.9% from fiscal 2021 and 1.7% in the first quarter of fiscal 2020.

Mimi E. Vaughn, Genesco Board Chair, President and CEO, said, "Our outperformance was driven by better than anticipated results at every division, led by record first quarter revenue and profitability at Journeys. The momentum from the first quarter has continued into May.”

Due to the continued uncertainty in the overall economy driven by Covid-19, the company is not providing an outlook for full year 2022 at this time.