Genesco Inc. (NYSE:GCO), on Wednesday, reported mixed first-quarter 2026 results and reaffirmed fiscal 2026 EPS guidance.

The company reported an adjusted loss per share of $2.05, missing the street view of $2.00 loss. Quarterly sales of $473.973 million (increased 4% year over year) were above the analyst consensus estimate of $465.30 million.

Net sales were driven by a 5% increase at Journeys, 4% at Schuh, and 7% at Genesco Brands, partly offset by a 3% decline at Johnston & Murphy.

Also Read: Alibaba, JD See Sales Soar In 618 Festival, Apple And Xiaomi Emerge As Top Selling Brands

Comparable sales rose 5%, with stores up 5% and e-commerce up 7%. On a constant currency basis, Schuh sales rose 1%.

The first quarter’s gross margin fell to 46.7% from 47.6% a year ago, mainly due to brand mix shifts at Journeys and Schuh, promotions at Schuh, and lower margins from product liquidations at Genesco Brands.

Genesco reported a GAAP operating loss of $28.1 million, or 5.9% of sales, down from $32.1 million, or 7%, a year ago. On an adjusted basis, the loss narrowed to $27.9 million from $30.0 million, with the operating margin improving to a loss of 5.9% of sales from a loss of 6.5% in the first quarter last year.

As of May 3, 2025, Genesco held $21.7 million in cash, up from $19.2 million a year earlier. Total debt rose to $121 million from $59.4 million, mainly due to a 15% inventory increase to support higher demand at Journeys.

Genesco repurchased 604,531 shares for $12.6 million, or $20.79 per share, during the quarter. Under its expanded buyback program, announced in June 2023, it has $29.8 million remaining.

In the first quarter, capital expenditures totaled $19 million, mainly for retail stores and other projects. The company opened four new stores and closed 26, ending the quarter with 1,256 stores. This represents a 5% decrease from 1,321 stores at the end of the first quarter last year. Overall square footage also decreased by 3% year-over-year.

Mimi E. Vaughn, Genesco’s Board Chair, president, and CEO, said, “While an already choppy consumer environment has become more pronounced recently from the increased uncertainty due to tariffs, our diversified sourcing and mitigation actions position us well to manage the current tariff impact. In addition, our strong strategic positioning and track record of evolving our businesses in the face of market disruptions are giving us confidence in successfully navigating the current environment.”

“Today, we are reiterating our full-year adjusted EPS guidance of $1.30 to $1.70, incorporating the impact of current tariffs. Although there is ongoing external market uncertainty, we know our businesses are strong, and we are making investments in product, stores, and marketing across all brands to drive growth,” commented Sandra Harris, Genesco’s Senior VP of Finance and CFO.

For fiscal 2026, Genesco reaffirmed its expectation of adjusted diluted EPS between $1.30 and $1.70 versus the consensus estimate of $1.47, factoring in current tariffs.

Total sales are now projected to rise 1%–2%, up from prior guidance of flat to 1%, due to favorable foreign exchange. Comparable sales range outlook narrowed to up 2% to 3% versus the prior range of up 2% to 4%, with no additional share buybacks assumed and a 29% tax rate.

Price Action: GCO shares are trading higher by 1.39% to $22.66 at last check Wednesday.

Read Next:

• Dollar Tree Q1 Same-Store Sales Jump 5.4%, Warns Of Near-Term Profit Drop On Tariff Pressure, Transition Costs

Photo by JHVEPhoto via Shutterstock