By Connor Hart

Genesco raised its full-year sales outlook as it narrowed its first-quarter loss and logged higher sales, signs that the company's plan to accelerate growth and increase market share is bearing fruit.

The retailer behind brands including Johnston & Murphy and Journeys now expects total sales to grow 1% to 2% in its fiscal 2026, compared with a prior expectation of flat to up 1%, it said on Wednesday. The change reflects favorable foreign-exchange rates, Genesco said.

The Nashville, Tenn., company additionally narrowed its same-store sales outlook to up 2% to 3%, compared with a prior range of up 2% to 4%. It backed its adjusted per-share earnings outlook of $1.30 to $1.70.

Analysts polled by FactSet expect adjusted earnings of $1.47 on sales of $2.34 billion, the latter of which would represent a 0.5% increase from last year.

Genesco's outlook incorporates current tariffs, the company said.

Chief Executive Mimi Vaughn said uncertainty surrounding tariffs has made the choppy consumer environment more pronounced. However, she added that the company's "diversified sourcing and mitigation actions position us well to manage the current tariff impact."

The company is also benefiting from its strategic plan to accelerate growth and increase market share, Vaughn said. This plan continues to gain traction, she said, citing the company's third consecutive quarter of positive comparable sales increases.

Same-store sales, which account for store openings and closings, grew 5% across the company, led by Journeys, where the figure grew 8%.

In the recent quarter, Genesco posted a net loss of $21.2 million, or $2.02 a share, compared with a loss of $24.3 million, or $2.23 a share, a year earlier.

On an adjusted basis, the company notched a loss of $2.05 a share. Analysts expected an adjusted loss of $2.09 a share.

Revenue increased 3.6% to $474 million. Analysts modeled sales of $463.2 million.

Shares were rising 0.5%, to $22.46, in pre-market trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

June 04, 2025 07:34 ET (11:34 GMT)

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