Genesco reported second-quarter revenue down 3% to $530 million on September 3 while nearly halving its adjusted operating loss and raising full-year earnings guidance to the top end of its range. Adjusted gross margin expanded 140 basis points to 47.2%, the adjusted operating loss narrowed to $8 million from $14 million a year earlier, and the company collected $22.5 million in tariff refunds while cutting total debt to $15.8 million from $71 million. Journeys posted its eighth consecutive quarter of positive comparable sales, up 2%, with the Journeys 4.0 store format generating a sales lift of 25% or more and expected to reach roughly 180 locations, about a fifth of the fleet, by year-end, while Johnston & Murphy comparable sales rose 4% in a third straight positive quarter. The drag came almost entirely from the UK chain Schuh, where comparable sales fell 9% as management deliberately pulled back on discounting, prompting full-year total sales guidance of down about 2% versus the prior forecast of down 1% to flat. Third-quarter sales are projected to fall 4% to 4.5%, hurt by a $14 million hit from exiting older licensed brands ahead of the Wrangler footwear launch, and the company ended the quarter with 1,186 stores, down 5%, and inventory up 8% to $539.7 million.
Genesco IncGenesco nearly halved its adjusted operating loss, expanded gross margin 140bp, cut debt to $15.8M, and raised full-year earnings guidance to the top end of its range.
Kontoor Brands Inc
