Schuh sales fall as Genesco reports Q1 growth
US-based footwear retailing group Genesco reported first-quarter sales of $487 million, up 3% from $474 million a year earlier, with comparable sales increasing 2% for the seventh consecutive quarter of growth.
The group said sales at Journeys rose 5%, Johnston & Murphy increased 6% and Genesco Brands grew 4% during the quarter. However, sales at UK footwear retailer Schuh declined 5%, while comparable sales fell 9%.
Genesco said Schuh's performance reflected its decision to reduce promotional activity and focus on a more full-price selling model. The business was also affected by weaker store traffic and lower ecommerce demand.
The company narrowed its net loss to $14.8 million from $21.2 million in the same period last year and raised its full-year adjusted earnings per share guidance to between $2 and $2.40.
Genesco said it expects the Schuh turnaround to take longer than that of Journeys due to challenging UK consumer conditions and the retailer's efforts to reduce reliance on discounting. The group also announced a cost savings programme expected to deliver $40 million to $50 million by fiscal 2029.
