Genesco cuts FY24 adjusted EPS to 65c-85c from $1.50-$2.00, consensus $1.73

Genesco announced that comparable sales, including both stores and direct sales, decreased by 4% for the quarter-to-date period ended December 30, 2023. Same store sales decreased 6% and sales for the company’s e-commerce businesses increased 3% on a comparable basis for that period. Mimi Vaughn, Genesco board chair, president and CEO, said, “Following a positive start to the holiday season, sales decelerated in the weeks approaching Christmas, as consumer shopping trends remained choppy and peak shopping days were not enough to offset the lulls in between. This was most pronounced at Journeys, where store results were pressured despite our more promotional stance. While consumer appetite for key items remained strong, there was less interest in boots, which are a meaningful part of our winter assortment. Positively, momentum remained strong at Johnston & Murphy, helping to counter the lower-than-expected results at Journeys, and our online businesses continued to post solid gains. With fourth quarter sales trending below our expectations, we now expect total year adjusted EPS to be in the range of $0.65 to $0.85 compared with our prior view for a range of $1.50-$2.00. We expect that we will be near the midpoint of this range. Looking forward, we are on course to enter fiscal 2025 with clean inventories and we will continue our efforts to better align our merchandise assortments with current consumer demand, while also reshaping our cost base. These actions, combined with our other strategic initiatives to elevate and evolve the Journeys business, are aimed at driving improved long-term value.”