Genesco Backs FY25 Earnings View, Lifts Sales Forecast After Narrower Q2 Loss, Above Market

(RTTNews) - Specialty retailer Genesco, Inc. (GCO), while announcing narrower net loss in its second quarter with slightly higher net sales, on Friday maintained fiscal 2025 earnings view, and lifted its forecast for annual sales.

Outlook

For fiscal 2025, the company continues to project adjusted earnings from continuing operations in the range of $0.60 to $1.00 per share.

Analysts on average expect the company to earn $0.80 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Total sales are now expected to decrease 1 percent to 2 percent from last year, or flat to down 1 percent excluding the 53rd week in Fiscal 2024. The previous expectations were for a total sales decrease of 2 percent to 3 percent, or down 1 percent to 2 percent excluding last year's 53rd week.

Further, the firm continues to evaluate up to 50 Journeys store closures in fiscal 2025. The Company's cost savings program remains on track to achieve a reduction in the annualized run rate of $45 to $50 million by the end of fiscal 2025.

Q2 Results

In its second quarter, Genesco's net loss narrowed from the same period last year and beat market estimates.

The company's bottom line totaled a loss of $9.99 million or $0.91 loss per share, compared to loss of $31.67 million or $2.79 loss per share, in last year's second quarter.

Adjusted loss was $9.13 million or $0.83 loss per share for the period. Analysts had expected the company to report loss of $1.11 per share.

The company's revenue for the quarter rose 0.4 percent to $525.19 million from $523.03 million last year.

Comparable sales decreased 2%.

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