Genesco’s ‘Footwear-Focused Strategy Is Delivering Results’ as Q3 Sales Rise

Genesco, the footwear firm behind Journeys, Johnson & Murphy, and more brands saw a strong third quarter as a return to in-store shopping and its casual merchandise mix helped to deliver a robust performance. The Nashville-based company posted record results for the third quarter, with net sales up 25% from last year to $601 million. Net income was $32.9 million, or $2.25 per share. And revenue growth, better-than-expected gross margins and expense leverage resulted in an operating income increase of almost 70% over pre-pandemic levels. Strong consumer demand for a variety of brands and styles drove continued momentum as Journeys achieved record third quarter revenue and operating profit — marking the fourth consecutive quarter of record profitability even while operating with inventory almost 30% below pre-pandemic levels. “The current fashion cycle, which I’ve been describing [as] shifting more into casual, plays into Journeys strength with a nicely diversified assortment,” Genesco CEO Mimi Vaughn noted on the company’s third quarter earnings call. “However, for this back-to-school, performance was strong in several categories across both casual and fashion athletic. Nine of the top 10 brands experienced year-over-year growth. In addition, the in-person back-to-school also drove a big pickup in non-footwear sales like backpacks, with non-footwear

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