Genesco Benefited From Athletic to Casual Shift in Q1

Genesco shares are up after the company posted stronger than expected earnings for the first quarter. The footwear firm behind Journeys, Johnston & Murphy and Schuh brands saw first quarter net sales of $521 million, down 3% from last year but up 5% over 2020. GAAP earnings per share from continuing operations were $0.37. Shares of Genesco were up almost 10% as of Thursday afternoon. In a call with investors, Genesco CEO Mimi Vaughn attributed the company’s quarterly results to a “footwear-focused strategy,” strong connections with consumers, and an “ability to successfully evolve with the ever-changing fashion desires of our consumers.” Specifically, Vaughn highlighted an overarching shift from athletic to casual styles, which has been a theme across Genesco’s geographies and brands. “Casual continued its climb as a larger percentage of the business in Q1, showcasing the current diversity of team fashion trends with particular strength in some of the newer brands in the Journeys assortment,” Vaughn said. According to Vaughn, brands in the “casual” category have better profit margins than some top athletic brands, which makes this trend favorable from a business perspective. Within Journeys, a focus on casual also differentiates the chain from its competitors in the athletic space. Even the Johnson & Murphy brand, which

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