Genesco closes 25 stores as footwear retailer seeks to boost profits
Fox Business • • business
Key Points:
- Genesco Inc. closed 25 underperforming stores in Q2 fiscal 2027, reducing its total store count by 5% to 1,186 as part of a strategy to cut overhead and improve profitability.
- The store closures were mainly from Journeys (17), Schuh (6), and Johnston & Murphy (2), while three new stores opened during the quarter.
- Despite a 3% drop in net sales to $530 million, the company improved adjusted gross margins by 140 basis points to 47.2% through reduced discounting and licensing changes.
- Journeys and Johnston & Murphy saw comparable sales growth of 2% and 4%, respectively, with Journeys marking its eighth consecutive quarter of growth.
- Genesco significantly reduced its total debt from $71 million to $15.8 million and is pursuing operational efficiencies through remodeling, automation, and AI to save $40-$50 million by fiscal 2029.
