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Genesco lifts FY27 profit target as margin recapture offsets sales decline

9/7/2026

47.2% is the adjusted gross margin Genesco posted for the three months ended 1 August 2026, up 140 basis points from 45.8% a year prior.

That expansion is the mechanical driver behind the Nashville-based footwear retailer's decision to guide full-year operating income to the upper end of its prior $34m to $40m range.

Net sales for the quarter came in at $530m, a 3% YoY decline. Three strategic actions drove most of the top-line retreat: store closures, a licensing transition, and a pullback on online discounting at UK brand Schuh.

Adverse currency effects added further drag. Genesco's store count ended the period at 1,186, down from 1,253 a year earlier, a 5% reduction in total retail space.

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