Executive Summary
Genesco delivered a disciplined QQ4 2025 performance characterized by a solid revenue base, expanding gross margins, and a strong contribution from Journeys which continued to outpace the market. The quarter featured revenue of $745.95 million, up about 1% year over year, with comparable sales up 10% and Journeys comps up 14%, underscoring the continued effectiveness of the Journeys growth plan and digital acceleration. Gross margins expanded by approximately 60 basis points, supported by stronger full-price sell-through and better cost management across Journeys and the branded GBG portfolio, though Schuh faced margin pressure from the UK promotional environment. Adjusted EPS for the quarter was $3.26, up from $2.59 a year earlier, and GAAP net income was $34.38 million. Importantly, Genesco highlighted the impact of the 53rd week in the prior year and a shift of a high-volume week out of QQ4 this year, which muted total revenue growth but did not deter positive momentum in earnings.
Key Performance Indicators
QoQ: 351.68% | YoY:246.17%
QoQ: 281.60% | YoY:241.21%
QoQ: 273.86% | YoY:237.22%
Key Insights
Key QQ4 2025 metrics (GAAP and management-adjusted where noted): Revenue $745.95M (+~1% YoY; 53rd week impact noted) ; Gross margin 46.87% (+60 bps YoY); Operating income $46.12M (+~24% YoY); EBIT/EBITDA $60.83M (EBITDA margin ~8.15%); Net income $34.38M; GAAP EPS $3.06; Diluted EPS $3.13; Adjusted EPS $3.26 vs $2.59 prior year; Comps +10% (Journeys +14%, Schuh +2%, J&M flat); Journeys store count ended at 1,278 stores; Net store closures: 63 fewer stores YoY; 16 Journeys 4.0 remodels opened...
Financial Highlights
Key QQ4 2025 metrics (GAAP and management-adjusted where noted): Revenue $745.95M (+~1% YoY; 53rd week impact noted) ; Gross margin 46.87% (+60 bps YoY); Operating income $46.12M (+~24% YoY); EBIT/EBITDA $60.83M (EBITDA margin ~8.15%); Net income $34.38M; GAAP EPS $3.06; Diluted EPS $3.13; Adjusted EPS $3.26 vs $2.59 prior year; Comps +10% (Journeys +14%, Schuh +2%, J&M flat); Journeys store count ended at 1,278 stores; Net store closures: 63 fewer stores YoY; 16 Journeys 4.0 remodels opened since Oct; 64 closures during the year; Digital penetration 25% (Journeys); Loyalty program members >10 million; Free cash flow for Q4 $103.26M; Operating cash flow for QQ4 $116.99M; Ended QQ4 with cash at $34.01M; Total debt $485.09M; Net debt $451.08M; Inventory up 12% YoY; Positive cadence in full-year guidance albeit with FX and tariff headwinds.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
745.95M |
63.01% |
25.09% |
| Gross Profit |
349.64M |
61.66% |
22.57% |
| Operating Income |
46.12M |
246.17% |
351.68% |
| Net Income |
34.38M |
241.21% |
281.60% |
| EPS |
3.06 |
237.22% |
273.86% |
Key Financial Ratios
operatingProfitMargin
6.18%
operatingCashFlowPerShare
$10.9
freeCashFlowPerShare
$9.62
Management Commentary
Key insights from Genesco management commentary during the QQ4 2025 earnings call:
- Strategy and execution: Mimi Vaughn emphasized Journeys as the primary driver of annual performance, noting Journeys comps accelerated to double digits in Q3 and Q4 and that Journeys “outpaced the overall market.” She described Journeys as entering the next phase of growth with broader market reach (targeting a larger teen/young adult segment and a premium, all-access customer experience).
- Channels and digital: Mimi highlighted the digital channel growth with penetration hitting 25% and “double-digit” growth in digital, effectively expanding a profitable channel to over half a billion dollars over five years.
- Loyalty and data: The company reported loyalty memberships exceeding 10 million, enabling improved CRM and first-party data usage to drive repeat purchases.
- Store optimization and capital allocation: Sandra Harris noted the company completed 63 net store closures for the year, with 16 new 4.0 Journeys remodels and plans for ~70 remodels in the coming year; net cost savings run-rate target of $45–$50 million was achieved.
- Margin and costs: The call highlighted margin expansion driven by full-price selling; Schuh margins were pressured by the UK promotional environment (roughly 170 bps negative gross margin impact); Genesco Brands Group margins improved on licensing simplification and lower SKU sales in GBG, with expectations for higher profitability as licenses phase in.
- Outlook and risk: The management tone anchored on a constructive short-term path to mid-cycle profitability, with expectations for a 2–4% total comp increase in fiscal 2026 and flat-to-up 1% total sales, partially offset by approximately $30 million of net store closures and FX headwinds of about $14 million in Schuh. The EPS range for 2026 was guided to $1.30–$1.70, with higher upside in the back-half as Journeys drives leverage.
We were pleased to deliver a very strong finish to the year, highlighted by revenue and gross margins that exceeded our expectations and operating profit at the high end of our forecast.
— Mimi Vaughn
Journeys comps accelerated and increasing double digits in Q3 and Q4, highlighting the immediate and meaningful impact this first set of changes has had on the business.
— Mimi Vaughn
Forward Guidance
Genesco’ s stated guidance for fiscal 2026 centers on a moderate up-tick in total comps (2%–4%), flat-to-up 1% in total sales, gross margin down 20–30 bps due to Genesco Brands licensing exits, Journeys product mix, and Johnston & Murphy channel mix, with Schuh benefiting from improved pricing after a year of promotions. First-quarter comps are expected at the higher end of the annual range due to easier year-ago comparisons; inflationary pressures in the first half (UK and US wage/rent dynamics) are anticipated to temper margin expansion. SG&A is expected to leverage 50–70 bps as cost savings compounds with the store-optimization program and ongoing reinvestment in growth initiatives, particularly Journeys. The company projects capex of $50–$60 million, largely for Journeys remodels (targeting ~70 remodels, about 7% of the Journeys fleet), new store openings for Johnston & Murphy, and investments in digital/omnichannel capabilities. Tax rate is guided at ~29%. The investment thesis hinges on Journeys’ continued market expansion, higher ASPs from premiumization, a broadened teen customer reach, a strengthened online/offline integration, and cost discipline from fleet optimization. Investors should monitor Journeys’ store remodel payback, progress of 4.0 store pilots, currency translate risk (FX headwinds impacting Schuh), GBG licensing renegotiation outcomes, and the pace of profit recovery in the back half as the company leverages higher productivity and occupancy reductions to offset margin pressures.