Genesco Inc. Celebrates Fiscal 2024 with Record Sales and Strategic Growth
Genesco Inc. has proudly announced its financial results for both the fourth quarter and the full year of Fiscal 2024, highlighting significant achievements and strategic milestones. The period ended on February 3, 2024, marks a time of notable progression and resilience amidst challenging market conditions.
Notable Highlights and Performance Insights
Mimi E. Vaughn, Board Chair, President, and Chief Executive Officer of Genesco, reflected on the fiscal year with pride, pointing out the adaptive strategies that led to notable consumer behavior changes within the Journeys brand. Despite an initially challenging start to the year, Journeys managed to capture customer interest with an improved sequential comp every quarter of the year. Furthermore, both Schuh and Johnston & Murphy brands achieved record sales, underscoring Genesco’s diverse brand strength.
As Genesco looks to Fiscal 2025, Vaughn emphasized the continued effort to meet the evolving needs of their dynamic consumer base. With a formidable team at Journeys, along with new leadership and the steadfast support of brand partners, Genesco is poised for a period of robust earnings potential and value realization.
Fourth Quarter Financial Review
The fourth quarter of Fiscal 2024 saw Genesco Inc. report a net sales increase of 2%, reaching $739 million. This slight rise is attributed to a 5% increase in e-commerce sales, a bolstered wholesale segment, and beneficial foreign exchange impacts. However, store sales primarily within the Journeys Group experienced a dip. Adjusted for the extra week in this fiscal cycle, sales reflected a minor 2% decrease, compared to the previous year.
Gross margin for the quarter slightly declined, settling at 46.3%, down by 10 basis points compared to the prior year, driven mainly by product mix changes at Journeys. Nevertheless, operational strides were present in reduced freight and logistics costs across other brands.
Selling and administrative expenses saw a rise, mainly due to a combination of the 53rd week impact and additional expenses tied to direct sales growth. However, the diligent execution of cost-saving initiatives helped mitigate some of these increases.
Full Year Financial Performance
For Fiscal 2024, Genesco reported a 2.5% decline in net sales, totaling $2.32 billion. This was a reflection of decreased store and wholesale sales within the Journeys Group, slightly offset by an 8% increase in e-commerce sales and favorable foreign exchange effects. Comparable sales for the year took a 4% hit, primarily due to a 7% decline in same-store sales, though direct sales saw an 8% uptick.
The gross margin witnessed a 30 basis point decrease over the year, attributed to increased promotional activities and shifts in product mix, specifically within the Journeys business. Despite these hurdles, improved margins in other brand segments showcased Genesco’s ability to adapt and flourish.
Strategic Movements and Capital Expenditures
Throughout the year, capital expenditures were directed towards retail store enhancements, digital innovation, and omnichannel initiatives. Store operations saw a net decrease, aligning with strategic closures and openings that aim to optimize the brand’s physical footprint.
The company also continued its commitment to shareholder value enhancement, repurchasing significant shares and announcing an expanded share repurchase authorization, underlining confidence in its fiscal strategy and future growth.
Looking Forward
With a challenging yet productive Fiscal 2024 behind them, Genesco Inc. is focusing on harnessing its creative energies, sharpening its product assortments, and ramping up its digital and physical market presence. Through enduring partnerships, robust leadership, and sensitive navigation of consumer trends, Genesco is set to face the future with renewed vigor and strategic insight.
As Fiscal 2025 unfolds, Genesco remains committed to improving every aspect of its operation and delivering exceptional value to its customers, shareholders, and team members.
About Genesco Inc.
Based in Nashville, Tennessee, Genesco Inc. is a distinguished footwear-focused company, managing a portfolio of well-positioned retail and lifestyle brands. With a broad omnichannel presence, it caters to a diverse customer base through its Journeys, Little Burgundy, Schuh, Johnston & Murphy brands, and Genesco Brands Group. Founded in 1924, Genesco continues to lead with a forward-thinking approach and enduring commitment to quality and customer satisfaction.
