Casual + Retro Are Trending at Journeys
Genesco President and CEO Mimi Vaughn thinks trends among the banner’s fashionable teen set have steady legs and that the “casual trend” offers upside potential for its Journeys business.
“It’s (retro athletic) been a terrific cycle because there are lots of brands that have fantastic silhouettes in their portfolios that they’ve been able to pull out,” Vaughn told analysts last week. “We saw earlier this year a bigger shift into casual and we really define our world in terms of fashion athletic and casual.”
The casual part of Journeys’ assortment has been gaining ground on the banner’s fashion athletic business all year, particularly in women’s and kids. In the third quarter, the retailer’s gross margin rose 110 basis points, driven by lower markdowns. Overall sales declined 10 percent but digital penetration rose to nearly 14 percent from 7 percent in the year-ago period; comps fell 6 percent; store traffic dropped “well into double-digits” and inventory slid 28 percent. Journeys intends to chase inventory throughout the fourth quarter to add fresh merchandise to its mix.