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Genesco Gets Mixed Q2 Results, New Journeys Prez in 2024


Nashville-based Genesco, which will see its 44-year employee, Mario Gallione, retire as its Journeys Group president sometime in Feb. 2024 after six years in the position, is holding the line on its FY24 outlook despite difficult results within the teen footwear business in Q2.

Impacted by customers squeezed by inflationary pressures and competitors who were continuing to discount athletic footwear prices in a bloated inventory environment, Journeys reported a Q2 operating loss of $14.9 million as year-over-year revenues slipped by 11 percent to $287.3 million. Comparable store sales were down 11 percent despite 14 percent growth in digital sales to 21 percent of group revenues. Journeys, which intends to move forward in 2024 with a more differentiated product assortment, realized improved sales trends as August began but not by enough for Genesco to increase its annual outlook.

Elsewhere in Q2, the Johnston & Murphy Group posted 4 revenue growth to $77.8 million but a 17 percent drop in operating income to $2.7 million. The Genesco Brands Group reported a huge increase in quarterly operating income to $1.9 million despite a 6.6 percent drop in revenues to $35.2 million.

The company continues to forecast an annual sales decline of 2 to 4 percent and a high single digit decline in comparable sales for Journeys.