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Genesco Taking Steps to Re-invigorate Journeys

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With Q1 sales and traffic lagging in the fashion footwear chain, the Nashville-based parent of Journeys is taking numerous actions that it hopes will jumpstart the business in the months ahead. Initiatives include closing a net 78 doors, or 6.9 percent of Journey’s 1,130 locations, repositioning product assortments in each store “to meet customers’ appetite for newness,” preparing for a full launch of the chain’s new loyalty program in June and rolling out new point-of-sale hardware and software in June and July.

Mimi George, Genesco’s President, and CEO, told analysts that Journeys has a history of resilience and ability to rebound from economic headwinds and fashion shifts, later admitting the chain’s customers seemed “to be sitting on the sidelines” during the difficult quarter instead of buying spring fashion styles.

“I am confident we will come out on the other side of this environment in an even stronger competitive position,” she said.

In Q1, Journeys Group comparable store sales declined by 14 percent on lower store traffic and demand for key styles. Sellthroughs on core fashion athletic and casual styles came in below expectations, forcing the business to increase promotions and markdowns to clear slow moving non-core merchandise. Journeys also returned products to vendors, where possible, to rationalize inventory. Journeys’ gross margin fell 360 basis points during the period.