Journeys generated a 2 percent sales increase in the fourth quarter to $473.7 million but saw a 27 percent decline in group operating income to $58.4 million as the Genesco-owned retail chain was unable to replenish key inventory after a strong start to the holiday season. But there was healthy full price selling in the period ended Jan. 29 as assortments shifted toward more casual offerings and away from fashion athletic styles. Journeys is embarking on a new store strategy in 2022 by opening 30 off-mall locations.

Genesco reported final period results “well ahead of expectations” despite a 20 percent year-over-year drop in inventories and limited availability to key footwear styles. Full-price selling was described as strong as total fourth quarter revenues stepped 14 percent higher to $727.7 million. Operating income was 33 percent higher at $83,383,000. Meanwhile, another Genesco operating unit, The Johnston & Murphy Group, continues its migration to a lifestyle brand from dress only. J&M reported an operating profit of $4.6 million in Q4 as its topline expanded 51 percent to $76.1 million. The unit’s number of under-35-years-old customers grew significantly in the period. Genesco senior management said there is excitement about the brand’s trajectory despite inventory shortfalls.

For the full financial year, Genesco reported net income of $114.9 million on 36 percent topline expansion to more than $2.42 billion. Journeys Group revenues were 28 percent higher at nearly $1.58 billion; Johnston & Murphy Group sales vaulted 65 percent to $252.9 million; and revenues for the Licensed Brands unit, which saw growing demand for the Levi’s and Dockers’ labels, stepped 70 percent higher to $169.2 million. There is more growth potential for the division this year with the addition of Etonic and Starter licenses.

Genesco is forecasting 2-4 percent overall revenue growth for this financial year that began Jan. 30, a dip in the gross margin rate due to expected higher markdown activity in the second and fourth quarters and a lower year-over-year operating margin. There will be fewer first half sales but more in the final six months as the company’s digital sales as a percentage of the total will grow from 21 percent. Genesco brand Johnston & Murphy will face pressure on gross margins due to higher logistics and freight costs.