Net sales fell 4% Y/Y to $579.3 million, missing the consensus of $583.0 million due to decreased store sales in Journeys Group and wholesale sales in Genesco Brands Group, partially negated by an 8% increase in e-commerce comparable sales and a favorable foreign exchange impact.

By brands, sales fell 8% Y/Y at Journeys and 22% at Genesco, partially offset by an increase of 13% at Schuh and 2% at Johnston & Murphy.

Gross margin contracted by 60 basis points to 48.1% due to higher promotional activity at Journeys and increased shipping and warehouse expenses in all retail businesses.

As of October 28, 2023, cash stood at $21.7 million, and total debt stood at $128.2 million.

Mimi E. Vaughn, Genesco's Board Chair, President and CEO said, "Fourth quarter-to-date, I'm pleased to say our total comps are currently running positive and we experienced a strong start to the holiday season."

"However, as consumer shopping behavior remains choppy, we plan to increase our promotional activity, especially at Journeys, for the remainder of the holiday season to be more competitive and drive sales in this environment." 

Price Action: GCO shares are down 15.71% at $31.50 premarket on the last check Friday.