Genesco Inc GCO shares are plummeting after reporting fourth-quarter FY24 sales growth of 2% year-on-year to $738.95 million, beating the analyst consensus estimate of $705.66 million.
Excluding the 14th week, sales would have decreased 2% for the fourth quarter of fiscal 2024. Total comparable sales declined 4%.
Overall sales dropped 2% at Journeys, grew 6% at Schuh, up 9% at Johnston & Murphy, and increased 24% at Genesco Brands.
Adjusted EPS of $2.59 missed the analyst consensus of $3.04.
Gross margin was 46.3%, a 10 basis points contraction Y/Y. Operating margin was 5%, and operating income for the quarter was $37.3 million.
The company held $35.2 million in cash and equivalents as of February 3, 2024. Inventories decreased 17.3% on a Y/Y basis.
The company closed 94 Journeys stores in fiscal 2024 and targets up to 50 more closures in fiscal 2025.
"Although the Holiday season started off positively, consumers subsequently shopped almost exclusively for key footwear items with a notable shift away from boots, putting more pressure on our core product assortment than we anticipated at the beginning of Q4," said Board Chair, President and CEO Mimi E. Vaughn.
Outlook: Genesco sees fiscal 2025 adjusted EPS of $0.60 – $1.00, against a consensus of $2.53.
The company expects fiscal 2025 total sales to decrease 2% to 3% compared to fiscal 2024, or down 1% to 2% excluding the 53rd week in fiscal 2024.
Price Action: GCO shares are trading lower by 12% at $25.75 in premarket on the last check Friday.
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