GENESCO INC Q3 FY2025 earnings call

• Welcomed Sandra Harris as Chief Financial Officer with extensive finance experience. - Reviewed third quarter performance, noting Journeys' double-digit comp growth, offsetting modest declines at Schuh and Johnston & Murphy. - Detailing Journeys: Strong back-to-school performance, skilled merchant team, digital growth, and strategic initiatives including product diversification, brand investment, and consumer experience elevation. - Schuh: Focus on serving female customer, building brand awareness, leveraging loyalty program. - Johnston & Murphy: Evolution into casual multi-category lifestyle brand, growth in casual footwear and non-footwear, better inventory position for holidays. - Store optimization: Closed unproductive stores, plan to close more, and roll out new store design with 15 planned for next year.

Journeys: Comps turned positive in July, accelerated during back-to-school, digital business had double-digit growth, digital penetration reached 17% of total sales. Schuh: Comps improved vs first-half, still facing market headwinds in UK, digital sales resilient at over 40% of business, kids category a bright spot. Johnston & Murphy: Comps improved vs first-half, conversion and transaction size up, growth in casual footwear and non-footwear categories, apparel/accessories now approximately half of direct-to-consumer sales.

• Raised full-year EPS guidance to $0.80 to $1 from prior $0.60 to $1. - Expect higher sales driven by Journeys, but more cautious view for Schuh and Johnston & Murphy. - Full-year total sales expected flat to slight decrease vs prior expectations. - Gross margin expected down 10-20 basis points vs last year. - Adjusted SG&A as percentage of sales flat to 10 basis points of leverage. - No additional share repurchases planned, tax rate ~27%.

• Macro-economic challenges in UK affecting Schuh. - Softer demand for premium non-athletic footwear pressuring Johnston & Murphy. - Consumer selectivity and promotional retail environment impacting margins.

Q: About Journeys' assortment and brand partnerships, how is it progressing?

A: Journeys' customer is more diversified, strong merchant team, back-to-school success from multiple brands, brand partnerships are strong and getting stronger, brands taking notice of back-to-school results.

Q: On stores, closing stores and new store design, what's the productivity and rollout?

A: Optimizing store footprint, closing unproductive stores, new store design is aspirational, open 10 stores, plan 15 for next year, results are positive and being tracked carefully.

Q: Journeys comp in 4Q, key items and consumer steering?

A: 4Q Journeys key item-driven, customer wants specific styles, greater depth and breadth in key items across brands, better formula for this year.

Q: Schuh's access to key brands, timeline?

A: Synergy between Journeys and Schuh on brand partnerships, access to better product for future seasons, including spring, consumer headwinds remain a challenge but progress expected.