Genesco Rallies on Holiday Sales Strength and Higher FY26 View

Shares of Genesco Inc. GCO jumped 8.1% during yesterday’s trading session, following an impressive holiday season performance. This footwear, apparel and accessories retailer reported a solid 9% increase in comparable sales for the fourth-quarter-to-date period ended Dec. 27, 2025. This growth includes physical stores and e-commerce channels, reflecting a solid performance across its portfolio. 

Same-store sales rose 10%, while comparable e-commerce sales jumped 9%, signaling the strength of the company's omnichannel strategy. Breaking down the numbers, the Journeys Group led the charge with a 12% year-over-year increase in comparable sales. The Schuh Group reported modest growth of 6%, while the Johnston & Murphy Group saw a marginal increase of 1%.

Holiday Season Drives GCO’s Sales Momentum

The holiday season proved to be a boon for Genesco, driven by strong consumer demand and effective operational execution. Mimi Vaughn, the company’s CEO, highlighted that Journeys Group stood out with a double-digit increase in comparable sales, building on the significant growth achieved in the prior-year period. This success was attributed to a well-curated product mix that encouraged customers to buy at full price during the peak December shopping period.

Meanwhile, Schuh Group's results exceeded top-line expectations, though this growth was largely driven by heavy markdowns. The company utilized these discounts to stay competitive in a highly promotional U.K. footwear market and to keep inventory lean heading into the new year.

Genesco Raises Fiscal 2026 Earnings View

Buoyed by stellar holiday season results, Genesco now forecasts fiscal 2026 adjusted earnings of at least $1.30 per share, a significant jump from its previous guidance of 95 cents a share. This revised outlook, though slightly tempered by margin compression at Schuh Group during the remainder of the fourth quarter, represents a substantial year-over-year increase from the 94 cents earned in fiscal 2025.

To navigate increasingly volatile consumer behavior and demand spikes around peak shopping periods, management is prioritizing operational discipline and rigorous cost controls to close out the year.

Shares of this Zacks Rank #5 (Strong Sell) company have declined 21.7% in the past three months against the industry’s rise of 4.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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