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Genesco Inc. Shuts Down 25 Retail Stores to Improve Profitability and Expand New Store Concepts

Genesco Inc. closed 25 retail stores during the second quarter of fiscal 2027 to optimize its store fleet and improve overall profitability. The company, which owns brands including Journeys, Schuh, and Johnston & Murphy, reported a 5% year-over-year decrease in total retail space. While net sales declined by 3% to $530 million, the administration announced that the reduction in store count and a deliberate pullback on promotional discounting helped expand adjusted gross margins to 47.2%. CEO Mimi Vaughn stated that the company is prioritizing full-price selling over volume to secure healthier margins. The retailer is also aggressively expanding its new 4.0 store format, which features updated display fixtures and interactive features. This modern format has delivered sales in excess of 25% for the remodeled locations. Additionally, Genesco is executing a cost-savings program projected to save between $40 million and $50 million through fiscal 2029. The company also appointed Jonathan Collins as Chief Financial Officer and Tomas Petersson as president of Schuh to lead the next phase of growth.

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