In This Story
Genesco Inc. (GCO-0.30%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports an increase in net sales to $596.3 million for the third quarter of Fiscal 2025, up from $579.3 million in the same period last year. This growth is attributed to a 6% rise in comparable sales, with e-commerce sales increasing by 15%.
The company's gross margin increased to $285.3 million but decreased as a percentage of net sales from 48.1% to 47.8%, due to changes in product mix at Journeys Group and Schuh Group.
Selling and administrative expenses rose to $274.9 million, reflecting higher selling salaries, marketing, and compensation expenses. However, these expenses decreased as a percentage of net sales from 46.2% to 46.1%.
Operating income for the quarter was $10.2 million, compared to $10.9 million in the previous year. The company recorded a net loss of $18.9 million, or $1.76 per diluted share, down from a net income of $6.5 million, or $0.60 per diluted share, in the prior year.
The effective income tax rate increased to 311.5%, impacted by a $26.3 million valuation allowance against U.S. deferred tax assets due to expected cumulative losses.
Journeys Group reported a 3.8% increase in net sales to $362.5 million, driven by an 11% increase in comparable sales. Schuh Group's net sales rose by 3.1% to $121.8 million, while Johnston & Murphy Group saw a 3.6% decline to $78.5 million.
Genesco Brands Group's net sales increased by 10.2% to $33.5 million, primarily due to higher sales of Levi's and Dockers footwear.
The company repurchased 17,922 shares of its common stock during the quarter at a cost of $0.4 million. As of November 2, 2024, $42.3 million remained under its share repurchase authorization.
Genesco's liquidity is supported by cash on hand, cash from operations, and credit facilities. As of November 2, 2024, the company had $96.1 million in U.S. revolver borrowings and $4.0 million related to GCO Canada ULC.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Genesco Inc. quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.