The Top 5 Analyst Questions From Genesco’s Q2 Earnings Call

September 04, 2025 at 01:30 AM EDT

GCO Cover Image

Genesco’s second quarter results were received unfavorably by the market, despite sales and adjusted earnings per share both exceeding Wall Street expectations. Management attributed the quarter’s performance to continued strength at its Journeys business, which saw broad-based gains across teen-focused footwear brands and benefited from successful store investments and refreshed product assortments. CEO Mimi Vaughn emphasized that “Journeys continues to gain market share,” driven by newness and a diversified offering. However, softness in the U.K. market, particularly at Schuh, along with margin pressures from increased promotional activity and tariff impacts, weighed on overall profitability.

Is now the time to buy GCO? Find out in our full research report (it’s free).

Genesco (GCO) Q2 CY2025 Highlights:

Revenue: $546 million vs analyst estimates of $532.3 million (4% year-on-year growth, 2.6% beat)
Adjusted EPS: -$1.14 vs analyst estimates of -$1.25 (8.6% beat)
Adjusted EBITDA: -$842,000 (-0.2% margin, 122% year-on-year decline)
Management reiterated its full-year Adjusted EPS guidance of $1.50 at the midpoint
Operating Margin: -2.6%, in line with the same quarter last year
Locations: 1,253 at quarter end, down from 1,314 in the same quarter last year
Same-Store Sales rose 4% year on year (-2% in the same quarter last year)
Market Capitalization: $340.5 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Genesco’s Q2 Earnings Call

Mitchel John Kummetz (Seaport Global Securities) asked about the impact of the Journeys product pivot and assortment changes. CEO Mimi Vaughn explained that increased assortment depth and breadth, as well as improved brand access, have broadened customer appeal and driven strong comps.
Kummetz (Seaport Global Securities) questioned progress on targeting a wider Journeys audience and the rollout of related initiatives. Vaughn noted that the company is still in the early days, with marketing and 4.0 store remodels key to reaching this larger teen market.
Kummetz (Seaport Global Securities) sought clarification on double-digit comps at Journeys for early Q3 compared to the prior year. Vaughn confirmed that Journeys is maintaining double-digit comps on top of last year’s comparable performance.
Kummetz (Seaport Global Securities) inquired about improvements at Schuh and the outlook for U.K. margins. Vaughn stated that while comps have improved in late summer, margin pressure remains due to a highly promotional market and persistent volatility.
Joseph Vincent Civello (Truist Securities) asked about new brand introductions at Journeys and their initial performance. Vaughn responded that these brands validate Journeys’ relevance in new categories, supporting longer-term revenue growth despite starting small.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be focused on (1) the pace and impact of Journeys 4.0 store remodels and their effect on traffic and conversion, (2) the ability of new marketing campaigns like Life on Loud to attract and retain a broader teen customer base, and (3) ongoing margin management as tariff and promotional pressures continue. The progress of the Wrangler partnership and recovery in the U.K. market will also be important markers for sustained performance.

Genesco currently trades at $31.59, down from $32.99 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems

The Top 5 Analyst Questions From Genesco’s Q2 Earnings Call

Genesco (GCO) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Genesco’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

More News