Genesco shares are up after the company posted stronger than expected earnings and revenues results.
The footwear firm behind Journeys, Johnston & Murphy, and more brands saw a strong fourth quarter, with net sales up 14% year over year to $728 million. This beat the predictions of $726.57 million from analysts surveyed by Yahoo News. Net income was $62.1 million, $4.41 or per share, ahead of predictions at $2.64.
For the full year, Genesco reported a year over year net sales increase of 36% to $2.4 billion. E-commerce sales grew 77%. The company saw double digit sales growth and record profitability for its brands, with Journeys leading the pack.
Shares of Genesco were up more than 10% as of noon on Thursday.
“We concluded an outstanding year with a very strong fourth quarter that far exceeded our expectations,” said Genesco CEO, board chair and president Mimi Vaughn. “We believe our exceptional results this year underscore the earnings power of our business model and the work we’ve done enhancing the strong competitive positions of our retail and branded concepts through our footwear focused strategy.”
Vaughn said the company expects growth to slow through fiscal year 2023 sue to a lack of stimulus payments and normalization in prices. Overall, the company expects sales growth of between 2% and 4% compared to fiscal year 2022.
After four consecutive quarters of record profitability for Journeys, the brand saw a modest 2% growth in Q4. Compared to 2020, sales at Journeys were up 8% in fiscal year 2022, with all of the banner’s top 10 brands seeing year-over-year growth.
“The current fashion cycle, which I’ve been describing, is shifting more into casual away from fashion athletic, plays into Journeys’ strength, positioning Journeys well among its competition to deliver this assortment,” Vaughn said.
She added that Journeys’ sales were impacted by a wave of demand in advance of the holiday season that could not be entirely fulfilled due to inventory shortages.
In general, Genesco’s sales across its brands were galvanized by high levels of full-price selling and robust brick-and-mortar sales. As inventory improves and prices stay high, executives believe they can maintain growth throughout fiscal year 2023.