Overview
- Third‑quarter net sales rose 3% to $616 million as comparable sales increased 3%, but adjusted EPS of $0.79 missed the $0.88 consensus.
- Full‑year outlook now calls for about 2% total sales growth and roughly 3% comp growth with adjusted EPS near $0.95, down from prior $1.30 to $1.70.
- The stock fell roughly 29% to nearly 31% during Thursday trading following the guidance cut and earnings miss.
- Journeys led growth with a 4% quarterly increase and double‑digit back‑to‑school comps, while Genesco reduced Schuh’s sales and margin projections due to a tough U.K. market; store comps rose 5% as e‑commerce comps declined 3%.
- Gross margin contracted to 46.8% from 47.8% on tariff pressures, license exits and higher Schuh promotions, with quarter‑end cash at $27.0 million, debt at $89.5 million, and no share repurchases executed.