PYMNTS-MonitorEdge-May-2024

Genesco Says Online Shoe Sales Remain Strong After Pandemic 

Post-pandemic, consumers are still buying shoes online. 

Footwear retailer Genesco said in a Friday (Dec. 2) presentation that both store and digital comparable sales were up during its third quarter that ended Oct. 29, and that this highlights the importance of giving consumers a choice of channels. 

“Both store and digital comps were nicely positive, highlighting the strength of our omnichannel offering and channel choice we give consumers,” Genesco Board Chair, President and CEO Mimi E. Vaughn said Friday during the company’s quarterly earnings call. 

Digital sales growth was flat year over year, meaning they maintained the growth they experienced during the pandemic and accounted for 18% of the company’s retail sales, per the presentation. 

“Digital sales, a key strategic growth priority, were up almost 75% compared to pre-pandemic levels, maintaining essentially all the pandemic growth, representing 18% of retail sales, and sustaining strong double-digit profitability,” Vaughn said during the call. 

During the quarter, Genesco’s net sales were up 1% year over year and its comparable sales were up 3%, according to a Friday press release. The company reported increases in both wholesale sales and comparable sales. 

Friday morning, shortly after the call, the company’s shares were down 6% from the previous day but up about 3.75% over the past month. 

Looking ahead, Genesco revised its full-year guidance for fiscal 2023 from a range of down 3% to flat to a range of down 1% to 2%, according to the press release. 

“While we did a good job growing top-line and protecting gross margins during back-to-school, a sluggish start to November combined with higher industry-wide promotional activity and cost pressures has led us to adopt a more conservative view on the balance of this year,” Vaughn said in the release. “Sales have since reaccelerated with the start of the holiday season.” 

PYMNTS-MonitorEdge-May-2024