Genesco Q2 FY21 result: sales $391 mn; net loss $19 mn

07 Sep '20

2 min read

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Genesco, a US-based specialty retailer, has announced its second quarter (Q2) result for fiscal 2021 ended on August 1, 2020. Net sales decreased 20 per cent to $391.2 million compared to sales of $486.5 million in the same period last fiscal. Company reported a net loss of $19.0 million compared to net earnings of $0.5 million in Q2 FY20.

Gross margin for the quarter came down to $167.0 million (Q2 FY20: $236.5 million). Selling and administrative expenses came down to $187.2 million ($231.7 million). While, company incurred an operating loss of $21.9 million compared to operating income of $2.9 million during Q2 FY20.

"The second quarter began with consumers enthusiastically returning to our physical locations as we began reopening stores and continuing to actively engage and shop with us online. The speed and executional excellence our teams demonstrated in getting our stores open and operational was a huge advantage as we often opened on the first day permitted by local authorities,” Mimi Vaughn, Genesco board chair, president and chief executive officer at Genesco, said in a press release.

Sales of Journeys Group segment were down to $276.6 million ($315.1 million). While, sales of Schuh Group during the quarter fell to $71.7 million ($92.4 million). Johnston & Murphy Group sales plunged to $24.0 million ($67.2 million).

"Towards the end of the second quarter and to begin the third quarter, our business in North America was significantly impacted by the changes in back-to-school timing brought on by the pandemic. This includes schools in several areas of the country starting later than last year and many others not returning to in-person learning,” Vaughn said.

Currently, Genesco is operating in 96 per cent of its locations, including approximately 1,130 Journeys, 160 Johnston & Murphy and 125 Schuh locations.

Fibre2Fashion News Desk (JL)

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