10-Q

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

Genesco Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share amounts)


Assets	August 1, 2026			January 31, 2026			August 2, 2025
Current Assets:
Cash and cash equivalents	$	57,133		$	105,405		$	40,989
Accounts receivable, net of allowances of $1,867 at August 1, 2026,
$2,377 at January 31, 2026 and $2,745 at August 2, 2025		39,716			39,825			54,322
Inventories		539,670			433,878			501,008
Prepaids and other current assets		39,773			39,408			49,572
Total current assets		676,292			618,516			645,891
Property and equipment, net		242,315			237,656			238,626
Operating lease right of use assets		523,777			472,815			475,221
Goodwill		9,186			9,459			9,336
Other intangibles		27,136			27,867			27,408
Deferred income taxes		249			249			389
Other noncurrent assets		25,278			26,416			25,054
Total Assets		1,504,233			1,392,978			1,421,925
Liabilities and Equity
Current Liabilities:
Accounts payable		216,726			156,735			193,016
Current portion - long-term debt		—			—			13,275
Current portion - operating lease liabilities		108,694			119,216			123,106
Other accrued liabilities		101,335			100,391			84,958
Total current liabilities		426,755			376,342			414,355
Long-term debt		15,798			3,379			57,677
Long-term operating lease liabilities		459,420			398,788			395,186
Other long-term liabilities		45,285			47,425			48,335
Total liabilities		947,258			825,934			915,553
Commitments and contingent liabilities		—			—			—
Equity
Non-redeemable preferred stock		835			835			835
Common equity:
Common stock, $1 par value:
Authorized: 80,000,000 shares
Issued common stock		11,606			11,277			11,285
Additional paid-in capital		349,135			343,889			337,552
Retained earnings		251,894			265,790			212,977
Accumulated other comprehensive loss		(38,638	)		(36,890	)		(38,420	)
Treasury shares, at cost (488,464 shares)		(17,857	)		(17,857	)		(17,857	)
Total equity		556,975			567,044			506,372
Total Liabilities and Equity	$	1,504,233		$	1,392,978		$	1,421,925

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	August 1, 2026			August 2, 2025			August 1, 2026			August 2, 2025
Net sales	$	529,858		$	545,965		$	1,016,883		$	1,019,938
Cost of sales		257,741			296,016			515,847			548,808
Gross margin		272,117			249,949			501,036			471,130
Selling and administrative expenses		259,557			264,265			513,960			513,300
Asset impairments and other, net		8,943			124			(1,164	)		415
Operating income (loss)		3,617			(14,440	)		(11,760	)		(42,585	)
Other components of net periodic benefit cost		247			148			484			328
Interest, net		(28	)		1,459			237			2,798
Earnings (loss) from continuing operations before income taxes		3,398			(16,047	)		(12,481	)		(45,711	)
Income tax expense (benefit)		(84	)		2,409			(1,157	)		(6,043	)
Earnings (loss) from continuing operations		3,482			(18,456	)		(11,324	)		(39,668	)
Loss from discontinued operations, net of tax		(3	)		(15	)		(11	)		(30	)
Net Earnings (Loss)	$	3,479		$	(18,471	)	$	(11,335	)	$	(39,698	)

Basic earnings (loss) per common share:
Continuing operations	$	0.33		$	(1.79	)	$	(1.08	)	$	(3.82	)
Discontinued operations		0.00			0.00			0.00			0.00
Net earnings (loss)	$	0.33		$	(1.79	)	$	(1.08	)	$	(3.82	)

Diluted earnings (loss) per common share:
Continuing operations	$	0.32		$	(1.79	)	$	(1.08	)	$	(3.82	)
Discontinued operations		0.00			0.00			0.00			0.00
Net earnings (loss)	$	0.32		$	(1.79	)	$	(1.08	)	$	(3.82	)

Weighted average shares outstanding:
Basic		10,537			10,294			10,483			10,394
Diluted		10,917			10,294			10,483			10,394

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands)


	Three Months Ended						Six Months Ended
	August 1, 2026			August 2, 2025			August 1, 2026			August 2, 2025
Net earnings (loss)	$	3,479		$	(18,471	)	$	(11,335	)	$	(39,698	)
Other comprehensive income:
Postretirement liability adjustments		172			84			347			193
Foreign currency translation adjustments		(1,418	)		196			(2,095	)		6,811
Total other comprehensive income (loss)		(1,246	)		280			(1,748	)		7,004
Comprehensive Income (Loss)	$	2,233		$	(18,191	)	$	(13,083	)	$	(32,694	)

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)


	Six Months Ended
	August 1, 2026			August 2, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(11,335	)	$	(39,698	)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization		26,430			26,867
Deferred income taxes		22			477
Impairment of long-lived assets		25			34
Share-based compensation expense		5,575			5,912
Other		1,498			700
Changes in working capital and other assets and liabilities:
Accounts receivable		33			(5,076	)
Inventories		(107,384	)		(70,146	)
Prepaids and other current assets		(605	)		51,719
Accounts payable		60,335			25,165
Other accrued liabilities		432			(5,461	)
Other assets and liabilities		(1,423	)		(5,186	)
Net cash used in operating activities		(26,397	)		(14,693	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(31,743	)		(33,580	)
Net cash used in investing activities		(31,743	)		(33,580	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility		135,546			251,276
Payments on revolving credit facility		(122,941	)		(180,710	)
Shares repurchased related to share repurchase plan		—			(12,566	)
Shares repurchased related to taxes for share-based awards		(2,561	)		(1,159	)
Change in overdraft balances		121			(1,955	)
Additions to deferred financing costs		(116	)		—
Net cash provided by financing activities		10,049			54,886
Effect of foreign exchange rate fluctuations on cash		(181	)		369
Net increase (decrease) in cash and cash equivalents		(48,272	)		6,982
Cash and cash equivalents at beginning of period		105,405			34,007
Cash and cash equivalents at end of period	$	57,133		$	40,989
Supplemental information:
Interest paid	$	1,096		$	2,517
Income taxes paid (received)		(2,080	)		(56,162	)

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Genesco Inc. and Subsidiaries

Condensed Consolidated Statements of Equity

(In thousands)


	Non- Redeemable Preferred Stock		Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Shares			Total Equity
Balance February 1, 2025	$	835	$	11,773		$	331,756		$	265,887		$	(45,424	)	$	(17,857	)	$	546,970
Net loss		—		—			—			(21,227	)		—			—			(21,227	)
Other comprehensive income		—		—			—			—			6,724			—			6,724
Share-based compensation expense		—		—			2,994			—			—			—			2,994
Restricted stock issuance		—		141			(141	)		—			—			—			—
Restricted shares withheld for taxes		—		(36	)		36			(664	)		—			—			(664	)
Shares repurchased		—		(605	)		—			(11,961	)		—			—			(12,566	)
Other		—		(5	)		6			—			—			—			1
Balance May 3, 2025		835		11,268			334,651			232,035			(38,700	)		(17,857	)		522,232
Net loss		—		—			—			(18,471	)		—			—			(18,471	)
Other comprehensive income		—		—			—			—			280			—			280
Share-based compensation expense		—		—			2,918			—			—			—			2,918
Restricted stock issuance		—		45			(45	)		—			—			—			—
Excise taxes related to repurchases of common stock		—		—			—			(92	)		—			—			(92	)
Restricted shares withheld for taxes		—		(24	)		24			(495	)		—			—			(495	)
Other		—		(4	)		4			—			—			—			—
Balance August 2, 2025	$	835	$	11,285		$	337,552		$	212,977		$	(38,420	)	$	(17,857	)	$	506,372


	Non- Redeemable Preferred Stock		Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Shares			Total Equity
Balance January 31, 2026	$	835	$	11,277		$	343,889		$	265,790		$	(36,890	)	$	(17,857	)	$	567,044
Net loss		—		—			—			(14,814	)		—			—			(14,814	)
Other comprehensive loss		—		—			—			—			(502	)		—			(502	)
Share-based compensation expense		—		—			2,814			—			—			—			2,814
Restricted stock issuance		—		410			(410	)		—			—			—			—
Restricted shares withheld for taxes		—		(73	)		73			(2,106	)		—			—			(2,106	)
Other		—		(22	)		23			—			—			—			1
Balance May 2, 2026		835		11,592			346,389			248,870			(37,392	)		(17,857	)		552,437
Net earnings		—		—			—			3,479			—			—			3,479
Other comprehensive loss		—		—			—			—			(1,246	)		—			(1,246	)
Share-based compensation expense		—		—			2,761			—			—			—			2,761
Restricted stock issuance		—		35			(35	)		—			—			—			—
Restricted shares withheld for taxes		—		(13	)		13			(455	)		—			—			(455	)
Other		—		(8	)		7			—			—			—			(1	)
Balance August 1, 2026	$	835	$	11,606		$	349,135		$	251,894		$	(38,638	)	$	(17,857	)	$	556,975

The accompanying Notes are an integral part of these Condensed Consolidated Financial Statements.

Note 1

Summary of Significant Accounting Policies

Basis of Presentation

These Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and Notes for Fiscal 2026, which are contained in our Annual Report on Form 10-K as filed with the SEC on March 25, 2026. The Condensed Consolidated Financial Statements and Notes contained in this report are unaudited but reflect all adjustments, including normal recurring adjustments, necessary for a fair presentation of the results for the interim periods of the fiscal year ending January 30, 2027 ("Fiscal 2027") and of the fiscal year ended January 31, 2026 ("Fiscal 2026"), both of which are 52-week fiscal years. All subsidiaries are consolidated in the Condensed Consolidated Financial Statements. All significant intercompany transactions and accounts have been eliminated. The results of operations for any interim period are not necessarily indicative of results for the full year. The Condensed Consolidated Financial Statements and the related Notes have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. The Condensed Consolidated Balance Sheet as of January 31, 2026 has been derived from the audited financial statements at that date.

Nature of Operations

Genesco Inc. and its subsidiaries (collectively the "Company", "Genesco," "we", "our", or "us") business includes the sourcing and design, marketing and distribution of footwear, apparel and accessories through retail stores in the U.S., Puerto Rico and Canada primarily under the Journeys®, Journeys Kidz®, Little Burgundy® and Johnston & Murphy® banners and under the Schuh® banner in the United Kingdom (“U.K.”) and the Republic of Ireland (“ROI”); through e-commerce websites including the following: journeys.com, journeyskidz.com, journeys.ca, littleburgundyshoes.com, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com and nashvilleshoewarehouse.com as well as the Johnston & Murphy catalog. We also source, design, market and distribute footwear, apparel and accessories at wholesale, primarily under our Johnston & Murphy brand, the licensed Dockers® brand, the licensed Wrangler® brand, and other brands that we license for footwear. At August 1, 2026, we operated 1,186 retail stores in the U.S., Puerto Rico, Canada, the U.K. and the ROI.

During the three and six months ended August 1, 2026 and August 2, 2025, we operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains and e-commerce operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations and wholesale distribution of products under the Johnston & Murphy brand; and (iv) Genesco Brands Group, comprised of the licensed Dockers and Wrangler brands, as well as other brands we license for footwear. During Fiscal 2026, we signed a multi-year licensing agreement with Kontoor Brands, Inc. to design, source, market and distribute footwear under the Wrangler® brand ("Wrangler"). We expect to launch the first Wrangler footwear collection in the Fall of calendar year 2026.

Selling and Administrative Expenses

Wholesale costs of distribution are included in selling and administrative expenses on the Condensed Consolidated Statements of Operations in the amount of $1.9 million and $2.6 million for the second quarters of Fiscal 2027 and Fiscal 2026, respectively, and $3.9 million and $5.3 million for the first six months of Fiscal 2027 and Fiscal 2026, respectively.

Retail occupancy costs recorded in selling and administrative expenses were $73.9 million and $73.0 million for the second quarters of Fiscal 2027 and Fiscal 2026, respectively, and $148.0 million and $146.4 million for the first six months of Fiscal 2027 and Fiscal 2026, respectively.

Advertising Costs

Advertising costs included in selling and administrative expenses were $28.7 million and $30.8 million for the second quarters of Fiscal 2027 and Fiscal 2026, respectively, and $54.2 million and $55.0 million for the first six months of Fiscal 2027 and Fiscal 2026, respectively.

Vendor Allowances

Vendor reimbursements of cooperative advertising costs recognized as a reduction of selling and administrative expenses were $2.9 million and $3.6 million for the second quarters of Fiscal 2027 and Fiscal 2026, respectively, and $6.2 million and $7.2 million for the first six months of Fiscal 2027 and Fiscal 2026, respectively.

Note 1

Summary of Significant Accounting Policies, Continued

During the first six months of each of Fiscal 2027 and Fiscal 2026, our cooperative advertising reimbursements received were not in excess of the costs incurred.

Income Taxes

We continue to maintain a valuation allowance against our U.S. net deferred tax assets. Given our recent earnings and anticipated future profitability, management believes it is reasonably possible that sufficient positive evidence may become available within the next twelve months to support the release of a significant portion of the valuation allowance. Any such release would result in a non-cash income tax benefit in the period of release. The exact timing and amount of any release will depend on our actual operating results and management's assessment of all available positive and negative evidence.

Recent Tax Legislation

On July 4, 2025, H.R. 1, a bill to provide for reconciliation pursuant to title II of H. Con. Res. 14, informally known as the One Big Beautiful Bill Act ("OBBBA"), which includes several measures affecting corporations and other business entities, was signed into law. Among these measures, the OBBBA modifies and permanently extends certain expiring provisions of the 2017 Tax Cuts and Jobs Act (“TCJA”), including the restoration of 100% bonus depreciation, which was scheduled to phase out in 2027 under the TCJA. The OBBBA also permits immediate expensing of research and development expenditures previously capitalized under the TCJA and modifies various components of the international tax framework. The OBBBA has multiple effective dates, with some provisions taking effect in 2025 and others phased in through 2027. In accordance with Accounting Standards Codification (“ASC”) 740, “Income Taxes,” we recognized effects of the OBBBA during the second quarter of Fiscal 2026 for the provisions enacted at that point in time. For the fiscal year ended January 31, 2026, we had a material decrease in both the current tax liability and the effective income tax rate as a result of the enactment of income tax law changes under the OBBBA and their interaction with our valuation allowance in the United States.

New Accounting Pronouncements

We continuously monitor and review all current accounting pronouncements and standards from the Financial Accounting Standards Board of U.S. GAAP for applicability to our operations and financial reporting. As of August 1, 2026, there were no new pronouncements or interpretations, other than those disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, that had or were expected to have a significant impact on our financial reporting.

Note 2

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the Journeys Group segment were as follows:


(In thousands)	Total Goodwill
Balance, January 31, 2026	$	9,459
Effect of foreign currency exchange rates		(273	)
Balance, August 1, 2026	$	9,186

Other intangibles by major classes were as follows:


	Trademarks				Customer Lists						Other						Total
(In thousands)	August 1, 2026		Jan. 31, 2026		August 1, 2026			Jan. 31, 2026			August 1, 2026			Jan. 31, 2026			August 1, 2026			Jan. 31, 2026
Gross other intangibles	$	25,766	$	26,214	$	6,587		$	6,611		$	400		$	400		$	32,753		$	33,225
Accumulated amortization		—		—		(5,217	)		(4,958	)		(400	)		(400	)		(5,617	)		(5,358	)
Net Other Intangibles	$	25,766	$	26,214	$	1,370		$	1,653		$	—		$	—		$	27,136		$	27,867

Note 3

Inventories


(In thousands)	August 1, 2026		January 31, 2026
Wholesale finished goods	$	67,189	$	68,976
Retail merchandise		472,481		364,902
Total Inventories	$	539,670	$	433,878

Note 4

Fair Value

Fair Value of Financial Instruments

The carrying amounts and fair values of our financial instruments at August 1, 2026 and January 31, 2026 are:



(In thousands)	August 1, 2026				January 31, 2026
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
North American Revolver Borrowings	$	9,059	$	8,957	$	3,379	$	3,362
U.K. Revolver Borrowings		6,739		6,727		—		—
Total Long-Term Debt	$	15,798	$	15,684	$	3,379	$	3,362

Debt fair values were determined using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments and would be classified in Level 2 within the fair value hierarchy.

As of August 1, 2026, we had $7.1 million of investments held and used which were measured using Level 1 inputs within the fair value hierarchy.

Note 5

Long-Term Debt

The revolver borrowings outstanding under the Fourth Amended and Restated Credit Agreement dated as of January 31, 2018, as amended January 16, 2026, between us, certain of our subsidiaries, the lenders party thereto and Bank of America, N.A. as agent (the "Credit Facility") as of August 1, 2026 included (i) no U.S. revolver borrowings and (ii) $9.1 million (CAD $12.7 million) revolver borrowings related to GCO Canada ULC. In addition, we had revolver borrowings outstanding by and between Schuh and Lloyds Bank PLC (the "Facility Agreement") of $6.7 million (£5.0 million) as of August 1, 2026. We were in compliance with all the relevant terms and conditions of the Credit Facility and Facility Agreement as of August 1, 2026. Excess availability under the Credit Facility was $316.9 million at August 1, 2026.

Note 6

Earnings Per Share

Weighted-average number of shares used to calculate earnings per share are as follows:


	Three Months Ended				Six Months Ended
(Shares in thousands)	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Weighted-average number of shares - basic		10,537		10,294		10,483		10,394
Common stock equivalents		380		-		-		-
Weighted-average number of shares - diluted		10,917		10,294		10,483		10,394

Note 6

Earnings Per Share, Continued

Common stock equivalents of 0.1 million shares are excluded for the three months ended August 2, 2025, and 0.3 million shares and 0.2 million shares are excluded for the first six months ended August 1, 2026 and August 2, 2025, respectively, due to the loss from continuing operations in those periods.

We did not repurchase any shares of our common stock during the second quarter and first six months of Fiscal 2027. We repurchased 604,531 shares of our common stock during the first six months of Fiscal 2026 at a cost of $12.6 million, or an average cost of $20.79 per share. As of August 1, 2026, we had $29.8 million remaining under our expanded share repurchase authorization announced in June 2023. During the third quarter of Fiscal 2027, through September 9, 2026, we have repurchased 317,503 shares of our common stock at a cost of $11.0 million, or an average cost of $34.65 per share. As of September 9, 2026, we have $18.8 million remaining under our expanded share repurchase authorization.

Note 7

Legal Proceedings and Other Matters

Environmental Matters

The Company has legacy obligations including environmental monitoring and reporting costs related to: (i) a 2016 Consent Judgment entered into with the United States Environmental Protection Agency involving the site of a knitting mill operated by a former subsidiary from 1965 to 1969 in Garden City, New York; and (ii) a 2010 Consent Decree with the Michigan Department of Natural Resources and Environment relating to our former Volunteer Leather Company facility in Whitehall, Michigan. We do not expect that future obligations related to either of these sites will have a material effect on our consolidated financial condition or results of operations.

Accrual for Environmental Contingencies

Related to all outstanding environmental contingencies, we had accrued $1.9 million as of August 1, 2026, $1.9 million as of January 31, 2026 and $2.0 million as of August 2, 2025. All such provisions reflect our estimates of the most likely cost (undiscounted, including both current and noncurrent portions) of resolving the contingencies, based on facts and circumstances as of the time they were made. There is no assurance that relevant facts and circumstances will not change, necessitating future changes to the provisions. Such contingent liabilities for discontinued operations are included in other accrued liabilities and other long-term liabilities on the accompanying Condensed Consolidated Balance Sheets because they relate to former facilities operated by us. We have made pretax accruals for certain of these contingencies which were not material for the second quarter of Fiscal 2027 or Fiscal 2026. These charges are included in loss from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations and represent changes in estimates.

In addition to the matters specifically described in this Note, we are a party to other legal and regulatory proceedings and claims arising in the ordinary course of our business. While management does not believe that our liability with respect to any of these other matters is likely to have a material effect on our Condensed Consolidated Financial Statements, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could have a material adverse impact on our Condensed Consolidated Financial Statements.

Interchange Fee Settlement

In February 2026, we entered into settlement agreements to resolve credit card interchange fee litigation matters in which we were a plaintiff. During the first quarter of Fiscal 2027, as a result of these lump-sum settlements, we received $13.4 million (net of legal fees) related to payment card interchange fee litigation. This gain is reflected in asset impairments and other, net on the Consolidated Statement of Operations in our Condensed Consolidated Financial Statements.

IEEPA Tariff Refunds

On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). Subsequently, on March 4, 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (“CBP”) to liquidate all non-final entries without regard to IEEPA duties and to refund amounts previously collected, including applicable interest. Additionally, on April 20, 2026, CBP launched Phase 1 of the new Consolidated Administration and Processing of Entries

Note 7

Legal Proceedings and Other Matters, Continued

tool in the Automated Commercial Environment portal, creating a process for submitting IEEPA refund claims. We successfully submitted our refund claim in the first quarter of Fiscal 2027. During the second quarter of Fiscal 2027, we received tariff refunds related to our branded businesses, excluding interest, of $21.8 million. The accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs. As such, we recognized a reduction in cost of sales in our Condensed Consolidated Statement of Operations in our Condensed Consolidated Financial Statements. In addition, we received $0.7 million of interest income related to the tariff refunds in the second quarter of Fiscal 2027. The interest income was recognized within interest, net in our Condensed Consolidated Statement of Operations in our Condensed Consolidated Financial Statements.

Note 8

Business Segment Information

Our reportable segments are based on management’s organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group and Schuh Group sell primarily branded products from other companies while Johnston & Murphy Group and Genesco Brands Group sell primarily our owned and licensed brands. Our chief operating decision maker ("CODM") is our President and Chief Executive Officer. The CODM assesses performance of and allocates resources to each business segment based on segment results without allocating corporate expenses. These corporate expenses include corporate overhead, bank fees, interest expense, interest income, goodwill impairment, asset impairment charges and other, including severance, insurance gains, major litigation and major lease terminations. Reconciling items between segment operating income (loss) and earnings (loss) from continuing operations consist of unallocated corporate expenses. The CODM uses segment operating income (loss) as a measure of profit or loss.


Three Months Ended August 1, 2026
(In thousands)	Journeys Group			Schuh Group			Johnston & Murphy Group		Genesco Brands Group		Consolidated
Net sales to external customers(1)	$	317,836		$	113,820		$	72,541	$	25,661	$	529,858
Cost of sales(2)		164,083			66,082			19,202		8,374
Selling and administrative expenses		154,467			48,108			40,393		8,676
Segment operating income (loss)	$	(714	)	$	(370	)	$	12,946	$	8,611	$	20,473
Unallocated selling and administrative expenses												7,913
Asset impairments and other(3)												8,943
Operating income												3,617
Other components of net periodic benefit cost												247
Interest, net(4)												(28	)
Earnings from continuing operations before income taxes											$	3,398

(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 79% and 21%, respectively, of our net sales in the second quarter of Fiscal 2027.

(2) Includes a $13.3 million gain for the refund of tariffs in Johnston & Murphy Group and an $8.5 million gain for the refund of tariffs in the Genesco Brands Group in the second quarter of Fiscal 2027.

(3) Asset impairments and other includes a $6.9 million charge for costs related to proxy contest, a $1.0 million charge for other legal matters, a $0.4 million charge for costs associated with information technology transformation, a $0.5 million charge for severance and other restructuring and $0.1 million for store restructuring in Journeys Group.

(4) Includes $0.7 million of interest income related to tariff refunds in the second quarter of Fiscal 2027.

Note 8

Business Segment Information, Continued


Three Months Ended August 1, 2026
(In thousands)	Journeys Group		Schuh Group		Johnston & Murphy Group		Genesco Brands Group		Reportable Segment Total		Corporate & Other		Consolidated
Total assets at quarter end(1)	$	855,148	$	219,213	$	211,390	$	52,127	$	1,337,878	$	166,355	$	1,504,233
Depreciation and amortization		7,836		2,059		2,010		345		12,250		933		13,183
Capital expenditures		10,799		2,636		2,819		17		16,271		56		16,327

(1) Of our $766.1 million of long-lived assets as of August 1, 2026, $91.5 million and $19.0 million relate to long-lived assets in the U.K. and Canada, respectively.


Three Months Ended August 2, 2025
(In thousands)	Journeys Group			Schuh Group			Johnston & Murphy Group			Genesco Brands Group		Consolidated
Net sales to external customers(1)	$	318,189		$	126,595		$	68,789		$	32,392	$	545,965
Cost of sales		162,761			77,412			31,631			24,212
Selling and administrative expenses		160,427			49,194			38,940			7,527
Segment operating income (loss)	$	(4,999	)	$	(11	)	$	(1,782	)	$	653	$	(6,139	)
Unallocated selling and administrative expenses													8,177
Asset impairments and other(2)													124
Operating loss													(14,440	)
Other components of net periodic benefit cost													148
Interest, net													1,459
Loss from continuing operations before income taxes												$	(16,047	)

(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 77% and 23%, respectively, of our net sales for the second quarter of Fiscal 2026.

(2) Asset impairments and other includes a $0.1 million charge for severance.


Three Months Ended August 2, 2025
(In thousands)	Journeys Group		Schuh Group		Johnston & Murphy Group		Genesco Brands Group		Reportable Segment Total		Corporate & Other		Consolidated
Total assets at quarter end(1)	$	766,666	$	220,416	$	196,781	$	69,603	$	1,253,466	$	168,459	$	1,421,925
Depreciation and amortization		8,334		2,129		1,692		346		12,501		973		13,474
Capital expenditures		7,697		2,345		4,367		64		14,473		209		14,682

(1) Of our $713.8 million of long-lived assets as of August 2, 2025, $95.3 million and $16.1 million relate to long-lived assets in the U.K. and Canada, respectively.

Note 8

Business Segment Information, Continued


Six Months Ended August 1, 2026
(In thousands)	Journeys Group			Schuh Group			Johnston & Murphy Group		Genesco Brands Group		Consolidated
Net sales to external customers(1)	$	603,159		$	204,522		$	153,851	$	55,351	$	1,016,883
Cost of sales(2)		311,134			119,574			56,324		28,815
Selling and administrative expenses		304,294			92,305			83,074		16,763
Segment operating income (loss)	$	(12,269	)	$	(7,357	)	$	14,453	$	9,773	$	4,600
Unallocated selling and administrative expenses												17,524
Asset impairments and other(3)												(1,164	)
Operating loss												(11,760	)
Other components of net periodic benefit cost												484
Interest, net(4)												237
Loss from continuing operations before income taxes											$	(12,481	)

(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 80% and 20%, respectively, of our net sales for the first six months of Fiscal 2027.

(2) Includes a $13.3 million gain for the refund of tariffs in Johnston & Murphy Group and an $8.5 million gain for the refund of tariffs in the Genesco Brands Group for the first six months of Fiscal 2027.

(3) Asset impairments and other includes a $13.4 million gain related to payment card interchange fee litigation, partially offset by a $6.9 million charge for costs related to proxy contest, a $3.1 million charge for store restructuring, including $3.0 million in Journeys Group and $0.1 million in Schuh Group, a $1.0 million charge for other legal matters, a $0.6 million charge for costs associated with information technology transformation and a $0.6 million charge for severance and other restructuring.

(4) Includes $0.7 million of interest income related to tariff refunds in the first six months of Fiscal 2027.


Six Months Ended August 1, 2026
(In thousands)	Journeys Group		Schuh Group		Johnston & Murphy Group		Genesco Brands Group		Reportable Segment Total		Corporate & Other		Consolidated
Depreciation and amortization		15,796		4,071		4,000		694		24,561		1,869		26,430
Capital expenditures		20,670		5,346		5,578		44		31,638		105		31,743

Note 8

Business Segment Information, Continued


Six Months Ended August 2, 2025
(In thousands)	Journeys Group			Schuh Group			Johnston & Murphy Group			Genesco Brands Group		Consolidated
Net sales to external customers(1)	$	590,823		$	222,510		$	145,628		$	60,977	$	1,019,938
Cost of sales		302,276			135,150			67,333			44,049
Selling and administrative expenses		308,829			93,502			79,577			15,577
Segment operating income (loss)	$	(20,282	)	$	(6,142	)	$	(1,282	)	$	1,351	$	(26,355	)
Unallocated selling and administrative expenses													15,815
Asset impairments and other(2)													415
Operating loss													(42,585	)
Other components of net periodic benefit cost													328
Interest, net													2,798
Loss from continuing operations before income taxes												$	(45,711	)

(1) Net sales in North America and in the U.K., which includes the ROI, accounted for 78% and 22%, respectively, of our net sales for the first six months of Fiscal 2026.

(2) Asset impairments and other includes a $0.4 million charge for severance.


Six Months Ended August 2, 2025
(In thousands)	Journeys Group		Schuh Group		Johnston & Murphy Group		Genesco Brands Group		Reportable Segment Total		Corporate & Other		Consolidated
Depreciation and amortization		16,583		4,053		3,480		688		24,804		2,063		26,867
Capital expenditures		18,102		5,974		9,008		140		33,224		356		33,580

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This section discusses management’s view of the financial condition, results of operations and cash flows of the Company. This section should be read in conjunction with the information contained in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, including the Risk Factors section, and information contained elsewhere in this Quarterly Report on Form 10-Q, including the Condensed Consolidated Financial Statements and Notes to those financial statements. The results of operations for any interim period may not necessarily be indicative of the results that may be expected for any future interim period or the entire fiscal year.

Summary of Results of Operations

Our net sales decreased 3.0% to $529.9 million in the second quarter of Fiscal 2027 compared to $546.0 million in the second quarter of Fiscal 2026. The net sales decrease compared to last year's second quarter reflects the impact of net store closings resulting from our ongoing footprint optimization, decreased sales in Genesco Brands Group as we exited licenses, a 6% decrease in e-commerce comparable sales reflecting our prioritization of full-price selling at Schuh Group and an unfavorable foreign exchange impact, partially offset by a 1% increase in same store sales and higher sales from enlarged stores. The Journeys Group business had a strong second quarter of Fiscal 2027 with comparable sales up 2% on top of a 5% comparable gain last year, driven by strength in the product assortment and other initiatives. Schuh Group comparable sales were down 9% for the second quarter of Fiscal 2027 reflecting our decision to prioritize full-price selling over discounts and promotions. Johnston & Murphy Group also had a strong second quarter of Fiscal 2027 with comparable sales up 4% in the second quarter of Fiscal 2027 driven by increased store sales due to new and improved product assortments, both in apparel and footwear, benefitting from brand awareness through marketing and social media campaigns. By segment, Journeys Group sales were flat, Schuh Group sales decreased 10%, Johnston & Murphy Group sales increased 5% and Genesco Brands Group sales decreased 21% or $6.7 million in the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026. Schuh Group's sales decreased 10% on a local currency basis for the second quarter of Fiscal 2027.

Gross margin increased 8.9% to $272.1 million in the second quarter of Fiscal 2027 from $249.9 million in the second quarter of Fiscal 2026 and increased 560 basis points as a percentage of net sales from 45.8% in the second quarter of Fiscal 2026 to 51.4% in the second quarter of Fiscal 2027. The overall increase in gross margin as a percentage of net sales in the second quarter of Fiscal 2027 is due primarily to tariff refunds of $21.8 million, less promotional activity and higher full-price selling at Schuh Group, favorable changes in sales mix, the license exit benefit and tariff mitigation actions across our branded businesses.

Selling and administrative expenses in the second quarter of Fiscal 2027 decreased 1.8% to $259.6 million from $264.3 million compared to the second quarter of Fiscal 2026. Selling and administrative expenses increased 60 basis points as a percentage of net sales in the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 from 48.4% to 49.0% as a result of the sales decline. The increase as a percentage of net sales reflects increased occupancy and performance-based compensation expense, partially offset by decreased selling salaries, marketing expenses and other ongoing cost savings initiatives.

Operating margin was 0.7% in the second quarter of Fiscal 2027 compared to (2.6)% in the second quarter of Fiscal 2026. The overall improvement in operating margin for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 primarily reflects increased gross margin as a percentage of net sales, partially offset by a net loss of $8.9 million in asset impairment and other charges and deleverage in expenses as a percentage of net sales.

Earnings from continuing operations before income taxes (“pretax earnings”) for the second quarter of Fiscal 2027 was $3.4 million compared to a loss from continuing operations before income taxes ("pretax loss") of $16.0 million for the second quarter of Fiscal 2026. Pretax earnings for the second quarter of Fiscal 2027 included an asset impairment and other charge of $8.9 million which included a $6.9 million charge for costs related to proxy contest, a $1.0 million charge for other legal matters, a $0.4 million charge for costs associated with information technology transformation, a $0.5 million charge for severance and other restructuring and a $0.1 million charge for store restructuring. The pretax loss for the second quarter of Fiscal 2026 included asset impairment and other charges of $0.1 million for severance.

We had an effective income tax rate of (2.5)% and (15.0)% in the second quarter of Fiscal 2027 and Fiscal 2026, respectively. The higher effective tax rate in the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 is primarily a result of the impact of the OBBBA in the second quarter of Fiscal 2026 which did not have a recurring impact in the second quarter of Fiscal 2027, as well as the impact of the valuation allowance in certain jurisdictions on our effective tax rate as a result of changes in the mix of earnings and losses among jurisdictions.

Net earnings in the second quarter of Fiscal 2027 were $3.5 million, or $0.32 diluted earnings per share, compared to a net loss of $18.5 million, or $1.79 diluted loss per share, in the second quarter of Fiscal 2026.

Critical Accounting Estimates

We discuss our critical accounting estimates in Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations", in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. We describe our significant accounting policies in Note 1, "Summary of Significant Accounting Policies", of the Notes to Consolidated Financial Statements included in our Annual Report on

Form 10-K for the fiscal year ended January 31, 2026. There have been no significant changes in our definition of significant accounting policies or critical accounting estimates since the end of Fiscal 2026.

Key Performance Indicators

In assessing the performance of our business, we consider a variety of performance and financial measures. The key performance indicators we use to evaluate the financial condition and operating performance of our business are comparable sales, net sales, gross margin, operating income and operating margin. These key performance indicators should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the U.S. GAAP financial measures presented herein. These measures may not be comparable to similarly titled performance indicators used by other companies.

Comparable Sales

We consider comparable sales to be an important indicator of our current performance, and investors may find it useful as such. Comparable sales results are important to achieve leveraging of our costs, including occupancy, selling salaries, depreciation, etc. Comparable sales also have a direct impact on our total net revenue, working capital and cash. We define "comparable sales" as sales from stores open longer than one year, beginning with the first day a store has comparable sales (which we refer to as "same store sales"), and sales from websites operated longer than one year and direct mail catalog sales (which we refer to in this report as "comparable e-commerce sales"). Temporarily closed stores are excluded from the comparable sales calculation if closed for more than seven days. Expanded stores are excluded from the comparable sales calculation until the first day an expanded store has comparable prior year sales. Current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison.

Operating Margin

Operating margin is a ratio calculated by dividing operating income (loss) by net sales. We believe operating margin provides investors with useful information related to the profitability of our business after considering all of the selling, general and administrative expenses and other operating charges incurred. We use this measure in making financial, operating and planning decisions and in evaluating our overall performance.

Results of Operations – Second Quarter of Fiscal 2027 Compared to Second Quarter of Fiscal 2026

Journeys Group


	Three Months Ended
	August 1, 2026	August 2, 2025	% Change
	(dollars in thousands)
Net sales	$317,836	$318,189	(0.1)%
Cost of sales	164,083	162,761
Gross margin	153,753	155,428	(1.1)%
% of sales	48.4%	48.8%
Selling and administrative expenses	154,467	160,427	(3.7)%
% of sales	48.6%	50.4%
Operating loss	$(714)	$(4,999)	85.7%
Operating margin	(0.2)%	(1.6)%

Net sales from Journeys Group were essentially flat at $317.8 million in the second quarter of Fiscal 2027 compared to $318.2 million in the second quarter of Fiscal 2026. Journeys net sales for the second quarter of Fiscal 2027 reflects a 2% increase in comparable sales, with increases in both stores and e-commerce channels, and higher sales from enlarged stores, offset by a 5% decrease in the average number of stores in the second quarter of Fiscal 2027. The increased comparable sales in the second quarter of Fiscal 2027 was driven by the strong performance of our 4.0 store remodels and other initiatives as well as elevated product assortment across athletic and casual, achieving higher average transaction size and more full-price selling.

We closed 17 Journeys Group stores in the second quarter of Fiscal 2027. Journeys Group operated 924 stores at the end of the second quarter of Fiscal 2027, including 176 Journeys Kidz stores in the United States, 33 Journeys stores in Canada and 30 Little Burgundy stores in Canada, compared to 984 stores at the end of the second quarter of Fiscal 2026, including 200 Journeys Kidz stores in the United States, 33 Journeys stores in Canada and 30 Little Burgundy stores in Canada.

The 140 basis point improvement in operating margin for Journeys Group for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 was primarily due to a 180 basis point decrease in selling and administrative expenses as a percentage of net sales. This

improvement reflects leverage of expenses in the second quarter of Fiscal 2027, especially decreased selling salaries, marketing expense and other expenses and demonstrates the impact of our productivity efforts, cost savings initiatives and closing underperforming stores. The increase in operating margin was partially offset by a 40 basis point decrease in gross margin as a percentage of net sales, reflecting lower initial margins as a result of changes in brand mix, partially offset by lower markdowns.

Schuh Group


	Three Months Ended
	August 1, 2026	August 2, 2025	% Change
	(dollars in thousands)
Net sales	$113,820	$126,595	(10.1)%
Cost of sales	66,082	77,412
Gross margin	47,738	49,183	(2.9)%
% of sales	41.9%	38.9%
Selling and administrative expenses	48,108	49,194	(2.2)%
% of sales	42.3%	38.9%
Operating loss	$(370)	$(11)	NM
Operating margin	(0.3)%	(0.0)%

Net sales from Schuh Group decreased 10.1% to $113.8 million in the second quarter of Fiscal 2027 compared to $126.6 million in the second quarter of Fiscal 2026. The net sales decrease for the second quarter of Fiscal 2027 includes a 9% decrease in comparable sales, reflecting decreased e-commerce comparable sales and same store sales, a 7% decrease in the average number of stores in the second quarter of Fiscal 2027 and an unfavorable impact of $0.6 million due to changes in foreign exchange rates. We prioritized more full-priced selling over discounts and promotions in Schuh Group during the second quarter of Fiscal 2027 but this pressured sales in stores and online and especially affected the e-commerce channel which in particular attracts bargain seekers. Schuh Group's sales decreased 10% on a local currency basis for the second quarter of Fiscal 2027. Schuh Group operated 109 stores at the end of the second quarter of Fiscal 2027, compared to 120 stores at the end of the second quarter of Fiscal 2026.

The 30 basis point decrease in operating margin for Schuh Group for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 was due to a 340 basis point increase in selling and administrative expenses as a percentage of net sales, reflecting deleverage of expenses in the second quarter of Fiscal 2027, as a result of lower revenue. The decrease in operating margin was partially offset by a 300 basis point increase in gross margin as a percentage of net sales, reflecting decreased promotional activity and more full-priced selling.

Johnston & Murphy Group


	Three Months Ended
	August 1, 2026	August 2, 2025	% Change
	(dollars in thousands)
Net sales	$72,541	$68,789	5.5%
Cost of sales	19,202	31,631
Gross margin	53,339	37,158	43.5%
% of sales	73.5%	54.0%
Selling and administrative expenses	40,393	38,940	3.7%
% of sales	55.7%	56.6%
Operating income (loss)	$12,946	$(1,782)	NM
Operating margin	17.8%	(2.6)%

Johnston & Murphy Group net sales increased 5.5% to $72.5 million for the second quarter of Fiscal 2027 from $68.8 million for the second quarter of Fiscal 2026. The net sales increase for the second quarter of Fiscal 2027 includes a 4% increase in comparable sales, reflecting increased store sales, a 3% increase in the average number of stores in the second quarter of Fiscal 2027 and increased wholesale sales, partially offset by decreased e-commerce comparable sales reflecting fewer catalog drops. The performance of Johnston & Murphy's product assortment, both apparel and footwear, as a result of new and improved product offerings and increased brand awareness through marketing and social media campaigns contributed to increased store sales in the second quarter of Fiscal 2027. Retail operations accounted for 83.0% of Johnston & Murphy Group's sales in the second quarter of Fiscal 2027, up from 82.3% in the second quarter of Fiscal 2026. The store count for Johnston & Murphy Group's retail operations at the end of the second quarter of Fiscal 2027 was 153 Johnston & Murphy full-price retail and factory stores, compared to 149 Johnston & Murphy full-price retail and factory stores at the end of the second quarter of Fiscal 2026.

The significant improvement in operating margin for Johnston & Murphy Group for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 was primarily due to increased gross margin as a percentage of net sales from 54.0% last year to 73.5% in the second quarter this year reflecting tariff refunds of $13.3 million for the Johnston & Murphy Group, tariff mitigation actions, a favorable mix change due to lower wholesale sales and decreased shipping and warehouse expense, partially offset by increased retail markdowns. In addition, selling and administrative expenses as a percentage of net sales decreased 90 basis points for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 reflecting leverage of expenses, especially marketing and credit card expense, partially offset by increased performance-based incentive compensation expense, selling salaries and occupancy expense.

Genesco Brands Group


	Three Months Ended
	August 1, 2026	August 2, 2025	% Change
	(dollars in thousands)
Net sales	$25,661	$32,392	(20.8)%
Cost of sales	8,374	24,212
Gross margin	17,287	8,180	111.3%
% of sales	67.4%	25.3%
Selling and administrative expenses	8,676	7,527	15.3%
% of sales	33.8%	23.2%
Operating income	$8,611	$653	NM
Operating margin	33.6%	2.0%

Genesco Brands Group's net sales decreased 20.8% to $25.7 million for the second quarter of Fiscal 2027 from $32.4 million for the second quarter of Fiscal 2026 primarily due to decreased sales of Levi's as we exited that business, partially offset by increased footwear sales of Dockers.

The improvement in operating margin for Genesco Brands Group for the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 was primarily due to increased gross margin as a percentage of net sales from 25.3% last year to 67.4% in the second quarter this year reflecting tariff refunds of $8.5 million for the Genesco Brands Group, tariff mitigation efforts, higher closeout sales in the second quarter of Fiscal 2026 related to the exit of certain licenses and a favorable change in sales mix. Selling and administrative expenses increased as a percentage of net sales from 23.2% last year to 33.8% in the second quarter this year. The increase reflects deleverage of expenses as a result of decreased revenue in the second quarter of Fiscal 2027, especially increased performance-based compensation expense, other compensation expenses and royalty expense.

Corporate, Interest Expenses and Other Charges

Corporate and other expense for the second quarter of Fiscal 2027 was $16.9 million compared to $8.3 million for the second quarter of Fiscal 2026. Corporate expense in the second quarter of Fiscal 2027 included asset impairment and other charges of $8.9 million which included costs related to proxy contest, legal and other matters, costs associated with information technology transformation, severance and other restructuring and store restructuring. Corporate expense in the second quarter of Fiscal 2026 included asset impairment and other charges of $0.1 million for severance. The corporate expense decrease, excluding asset impairment and other charges, primarily reflects decreased compensation expense partially offset by additional information technology transformation expenses in the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026.

Net interest decreased $1.5 million from $1.5 million in the second quarter of Fiscal 2026 to essentially zero net interest in the second quarter of Fiscal 2027 primarily reflecting decreased revolver borrowings in North America in the second quarter of Fiscal 2027 compared to the second quarter of Fiscal 2026 and increased interest income in the second quarter of Fiscal 2027 as a result of $0.7 million in interest income on tariff refunds during the second quarter this year.

Results of Operations – First Six Months of Fiscal 2027 Compared to First Six Months of Fiscal 2026

Our net sales were flat at $1.0 billion in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026. Net sales for the first six months this year reflects 67 net fewer stores than a year ago resulting from our ongoing footprint optimization, a 3% decrease in e-commerce comparable sales reflecting our prioritization of full-price selling at Schuh Group, and decreased wholesale sales primarily due to license exits, offset by a 2% increase in same store sales, higher sales from enlarged stores and a favorable foreign exchange impact. The Journeys Group business had a strong first six months of Fiscal 2027 with comparable sales up 3% on top of a 9% increase last year, driven by strength in the product assortment and other initiatives. Schuh Group comparable sales were down 9% for the first six months of Fiscal 2027 reflecting our decision to prioritize full-price selling. Johnston & Murphy Group also had a strong first six months with comparable sales up 5% in the first six months of Fiscal 2027, driven by increased store sales due to strength in product assortment, both in apparel and footwear, benefitting from increased brand awareness through marketing and social media campaigns. By segment, Journeys Group sales increased 2%, Schuh Group sales decreased 8%, Johnston & Murphy Group sales increased 6% and Genesco Brands Group sales decreased 9% in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026. Schuh Group's sales decreased 9% on a local currency basis for the first six months of Fiscal 2027.

Gross margin increased 6.3% to $501.0 million in the first six months of Fiscal 2027 from $471.1 million in the first six months of Fiscal 2026 and increased 310 basis points as a percentage of net sales from 46.2% in the first six months of Fiscal 2026 to 49.3% in the first six months of Fiscal 2027. The overall increase in gross margin as a percentage of net sales is due primarily to increased wholesale gross margin reflecting tariff refunds, less promotional activity and higher full-price selling at Schuh Group and favorable changes in sales mix.

Selling and administrative expenses in the first six months of Fiscal 2027 were essentially flat at $514.0 million compared to $513.3 million in the first six months of Fiscal 2026, but increased 20 basis points as a percentage of net sales in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 from 50.3% to 50.5%. The increase as a percentage of net sales reflects increased performance-based compensation expense and costs associated with information technology transformation, partially offset by decreased selling salaries and other expenses as a result of our ongoing cost savings initiatives.

Operating margin was (1.2)% in the first six months of Fiscal 2027 compared to (4.2)% in the first six months of Fiscal 2026. The overall improvement in operating margin for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 primarily reflects increased gross margin as a percentage of net sales and a net gain in asset impairment and other charges, partially offset by a small increase in selling and administrative expenses as a percentage of net sales.

The pretax loss for the first six months of Fiscal 2027 was $12.5 million compared to $45.7 million for the first six months of Fiscal 2026. The pretax loss for the first six months of Fiscal 2027 included an asset impairment and other gain of $1.2 million which included a gain of $13.4 million related to payment card interchange fee litigation, partially offset by a $6.9 million charge for costs related to proxy contest, a $3.1 million charge for store restructuring, a $1.0 million charge for other legal matters, a $0.6 million charge for costs associated with information technology transformation and a $0.6 million charge for severance and other restructuring. The pretax loss for the first six months of Fiscal 2026 included asset impairment and other charges of $0.4 million for severance.

We had an effective income tax rate of 9.3% and 13.2% in the first six months of Fiscal 2027 and Fiscal 2026, respectively. The lower effective tax rate in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 primarily reflects a lower estimated annual effective tax rate for Fiscal 2027 versus our expectation for Fiscal 2026 as of the prior year first six months due to the impact of the valuation allowance in certain jurisdictions and changes in the mix of earnings and losses among jurisdictions.

The net loss in the first six months of Fiscal 2027 was $11.3 million, or $1.08 diluted loss per share, compared to a net loss of $39.7 million, or $3.82 diluted loss per share, in the first six months of Fiscal 2026.

Journeys Group


	Six Months Ended
	August 1, 2026			August 2, 2025			% Change
	(dollars in thousands)
Net sales	$	603,159		$	590,823			2.1	%
Cost of sales		311,134			302,276
Gross margin		292,025			288,547			1.2	%
% of sales		48.4	%		48.8	%
Selling and administrative expenses		304,294			308,829			(1.5	)%
% of sales		50.5	%		52.3	%
Operating loss	$	(12,269	)	$	(20,282	)		39.5	%
Operating margin		(2.0	)%		(3.4	)%

Net sales from Journeys Group increased 2.1% to $603.2 million in the first six months of Fiscal 2027, compared to $590.8 million in the first six months of Fiscal 2026. The net sales increase compared to the first six months of Fiscal 2026 reflects a 3% increase in comparable sales, with increases in both stores and e-commerce channels, and higher sales from enlarged stores, partially offset by a 5% decrease in the average number of stores in the first six months of Fiscal 2027. The increased comparable sales in the first six months of Fiscal 2027 was driven by the strong performance of our 4.0 store remodels and other initiatives as well as the continued strength in Journeys Group's product assortment with brands across athletic and casual achieving healthy growth.

The 140 basis point improvement in operating margin for Journeys Group for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 was primarily due to a 180 basis point decrease in selling and administrative expenses as a percentage of net sales. This improvement reflects leverage of expenses in the first six months of Fiscal 2027, especially selling salaries and demonstrates the impact of our productivity efforts, cost savings initiatives and closing underperforming stores. The increase in operating margin was partially offset by a 40 basis point decrease in gross margin as a percentage of net sales, reflecting lower initial margins as a result of changes in brand mix, partially offset by lower markdowns.

Schuh Group


	Six Months Ended
	August 1, 2026			August 2, 2025			% Change
	(dollars in thousands)
Net sales	$	204,522		$	222,510			(8.1	)%
Cost of sales		119,574			135,150
Gross margin		84,948			87,360			(2.8	)%
% of sales		41.5	%		39.3	%
Selling and administrative expenses		92,305			93,502			(1.3	)%
% of sales		45.1	%		42.0	%
Operating loss	$	(7,357	)	$	(6,142	)		(19.8	)%
Operating margin		(3.6	)%		(2.8	)%

Net sales from Schuh Group decreased 8.1% to $204.5 million in the first six months of Fiscal 2027 compared to $222.5 million in the first six months of Fiscal 2026. The net sales decrease for the first six months of Fiscal 2027 includes a 9% decrease in comparable sales, reflecting decreased e-commerce comparable sales and same store sales, and a 7% decrease in the average number of stores in the first six months of Fiscal 2027, partially offset by a favorable impact of $3.0 million due to changes in foreign exchange rates. We prioritized more full-priced selling with less discounts and promotions in Schuh Group during the first six months of Fiscal 2027 but this pressured sales in stores and online and especially affected the e-commerce channel which in particular attracts bargain seekers. Schuh Group's sales decreased 9% on a local currency basis for the first six months of Fiscal 2027.

The 80 basis point decrease in operating margin for Schuh Group for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 was due to a 310 basis point increase in selling and administrative expenses as a percentage of net sales, reflecting deleverage of expenses in the first six months of Fiscal 2027 as a result of lower revenue. The decrease in operating margin was partially offset by a 220 basis point increase in gross margin as a percentage of net sales, reflecting decreased promotional activity and more full-priced selling and lower shipping

and warehouse expense. In addition, the operating loss included an unfavorable impact of $0.4 million due to changes in foreign exchange rates compared to the first six months of Fiscal 2026.

Johnston & Murphy Group


	Six Months Ended
	August 1, 2026			August 2, 2025			% Change
	(dollars in thousands)
Net sales	$	153,851		$	145,628			5.6	%
Cost of sales		56,324			67,333
Gross margin		97,527			78,295			24.6	%
% of sales		63.4	%		53.8	%
Selling and administrative expenses		83,074			79,577			4.4	%
% of sales		54.0	%		54.6	%
Operating income (loss)	$	14,453		$	(1,282	)	NM
Operating margin		9.4	%		(0.9	)%

Johnston & Murphy Group net sales increased 5.6% to $153.9 million for the first six months of Fiscal 2027 from $145.6 million for the first six months of Fiscal 2026. The net sales increase for the first six months of Fiscal 2027 includes a 5% increase in comparable sales, reflecting increased store sales, and a 3% increase in the average number of stores in the first six months of Fiscal 2027, partially offset by decreased wholesale sales. The performance of the Johnston & Murphy Group product assortment, both apparel and footwear, as a result of new and improved product offerings and increased brand awareness through marketing and social media campaigns contributed to increased sales in the first six months of Fiscal 2027. Retail operations accounted for 79.1% of Johnston & Murphy Group's sales in the first six months of Fiscal 2027, up from 77.3% in the first six months of Fiscal 2026.

The significant improvement in operating margin for Johnston & Murphy Group for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 was primarily due to increased gross margin as a percentage of net sales from 53.8% in the first six months last year to 63.4% in the first six months this year reflecting tariff refunds of $13.3 million for the Johnston & Murphy Group, a favorable mix change due to lower wholesale sales and decreased shipping and warehouse expense. In addition, selling and administrative expenses as a percentage of net sales decreased 60 basis points for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 reflecting leverage of expenses, especially decreased marketing expense, partially offset by increased performance-based incentive compensation expense.

Genesco Brands Group


	Six Months Ended
	August 1, 2026			August 2, 2025			% Change
	(dollars in thousands)
Net sales	$	55,351		$	60,977			(9.2	)%
Cost of sales		28,815			44,049
Gross margin		26,536			16,928			56.8	%
% of sales		47.9	%		27.8	%
Selling and administrative expenses		16,763			15,577			7.6	%
% of sales		30.3	%		25.5	%
Operating income	$	9,773		$	1,351		NM
Operating margin		17.7	%		2.2	%

Genesco Brands Group's net sales decreased 9.2% to $55.4 million for the first six months of Fiscal 2027 from $61.0 million for the first six months of Fiscal 2026 primarily due to decreased sales of Levi's as we exited that business, partially offset by increased footwear sales of Dockers and private label products.

The improvement in operating margin for Genesco Brands Group for the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 was primarily due to increased gross margin as a percentage of net sales from 27.8% in the first six months last year to 47.9% in the first six months this year reflecting tariff refunds of $8.5 million for the Genesco Brands Group, tariff mitigation efforts, higher closeout sales in the first six months of Fiscal 2026 related to the exit of certain licenses and a favorable change in sales mix. Selling and administrative expenses increased as a percentage of net sales from 25.5% in the first six months last year to 30.3% in the first six months this year. The increase reflects

deleverage of expenses as a result of decreased revenue in the first six months of Fiscal 2027, especially increased royalty expense, performance-based compensation expense and other compensation expense, partially offset by decreased shipping and warehouse and freight expenses.

Corporate, Interest Expenses and Other Charges

Corporate and other expense for the first six months of Fiscal 2027 was $16.4 million compared to $16.2 million for the first six months of Fiscal 2026. Corporate expenses in the first six months of Fiscal 2027 included an asset impairment and other gain of $1.2 million which included a gain from payment card interchange fee litigation, partially offset by costs related to proxy contest, other legal matters, store restructuring charges, costs associated with information technology transformation and severance and other restructuring. Corporate expense in the first six months of Fiscal 2026 included asset impairment and other charges of $0.4 million for severance. The corporate expense increase, excluding asset impairment and other charges, reflects additional information technology transformation expenses and increased performance-based incentive compensation expense, partially offset by lower professional fees and other expenses in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026.

Net interest decreased $2.6 million to $0.2 million in the first six months of Fiscal 2027 compared to $2.8 million in the first six months of Fiscal 2026 primarily reflecting decreased revolver borrowings in North America in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026 and increased interest income in the first six months of Fiscal 2027 as a result of $0.7 million in interest income on tariff refunds and increased investments during the first six months this year.

Liquidity and Capital Resources

Working Capital

Our business is seasonal, with our investment in working capital normally reaching peaks in the summer and fall of each year in anticipation of the back-to-school and holiday selling seasons. Historically, cash flows from operations typically have been generated principally in the fourth quarter of each fiscal year.


	Six Months Ended
Cash flow changes:	August 1, 2026	August 2, 2025	Increase (Decrease)
(in thousands)
Net cash used in operating activities	$(26,397)	$(14,693)	$(11,704)
Net cash used in investing activities	(31,743)	(33,580)	1,837
Net cash provided by financing activities	10,049	54,886	(44,837)
Effect of foreign exchange rate fluctuations on cash	(181)	369	(550)
Net increase (decrease) in cash and cash equivalents	$(48,272)	$6,982	$(55,254)

Reasons for the major variances in cash provided by (used in) the table above are as follows:

Cash used in operating activities was $11.7 million higher in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026, reflecting primarily the following factors:

•

a $52.3 million decrease in cash flow from changes in prepaids and other current assets, primarily reflecting the receipt of a $58.3 million income tax refund receivable in the first six months of Fiscal 2026; and

•

a $37.2 million decrease in cash flow from changes in inventory, primarily reflecting a $107.4 million increase in inventory in the first six months of Fiscal 2027 compared to a $70.1 million increase in inventory in the first six months of Fiscal 2026; partially offset by

•

a $28.4 million increase in net earnings primarily due to the $22.5 million tariff refund, including interest, in the first six months of Fiscal 2027; and

•

a $35.2 million increase in cash flow from changes in accounts payable, primarily reflecting changes in timing of rent payments and changes in buying and receipt patterns in the first six months of Fiscal 2027 compared to the first six months of Fiscal 2026.

Cash used in investing activities was $1.8 million lower for the first six months of Fiscal 2027 as compared to the first six months of Fiscal 2026 reflecting decreased capital expenditures primarily related to omni-channel capabilities, partially offset by increased investments in retail stores.

Cash provided by financing activities was $44.8 million lower in the first six months of Fiscal 2027 as compared to the first six months of Fiscal 2026 primarily reflecting decreased net borrowings, partially offset by decreased share repurchases.

Sources of Liquidity and Future Capital Needs

We have three principal sources of liquidity: cash flow from operations, cash on hand and our credit facilities discussed in Item 8, Note 8, "Long-Term Debt", to our Consolidated Financial Statements included in our Annual Report on Form 10-K for Fiscal 2026.

As of August 1, 2026, we have borrowed $9.1 million (CAD $12.7 million) revolver borrowings related to GCO Canada ULC and $6.7 million (£5.0 million) related to Schuh revolver borrowings. We were in compliance with all the relevant terms and conditions of the Credit Facility and the Facility Agreement as of August 1, 2026.

We believe that cash on hand, cash provided by operations and borrowings under our Credit Facility and the Facility Agreement will be sufficient to support our liquidity needs in Fiscal 2027 and the foreseeable future.

In addition, as discussed in Item 1, Note 7, “Legal Proceedings,” to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, we received tariff refunds of $21.8 million, not including interest, related to tariffs previously collected under IEEPA.

Contractual Obligations

Our contractual obligations at August 1, 2026 increased 13% compared to January 31, 2026, primarily due to increased lease obligations and long-term debt.

Capital Expenditures

Total capital expenditures in Fiscal 2027 are expected to be approximately $65 to $70 million of which approximately 95% is for new stores and renovations and 5% is for other initiatives. We do not currently have any longer-term capital expenditures or other cash requirements other than as set forth above and in the contractual obligations table as disclosed in Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. We also do not currently have any off-balance sheet arrangements.

Common Stock Repurchases

We did not repurchase any shares of our common stock during the second quarter and first six months of Fiscal 2027. We repurchased 604,531 shares of our common stock during the first six months of Fiscal 2026 at a cost of $12.6 million, or an average cost of $20.79 per share. We had $29.8 million remaining as of August 1, 2026 under our expanded share repurchase authorization announced in June 2023. During the third quarter of Fiscal 2027, through September 9, 2026, we have repurchased 317,503 shares of our common stock at a cost of $11.0 million, or an average cost of $34.65 per share. As of September 9, 2026, we have $18.8 million remaining under our expanded share repurchase authorization. We continue to view share repurchases as an important component of our balanced capital allocation strategy and are committed to deploying excess capital.

Environmental and Other Contingencies

We are subject to certain loss contingencies related to environmental proceedings and other legal matters, including those disclosed in Item 1, Note 7, "Legal Proceedings", to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

New Accounting Pronouncements

Descriptions of recently issued accounting pronouncements, if any, and the accounting pronouncements adopted by us during the second quarter of Fiscal 2027 are included in Note 1 to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We incorporate by reference the information regarding market risk appearing in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “Financial Market Risk” in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. There have been no material changes to our exposure to market risks from those disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures designed to ensure that information required to be disclosed by us, including our consolidated subsidiaries, in the reports we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is made known to the officers who certify our financial reports and to other members of senior management. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving desired objectives.

Based on their evaluation as of August 1, 2026, the principal executive officer and principal financial officer of the Company have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within time periods specified in SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during our second quarter of Fiscal 2027 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We incorporate by reference the information regarding legal proceedings in Item 1, Note 7, “Legal Proceedings”, to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

Reference is made to the factors set forth under the caption “Cautionary Notice Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q and other risk factors described in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026, which are incorporated herein by reference. There have not been any material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended January 31, 2026.

You should carefully consider these risk factors, all or any of which could materially affect our business, financial condition or future results. The risks described in this report and in our Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Repurchases (shown in thousands except share and per share amounts):


ISSUER PURCHASES OF EQUITY SECURITIES

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
May 2026
5-3-26 to 5-30-26 (1)		—	$	—		—	$	29,755

June 2026
5-31-26 to 6-27-26 (1)		—	$	—		—	$	29,755
5-31-26 to 6-27-26 (2)		12,017	$	36.34		—

July 2026
6-28-26 to 8-1-26 (1)		—	$	—		—	$	29,755
6-28-26 to 8-1-26 (2)		502	$	36.76		—
Total		12,519	$	36.36		—	$	29,755

(1) In February 2022, a $100.0 million share repurchase program was approved by the Board of Directors and announced in February 2022, and in June 2023, the Board of Directors approved an additional $50.0 million for share repurchases. We expect to implement the balance of the repurchase program through purchases made from time to time either in the open market or through private transactions, in accordance with the regulations of the SEC and other applicable legal requirements. The timing and amount of any shares repurchased under the program will depend on a variety of factors, including price, corporate and regulatory requirements, capital availability, and other market conditions. The repurchase program may be limited, temporarily paused, or terminated by our Board of Directors at any time without prior notice.
(2) These shares represent shares withheld from vested restricted stock to satisfy the minimum withholding requirement for federal and state taxes.

Item 5. Other Information

Insider Trading Arrangements

During the second quarter of Fiscal 2027, no director or officer (as defined in Section 16 of the Exchange Act) of the Company adopted or terminated any "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (in each case, as defined in Item 408 (a) and (c) of Regulation S-K).


Tennessee		62-0211340
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

	535 Marriott Drive	37214
Nashville,	Tennessee	(Zip Code)
(Address of principal executive offices)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	GCO	New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

Emerging growth company	☐


Exhibit Index
10.1*		Transition Agreement, dated as of August 5, 2026, by and between the Company and Parag D. Desai.

31.1		Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from Genesco Inc.'s Quarterly Report on Form 10-Q for the quarter ended August 1, 2026, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at August 1, 2026, January 31, 2026 and August 2, 2025, (ii) Condensed Consolidated Statements of Operations for each of the three and six months ended August 1, 2026 and August 2, 2025, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for each of the three and six months ended August 1, 2026 and August 2, 2025, (iv) Condensed Consolidated Statements of Cash Flows for the six months ended August 1, 2026 and August 2, 2025, (v) Condensed Consolidated Statements of Equity for each of the three and six months ended August 1, 2026 and August 2, 2025, and (vi) Notes to the Condensed Consolidated Financial Statements.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

		*Certain terms of this agreement have been redacted in accordance with Regulation S-K Item 601 (b) (10).




	Genesco Inc.

	By:			/s/ Jonathan M. Collins
				Jonathan M. Collins
				Senior Vice President - Finance and Chief Financial Officer


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended August 1, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to



Part I. Financial Information
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets - August 1, 2026, January 31, 2026 and August 2, 2025	4
Condensed Consolidated Statements of Operations - Three and Six Months ended August 1, 2026 and August 2, 2025	5
Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Six Months ended August 1, 2026 and August 2, 2025	6
Condensed Consolidated Statements of Cash Flows - Six Months ended August 1, 2026 and August 2, 2025	7
Condensed Consolidated Statements of Equity - Three and Six Months ended August 1, 2026 and August 2, 2025	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3. Quantitative and Qualitative Disclosures about Market Risk	26
Item 4. Controls and Procedures	26
Part II. Other Information	27
Item 1. Legal Proceedings	27
Item 1A. Risk Factors	27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 5. Other Information	28
Item 6. Exhibits	29
Signature	30