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• The Zumiez of footwear.
• A Foot Locker focused on fashion and lifestyle footwear.

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• Fashion Footwear and Accessories (Journeys): A retailer offering trendy footwear, apparel, and accessories primarily for teens and young adults.
• Premium Footwear, Apparel, and Accessories (Johnston & Murphy): A brand and retailer specializing in upscale men's and women's footwear, apparel, and accessories.
• European Fashion Footwear and Accessories (Schuh): A retailer offering a wide range of fashion footwear and accessories primarily in the United Kingdom and Ireland.

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Genesco (symbol: GCO) primarily sells directly to individual consumers through its portfolio of retail brands (Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy retail stores and e-commerce platforms). While Johnston & Murphy also has a wholesale component, the vast majority of Genesco's revenue is generated from its direct-to-consumer channels.

Based on its diverse brand portfolio, Genesco serves the following categories of individual customers:

• Fashion-conscious Teens and Young Adults: This category primarily includes customers of brands like Journeys, Journeys Kidz, Schuh (UK/Ireland), and Little Burgundy (Canada). These individuals are typically seeking trendy, casual, athletic, and lifestyle footwear and accessories that align with current fashion trends. Journeys Kidz specifically targets parents purchasing footwear for children and pre-teens.
• Professionals and Affluent Adults: This category primarily encompasses customers of Johnston & Murphy. These individuals often seek classic, sophisticated, and higher-quality footwear, apparel, and accessories suitable for professional settings, special occasions, and upscale casual wear. The focus is on craftsmanship, comfort, and timeless style.

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Mimi E. Vaughn, Board Chair, President and Chief Executive Officer

Ms. Vaughn joined Genesco in September 2003 and has served in various leadership roles, including Chief Operating Officer, Chief Financial Officer, and Senior Vice President of Strategy and Shared Services, before being appointed CEO in February 2020 and Board Chair in July 2020. Prior to her tenure at Genesco, she was the Executive Vice President of Business Development and Marketing and acting Chief Financial Officer for Link2Gov Corporation from 2000 to 2001. From 1993 to 1999, Ms. Vaughn worked as a consultant at McKinsey & Company, specializing in the consumer and retail sectors, and also held corporate finance positions at Goldman Sachs & Co., Wasserstein Perella & Co., and Drexel Burnham Lambert.

Sandra E. Harris, Senior Vice President, Finance and Chief Financial Officer

Ms. Harris was appointed Senior Vice President, Finance and Chief Financial Officer, effective October 7, 2024. Before joining Genesco, she served as CFO for Artisan Design Group from February 2023 to April 2024. From 2019 to 2022, Ms. Harris was the CFO and COO of Tupperware Brands. She also spent nearly ten years at VF Corporation, from 2008 to 2017/2019, holding various financial leadership positions, including Chief Financial Officer for Direct to Consumer, Global Supply Chain, and Shared Services, and served as Chief Information Officer, overseeing the transformation of VF's global technology.

Scott E. Becker, Senior Vice President, General Counsel and Corporate Secretary

Mr. Becker joined Genesco in October 2019 as Senior Vice President, General Counsel, and Corporate Secretary. Prior to Genesco, he held various roles of increasing responsibility at Nissan Group of North America and Latin America from 2006 to 2019. His responsibilities at Nissan included oversight for legal, government affairs, finance, strategy, and administration, and he served on the executive management committee and boards of directors for several Nissan entities.

Parag D. Desai, Senior Vice President, Chief Strategy and Digital Officer

Mr. Desai was appointed Senior Vice President, Chief Strategy and Digital Officer in April 2021, having previously served as Senior Vice President, Strategy and Shared Services since December 2014. He brings decades of experience in developing business strategies for evolving consumer behavior, channels, and technology. Mr. Desai spent 14 years at McKinsey & Company, where he was a partner for seven years and a core member of the firm's global retail leadership team and consumer practice.

Richard T. Higgins, President, Genesco Brands Group

Mr. Higgins was named President of Genesco Brands Group in March 2024, after serving as Chief Product Officer since 2022. He is an accomplished footwear executive with over 25 years of experience, known for his brand vision and product strategy. Before joining Genesco, Mr. Higgins served as Senior Vice President, Global Merchandising/Marketing at Skechers Footwear, where he was instrumental in expanding the brand's presence and driving its global success.

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The public company Genesco (GCO) faces several key risks to its business, primarily related to its financial structure, operational performance, and market concentration. The most significant risks include:

1. High Debt Levels: Genesco's balance sheet is considered overleveraged, with its debt significantly exceeding its cash reserves. For example, in a recent assessment, its $613.7 million of debt surpassed $27.03 million of cash, and its net-debt-to-EBITDA ratio was 8x. This high level of debt increases the risk of permanent capital loss and can make additional borrowing more expensive, potentially limiting the company's financial flexibility.
2. Weak Operating Performance and Profitability Concerns: The company has exhibited underperforming sales, low returns on capital, and limited growth opportunities. Genesco's operating margins have remained stable but low, with the company largely breaking even over a two-year period due to a substantial expense base and inefficient cost structure. Furthermore, its return on invested capital (ROIC) has declined, suggesting that new investments are not yielding profitable growth. Recent third-quarter results highlighted investor concerns over profitability, with management noting challenges such as heightened promotional activity in the UK and tariffs impacting gross margins. The company has also struggled with operating leverage, being unprofitable for significant portions of the year.
3. Reliance on the Journeys Brand and Diversification Challenges: Genesco has become increasingly dependent on its Journeys brand for top-line revenue. This concentration exposes the company to substantial risk if teen-focused footwear trends shift. While Journeys has shown positive comparable sales growth, other segments like Genesco Brands and Johnston & Murphy have experienced declines. The company has also faced challenges with overall demand, as evidenced by annualized revenue growth being below its five-year trend and underwhelming or declining same-store sales in some periods, which may necessitate strategic changes or store closures.

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• Increased focus by major footwear brands on Direct-to-Consumer (DTC) sales channels. As key brands increasingly prioritize their own e-commerce sites and physical stores, they reduce reliance on multi-brand retailers like Journeys and Schuh. This can lead to reduced product availability, increased competition for customer attention, and a shift in consumer purchasing habits away from third-party retailers.
• The rapid growth and mainstream adoption of footwear resale marketplaces. Platforms such as StockX, GOAT, and Depop offer consumers, particularly Genesco's youth-oriented demographics, alternative avenues to purchase popular and trendy footwear, including both new and used items. This directly competes with new product sales at Genesco's stores by providing alternative supply and consumption models.

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The addressable markets for Genesco's main products and services are substantial, primarily encompassing the footwear and headwear industries across various regions.

Footwear Market

• Global Footwear Market: The global footwear market was valued at approximately USD 463.87 billion in 2024 and is projected to grow to about USD 789.52 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 6.88% from 2025 to 2032. Other estimates place the 2024 value at USD 700.90 billion, reaching USD 1100.38 billion by 2032 with a CAGR of 5.80%.
• U.S. Footwear Market: In the United States, the footwear market reached an estimated USD 94.7 billion in 2024 and is expected to grow to USD 119.0 billion by 2033, with a CAGR of 2.6% during the 2025-2033 period. Another report indicates a market size of approximately USD 97.72 billion in 2024, projected to reach around USD 141.89 billion by 2034, growing at a CAGR of 3.80% from 2025 to 2034.
• Global Athletic Footwear Market: This segment of the footwear market was valued at USD 141.1 billion in 2023 and is poised to grow from USD 148.72 billion in 2024 to USD 226.51 billion by 2032, at a CAGR of 5.4% from 2025 to 2032.
• U.S. Athletic Footwear Market: The U.S. athletic footwear market was valued at approximately USD 15 billion in 2023. Another source indicates a value of USD 44.53 billion in 2024, projected to reach USD 60.1 billion by 2032 with a CAGR of 6.9% from 2026 to 2032.
• Global Kids Footwear Market: The global kids footwear market was valued at USD 54.49 billion in 2024 and is projected to reach USD 79.11 billion by 2030, growing at a CAGR of 8.2% from 2025 to 2030.
• U.S. Kids Footwear Market: The United States kids footwear market size was USD 14.26 billion in 2024 and is projected to reach USD 26.39 billion by 2033, growing at a CAGR of 7.13% between 2025 and 2033. North America is identified as the largest market for kids' footwear, accounting for approximately 40% of the global market share.

Headwear Market

• Global Headwear Market: The global headwear market size was valued at USD 23.1 billion in 2024 and is expected to reach USD 36.3 billion by 2033, exhibiting a CAGR of 4.88% during 2025-2033. Another report states the market was valued at USD 22.84 billion in 2024 and is expected to reach USD 34.97 billion by 2032, expanding at a CAGR of 5.47%.
• North America Headwear Market: The North American region currently dominates the global hats market.

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Genesco (GCO) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives and market trends:

1. Growth in Journeys' Digital Business and Strategic Plan: The Journeys brand, a top priority for Genesco, is implementing a three-pillar growth plan focusing on product, brand, and experience. Journeys' digital business has already demonstrated double-digit growth, and continued investment in its online channels and strategic initiatives, including a loyalty program and refreshed marketing, is expected to increase average ticket and traffic, thereby boosting revenue.
2. Store Optimization and Enhanced Productivity: Genesco is actively optimizing its store footprint by closing underperforming Journeys stores and focusing on driving productivity in its remaining fleet. While this involves net store closures, the strategy aims to enhance overall profitability and revenue per store through more efficient operations and strategic locations, including off-mall formats.
3. Overall Comparable Sales Growth and Improved Sales Outlook: Genesco has raised its fiscal year 2026 topline outlook, projecting total sales growth of 3-4% and comparable sales growth of 4-5%. This optimistic outlook is attributed to anticipated continued momentum in the Journeys segment, with sales expected to be up mid-single digits. This growth is driven by improved store traffic, conversion rates, and transaction sizes across the company's brands.
4. Cost-Saving Initiatives and Gross Margin Improvement: While primarily impacting profitability, significant cost-saving initiatives related to inventory, occupancy, logistics, and procurement, targeting an annualized reduction of $45 million to $50 million by the end of fiscal year 2025, can indirectly support revenue growth by allowing for more competitive pricing or reinvestment into growth areas. Improved gross margins across some divisions, such as Johnston & Murphy and Genesco Brands, also contribute to a stronger financial position to pursue growth.

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Share Repurchases

• In Fiscal 2025, Genesco repurchased 399,633 shares for $9.8 million.
• During the first quarter of Fiscal 2026, Genesco repurchased 604,531 shares for $12.6 million.
• As of March 2025, the company had $42.3 million remaining on its expanded share repurchase authorization, which was increased by $50 million in June 2023.

Capital Expenditures

• In the fourth quarter of Fiscal 2025, capital expenditures amounted to $14 million, primarily directed towards retail stores and digital/omnichannel initiatives.
• Capital expenditures for the third and second quarters of Fiscal 2025 were $13 million and $8 million respectively, also focused on retail stores and digital/omnichannel initiatives.
• For the first quarter of Fiscal 2026, capital expenditures totaled $15 million, with a focus on store remodels, new stores, digital investments, and other customer experience enhancements, including the rollout of Journeys 4.0 stores.