The following is a summary of the Genesco Inc. (GCO) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Genesco reported Q4 revenue of $739 million, a 2% rise mainly driven by all divisions except Journeys. However, without the additional 53rd week, overall sales saw a 2% dip.

• Despite the operating challenges in fiscal 2024, the overall sales decreased only by low single digits while the gross margin was compressed by 30 basis points.

• The company's Q4 earnings per share fell short of the recent guidance owing to softer sales and heightened expenses.

• Genesco's digital business grew at 5% in Q4 and 8% for the full year, increasing digital penetration to 23% from 20% last year.

• The firm produced approximately $108 million in free cash flow, indicating a robust balance sheet and substantial financial power to support the future strategic plans.

• Genesco anticipates significant pressure in the first half of fiscal 2025.

Business Progress:

• Genesco launched Journeys All Access loyalty program and Buy Online, Pick Up in Store initiative in North America, both of which have shown positive early results.

• A sizeable reduction in underperforming Journeys stores was achieved, with nearly 100 closures and further 50 being evaluated for closure in the current fiscal year.

• Progress is being made in expansion of the assortment for Schuh and J&M plans for fiscal 2025 while continuing with strategies to improve productivity and profitability.

• With a new leadership and focused turnaround program, the company is implementing new initiatives to enhance Journeys' product offering and customer experience.

• The company aims for growth in sales by injecting newness into product selections across online and physical stores, hinting a brighter prospect for growth and profitability, especially for Schuh operations.

• Genesco is targeting an annualized run rate reduction before reinvesting of $45 million to $50 million by the end of fiscal '25, surpassing the original target of $40 million.

More details: Genesco IR

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