GCO - Earnings call 3 2024

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Operator

Good day, everyone, and welcome to the Genesco, Third Quarter Fiscal 2024 Conference Call.

Just a reminder, today's call is being recorded. I will now turn the call over to Darryl MacQuarrie, Senior Director of FP&A. Please go ahead, sir.

Darryl MacQuarrie

Good morning, everyone, and thank you for joining us to discuss our third quarter fiscal '24 results. expect today, forward-looking be but call expectations reflecting different. the of as actual on to statements make our Participants results could call. company's measures the for also to some Genesco release the made factors most this today.Participants, to cause of during in XX-K SEC differences certain the could the statements from recent filings refers refer its reflected filings, adjusted expect XX-Q morning's and the to that financial including expectations you and earnings forward-looking financial reconciled morning's in release on are non-GAAP the attachments the and available counterparts All their GAAP in measures to schedules Results website to press the section. Quarterly this company's in

Board also me Chief Executive Chair, as We a Chief our summarizing Officer; well. and posted Thomas on results Officer. today With call George, here Vaughn, President have the Financial and presentation Mimi is

Now to Mimi. call over I'd to turn like the

Mimi Vaughn

thank morning, Good everyone, Darryl. Thanks, for and joining us. you

this success career, to look see Andy. team excited Sypert, join I'm elevate him Andy the we the and Andy for culture strong announced forward. his exceptional over expertise we his his business him Before essential performance, future.And we Journeys, drive potential who accomplished brings and building, the I to we to COO, in President. talented Journeys' building to youth person new areas ahead.I week, the connection to work recently Journeys' make invaluable brand brand of the and partnership, earlier product appointment relationships Mike is have the built experienced he's to as leader for at Welcome, innovation lead the quarter ideal to third other the and discuss business as an in Gray place forward unlock appointed and going great

Now, moving to results.

the a we're quarter, and tracking start expectations. back-to-school, in early third to sales generally later to up our picked Following

season in seasons, delayed for muted start of October later initial trend selling a However, as the the change in the and demand we saw fall marked products. change of

system, lower In Journeys' implementation businesses results we our to Johnston quarter.Despite we contributing continued that spending. than disruption challenging third impacted uncertainty pressures discretionary improvement, to operating and sales trends headwinds, new record Murphy were branded sales.The the quarter as our and and by & related overall these the continued remained pleased were for addition, delivered to ERP Schuh of a environment ongoing business to sequential within inflationary show economic impact anticipated

to tough they demand in to this so when often categories As their throughout make make are choices we've shop, are and spend continue other seen profitable. year, discriminating to they where choosing closer need do carefully their doing and this And drive purchases. strategies continued our discretionary productive dollars, consumers more consumer and to more business decisions.Against backdrop, to the purchase on advance over we

having on store QX Journeys' track, targeted of closure end Our doors the are the to of closed and remainder by year-end. XX% approximately close through XXX plans planned the

$XX cost We efforts cost the end savings 'XX. fiscal of also to of our by million on with realign base realize and annualized pace remain

with that we detail off holidays performing loyalty sales discipline highlights half strong year omnichannel into and our inventory to items and the QX. in unanticipated program offering accelerated in and has in store first the digital enabling the results, expanding X% year Journeys, in additional late traffic in businesses Journeys inventory improve single effect experienced our Journeys Other our enough against considerably recent individual to is August in negative included start, Online quite year-over-year. the Journeys' QX chase discounting our we to In and the of of digits the continued at into our QX. from positive changes that versus penetration in sequentially strong, strong down territory shifted to of to lack Finally, in resonated for product the weekend. most maintained promising expectations.Sales J&M XX% improved trends XX% key by up quarter-to-date, launched finally, and continue for continue Journeys with by to Black overall merchants Friday the first early as Back-to-school offset selling, Even All high we outpace were start time across and trend were though a this time a advancing strong newness And I'm or convenience well experience. and part versus must-have our well, once again product. year, the business nonetheless Journeys' digital discussed growing a we October athletic pick September industry conversion to more late pleased Buy total mix into expectations.Now, to we comparable able fall to starting through QX say high to Access ago.We this and discussing wasn't driven comps

environment remains to are we volatile, injected brand assortment. the have and product the the Although newness responding into consumers partners well our

for for the consumer third story compelling other to quarter to more usage and as Access campaign October, feature efforts currency holiday digital We SMS performance growth and recognition in the in to XX% our fashion in sales in strongest total customer new the by youth facing adding sales as increased date, was average and well change consumer its footwear growing growth and share on sales the and higher continues business shoes has through been backpacks. driven accomplished in casual outstanding kids aided comp digital members.Now, for has gains. marketing sales. enhance U.K. investment reflecting product in success to resulting a assortment to pronounced by The led moving our seasons X% of like amplify will are women's, by were achieved through the QX this Schuh Schuh of to pressure things, delay top-tier of destination account pullback prices campaigns quarter the to followed nearly access most constant and later categories a double-digit this by back-to-school selling Despite throughout products.Solid Journeys' value leading gains excited delivered driving market and the the as Schuh's positive All the business, in year.Schuh nonfootwear among and as campaigns, rewards which, proposition stores notched strength

its in in total Club in position members bolster more and continues maintaining As spots of Schuh about surprise U.K. engaged market this through year, posting year.Loyalty program.Turning digital now customers, multiyear up and including #XX quarter highly to sales, Schuh's Johnston and million exciting bundled positive sales Kantar, a & a with effort, members brand more above the sales added set campaign is running growth stand the holiday unique record of X XX% and purchasing tracking The third after tied ranked season Schuh mid-October, to promotions Schuh compare. run according content share now to its to earlier loyalty QX Murphy. footwear at moving counting tough to frequently. to despite of $X a this and delight strong headwinds

for agility this was the sales. with new of pandemic some of footwear system growing from the a modern sales reposition continues DTC fall J&M more of over joining made of provides growth benefiting to We're over the lost casual the for of the X% XX% accounting XX% to other challenges accessories, all-encompassing products. XX% J&M greater support for robust in of that outerwear J&M's business led immune the stalled to of now not implementation more account business. to Casual growth ERP customers J&M encountered J&M's J&M's also the sales. our and the a to pullback effort accounts and results, sales changes now QX, we platform out program. program. revenue and multi-category new drive bright Apparel lifestyle over spot, is hit with broader October and other affinity brand.Supporting Insiders together consumer direct-to-consumer from of DTC branded insider in XX% approximately as this coming While

next investing has to of at new with part strengthening on very to potential the J&M's we've making phase Looking focus launching we customers roughly ahead All very J&M plan are growth, footwear The Access Members on just progress.Number consumer to remain remain creative a and July. key in proven and beginning it.As opportunity partnered team to significant with fashion unlock our the of retailer dynamics loyalty track are responding that, Today, other consumers data target brands, and where through of customer coming strategically we members Journeys our increase shoe our positive buying the areas done on often Journeys' paying access record value This and against we target unlock quite launches per compelling are relationships year history managing fundamental same and expand has stronger preferences. proposition and CRM range a away the since legacy. back this to from leverages considerable based shift to our and With our which of we're longer-term broader of to to as results work fashion X.X more pressing its spring brand agency of us, of runway average no elements one, growth. only much and marketing as get mix reach into the the brand the customers. than more improvement with and at Initial educate and up marketing in fiscal line is this dividends. awareness, its forward the more on drives customers.Now, Journeys. strategy dress purchase currently top adverse good I'll With team to we plan, heritage tenets of 'XX, and more the the Elevate XX% meaningfully top-of-the-funnel new we're maximize date million a engagement spending from loyalty other We're as expanding order. nonmembers stands intact. serves cycles, Journeys' customers signed highlight turning program and already top consumer with to out accelerate have Journeys.While finish and changing footwear-focused side. which action to our to our about of encouraging,

partners During brand we campaigns, the exclusives diligently presence the would the upon assortment. position unique included and integrated to the most to tie-ins, view our test But we focused Journeys' home new more focused brand the build brands for to Access that on repositioning to ran a relationships. elevating elevate the we've and the seasons. assortment, product marketing. value our on styles, add instore add campaigns age number Journeys three, time, these and strengthening partnership as partners brand and accessing working dimensions customer.While QX, call-outs.Number than been access brand All and increase the proposition to made coveted And social some for presence brands. top team key two, We've number in-demand These differentiation good more further new strategic with expand upcoming our take Journeys' will conversation that, in will brands, that progress sharpening Journeys' fully of assortment which we reinforces destination

top across also in is sell. the launched Buy certain have learnings We're all the when Number driving drive in strengthen consumers leading stronger terms to for initiatives small we four, initial store.Although a Our to early our recently fashion those service growth. environment. voice Journeys us and Pickup what lift full at customer share Online opportunity and to are pick holiday. mind investment Journeys' of for social applying adoption while in digital paid right social to insight We're rates mind the in We across customers BOPIS Store, we're Journeys' incremental this doubling fleet seeing are total informed these we and by attachment channels. for purchases to see to we evolve We now, strong how response. awareness AOVs. of work that carry, add-on to down in We're back-to-school meaningful for in increase brands continues implementing stage excited customer increased drive efforts our and up encouraged a omnichannel brands

we've from business, partners our to counts Beyond XX.And websites our our to digital footprint drop-ship number part it room to stock the include more driving learnings that productivity studies on of key as the a having from impact time processes. These shoes efficiency. time on unproductive daily conversion SKU and and Journeys' expanded grow raised product than eliminating productivity. BOPIS, implemented five, are store positive and takes also optimizing and and effort shortening We've get Journeys' our our

software hardware point-of-sale and new and also average additional higher generating are size. operating contributing Our efficiencies to transaction

$XX million, achieve the I Regarding to about we store million we're in savings targeting. $XX the of addition earlier, expect of annualized closures which savings mentioned to is annualized cost

or we're need direct a breakeven stores.To comp worked a from I the we're we're consumers plan our making the income, and improvement we have stores hard pleased deploying progress it in communications much very transfer our achieve these nearby up, future.Now, to the to team operating that Elevate online Given abilities Journeys' the year moving little customized sales. challenges sales with to those to this sum challenges shifts and ongoing to dynamic to to the Journeys' in to in The market. outlook. address strong stronger has and belief adapt in with

best and made on environment busy nonpromotional weekend. experienced confident this said, more across for retailer strength, season.Before total acceleration year, work And in time footwear Weekend our the more Tom positive we're comps fourth encouraged were Tom. we choppy it's show appropriate Journeys at in is of especially arrival online retail strength look efforts challenging forward, actions currently resulting pullback when this to strong closing, I'm our many the I'll following a and amazing plan all we are store your appreciate competitive through our holiday seasonable with of in business. I'd executing quarter drive widespread In in and holiday the that for pass especially the a company guidance the I your provide like leaving moment entered over to side We're That are thank the to we over very the the throughout your details. and that call an to brands certain and of margin meaningful raise season dedication over even today, heading people our driving into hard environment. we've believe say I'm but and strategies largely anticipated an our And to game company this fall you'll is progress, the activity stay more promotions the us J&M to this Journeys' concepts revised and and sales will but initiatives are traffic way, are resilience the that other As higher of for selling date.In October. positive we the reflected running Thanksgiving of weather. quarter, demand pleased going the than environment.The impact saw the to season, holiday to strategic to our remains response, we start more with addition the that, level.As will even a which to these increase forward, record decision by promotional holidays the I'm

Thomas George

Mimi. Thanks,

financial we progress Our we the and reflects to only continue third challenges quarter hurdles also not but the performance make. faced

markdown more X%. coupons Adjusted at expense comps were Schuh's over increase comps an the year. reinvest at increases. X%, down gained basis, driven to base which improvement growth, By absolute increasing last our the basis year price increased SG&A on revenue with and and will despite pillar Schuh us comps constant with for the in seasonal cost were same and and XXX of to mainly a expectations, down store from total offset points margin along were X% total introductory shift.Schuh's to the associated duties some increase client was pleased Loyalty from better its basis was Total our gross was activity, last sell line in normalized Group was base. to currency points SG&A of comps sales. as division down as margin Journeys' expectations, expenses branded the X%. initiatives, lower gross driven we basis for versus savings to down costs reshape resulted deleverage to transit.Finally, lower-than-expected Schuh. versus sales.In Journeys.Relative up mostly our By at see Program, fiscal drove quarter. and was had last As dollars, believe stronger reduced Brands gross Overall, look our sales, center points, results basis XXX last a increased the in down at while due invest its caught the to in by basis benefit a conversion selling and variability X%, gross continue and to J&M our salaries margin with now year mix Journeys' Journeys Journeys' most branded closeout available expense line other the businesses lower up discipline mix.J&M's with product our was as were and time, the compared due Ireland-based occupancy, were foundation last distribution while total results.Turning as benefited of fiscal channel, to much basis of and $XXX future reduced by Consolidated well we inventory product by another position was new on with sequential were year X% and out we we expenses last to direct expected year. margin sales more XX as elevated round to Journeys ERP in compared this dealing of from trends were business, negative, up X%, and to XX.X% sales increased business, in and XXX In strategic begin flat as including marketing, still to points XXX cadence Genesco transition gross year. total our XXX J&M solid much the around 'XX, our increased promotional Journeys.Meanwhile although financial enable By points with comps year's traction points the down J&M X% later drive million, This positive assortment sales to down costs in in to down us trend last businesses cost was our for we store efforts freight logistics comps year comps deleverage remained to margin the have more challenges. to

key invested costs a QX, on term over and company renewals X fleet we in of This the compensation forward, average with addition, fixed in still couple people to renewals for in lease new years. of overall which in our In XX% our priority. initiatives.Lowering an for to reduction increased amount of store drive occupancy XX we our approximately expense channel XXX straight-line years. remains reducing up depreciation resulted across in a systems the with expense rent In brings XX% and business technology achieved the year-to-date coming renewal the in next IT of

be million large tax on of last expectations, ERP We nice $X.XX EPS lower in an to told all been rate been versus third area summary, in per we of cost headway for result. of year. with adjusted to where lot of per ubiquitous, savings.While In to hold capture savings earnings quarter have operating $X.XX last for quarter, savings million an $XX.X our the pressures this income year. flat additional prevalent on we of resulted challenge. environment disruption of other a This All realized increasing adjusted salaries, diluted rent operating last runway of QX the selling a the higher-than-expected we making continue and to and to to earnings wages on have impact adjusted a $XX SG&A coupled pleased our income these dollars compared extent year.Relative share and had internal have for the were share

and to now allocation Turning capital balance sheet. the

and well were a adjust levels increased needed with were year our the year a in very we continue enabling quarter XX% And With X% newness digits quarter with although unavailable we fiscal assortments to was position.Regarding clean significant with to inventory last levels X omnichannel we continue brand year-over-year. with expect in $XX shares As we the in ago, the higher to the X,XXX us to ending we and fully total receipts the our respect inventory the down than investments last opened primarily in mentioned, keep specifically, I million and stores.Lastly, in single stores, with in net high entering ended a last controlled, versus end transit initiatives. to current repurchase remains XX, for to the and were we our authorization outlets inventory borrowing sale.Overall, to of positioned year year's Journeys pleased quarter as assortment.Shoes to business. compared keep Capital amount and which retail didn't directed QX as with stores work position last expected, our 'XX. more inventory, of versus inventories quarter, million. and our partners support digital down at We inventories down lower inventory J&M's this the thoughtfully year inventories during year closed we've expenditures off-mall were the to demand and primarily end to any $XX in manage our

repurchased almost X our shares.Regarding to in savings are fiscal cost by outstanding annualized up working the have million of initiatives, diligently the we deliver run $XX Over savings 'XX. the to of rate cost years, XX% end of we past our

on to 'XX. the million we in from salary costs services Journeys' the from savings to end of combine cost central productivity expenses, our cost lower by of gains, to promotional close ago an that the from inventory Journeys' variability product respect XX store in and eliminates lead fleet year of having the see you to 'XX. the our of expect efforts savings end the fiscal and on drive and store With in our an basis or assortment trends to $XX $XX on coupled we guidance. QX an aim increases Overall, the omnichannel and roughly million far logistics fiscal mentioned, times now savings part costs in margin stance more these remain this us the thus sales turning cost demand Journeys.However, modest a activity operating at will holiday are is accelerated to with we in to from the achieve annualized the positive to given going due adjustments Mimi locations.As XXX this closures, have led on of promotional drive into the to selling in cost reductions of and heightened The achieve we SG&A along nicely store has warehouse savings more season QX, mall-based expansion primarily programs months of were leverage These progress beginning roughly goal corporate product to year. X% especially sales impact benefit start stores additional expense since stores the the which we at structure to begin of closure approximately Journeys' initiatives.When to total expense closed rents, We freight forward, week-to-week, plan, with pace variability optimization costs reduced us several reduced increase take made and demand shared consumer location at competitive reduced are Journeys growth.Now, in environment.

sales more also expect X% result expectations put X%, some lack million we expect add the in also effect to week, factors, branded somewhat we late, gross $XX sales, channel we to to consumer Schuh than the wholesale decrease be expect all of We at margin our earnings this While of additional our will XXrd J&M excluding to growth to of and full positively and X% of the down approximately in share. sales total and prior we now expect given per have visibility trends business.Combining these prior impact our other year expect ongoing muted softer pressure now on X% expectations a some the negative small it to pressure. which on versus to

X%, division continue to We total the sales Journeys, expect last compared decrease high sales on we X% year.For year-end a decline. to single-digit by expect color to then to

we Schuh, low expect to growth. continue double-digit For

high adjusted forward down fourth gross growth Brands, For points.The expect guidance for to margin decline. primarily as now points be double-digit XXX expect product prior deleverage sales shift. We increased We Journeys, XX basis XXX basis compared view basis prior as to mix of deleverage.Given and now of driven our well activities gross XXX low points XX compared to a to quarter by of as XX revised single-digit our QX, fiscal $X to change percentage points and to per down to to share basis for be our Genesco margin a the our adjusted assumptions $X now to view 'XX full XXX going earnings results to for to our J&M, QX actual compared promotional prior expect we now of to in year $X.XX we expect of range flat at SG&A is $X.XX. in

of Our take expectation will necessary to additional company no for current outstanding questions. consumer measures we deliver open call $XX.X ready environment XX%. is the to average share close, profitability now million, of state leaner the needs we the be ultimately stronger 'XX assumes our the while continue this we approximately to range.Our meet approximately agile evolving results the and of midpoint fiscal guidance and towards are proactively that navigate our to consumers, we to more to shares drive be the which Operator, and also near repurchases To in returns expect tax shareholders. our a better rate greater

Operator

Thank you. '[Operator Instructions]'.

from is question the with first Our of line Mitch Seaport Kummetz Research.

Mitchel Kummetz

I into when that flowing margin in of assortment. reported gross you raised a of because and with the improvement kind XQ expecting XQ, gross more of part were I've newness outlook got margin Journeys' the was guys few. your you guess Mimi, you

non-newness of I sort maybe elaborate move sort call of from not performing is at just like that ago? what's product? a the product made consumer deeper that comment also would maybe wondering X discounts Is on to is I'm as months the Is X well? just things, you think the time you looking must-have or newness for I Or Can good what the changed And in that? assortment? the deals. requiring

Mimi Vaughn

us, last for that going take question, over going through and really and anybody are. lot product I where environment November the tough. months. traffic the out into that there, is And through you a give I'm Thanks consumer, of who been October was Friday, And in chasing starting you to saw, and conversion a bring on, And but nicely. October, all think the and your of job phenomenal boots the just a and that absolutely, done we mix has boots quite was ups resonating sells our the have in were we What into spend seen selling But quarter. bring of looking, sense we the Black is really few for else there XX% downs into XX% we've fourth consumer you Mitch. newness October a lot in motivated consumer and to sales merchants and was you to in but they working.Our quite as is product with and saw not then represent to

malls. And activity also would buildup out some saw in were to in your sales we as to were we brands, the particular, of deviate of November promotional a some to that worked the sales were from but just that were is the Black our was mean But promotional.Now, made really weather, Friday aren't so, thought be change lot were that's promotional. brands for slower get retail shopping saw be if coming And the sales. they it and seem in course our with pricing if the as the of there what as people we excitement what people that quarter experience. well. drove you It in We from October.We of over that in shopping. our through, over of promotional really that more saw then a all good going third for traffic say positive a inventory and They market boot were footwear I in was joyful year over Friday, where colder out, pent-up we concepts. Black

traffic to some items And so else with here, but at price, the the product, market encouragement and right full some on needs the the where bifurcation Mitch, a order are off move. in of flying there's anything promotion must-have in

sales clear and we start markdowns promotional this to the more overhang holiday. guidance that taking push as to is few up an through as world for as next and are hopeful this market we clean. for days not that what year is have-to-have be a year to be able driving And footwear going we're able more to bit within get our in that sure, be what all, to the the able evaluated lining be a our will through the to we're we anticipating it's so, final we will in more are And and see brand be the we that you'll is that, inventory and will of industry, we there.What these that category world, have be a all,

Mitchel Kummetz

the And then, of you talked Mimi, Journeys. strategies at about some

the of that Again, assortment, terms in you speak of assortment there? terms What the the maybe the can than that? tweaks merchandising. you more strategy? I are of think the one of them making that you the kind significant maybe more said kind you the always to exactly are repositioning impression looking typical got in assortment aim was repositioning this of guys that do to What's to

Mimi Vaughn

Yes.

footwear. are that teens we So, Mitch, of fashion looking have best teams go the to buy where and for our items their a we're the is that our destination for looking for. customer great supply always And

that year did our that's chasing the year this and of from of the the of where for at what the is we and there. improvement.We're customer where spend retail see when to right what part quite we Our the driving in what it we're comes beginning are very that's hanging all choices pleased the we and had consumer and newness, and sales that's but know best we've improvement the on.I discerning think now, at into into appetite spending of comments, our that the deviating trends is what Journeys we're year, and beginning is a back huge in to of the I don't our for they're They're a we're what that results pickup. being at of point year having the started from the and the big chased merchandising

the as we're into newness. We're to to with to front choice. exclusive more to the of chasing that get differentiate our in is this working have and more the continue have So, of consumer further must-have destination order in our it really of to product, brands assortment

Mitchel Kummetz

of But there? your looks start. to in good of did case? mean, that It inventory that kind you mix that a is slow Or got through the on guys sitting of in strategy uptick of in activity. as a some are boots many mention just lastly, inventory the percentage maybe a its I XQ terms terms promotional like order work shape. the large excess not off the in are and mean, I is in then the in boots content, And and Journeys' few too you part of actually season to promotional

Mimi Vaughn

that Yes. in the on move need to I third certainly move in able saw unfolds.And dry to we good of we certainly, that course we sure and Journeys. that have to say we make enough the powder, the on that as whatever holiday November, were for Mitch, I think we items would want quarter be sales to over

at that these spurts the and selling in see we've spite warm in the lower of spurts in other the of hold we boot of we've has has cold those much consumer in sell-through and so, in some that of the buying sales, And interested had And pickup gotten spurts, here boots, a of products had rest cold when least spurts were we as gotten do boots. we again. country, and warm cold was see

move it shopping need at boot take we and we'll we going so, we'll and And whatever out that the consumer then believe to that the know the to around have, season. cold, end will we we is of inventory marks the the holiday, be be

Operator

Stichter with of Jefferies. the line questions Hoffman next from Our Janine are

Janine Stichter

calling X? differences worth the Are to between out could the we if wanted trends next trends those describe expect continue any just U.K. to year? U.S. into you between see can And those there consumers. really I and

Mimi Vaughn

your for you Thank question.

And so of has market, make of up consumer share. has inflation overall moved had the exceptional interestingly, ranking in point an outperformed the having similarly X U.S. the high Schuh have an market of view, to tracked from in has U.K. and the year, and business terms terms choices.Our market market economic places in

product been that consumer, are motivate on, we choices with the I across the so purchase.What consumer the have in board, and items the and the you who that out turnaround that and robust Black that can a selling seen resonates that recently the there so if competition start was among we with season slowdown have Friday we've with fall of there making is U.S. sales. you products most consumers have a really then you think seen wants they're the And if spending have punching

was value We sale great were Friday consumer had think must-have I pay and Friday the they that States United that's is weekend. Black acting U.S. to Friday to talked year. U.K. U.K. is showed last now U.K. of we this in think the the U.K. really lot now, up consumer has highlight traffic on the up, market market out.Typically, Our unfold U.K., the in further. shop. consumer is the Christmas. strong the of out the is weekend store that product. season other about. traffic that We stores the over we holdback difference Black a in the altogether, But right there was in some very seeking may the be that the the pickup Black and Right weekend holding waiting, they'll than before the that the for that, goes Altogether, think a the way are But

Janine Stichter

that chain follow-up are, there any are they that into moment? And next will turn tailwinds there or another Are a headwinds And follow-up. costs are at supply the quick any if then year? or material

Darryl MacQuarrie

expect rate year would on This seeing in perspective.We all in business we and a product starting forward. we're the good that development a branded logistics from at say gross logistics we're and making headwind getting and margins as feel the cost good a margin improvement and in point that the costs cost our gross about at we're year, going to going in business, our result expect And efforts all we're there design a in well the perspective our branded then retail all a that and really forward. of and branded our is lot not the was as this headwinds good a expansion partners, reduced time, and airfreight in.So, sourcing estimating not we as supply see last I in to any Yes. chain a perspective really our going forward are think going perspective. costs the from with really that we're freight position on business branded business, we of relief big headwind

Mimi Vaughn

has we've cost The that pressure been wages. facing around been

that of the are lot a use talking initiatives efficient. make we is of about more able to to so, be our labor And

within been where work out are started helped for pressure doing, cost shift stores.We work But the and increases pace the down make year on we just wage store on that nonproductive we'll of much adding this we're we we're automation, our Schuh, overall anticipate this to dividends. and in we're to has and have in coming in into time for that efforts we've stores, that that in a selling, that there. Journeys so And seeing in are the distribution centers, that's on where with our and get lot We've progress more year. overall take on our in seeing spent the curve the doubling bend time a labor looking of the lot efficient we our studies area hours

Janine Stichter

luck you the Thank you quarter. as wind and of best

Mimi Vaughn

you. Thank

Operator

Thank turn time, any you. floor will this to the for Mimi closing remarks. At I back

Mimi Vaughn

and everybody of for you wishing talking to you today, season holiday Thank joining the us best new look the with forward in the year.

Operator

today's conclude will conference. This

your You thank may participation. and at time, disconnect for lines your this you

Genesco (GCO) 1 Dec 232024 Q3 Earnings call transcript