Less revenue, better numbers

Genesco's Q2, reported September 3, saw revenue drop 3% to $530 million. The adjusted operating loss still narrowed by nearly half, and full-year earnings guidance moved to the top of the range.

Journeys is on a streak

The teen chain posted its eighth straight quarter of positive comps, up 2%, while lapping strong year-ago growth. Comps kept accelerating into August for a ninth consecutive positive month.

A store format that works

Journeys 4.0, a redesigned concept with a more elevated assortment, lifts sales 25% or more wherever it opens. About 180 stores, a fifth of the fleet, should run it by year-end.

Peyton Manning and cleaner books

Johnston & Murphy comps rose 4% on an extended Manning partnership and a dressier menswear shift. Gross margin gained 140 basis points to 47.2%, and debt fell to $15.8 million from $71 million.

Schuh is the drag

UK comps fell 9% after management pulled back on discounting to defend margin. Full-year sales are now guided down about 2%, worse than the earlier down-1%-to-flat call.

“The UK consumer market remains challenged and price sensitive”

It gets worse before better

Q3 sales should fall 4% to 4.5%, hit by $14 million from exiting older licensed brands ahead of the Wrangler launch, plus heavier marketing. Store count is down 5% to 1,186; inventory is up 8%.

Bulls and bears both loading

Hedge fund holders rose to 20 from 15, while short interest sits at 10.85% of the float. At a 13.87 forward P/E, the stock prices in little of the earnings recovery already visible.

The real test is next

The 4.0 rollout and the Manning campaign have to keep pulling younger shoppers in. Schuh's pricing discipline has to eventually produce sales growth, not just fatter margins on a shrinking base.