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On Monday, 14 September 2026, Genesco Inc. (GCO) presented its growth strategy at the Goldman Sachs Global Consumer and Retail Conference. The company focused on footwear, tighter execution, and higher margins, stating that it is outperforming a challenging market. However, Genesco cautioned that the second half of the year could remain uncertain due to fuel costs impacting shoppers.

Genesco's shares increased by 2.22% in premarket trading at $35.9, after closing at $35.12 the previous session. The stock remains below its 52-week high of $43.6, but is above the low of $21.93. Journeys, one of Genesco's flagship stores, has reported eight consecutive quarters of positive comparable sales, with August sales increasing at a mid-single-digit pace. The company is targeting a 4% operating margin, generating around $100 million in operating income from its current base.

Schuh, Genesco's U.K. footwear business, has seen a 300 basis point gross margin gain after reducing promotional activities. Genesco expects a tougher second half of 2026 but anticipates improvement in 2027 as the consumer's financial situation remains decent. CEO Mimi Vaughn highlighted that Genesco has rebuilt its digital and store capabilities, with the changes becoming evident in sales and profitability.

Management revealed that the company has doubled the size of its digital business and built advanced analytics to connect stores and online sales, repositioning the company across footwear and related categories.

Journeys, the main growth engine, has expanded its customer base and is now targeting a six to seven times larger segment than the teen shoppers it once catered to. The brand uses campaigns, store design, and assortment changes to appeal to female consumers, extending its reach beyond teenagers to a broader group of fashion-driven buyers.

Journeys has added $50 million to Genesco's bottom line over the past couple of years, with the chain delivering eight consecutive quarters of positive comparable store sales. August sales accelerated to mid-single-digit growth, and back-to-school sales improved after the later Labor Day timing shifted demand into the period.

Genesco emphasized pricing over discounts, with higher average unit retail and pricing throughout the first half of the year. The company expects pricing to stay elevated in the second half without a significant increase. Genesco's 4.0 Journeys store format, which opened 85 stores last year and plans to open 95 in 2026, is a key driver of traffic, conversion, and average selling price, delivering a 25% uplift in performance.

The format is particularly effective in higher-tier malls and markets like California and Texas. Genesco also highlighted product trends, such as low-profile shoes, lifestyle running styles, ballerina flats, and Mary Jane styles, driving growth across athletic and casual footwear.