Footwear retailer Genesco reported a 3% decline in net sales to $530 million for the three months ended August 1, 2026. Despite this, the company's adjusted gross margin improved to 47.2% from 45.8% a year earlier, and its adjusted operating loss narrowed to $8.3 million from $14.3 million. Genesco now projects its FY27 operating income to be at the upper end of its earlier range of $34 million to $40 million. However, it forecasts FY27 comparable sales to remain flat (previously 1-2% growth) and total sales to decline by about 2% (previously flat to 1% decrease), largely due to ongoing challenges at Schuh.