Genesco Inc ( GCO ) shares are trading higher after the company reported better-than-expected first-quarter FY25 earnings.

The company reported a first-quarter sales decline of 5.3% year-on-year to $457.60 million, beating the analyst’s consensus estimate of $445.05 million.

The sales decrease was driven by a decline in store sales, decreased wholesale sales and the impact of net store closings. Total comparable sales declined 5%.

Comparable e-commerce sales increased 3%; comparable store sales decreased 7%. E-commerce sales represented 23% of retail sales compared to 21% last year.

Overall sales dropped 5% at Journeys, slipped 1% at Schuh,  4% at Johnston & Murphy, and decreased 25% at Genesco Brands.

Adjusted EPS of $(2.10) beat the analyst consensus estimate of $(2.66).

Gross margin remained flat at 47.3%. The operating loss for the quarter was $(32.1) million compared to a loss of $(22.9) million a year ago.

The company held $19.2 million in cash and equivalents as of May 4. Inventories decreased 17% a year-over-year basis.

During the quarter, the company opened one store and closed 21 stores. The company ended the quarter with 1,321 stores compared with 1,396 stores last year.

“Against continued headwinds in the operating environment, we executed to our strategic plan to deliver top and bottom-line results that were ahead of our expectations, led by our Journeys business,” said Board Chair, President and CEO Mimi E. Vaughn.

Outlook Reaffirmed: Genesco ( GCO ) sees fiscal 2025 adjusted EPS of $0.60 – $1.00, against a consensus of $0.64. 

The company expects fiscal 2025 total sales to decrease 2% to 3% compared to fiscal 2024, or down 1% to 2% excluding the 53rd week in fiscal 2024.

Price Action: GCO shares are trading higher by 14.9% at $31.36 at the last check Friday.