Shares of Genesco climbed nearly 8 percent in pre-market trading on Thursday after beating analysts’ expectations in the second quarter.

The Nashville-based footwear company reported a net loss of $8.8 million, or $0.83 per share, in the second quarter of fiscal 2027, compared to a loss of $11.7 million, or $1.14 per share, in Q2 2026. Net sales decreased 3 percent to $530 million compared to $546 million in the second quarter of fiscal 2026.

Still, this performance beat analysts’ expectations, which called for net sales in Q2 to be between $526.6 million and $528.7 million with a loss per share between $1.34 and $1.39, according to Yahoo Finance.

Genesco noted that the decline in net sales reflected the impact of net store closings, decreased licensed sales, a 6 percent drop in e-commerce comparable sales from reduced Schuh discounting and an unfavorable foreign exchange impact, partially offset by a 1 percent increase in same store sales and higher sales from enlarged stores.

The company further reported that overall sales for the second quarter were driven by a decrease of 10 percent at Schuh and a 21 percent, or $7 million, decrease at Genesco Brands, partially offset by a 5 percent increase at Johnston & Murphy, while sales at Journeys were flat.

During the quarter, the company opened three stores and closed 25 stores. The company ended the quarter with 1,186 stores compared with 1,253 stores at the end of the first quarter last year, or a decrease of 5 percent. Square footage was also down 5 percent on a year-over-year basis.

Genesco disclosed that it received $22.5 million in tariff refunds, including interest, during the second quarter this year related to its branded businesses under the International Emergency Economic Powers Act. The company noted that no additional tariff refunds are included in its guidance for the full year.

Genesco president, chief executive officer and board chair, Mimi Vaughn reiterated in a statement that the company delivered second quarter bottom line results that were “significantly better” than last year and well ahead of expectations.

“The quarter provides further evidence that our ‘Footwear First’ strategy is working and our momentum is building,” Vaughn noted. “Journeys and Johnston & Murphy both delivered positive comparable sales in the quarter, and earnings improvement reflected the operating leverage we set out to build, with more full-price selling aiding gross margin recapture and disciplined expense management driving the stronger performance.”

The CEO added that the third quarter is “off to a good start” with back-to-school and Journeys accelerating to a mid-single-digit comp in August on top of “very strong” growth the last two years.

Looking ahead, Genesco is raising its full-year adjusted earnings per share outlook to the high end of the $2.00 to $2.40 range, up from its previous midpoint of the same range.

Comparable sales are now expected to be flat versus prior guidance of positive 1 percent to 2 percent, reflecting greater pressure at Schuh, resulting in total sales now down approximately 2 percent versus prior guidance of flat to down 1 percent.

“As we move past these shorter-term headwinds, we expect sales trends to improve, and we remain confident that the initiatives underway across our company position us for profitable growth,” Vaughn added.