SHARPE
Reported results
- Net sales decreased 3% to $530 million in Q2 FY2027 compared to $546 million in Q2 FY2026
- GAAP gross margin improved 560 basis points to 51.4% (including $21.8 million tariff refunds); adjusted non-GAAP gross margin improved 140 basis points to 47.2%
- GAAP operating margin improved 330 basis points to 0.7% of sales; adjusted non-GAAP operating margin improved 100 basis points to negative 1.6% of sales
- GAAP diluted EPS was $0.32 versus ($1.79) in Q2 FY2026; adjusted non-GAAP diluted EPS was ($0.83) versus ($1.14) in Q2 FY2026
- Journeys comparable sales increased 2%; Johnston & Murphy comparable sales increased 4%; total comparable sales decreased 1%
- Adjusted EPS guidance raised to high end of $2.00 to $2.40 range for full year FY2027 versus midpoint guidance last quarter
Guidance
- Adjusted diluted EPS from continuing operations expected at high end of $2.00 to $2.40 range for FY2027
- Comparable sales now expected to be flat versus prior guidance of positive 1% to 2%
- Total sales now expected down approximately 2% versus prior guidance of flat to down 1%
- Operating income expected at high end of $34 to $40 million range versus prior view of midpoint
- Tax rate of 30% for FY2027; Q3 adjusted tax rate approximately 7% to 8%
Notes
GAAP results include $21.8 million tariff refunds and one-time adjustments including $6.9 million proxy contest costs, $1.0 million other legal expenses, IT transformation costs, and severance. Adjusted non-GAAP results exclude these items. Company received $22.5 million in tariff refunds during Q2 and expects no additional tariff refunds in full-year guidance. Cost reduction program targeting $40-50 million in savings between now and FY2029 with up to $20 million this year.
Price and volatility reaction
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.