Establishing Better Growth Prospects
Genesco was a failing men’s footwear company with significant inventory and cash flow issues.
ISSUE
Genesco was a failing men’s footwear company with significant inventory and cash flow issues. Banks were ready to pull their loan agreements and management was in disarray. The brands in the Genesco portfolio were Johnston & Murphy, Jarman, Journeys, Perry Ellis, Laredo and Dockers footwear. All were underperforming.
SOLUTION
David Chamberlain was hired and quickly assessed the situation. He sold three small brands and repositioned Johnston & Murphy and Journeys for today’s marketplace with higher price premiums and better growth prospects. Overhead costs were cut, and the organization was streamlined. He initiated a new culture of accountability and metrics. Increased team involvement and transparency introduced a more involved “winning” culture.
RESULTS
Johnston & Murphy was established as a successful premium men’s shoe brand, and Journeys became a dominant teen shoe chain. In 30 months, the Genesco stock price rose from below $2/ share to $15/share.
