Genesco (NYSE:GCO) fell in early trading on Friday, despite topping estimates with its Q2 earnings report.

The Nashville-based company reported sales rose 0.4% year-over-year in Q2 to $525 million. The sales increase for the period that ended on August 3 included approximately $20 to $25 million due to the move of a strong week of back-to-school sales from Q3 last year to Q2 this year related to the 53-week calendar shift, along with an 8% increase in e-commerce comparable sales. Those gains were partially offset by a decline in store sales, the impact of net store closings, and decreased wholesale sales. Comparable e-commerce sales were up 8% during the quarter.

Adjusted gross margin for the quarter this year decreased 90 basis points as a percentage of sales compared to last year. The decrease was noted to be due primarily to a higher mix of sale product at Schuh and changes in product mix at Journeys. EPS was reported at -$0.83 vs. -$1.11 consensus and -$0.85 a year ago.

Genesco’s (GCO) inventory position at the end of the quarter was down 8% on a year-over-year basis, reflecting decreased inventory for Journeys, Schuh and Johnston & Murphy, partially offset by an increase at Genesco Brands. On the balance sheet, GCO had a cash position of $45.9 million and total debt of $77.8 million at the end of the quarter.

Looking ahead, Genesco (GCO) said the back-to-school season was off to a solid start. “Journeys capitalized on the early Back-to-School demand, which drove a positive inflection in comparable sales as the quarter progressed,” noted CEO Mimi Vaughn. “Thus far in the third quarter, Journeys’ store traffic and sales trends have accelerated further, bolstering our confidence in the product pipeline for the back half and the initiatives underway to enhance the Journeys brand and experience for our consumers,” she added. Genesco (GCO) sees full-year revenue falling 1% to 2% year-over-year and EPS of $0.60 to $1.00 (midpoint $0.80) vs. $0.81 consensus.

Shares of Genesco (GCO) were down 3.73% in premarket trading to $28.40 vs. the 52-week range of $23.21 to $37.89.