Genesco (NYSE:GCO) Posts Earnings Results, Beats Estimates By $0.40 EPS

Genesco (NYSE:GCO) released its quarterly earnings results on Friday, May 29th. The company reported ($2.18) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.58) by $0.40, FiscalAI reports. The business had revenue of $487.03 million during the quarter, compared to analysts’ expectations of $474.32 million. Genesco had a return on equity of 2.66% and a net margin of 0.80%. Genesco updated its FY 2027 guidance to 2.000-2.400 EPS.

Here are the key takeaways from Genesco’s conference call:

• Genesco beat expectations across the board in Q1, with total sales up 3% to $487 million, operating performance improving, and the company delivering its seventh consecutive quarter of positive comparable sales.
• Journeys remained the standout growth driver, posting a 5% comp gain on strong product trends, better conversion, higher transaction values, and continued market share gains; the new 4.0 stores are also performing well with sales lifts above 25%.
• Johnston & Murphy posted strong momentum with 7% comps, supported by refreshed product, increased brand awareness from marketing including the Peyton Manning campaign, and a consumer shift toward more refined, tailored dressing.
• Schuh is still the weak spot, with comps down 9% as the company intentionally reduced promotions and markdowns; management said the turnaround will take longer due to the tougher U.K. consumer backdrop and geopolitical pressure.
• Genesco raised full-year EPS guidance to $2.00-$2.40 and announced a new $40 million-$50 million cost program through fiscal 2029, while also expecting potential tariff refunds of about $23 million-$25 million that could provide additional upside if realized.

Genesco Trading Up 3.2%

Shares of NYSE:GCO traded up $1.24 during mid-day trading on Thursday, reaching $40.26. The stock had a trading volume of 7,923 shares, compared to its average volume of 240,158. The firm has a 50 day simple moving average of $34.54 and a two-hundred day simple moving average of $30.52. Genesco has a twelve month low of $19.62 and a twelve month high of $41.30. The firm has a market cap of $446.83 million, a PE ratio of 23.31 and a beta of 1.83. The company has a current ratio of 1.83, a quick ratio of 0.37 and a debt-to-equity ratio of 0.08.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Wall Street Zen upgraded Genesco from a “hold” rating to a “buy” rating in a research report on Saturday, May 30th. Zacks Research upgraded Genesco from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 2nd. Truist Financial set a $40.00 price objective on Genesco in a report on Friday, May 29th. Seaport Research Partners cut Genesco from a “buy” rating to a “neutral” rating in a report on Wednesday, May 27th. Finally, Jefferies Financial Group reaffirmed a “hold” rating on shares of Genesco in a research note on Friday, March 6th. Two investment analysts have rated the stock with a Strong Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $36.67.

Institutional Investors Weigh In On Genesco

Large investors have recently bought and sold shares of the company. Fund 1 Investments LLC grew its holdings in shares of Genesco by 3.5% in the 4th quarter. Fund 1 Investments LLC now owns 986,241 shares of the company’s stock valued at $24,429,000 after buying an additional 33,044 shares during the period. Charles Schwab Investment Management Inc. raised its stake in Genesco by 23.0% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 409,227 shares of the company’s stock worth $10,137,000 after buying an additional 76,494 shares during the period. Healthcare of Ontario Pension Plan Trust Fund raised its stake in Genesco by 50.0% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 300,000 shares of the company’s stock worth $7,431,000 after buying an additional 100,000 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in Genesco by 6.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 290,639 shares of the company’s stock worth $8,426,000 after acquiring an additional 18,184 shares in the last quarter. Finally, Bridgeway Capital Management LLC lifted its holdings in Genesco by 29.7% during the second quarter. Bridgeway Capital Management LLC now owns 238,252 shares of the company’s stock worth $4,691,000 after acquiring an additional 54,498 shares in the last quarter. Institutional investors own 94.51% of the company’s stock.

Genesco Company Profile

Genesco Inc is a Nashville, Tennessee-based retailer, wholesaler and licensee specializing in branded footwear, headwear, apparel and accessories. Through its portfolio of retail chains, wholesale distribution channels and licensing agreements, Genesco brings a range of product offerings to consumers in North America and Europe.

The company’s retail segment includes specialty chains such as Journeys, which targets fashion-focused teens and young adults in the United States and Canada, and Schuh, a footwear retailer with locations in the United Kingdom and Ireland.