Genesco Narrows Q1 Loss, Sticks to Full-Year Profit Outlook

• The consensus price target for Genesco Inc. (NYSE:GCO) has decreased from $32 to $24, indicating analysts' adjusted expectations.
• Analyst Corey Tarlowe sets a higher price target of $40, suggesting potential upside based on the company's strong revenue growth and improved margins.
• Challenges in profitability and the competitive retail market landscape could impact Genesco's stock performance, despite positive financial results in the Journeys segment.

Genesco Inc. (NYSE:GCO) is a prominent player in the retail and wholesale market for footwear, apparel, and accessories. Operating through its four main segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Licensed Brands, Genesco caters to a wide customer base across the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland.

The consensus price target for Genesco has remained stable at $24 over the past month and quarter, marking a decrease from $32 a year ago. This adjustment in analysts' expectations reflects a cautious outlook on the company's stock performance. Notably, Analyst Corey Tarlowe from Jefferies has set a more optimistic price target of $40, indicating potential upside for the stock.

Market conditions in the retail sector, particularly in footwear and apparel, play a significant role in shaping analyst expectations for Genesco. The company's recent report of strong revenue growth in its fourth quarter, primarily driven by its Journeys brand, highlights its market strength. However, challenges related to overall profitability and operating leverage have been pointed out by Zacks, despite some improvements in margins. For half of the year, Genesco has remained unprofitable.

The company's fiscal fourth-quarter results revealed an increase in year-over-year sales and earnings, with a 60 basis point expansion in its gross margin to 46.9%. Although it missed earnings estimates, the growth in its Journeys segment has been a positive sign. Analyst Corey Tarlowe's $40 price target reflects optimism regarding Genesco's financial performance.

Industry trends, including shifts in consumer preferences and competitive dynamics, could influence Genesco's market position. The company's guidance for fiscal year 2026 suggests minimal margin expansion, leading to a valuation that Zacks considers unattractive at 16 times forward earnings. Investors are encouraged to monitor Genesco's quarterly earnings reports and strategic initiatives closely to assess the stock's potential accurately.

Genesco Inc. (NYSE:GCO) is a retailer specializing in footwear and accessories, operating under various brand names. The company is set to release its quarterly earnings on June 4, 2025. Wall Street anticipates an earnings per share (EPS) of -$2.06, with projected revenue of approximately $463.9 million. Despite the expected revenue increase, the earnings are predicted to decline, as highlighted by Zacks Investment Research.

The anticipated decline in earnings, despite increased revenue, suggests that GCO is facing challenges in managing its costs or margins. The company's negative price-to-earnings (P/E) ratio of -12.36 indicates ongoing losses. This negative ratio reflects the company's current unprofitability, which is further emphasized by a negative earnings yield of -8.09%.

GCO's valuation metrics suggest a potentially undervalued stock. The price-to-sales ratio of 0.10 and enterprise value to sales ratio of 0.29 indicate that the stock is relatively undervalued compared to its sales and overall valuation. These figures suggest that investors might find value in the stock if the company can improve its profitability.

The company's financial health shows a moderate level of debt, with a debt-to-equity ratio of 0.89. This indicates that GCO has a balanced approach to leveraging debt. Additionally, the current ratio of 1.60 suggests that the company has a good level of liquidity to cover its short-term liabilities, which is a positive sign for its financial stability.

The upcoming earnings report and conference call will be crucial for investors. If GCO's actual results exceed estimates, the stock might see an upward movement. Conversely, a miss could lead to a decline in stock value. The management's discussion during the earnings call will be key in determining the sustainability of any immediate price changes and future earnings expectations.

• Genesco Inc. (NYSE:GCO) reported an EPS of $3.26, slightly below expectations.
• The company's revenue for the quarter was approximately $746 million, showing growth over the previous year.
• Despite negative earnings, Genesco demonstrates a good level of liquidity with a current ratio of 1.56.

Genesco Inc. (NYSE:GCO) is a prominent player in the retail sector, specializing in apparel and shoes. The company is headquartered in Nashville, Tennessee, and operates within the Zacks Retail - Apparel and Shoes industry. Genesco's competitors include other retail giants like Foot Locker and DSW. The company recently held its Q4 2025 earnings conference call, where it discussed its financial performance and future strategies.

On March 7, 2025, Genesco reported earnings per share (EPS) of $3.26, slightly below the Zacks Consensus Estimate of $3.31, resulting in an earnings surprise of -1.51%. Despite this, the company has a history of exceeding EPS estimates in three of the last four quarters. In comparison, the EPS for the same quarter last year was $2.59, indicating growth over the year.

Genesco's revenue for the quarter was approximately $746 million, surpassing the estimated $462 million. However, this figure missed the Zacks Consensus Estimate by 4.96%. Despite this miss, the revenue showed a slight increase from the $738.95 million reported in the same quarter last year. The company has exceeded consensus revenue estimates three times in the last four quarters, demonstrating its ability to perform well in the market.

The price-to-sales ratio is 0.13, suggesting that the market values the company's sales at a relatively low level compared to its stock price. The enterprise value to sales ratio is 0.37, reflecting the company's total valuation in relation to its sales.

Genesco's financial health is further highlighted by its enterprise value to operating cash flow ratio of 9.50, which provides insight into how the company's cash flow is valued relative to its enterprise value. The debt-to-equity ratio is 1.11, indicating a moderate level of debt compared to equity. Lastly, the current ratio of 1.56 suggests that Genesco has a good level of liquidity to cover its short-term liabilities.

• Genesco Inc. (NYSE:GCO) reported an EPS of $3.26, slightly below expectations.
• The company's revenue for the quarter was approximately $746 million, showing growth over the previous year.
• Despite negative earnings, Genesco demonstrates a good level of liquidity with a current ratio of 1.56.

Genesco Inc. (NYSE:GCO) is a prominent player in the retail sector, specializing in apparel and shoes. The company is headquartered in Nashville, Tennessee, and operates within the Zacks Retail - Apparel and Shoes industry. Genesco's competitors include other retail giants like Foot Locker and DSW. The company recently held its Q4 2025 earnings conference call, where it discussed its financial performance and future strategies.

On March 7, 2025, Genesco reported earnings per share (EPS) of $3.26, slightly below the Zacks Consensus Estimate of $3.31, resulting in an earnings surprise of -1.51%. Despite this, the company has a history of exceeding EPS estimates in three of the last four quarters. In comparison, the EPS for the same quarter last year was $2.59, indicating growth over the year.

Genesco's revenue for the quarter was approximately $746 million, surpassing the estimated $462 million. However, this figure missed the Zacks Consensus Estimate by 4.96%. Despite this miss, the revenue showed a slight increase from the $738.95 million reported in the same quarter last year. The company has exceeded consensus revenue estimates three times in the last four quarters, demonstrating its ability to perform well in the market.

The price-to-sales ratio is 0.13, suggesting that the market values the company's sales at a relatively low level compared to its stock price. The enterprise value to sales ratio is 0.37, reflecting the company's total valuation in relation to its sales.

Genesco's financial health is further highlighted by its enterprise value to operating cash flow ratio of 9.50, which provides insight into how the company's cash flow is valued relative to its enterprise value. The debt-to-equity ratio is 1.11, indicating a moderate level of debt compared to equity. Lastly, the current ratio of 1.56 suggests that Genesco has a good level of liquidity to cover its short-term liabilities.