Genesco (NYSE:GCO) Releases Earnings Results, Beats Expectations By $0.54 EPS

Genesco (NYSE:GCO) announced its quarterly earnings results on Thursday. The company reported ($0.83) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.37) by $0.54, FiscalAI reports. Genesco had a net margin of 0.80% and a return on equity of 2.66%. The firm had revenue of $529.86 million for the quarter, compared to the consensus estimate of $527.26 million. During the same period in the prior year, the firm posted ($1.79) earnings per share. Genesco updated its FY 2027 guidance to 2.000-2.400 EPS.

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

• Fiscal Q2 earnings significantly exceeded expectations: Adjusted operating loss improved to $8 million from $14 million, despite revenue declining 3% to $530 million, driven by 140 basis points of gross-margin expansion and disciplined expense management.
• Journeys maintained strong momentum with its eighth consecutive positive comparable-sales quarter, supported by lifestyle athletic products, Mary Janes and ballet-inspired footwear, higher conversion, full-price selling, and 4.0 stores generating more than a 25% sales lift.
• Johnston & Murphy posted its third consecutive quarter of positive comparable sales, aided by new apparel and footwear assortments, stronger traffic and conversion, and the extended two-year partnership with Peyton Manning.
• Schuh’s reset is improving profitability but pressuring sales: gross margin increased 300 basis points and operating income was nearly flat year over year despite a 9% comp decline, as the company reduced promotions, closed stores, and optimized costs.
• Genesco raised its outlook to the high end of its previously increased $2.00–$2.40 adjusted EPS range and expects up to $20 million of fiscal 2027 structural savings; it also repurchased approximately 318,000 shares for $11 million through August 31.

Genesco Trading Up 2.3%

Shares of GCO opened at $34.28 on Friday. Genesco has a 1-year low of $21.92 and a 1-year high of $43.60. The company has a market capitalization of $380.85 million, a P/E ratio of 19.82 and a beta of 1.80. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.83 and a quick ratio of 0.37. The firm’s 50 day simple moving average is $35.48 and its 200 day simple moving average is $33.35.

Insider Buying and Selling

In related news, Director Gregory Sandfort purchased 2,958 shares of the business’s stock in a transaction on Thursday, July 9th. The stock was acquired at an average price of $33.80 per share, with a total value of $99,980.40. Following the purchase, the director directly owned 29,172 shares in the company, valued at approximately $986,013.60. This represents a 11.28% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 23.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Genesco

Several institutional investors have recently modified their holdings of GCO. Jones Financial Companies Lllp purchased a new position in shares of Genesco in the first quarter worth about $26,000. Group One Trading LLC bought a new position in Genesco during the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. bought a new stake in Genesco in the fourth quarter valued at approximately $37,000. Quarry LP lifted its position in Genesco by 182.2% in the third quarter. Quarry LP now owns 1,964 shares of the company’s stock valued at $57,000 after purchasing an additional 1,268 shares during the last quarter. Finally, BNP Paribas Financial Markets boosted its stake in shares of Genesco by 92.3% during the third quarter. BNP Paribas Financial Markets now owns 1,960 shares of the company’s stock valued at $57,000 after purchasing an additional 941 shares during the period. 94.51% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on GCO shares. Wall Street Zen cut shares of Genesco from a “buy” rating to a “hold” rating in a research note on Saturday, June 13th. Seaport Research Partners cut shares of Genesco from a “buy” rating to a “neutral” rating in a report on Wednesday, May 27th. Truist Financial set a $40.00 price target on shares of Genesco in a report on Friday, May 29th. Zacks Research downgraded Genesco from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Finally, Weiss Ratings cut Genesco from a “hold (c)” rating to a “sell (d+)” rating in a research report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Genesco currently has an average rating of “Hold” and an average price target of $36.67.

More Genesco News

Here are the key news stories impacting Genesco this week:

• Positive Sentiment: Genesco reported adjusted EPS of -$0.83, beating the consensus estimate of -$1.37 by $0.54. Revenue of approximately $529.9 million also exceeded estimates of $527.3 million. Genesco quarterly earnings report
• Positive Sentiment: The company raised fiscal 2027 adjusted EPS guidance to the high end of its $2.00-$2.40 range, signaling increased confidence in the turnaround. Revenue guidance was maintained at approximately $2.4 billion. Genesco fiscal 2027 outlook
• Positive Sentiment: GAAP results improved sharply: Genesco posted net income of about $3.5 million, versus an $18.5 million loss a year earlier. Gross margin expanded to 51.4% from 45.8%, helped partly by $22.5 million of tariff refunds including interest.
• Positive Sentiment: Journeys comparable sales increased 2%, while Johnston & Murphy comparable sales rose 4%. Management also plans as many as 95 Journeys 4.0 store openings, supporting the company’s restructuring and growth strategy. Genesco turnaround update
• Neutral Sentiment: The earnings improvement was partly supported by tariff refunds, which may not recur, making underlying operating trends important for investors to monitor.
• Negative Sentiment: Revenue declined 3% year over year, total comparable sales fell 1% and comparable e-commerce sales dropped 6%. Genesco also ended the quarter with fewer stores after opening three and closing 25.

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.