Footwear, apparel, and accessories retailer Genesco (NYSE: GCO) will be reporting results this Thursday before market open. Here’s what you need to know.
Genesco beat analysts’ revenue expectations last quarter, reporting revenues of $487 million, up 2.8% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Genesco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Genesco’s revenue to decline 3.4% year on year, a reversal from the 4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Genesco has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Genesco’s peers in the consumer discretionary - footwear segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Steven Madden delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 4.8%, and Wolverine Worldwide reported revenues up 6.8%, topping estimates by 0.9%. Steven Madden traded up 6.2% following the results while Wolverine Worldwide was also up 16.4%.
Read our full analysis of Steven Madden’s results here and Wolverine Worldwide’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary - footwear stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.2% on average over the last month. Genesco is down 16.6% during the same time and is heading into earnings with an average analyst price target of $40.33 (compared to the current share price of $32.56).
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