Genesco Q1 revenue and adjusted EPS beat estimates, raises FY27 adj. EPS outlook
Genesco Q1 revenue and adjusted EPS beat estimates, raises FY27 adj. EPS outlook
Overview
U.S. footwear retailer's fiscal Q1 revenue rose 3%, beating analyst expectations
Adjusted EPS loss for fiscal Q1 was smaller than analysts expected
Company announced new $40-50 mln cost savings program and raised full-year EPS outlook
Outlook
Genesco raises FY27 adjusted EPS outlook to $2.00-$2.40 from $1.90-$2.30
Company expects FY27 comparable sales growth of 1%-2%
Genesco announces $40-$50 mln cost savings program through FY29
Result Drivers
SEGMENT PERFORMANCE - Journeys and Johnston & Murphy posted strong comparable sales growth, while Schuh's sales declined due to reduced promotions
GROSS MARGIN IMPROVEMENT - Gross margin rose due to efficiencies in shipping and warehouse costs and less promotional activity, partly offset by changes in brand mix
COST MANAGEMENT - Selling and administrative expenses fell as a percentage of sales, driven by cost savings initiatives and lower selling salaries, occupancy, freight and warehouse expenses
Company press release: ID:nBw8SPJdsa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $487 mln | $475 mln (4 Analysts) |
Q1 Adjusted EPS | Beat | -$2.18 | -$2.56 (4 Analysts) |
Q1 EPS |
| -$1.42 |
|
Q1 Gross Margin |
| 47.00% |
|
Q1 Adjusted Operating Margin |
| -4.90% |
|
Q1 Operating Income |
| -$15.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Genesco Inc is $32.00, about 12% below its May 28 closing price of $36.38
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)