Genesco Q2 revenue falls slightly less than expected
Genesco Q2 revenue falls slightly less than expected
Overview
U.S. footwear retailer's Q2 revenue fell 3% but slightly beat analyst expectations
Adjusted loss per share for Q2 was better than analyst expectations
Company raised full-year adjusted EPS guidance to high end of prior range
Outlook
Genesco raises FY27 adj EPS outlook to high end of $2.00-$2.40 range
Company now expects FY27 comparable sales to be flat, versus prior view of up 1%-2%
Genesco sees FY27 total sales down about 2%, versus prior guidance of flat to down 1%
Operating income for FY27 expected at high end of $34 mln to $40 mln range
Result Drivers
STORE CLOSURES AND LICENSE TRANSITION - Co said sales decline was driven by net store closings, license transition, and pullback on discounting at Schuh
GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to less promotional activity, more full-price selling at Schuh, favorable sales mix, license exit benefit, and pricing and tariff mitigation actions
COST SAVINGS INITIATIVES - Co said disciplined expense management and cost savings program contributed to improved operating performance
Company press release: ID:nBwKMfN9a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Beat* | $530 mln | $527.98 mln (4 Analysts) |
Q2 Adjusted Loss Per Share | Beat | $0.83 | $1.37 (4 Analysts) |
Q2 EPS |
| $0.32 |
|
Q2 Gross Margin |
| 51.40% |
|
Q2 Adjusted Operating Margin |
| -1.60% |
|
Q2 Like-For-Like Growth |
| -1.00% |
|
Q2 Operating Income |
| $3.60 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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 $40.00, about 19.3% above its September 2 closing price of $33.52
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Sept 2 - PVH Q2 revenue falls on wholesale weakness
Sept 2 - Tillys Q2 sales rise on comparable growth, profit improves
Sept 2 - Five Below Q2 sales beat estimates on strong comparable growth; raises annual outlook
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.)