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Genesco Earnings: What To Look For From GCO

GCO Cover Image

Footwear, apparel, and accessories retailer Genesco (NYSE: GCO) will be announcing earnings results this Thursday before the bell. Here’s what you need to know.

Genesco beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $474 million, up 3.6% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and full-year EPS guidance topping analysts’ expectations.

Is Genesco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Genesco’s revenue to grow 1.4% year on year to $532.3 million, in line with its flat revenue from the same quarter last year. Adjusted loss is expected to come in at -$1.25 per share.

Genesco Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Genesco has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Genesco’s peers in the footwear segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wolverine Worldwide delivered year-on-year revenue growth of 11.5%, beating analysts’ expectations by 5.1%, and Deckers reported revenues up 16.9%, topping estimates by 7.2%. Wolverine Worldwide traded up 18% following the results while Deckers was also up 11.3%.

Read our full analysis of Wolverine Worldwide’s results here and Deckers’s results here.

There has been positive sentiment among investors in the footwear segment, with share prices up 6.1% on average over the last month. Genesco is up 26.4% during the same time and is heading into earnings with an average analyst price target of $24.50 (compared to the current share price of $32.16).

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