Footwear, apparel, and accessories retailer Genesco (NYSE: GCO) will be announcing earnings results this Friday morning. Here’s what to look for.
Genesco beat analysts’ revenue expectations last quarter, reporting revenues of $799.9 million, up 7.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.
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 be flat year on year, slowing from the 3.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Steven Madden delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 0.7%, and Deckers reported revenues up 9.6%, topping estimates by 2.9%. Steven Madden traded up 5.2% following the results while Deckers was also up 3.9%.
Read our full analysis of Steven Madden’s results here and Deckers’s results here.
Investors in the consumer discretionary - footwear segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Genesco is up 4% during the same time and is heading into earnings with an average analyst price target of $34.67 (compared to the current share price of $37.26).
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