Footwear, apparel, and accessories retailer Genesco (NYSE:GCO) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Genesco beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $525.2 million, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
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 be flat year on year at $577.9 million, improving from the 4.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
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 twice over the last two years.
Looking at Genesco’s peers in the footwear segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Deckers delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 9%, and Wolverine Worldwide reported a revenue decline of 7%, topping estimates by 4.4%. Deckers traded up 10.6% following the results while Wolverine Worldwide was also up 36.8%.
Read our full analysis of Deckers’s results here and Wolverine Worldwide’s results here.
There has been positive sentiment among investors in the footwear segment, with share prices up 6.3% on average over the last month. Genesco is up 29.7% during the same time and is heading into earnings with an average analyst price target of $27 (compared to the current share price of $38.19).
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