Footwear, apparel, and accessories retailer Genesco (NYSE: GCO) will be reporting results this Thursday before market open. Here’s what to expect.
Genesco beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $546 million, up 4% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing 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, analysts are expecting Genesco’s revenue to grow 3.7% year on year to $618.4 million, in line with the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 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. Crocs’s revenues decreased 6.2% year on year, beating analysts’ expectations by 3.3%, and Steven Madden reported revenues up 6.9%, falling short of estimates by 4%. Crocs traded down 3.5% following the results while Steven Madden was up 16.9%.
Read our full analysis of Crocs’s results here and Steven Madden’s results here.
There has been positive sentiment among investors in the footwear segment, with share prices up 3.3% on average over the last month. Genesco is up 19.8% during the same time and is heading into earnings with an average analyst price target of $32.67 (compared to the current share price of $35.43).
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