Juanmonino Genesco Inc. (NYSE:GCO), the footwear & apparel retailer, reported its fiscal Q2 results on the 6th of September, sending the stock down nearly -12%. The stock crashed despite a very slightly raised FY2025 outlook and a Q2 earnings beat, with the market seeming to price in a much better performance than Wall Street’s analysts expected. Previously, I published an article on the stock on the 27th of February, titled “Genesco: Focus On Future Margin Trajectory”. Since I initiated the stock at a n ...

Financial Data and Key Metrics - Consolidated revenue for Q2 was $525 million, exceeding expectations and resulting in better leverage [29] - Total company comps were down 2%, with store comps down 4% and direct comps up 8% [30] - Adjusted gross margin decreased by 90 basis points YoY, with Journeys down 90 bps, Schuh down 210 bps, and J&M up 40 bps [30] - Adjusted operating loss improved to $9.3 million from $10 million YoY, with adjusted diluted loss per share at $0.83 compared to $0.85 last year [33] - Net debt position at the end of Q2 was $32 million, with inventories down 8% YoY [34] Business Line Performance - Journeys saw positive comps in July and August, driven by improved product assortment and strong back-to-school sales [7][13] - Schuh faced challenges due to a tough summer season, with increased promotional activity impacting gross margins [15][16] - Johnston & Murphy (J&M) experienced pressure from robust two-year comps and a softening men's premium non-athletic footwear market, but new product launches like Amherst 2.0 resonated well [17][18] - Genesco Brands Group achieved higher profitability despite lower sales, driven by a simplified license portfolio [20] Market Performance - Journeys' digital business grew double-digits, accounting for 22% of total retail sales [30] - Schuh maintained its position as the 10th largest footwear retailer in the UK, with digital sales representing nearly 40% of total sales [16] - J&M's apparel and accessories now represent almost half of its direct-to-consumer business, with strong performance in woven shirts, blazers, and bags [19] Strategic Direction and Industry Competition - The company is focused on improving Journeys' performance through product leadership, brand building, and enhancing the omnichannel experience [22][23] - Efforts to optimize the store footprint and reduce costs are ongoing, with 29 Journeys stores closed year-to-date and up to 50 potential closures expected this year [37] - The company is investing in store refreshes and new store concepts to enhance the customer experience, with a rollout planned for October [24][58] Management Commentary on Operating Environment and Future Outlook - The consumer remains selective, shopping primarily for key footwear items during peak periods like back-to-school and holidays [10] - The company expects continued challenges in non-peak shopping periods but remains optimistic about the holiday season [27][38] - Full-year guidance remains unchanged, with expected sales down 1% to 2% and adjusted gross margin down 10 to 20 basis points [41] Other Important Information - The company repurchased 382,000 shares for $9.3 million in Q2, with $42.8 million remaining under the current authorization [36] - Capital expenditures in Q2 were $8 million, primarily directed toward retail stores and digital initiatives [35] - The company is targeting $45 million to $50 million in annualized cost savings by the end of fiscal 2025 [36] Q&A Session Question: Third quarter guidance and Journeys comp expectations - The company expects low single-digit consolidated comps, with Journeys also in the low single digits [45] - Positive comps are expected to continue into September and October, driven by improved product assortment and consumer demand [47][48] Question: Holiday season and newness in the boot category - The company has diversified its assortment to include both athletic and casual styles, with strength in multiple brands [50] - While boots are not expected to drive significant growth, there are early signs of traction in some boot brands [51] Question: Serving the teen girl consumer - The company is focusing on refining its assortment, marketing, and store environment to better serve the teen girl demographic [53][54] - Efforts include updated segmentation, premium brand offerings, and enhanced in-store experiences [55] Question: Store refresh and new concept rollout - A store refresh will be completed before the holiday season, with a new store concept rollout starting in October [57][58] - The new concept emphasizes product visibility, flexibility, and a modern aesthetic while maintaining Journeys' youthful energy [59] Question: Johnston & Murphy marketing and brand trends - J&M's marketing campaign highlights the brand's evolution into casual and comfortable styles, with a focus on new product launches and innovation [62][64] - The company is seeing strong interest in diversified footwear styles and higher average selling prices [66][67]

Genesco (GCO) came out with a quarterly loss of $0.83 per share versus the Zacks Consensus Estimate of a loss of $1.12. This compares to loss of $0.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25.89%. A quarter ago, it was expected that this seller of footwear, hats, clothing and accessories would post a loss of $2.66 per share when it actually produced a loss of $2.10, delivering a surprise of 21.05%.Over the last four ...

FY25 Q2 GENESCO Summary Results September 6, 2024 Affornia U Genesco schuh JOHNSTON & MURPHY. Safe Harbor Statement This presentation contains forward-looking statements, including those regarding future sales, earnings, operating income, gross margins, expenses, capital expenditures, depreciation and amortization, tax rates, store openings and closures, cost reductions, ESG progress and all other statements not addressing solely historical facts or present conditions. Forward- looking statements are usuall ...

Exhibit 99.1 GENESCO INC. REPORTS FISCAL 2025 SECOND QUARTER RESULTS --Financial Performance Exceeds Expectations, Driven by Journeys-- --Reaffirms Fiscal 2025 EPS Outlook-- NASHVILLE, Tenn., Sept. 6, 2024 --- Genesco Inc. (NYSE: GCO) today reported second quarter results for the three months ended August 3, 2024. Second Quarter Fiscal 2025 Financial Summary • Total net sales increased to $525 million; comparable sales decreased 2% • Comparable e-commerce sales increased 8%; comparable store sales decreased ...

Genesco (GCO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The power ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Genesco (GCO) reports results for the quarter ended July 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 6. On the o ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

The American Premium Lifestyle Brand Redesigns Stores at Short Hills and Twelve Oaks Attracting Today's Modern CustomerNASHVILLE, Tenn., July 9, 2024 /PRNewswire/ -- American premium lifestyle brand Johnston & Murphy recently revamped the design of two retail locations at The Mall at Short Hills in Short Hills, N.J. and Twelve Oaks Mall in Novi, Mich. Both stores feature an evolution of the company's existing design with clean lines and quality finishes creating a bright and inviting atmosphere to display t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended May 4, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from to Commission File No. 1-3083 Genesco Inc. | --- | --- | |----------------------------------------------------------------------------|-------------------------------------- ...