Genesco (GCO) To Report Earnings Tomorrow: Here Is What To Expect

Footwear, apparel, and accessories retailer Genesco (NYSE:GCO) will be reporting results tomorrow before the bell. Here’s what to expect.

Genesco beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $457.6 million, down 5.3% year on year. It was an exceptional quarter for the company, with optimistic earnings guidance for the full year and an impressive beat of analysts’ operating margin 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 decline 2.1% year on year to $512.2 million, in line with the 2.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.12 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 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’s revenues decreased 18.4% year on year, beating analysts’ expectations by 3.4%, and Steven Madden reported revenues up 17.6%, in line with consensus estimates. Wolverine Worldwide traded down 6% following the results while Steven Madden was also down 2.2%.

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

There has been positive sentiment among investors in the footwear segment, with share prices up 6.4% on average over the last month. Genesco is up 13.3% during the same time and is heading into earnings with an average analyst price target of $29 (compared to the current share price of $29.92).

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