Download PDF

1. Company Snapshot

1.a. Company Description

Genesco Inc.operates as a retailer and wholesaler of footwear, apparel, and accessories.The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Licensed Brands.


The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children.The Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce.The Johnston & Murphy Group segment is involved in the retail and e-commerce operations; and wholesale distribution of men's dress and casual footwear, apparel, and accessories, as well as women's footwear and accessories.


The Licensed Brands segment markets footwear under the Levi's, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER and ETONIC brands footwear.As of January 29, 2022, the company operated approximately 1,425 retail stores in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland primarily under the Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy names.Its e-commerce websites include journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com.


Genesco Inc.was incorporated in 1924 and is headquartered in Nashville, Tennessee.

Show Full description

1.b. Last Insights on GCO

Genesco Inc.'s recent performance was negatively impacted by its Q3 earnings miss, with adjusted EPS of $0.79, falling short of the Zacks Consensus Estimate of $0.87. The company cited margin pressure at Schuh and a more cautious sales outlook, revising its full-year adjusted EPS to approximately $0.95. Additionally, an investigation by Holzer & Holzer, LLC into potential federal securities law compliance issues further pressured the stock. Institutional investors, including Campbell & CO Investment Adviser LLC and Brandywine Global Investment Management LLC, reduced their holdings.

1.c. Company Highlights

2. Genesco Delivers Strong Q1 Results Amid Challenging Consumer Environment

Genesco reported solid first-quarter fiscal 2026 results, with total revenue of $474 million, up 4% year-over-year, driven by a 5% increase in comparable sales. Journeys led the charge with an 8% comp growth, while Schuh and Johnston & Murphy saw more modest results, with comps up 1% and down 2%, respectively. Despite a 90 basis point decline in gross margin to 46.7%, the company managed to narrow its adjusted operating loss to $28 million, with adjusted EPS improving to a loss of $2.05, beating consensus estimates of -$2.09. SG&A expenses leveraged 170 basis points, reflecting ongoing cost-saving initiatives.

Publication Date: Jun -07

📋 Highlights
  • Strong Comparable Sales Growth:: Comparable sales grew 5% year-over-year, driven by Journeys' 8% increase.
  • Tariff Mitigation Efforts:: The company addressed tariff uncertainties, with mitigation efforts expected to offset a potential $15 million unmitigated cost increase.
  • Journeys' Strategic Growth:: Journeys' new 4.0 store design delivered a 25% sales lift, with plans to expand to 75-plus stores by year-end.
  • Gross Margin Decline:: Gross margin fell 90 basis points to 46.7%, impacted by higher promotional activity and product mix shifts.
  • Reaffirmed Fiscal 2026 Guidance:: EPS guidance remains between $1.30 and $1.70, reflecting confidence in navigating tariffs and driving growth.

Operational Highlights and Strategic Initiatives

Journeys' strategic growth plan continues to bear fruit, with athletic footwear growing double digits and now representing over a third of sales. The new 4.0 store design has been a standout performer, delivering a 25% sales lift, and the company plans to expand this format to over 75 stores by year-end. Mimi Eckel Vaughn, CEO, highlighted the importance of fresh assortments and compelling footwear, noting that "consumers are willing to spend more on desired products, though brands are cautious about price increases." This strategy has resonated particularly well with teen girls, a key demographic for Journeys.

Valuation and Investor Implications

Genesco's valuation metrics suggest the market is pricing in significant risks, with a P/E ratio of -12.88 and a P/S ratio of 0.11. The company's free cash flow yield of 19.13% stands out as a positive, indicating strong cash generation despite the challenging environment. While the stock's P/B ratio of 0.44 reflects ongoing concerns about profitability, the company's ability to leverage its cost structure and drive growth in key segments like Journeys provides a path to improvement. Investors will closely watch the company's ability to maintain momentum in back-to-school and holiday seasons, as well as its tariff mitigation strategies.

3. NewsRoom

Card image cap

Why Genesco Stock Got Rocked Today

Dec -04

Source: fool.com

Card image cap

INVESTOR ALERT: Investigation of Genesco Inc. (GCO) by Holzer & Holzer, LLC

Dec -04

Source: globenewswire.com

Card image cap

Genesco Inc. (GCO) Q3 2026 Earnings Call Transcript

Dec -04

Source: seekingalpha.com

Card image cap

Genesco (GCO) Q3 Earnings and Revenues Miss Estimates

Dec -04

Source: zacks.com

Card image cap

Genesco Inc. Reports Fiscal 2026 Third Quarter Results

Dec -04

Source: businesswire.com

Card image cap

Genesco Inc. $GCO Shares Sold by Brandywine Global Investment Management LLC

Nov -26

Source: defenseworld.net

Card image cap

Genesco to Report Third Quarter Fiscal 2026 Financial Results and Hold Conference Call on December 4, 2025

Nov -21

Source: businesswire.com

Card image cap

Genesco Inc. $GCO Shares Sold by Campbell & CO Investment Adviser LLC

Nov -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.94%)

6. Segments

Journeys Group

Expected Growth: 2%

Journeys Group's 2% growth is driven by increasing demand for casual footwear, successful marketing campaigns targeting younger demographics, and strategic store remodels enhancing customer experience. Additionally, the group's focus on omnichannel retailing and e-commerce expansion has contributed to sales growth.

Schuh Group

Expected Growth: 3%

Schuh Group's 3% growth is driven by its strong brand reputation, effective omnichannel strategy, and focus on customer experience. Additionally, its diversified product offerings, including popular brands like Dr. Martens and Vans, contribute to its growth. Furthermore, the company's strategic expansion into new markets and online channels also support its growth momentum.

Johnston & Murphy Group

Expected Growth: 1%

Johnston & Murphy's 1% growth is driven by increasing demand for high-quality, comfortable footwear and apparel, particularly among professionals and business casual consumers. The brand's focus on innovative products, omnichannel retailing, and effective marketing strategies have contributed to its steady growth.

Genesco Brands

Expected Growth: 0%

Genesco Brands from Genesco Inc. has stagnant growth due to declining mall traffic, intense competition from online retailers, and failure to adapt to changing consumer preferences. Additionally, high inventory levels, inefficient supply chain management, and lack of effective marketing strategies have contributed to the stagnant growth.

7. Detailed Products

Journeys

A leading retailer of footwear and accessories for teens and young adults, offering a wide range of brands and styles.

Journeys Kidz

A retailer of kids' footwear and accessories, offering a variety of brands and styles for children of all ages.

Shi by Journeys

A retailer of fashion footwear and accessories for young women, offering a curated selection of trendy brands and styles.

Johnston & Murphy

A retailer of high-quality, stylish footwear and accessories for men and women, offering a range of classic and contemporary styles.

Hat Shack

A retailer of hats and caps for men and women, offering a wide selection of styles and brands.

Lids

A retailer of hats and caps for men and women, offering a wide selection of styles and brands, with a focus on sports and entertainment.

8. Genesco Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Genesco Inc. operates in the retail industry, which is characterized by a moderate level of substitutes. While there are many alternatives to Genesco's products, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Genesco Inc. operates in a highly competitive market, where customers have a high degree of bargaining power. The company's customers have many alternatives, and the switching costs are low, giving them significant negotiating power.

Bargaining Power Of Suppliers

Genesco Inc. has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it significant negotiating power over its suppliers.

Threat Of New Entrants

The retail industry has significant barriers to entry, including high capital requirements and the need for a strong brand reputation. These barriers make it difficult for new entrants to compete with established players like Genesco Inc.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players competing for market share. Genesco Inc. operates in a highly competitive market, where companies must constantly innovate and adapt to changing consumer preferences to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.64%
Debt Cost 3.95%
Equity Weight 77.36%
Equity Cost 15.40%
WACC 12.80%
Leverage 29.27%

11. Quality Control: Genesco Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Citi Trends

A-Score: 3.6/10

Value: 6.8

Growth: 1.7

Quality: 1.8

Yield: 0.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Genesco

A-Score: 3.5/10

Value: 7.2

Growth: 3.0

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Victoria's Secret

A-Score: 3.5/10

Value: 5.2

Growth: 3.3

Quality: 3.8

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Destination XL

A-Score: 3.3/10

Value: 9.6

Growth: 3.9

Quality: 4.0

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Torrid

A-Score: 3.0/10

Value: 8.0

Growth: 4.4

Quality: 3.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
The Children's Place

A-Score: 2.7/10

Value: 9.8

Growth: 1.0

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.38$

Current Price

24.38$

Potential

-0.00%

Expected Cash-Flows