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Why Genesco Stock Is Trading Higher On Friday
Genesco Inc . (NYSE: GCO ) shares are trading higher on Friday after the company reported third-quarter financial results. It clocked an adjusted earnings per share of 61 cents, beating the street view of 29 cents . Quarterly revenues of $596.328 million (+3%) beat the analyst consensus estimate of $577.93 million.
Comparable sales rose 6%, with e-commerce sales up 15% and store sales increasing 4%. E-commerce accounted for 24% of retail sales.
“This result was driven by the initial phase of Journeys’ strategic growth plan which has focused on elevating the consumer experience including improving the product assortment and visually resetting our stores,” said Mimi E. Vaughn, Genesco’s Board Chair.
The overall sales increase for the third quarter was driven by an increase of 4% at Journeys, an increase of 3% at Schuh and a 10% increase at Genesco Brands, partially offset by a decrease of 4% at Johnston & Murphy.
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Third quarter gross margin decreased 30 basis points to 47.8% compared with 48.1% last year, due primarily to changes in product mix at Journeys.
Genesco held cash and equivalents of $33.6 million as of November 2, compared with $21.7 million in the year-ago period. At the end of the third quarter of fiscal 2025, total debt was $100.1 million.
The company said it closed 12 Journeys stores in the third quarter (for a total of 41 Journeys stores closed to date in Fiscal 2025) and expects to close up to another 10 Journeys stores in Fiscal 2025.
Outlook: Genesco raised its FY25 adjusted EPS forecast to $0.80-$1.00, compared to the analyst estimate of $0.80 (Prior view: $0.60-$1.00).
Genesco now expects total sales to be flat or down 1% compared to Fiscal 2024. Excluding the 53rd week, sales are expected to be flat to up 1%.
Price Action: GCO shares are up 6.50% to $39.84 at the last check on Friday.
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