Genesco (GCO) AI Stock Analysis

• Market Cap: $313.18M
• Dividend Yield: N/A
• Average Volume (3M): 102.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: 2.66%
• EPS Growth: -4772.54%
• Country: US
• Employees: 5,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -1.14
• Shares Outstanding: 10,795,425
• 10 Day Avg. Volume: 82,473
• 30 Day Avg. Volume: 102,031
• PEG Ratio: -1.49
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 9.65
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: 19.28
• 1Y Price Target: $34.00
• Price Target Upside: 17.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $30.00 ▲(3.41% Upside)

Genesco's overall stock score reflects significant financial challenges and valuation concerns, offset by positive developments from the latest earnings call. The company's unprofitability and weak cash flow generation are major risks, while strategic initiatives and sales growth provide some optimism.

Positive Factors

Strategic Leadership Change

The formation of the Journeys Global Retail Group and appointment of experienced leaders like Andy Gray and Chris Santaella is a strategic move to unify operations and leverage expertise, potentially enhancing operational efficiency and market reach.

Comparable Sales Growth

Consistent comparable sales growth, especially in the Journeys segment, indicates strong market demand and effective sales strategies, supporting long-term revenue stability and market share expansion.

Store Channel Performance

Positive growth in store channels, driven by strategic investments and remodels, suggests improved customer experience and engagement, which can lead to sustained sales increases and competitive advantage.

Negative Factors

Profitability Issues

Negative profitability highlights operational inefficiencies and challenges in cost management, which could hinder long-term financial health and necessitate strategic improvements to achieve sustainable growth.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to invest in growth opportunities and manage debt, posing risks to financial flexibility and long-term operational sustainability.

U.K. Market Volatility

The challenging U.K. retail environment and resulting volatility could continue to pressure Schuh's performance, impacting overall profitability and requiring strategic adjustments to mitigate risks.

Genesco Business Overview & Revenue Model

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.

How the Company Makes Money

Genesco generates revenue primarily through the sale of footwear and accessories in its retail stores and online platforms. The company operates through several key segments, including Journeys, Lids, and Schuh, each contributing significantly to its overall revenue. The Journeys segment focuses on youth-oriented footwear and apparel, while Lids specializes in headwear and sports merchandise, catering to sports fans. Schuh is a UK-based retailer that offers a wide range of footwear brands. Genesco also benefits from e-commerce sales, which have been increasingly important for growth, particularly in the wake of changing shopping behaviors. Additionally, the company engages in promotional partnerships and collaborations with various brands and licensors, enhancing its product offerings and driving sales. Seasonal promotions and marketing campaigns further contribute to its revenue streams by attracting customers and boosting sales during key shopping periods.

Genesco Financial Statement Overview

Summary

Genesco's financial performance is challenged by declining revenues and profitability, increasing leverage, and volatile cash flows. The company faces headwinds in stabilizing revenue and improving cash flow consistency.

Income Statement

Genesco's Income Statement reveals a challenging landscape with a declining revenue trend over recent years and negative net income in the TTM. The gross profit margin remains relatively stable, indicating cost management efficiency, but declining EBIT and EBITDA margins suggest operational challenges. Revenue growth has been negative over the past periods, highlighting a concerning trajectory in sales performance.

Balance Sheet

The Balance Sheet shows a moderate level of financial stability. Although the equity ratio is reasonable, indicating a balanced capital structure, the rising debt-to-equity ratio is a concern, suggesting increased leverage. Return on Equity has been negative, reflecting profitability issues, but the company retains a fair amount of stockholders' equity relative to total assets.

Cash Flow

Cash Flow analysis indicates significant volatility, with free cash flow turning negative in the TTM. The operating cash flow to net income ratio suggests operational inefficiencies, and the drop in free cash flow growth rate signals potential liquidity issues. Capital expenditures have been sustained, yet the ability to generate positive free cash flow remains inconsistent.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.33B	2.32B	2.38B	2.42B	1.79B
Gross Profit	1.11B	1.10B	1.10B	1.14B	1.18B	804.47M
EBITDA	41.11M	66.72M	35.84M	136.66M	190.36M	-59.66M
Net Income	-24.25M	-18.89M	-16.83M	71.92M	114.85M	-56.03M
Balance Sheet
Total Assets	1.42B	1.34B	1.33B	1.46B	1.56B	1.59B
Cash, Cash Equivalents and Short-Term Investments	40.99M	34.01M	35.16M	47.99M	320.52M	215.09M
Total Debt	452.86M	485.09M	522.94M	580.43M	632.64M	734.04M
Total Liabilities	867.22M	788.57M	758.69M	849.46M	959.63M	1.02B
Stockholders Equity	554.71M	546.97M	571.20M	606.97M	602.47M	566.76M
Cash Flow
Free Cash Flow	18.78M	46.75M	34.49M	-224.82M	185.97M	133.61M
Operating Cash Flow	79.22M	87.89M	94.80M	-164.88M	239.87M	157.74M
Investing Cash Flow	-60.44M	-41.13M	-60.00M	-59.93M	-33.90M	-24.02M
Financing Cash Flow	-23.04M	-47.00M	-47.58M	-45.53M	-101.17M	-3.16M

Genesco Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCO, the sentiment is Negative. The current price of 29.01 is below the 20-day moving average (MA) of 29.11, below the 50-day MA of 30.76, and above the 200-day MA of 27.20, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 21.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCO.

Genesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCVL	―	$501.74M	8.07	9.69%	3.23%	-6.42%	-19.27%
ZUMZ	―	$371.37M	―	0.19%	―	1.64%	―
JILL	―	$229.48M	6.31	34.74%	2.06%	-2.37%	-16.40%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GCO	―	$313.18M	―	-4.81%	―	2.66%	-4772.54%
PLCE	―	$158.94M	-8.24	―	―	-12.08%	93.16%
CURV	―	$123.96M	40.06	―	―	-5.76%	-75.71%

Genesco Corporate Events

Genesco’s Earnings Call: Growth Amidst Challenges

Genesco’s recent earnings call painted a picture of robust growth tempered by regional challenges. The company reported strong comparable sales growth, particularly in the Journeys segment, and positive developments in store channel performance and Johnston & Murphy’s turnaround. However, challenges in the U.K. market affecting Schuh and the impact of tariffs on the Genesco Brands Group were noted. Despite these hurdles, the company maintains an optimistic outlook for the future.

Genesco Inc. Reports Strong Q2 Sales Growth

Genesco Inc. is a Nashville-based footwear company known for its diverse retail and lifestyle brands, including Journeys, Schuh, and Johnston & Murphy, with a strong presence in the U.S., Canada, and the U.K. In its fiscal 2026 second quarter report, Genesco Inc. announced a 4% increase in net sales, reaching $546 million, and a notable 9% rise in Journeys’ comparable sales, marking the fourth consecutive quarter of positive growth. Despite a GAAP EPS loss of $1.79, the company raised its full-year sales outlook, driven by strong performance in key segments.

Genesco Raises Full-Year Sales Outlook Amid Growth

Genesco Inc. reported its fiscal 2026 second-quarter results, showing a 4% increase in net sales to $546 million compared to the previous year. The company experienced a 4% rise in comparable sales, driven by a 9% increase at Journeys. Despite a GAAP operating loss of $14.4 million, Genesco raised its full-year sales outlook, reflecting confidence in its strategic growth initiatives. The company continues to navigate challenges such as tariffs and a competitive market environment, while focusing on product elevation and customer experience to maintain momentum.

The most recent analyst rating on (GCO) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Genesco stock, see the GCO Stock Forecast page.