Genesco (GCO) AI Stock Analysis

• Market Cap: $380.75M
• Dividend Yield: N/A
• Average Volume (3M): 88.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• 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: 106,300
• 30 Day Avg. Volume: 88,327
• 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: 2.08
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: 19.28
• 1Y Price Target: $30.00
• Price Target Upside: -14.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $36.00 ▲(3.15% Upside)

Genesco's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting growth in key segments and strategic initiatives. However, significant financial challenges and unattractive valuation weigh heavily on the score, reflecting the company's current unprofitability and weak cash flow management.

Positive Factors

Comparable Sales Growth

Sustained comparable sales growth indicates strong market demand and effective sales strategies, enhancing long-term revenue potential.

Journeys Brand Performance

Journeys' strong performance and market share gains reflect successful brand positioning and product offerings, supporting future growth.

Store Channel Growth

Investments in store remodels and strategic initiatives drive store channel growth, enhancing customer experience and sales efficiency.

Negative Factors

Profitability Issues

Ongoing profitability challenges hinder financial stability and limit reinvestment capabilities, affecting long-term competitiveness.

Weak Cash Flow Management

Weak cash flow management restricts operational flexibility and investment capacity, impacting long-term strategic initiatives.

Challenging U.K. Market

Persistent challenges in the U.K. market pressure margins and require increased promotional efforts, affecting overall profitability.

Genesco Business Overview & Revenue Model

Company Description

Genesco Inc. (GCO) is a leading retailer and wholesaler of footwear, headwear, and accessories, operating primarily in the specialty retail sector. The company manages several well-known brands, including Journeys, Journeys Kidz, and Lids, and offers a diverse range of products that cater to various consumer segments. Genesco's operations span across multiple channels, including brick-and-mortar stores, e-commerce platforms, and wholesale distribution, focusing on delivering trendy and high-quality products to its customers.

How the Company Makes Money

Genesco generates revenue through multiple streams, primarily from the sale of footwear and related accessories via its retail and wholesale operations. The company operates a significant number of retail stores across the United States and internationally, primarily under its Journeys and Lids brands. A substantial portion of Genesco's revenue comes from direct-to-consumer sales through their physical stores and e-commerce platforms. Additionally, Genesco benefits from wholesale distribution agreements, supplying products to various third-party retailers. Key partnerships with popular brands and ongoing collaborations enhance their product offerings, driving sales and customer loyalty. Seasonal promotions, marketing campaigns, and a focus on customer experience also contribute to their earnings, allowing them to maintain a competitive edge in the retail market.

Genesco Financial Statement Overview

Summary

Genesco is facing significant financial challenges. The company is currently unprofitable with a negative net profit margin and minimal revenue growth. Operational inefficiencies are evident with low EBIT and EBITDA margins. While the debt-to-equity ratio is manageable, the negative return on equity and weak cash flow generation highlight profitability issues.

Income Statement

Genesco's income statement reveals a challenging financial environment. The TTM data shows a negative net profit margin of -1.03%, indicating the company is currently unprofitable. Revenue growth is minimal at 0.09% annually, and gross profit margins have slightly declined over the years. The EBIT and EBITDA margins are low, reflecting operational inefficiencies. Overall, the company is struggling to maintain profitability and growth.

Balance Sheet

The balance sheet shows moderate financial stability. The debt-to-equity ratio has improved slightly to 0.82, indicating a manageable level of debt relative to equity. However, the return on equity is negative at -4.53%, highlighting profitability issues. The equity ratio is stable, suggesting a balanced asset structure. While leverage is under control, profitability remains a concern.

Cash Flow

Cash flow analysis indicates significant challenges. The TTM free cash flow growth is negative, and the operating cash flow to net income ratio is low at 0.19, suggesting weak cash generation relative to earnings. The free cash flow to net income ratio is 0.24, indicating limited cash available after capital expenditures. Overall, cash flow management is a critical area for improvement.

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	35.44M	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	575.97M	612.30M	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: Positive
• Last Price: 34.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCO, the sentiment is Positive. The current price of 34.9 is above the 20-day moving average (MA) of 31.00, above the 50-day MA of 30.45, and above the 200-day MA of 26.34, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 68.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GCO.

Genesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCVL	65 Neutral	$450.28M	7.83	8.78%	3.49%	-6.22%	-22.81%
ZUMZ	65 Neutral	$430.55M	―	0.19%	―	1.64%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JILL	60 Neutral	$227.50M	6.25	34.74%	2.01%	-2.37%	-16.40%
GCO	57 Neutral	$380.75M	―	-4.81%	―	2.66%	-4772.54%
PLCE	46 Neutral	$178.89M	―	―	―	-12.08%	93.16%
CURV	46 Neutral	$127.92M	41.35	―	―	-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.