Genesco (GCO) AI Stock Analysis

• Market Cap: $346.65M
• Dividend Yield: N/A
• Average Volume (3M): 176.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: 1.85%
• EPS Growth: 22.34%
• Country: US
• Employees: 5,400
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 10,778,805
• 10 Day Avg. Volume: 182,380
• 30 Day Avg. Volume: 176,636
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: 11.56
• 1Y Price Target: $33.75
• Price Target Upside: 4.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $34.00 ▲(5.72% Upside)

Genesco's overall stock score reflects a mixed outlook. The company's financial performance is under pressure from declining revenues and profitability, while technical analysis shows bullish momentum. Valuation remains a concern with a negative P/E ratio. The positive sentiment from the earnings call, driven by strong sales growth and strategic initiatives, provides some optimism for future performance.

Positive Factors

Earnings

Journeys had comped positive for three straight quarters and was expected to continue with this strong performance driven by a product pivot.

Market Expansion

GCO is now targeting a broader range of female consumers, expanding its market reach.

Strategic Initiatives

Journeys is experiencing significant progress with assortment upgrades, traction with remodels, and the closure of underperforming locations.

Negative Factors

Broader Market Trends

Broader shopping mall trends have been declining, presenting a headwind for Journeys and necessitating a reduction in store count.

Macroeconomic Factors

The company's mall-based exposure may make it more susceptible to discretionary downturns due to macroeconomic uncertainty.

Operating Margins

The company expects incremental pressure on operating margins and EPS due to pulling forward investment to drive second-half sales growth.

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 struggles with operational cash generation and requires strategic focus on enhancing operational efficiency and managing financial leverage.

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

Genesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 32.16 is above the 20-day moving average (MA) of 25.87, above the 50-day MA of 23.92, and above the 200-day MA of 28.79, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 76.03 is Negative, neither overbought nor oversold. The STOCH value of 86.29 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
JILL	70 Neutral	$253.39M	7.45	41.77%	1.81%	-2.24%	-33.43%
CTRN	62 Neutral	$281.58M	―	-13.32%	―	3.32%	25.71%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
GCO	61 Neutral	$346.65M	―	-3.07%	―	1.85%	22.34%
ZUMZ	59 Neutral	$300.32M	1,536.36	0.23%	―	3.01%	―
DBI	55 Neutral	$168.93M	―	-9.20%	5.57%	-4.22%	-386.70%
PLCE	44 Neutral	$99.53M	―	-521.67%	―	-12.15%	75.86%

Genesco Corporate Events

Genesco Holds Virtual Annual Shareholder Meeting

On June 26, 2025, Genesco held its annual shareholder meeting virtually from its headquarters in Nashville, Tennessee, where shareholders voted on several key matters. All nine director nominees were elected, and shareholders approved the executive compensation plan, the Third Amended and Restated 2020 Equity Incentive Plan, and the appointment of Deloitte & Touche as the independent accountants for the fiscal year.