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Genesco Inc. (GCO)
NYSE:GCO

Genesco (GCO) AI Stock Analysis

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GCO

Genesco

(NYSE:GCO)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
$23.50
▼(-33.37% Downside)
Genesco's overall stock score reflects significant challenges in profitability and valuation, despite strong revenue growth. Technical analysis indicates bearish momentum, further impacting the score. The company's strategic initiatives and revenue growth are positive, but profitability and market conditions remain major concerns.

Genesco (GCO) vs. SPDR S&P 500 ETF (SPY)

Genesco Business Overview & Revenue Model

Company DescriptionGenesco 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 MoneyGenesco 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 Earnings Call Summary

Earnings Call Date:Dec 04, 2025
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive growth in certain segments like Journeys, alongside significant challenges in other areas such as Schuh and the impact of tariffs. While there are strategic initiatives in place to drive growth, the current challenges and revised financial outlook indicate the company is navigating a complex environment.
Q3-2026 Updates
Positive Updates
Journeys Achieves Strong Growth
Journeys achieved 6% comparable growth and over 50% increase in operating income, showing significant improvement in profitability.
Positive Overall Comparable Sales
Total comparable sales increased by 3%, with store comps up 5%, reflecting the company's investment in the store channel.
Journeys Global Retail Group Formation
The newly created Journeys Global Retail Group brings together Journeys, Schuh, and Little Burgundy, aiming to strengthen market positioning.
Johnston and Murphy Brand Ambassador Launch
Johnston and Murphy introduced Peyton Manning as a new brand ambassador, leading to a double-digit increase in traffic and improved comp trends.
Solid Q3 Revenue Growth
Total revenue for the quarter was $616 million, up 3% compared to last year, driven by overall comparable sales growth.
Negative Updates
Schuh Performance Challenges
Schuh faced more than expected gross margin pressure due to heightened promotional activity in the UK market, leading to a decrease in overall comps by 2%.
Impact of Tariffs
Tariffs significantly affected the Genesco Brands Group, leading to gross margin pressure and lower profitability.
Exit of Licenses
The anticipated exit of licenses in Genesco Brands Group added to the headwinds faced during the quarter, impacting overall performance.
Lowered Full-Year EPS Guidance
Full-year adjusted earnings per share guidance was revised to approximately $0.95, reflecting ongoing challenges in the UK market and moderated growth assumptions for other businesses.
Company Guidance
In the Genesco Third Quarter Fiscal 2026 Conference Call, the company provided updated guidance reflecting both positive and challenging aspects of their performance. Total revenue for the quarter was $616 million, marking a 3% increase compared to last year, with a total comparable sales increase of 3%. Journeys achieved a 6% comp growth and a 50% increase in operating income. However, Schuh faced a 2% decline in comps due to a challenging UK market, impacting the overall gross margin, which declined by 100 basis points to 46.8%. The company revised its full-year adjusted earnings per share guidance to approximately $0.95, reflecting greater pressure on Schuh sales and a higher tax rate of 34%. Genesco remains focused on strategic initiatives, including new brand introductions and marketing campaigns, to drive growth and long-term value creation.

Genesco Financial Statement Overview

Summary
Income Statement
65
Positive
Balance Sheet
58
Neutral
Cash Flow
70
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Genesco Technical Analysis

Technical Analysis Sentiment
Negative
Last Price35.27
Price Trends
50DMA
29.45
Negative
100DMA
29.38
Negative
200DMA
25.59
Negative
Market Momentum
MACD
-2.12
Positive
RSI
32.54
Neutral
STOCH
30.96
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 35.27 is above the 20-day moving average (MA) of 28.80, above the 50-day MA of 29.45, and above the 200-day MA of 25.59, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 32.54 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCO.

Genesco Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$494.76M59.022.79%2.81%
69
Neutral
$523.14M9.098.78%3.12%-6.22%-22.81%
58
Neutral
$216.75M6.5528.98%1.85%-2.67%-22.93%
48
Neutral
$258.49M-128.88-0.13%2.76%96.01%
45
Neutral
$162.93M-1.76-10.09%81.44%
45
Neutral
$107.13M-47.75-7.33%-114.80%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GCO
Genesco
23.74
-16.94
-41.64%
SCVL
Shoe Carnival
18.82
-14.54
-43.59%
PLCE
Children's Place
4.64
-6.13
-56.92%
ZUMZ
Zumiez
28.54
9.01
46.13%
JILL
JJill
14.50
-10.75
-42.57%
CURV
Torrid Holdings
1.06
-3.32
-75.80%

Genesco Corporate Events

Genesco’s Earnings Call: Growth Amidst Challenges
Sep 1, 2025

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
Aug 29, 2025

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.

Business Operations and StrategyFinancial Disclosures
Genesco Raises Full-Year Sales Outlook Amid Growth
Positive
Aug 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 11, 2025