Market Overview

Baird Downgrades Genesco To Neutral On 'Stunning' Fall-Off In Comps

Share:
Baird Downgrades Genesco To Neutral On 'Stunning' Fall-Off In Comps

Baird has downgraded specialty retailer Genesco Inc. (NYSE: GCO) to Neutral citing that its thesis on the company has changed. Baird substantially reduced Genesco's price target to $53, down from its previous target of $80.

The company was disappointed to step aside from Genesco post Q2 earnings, which saw its stock fall off a cliff, down 32 percent on the week.

"We are highly disappointed to be stepping aside on GCO, particularly since our positive view related to the multi-year Lids recovery is intact. However, the stunning comps falloff at Journeys provides too many uncertainties related to the timing and shape of a recovery," Baird said in an analyst noted released Friday.

Related Link: James Harden's Shoe Gets The Steph Curry Treatment

What Went Wrong At Journeys?

The footwear retailer was able to correctly identify recent trends of casual/athletic footwear with adidas AG (ADR) (OTC: ADDYY) comeback along with PUMA SE NPV (OTC: PMMAF), but was "unable to secure adequate allocations to offset declines elsewhere (likely Vans VF Corp (NYSE: VFC)/Converse Nike Inc (NYSE: NKE)/Sperry Wolverine World Wide, Inc. (NYSE: WWW)), pressuring conversion despite reasonably solid traffic," Baird Analysts said. Comps were particularly troubling for Journeys, down 4 percent in the quarter.

Genesco stock was up 1 percent in midday trading Friday.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for ADDYY

DateFirmActionFromTo
Oct 2019Exane BNP ParibasInitiates Coverage OnNeutral
Jun 2019BerenbergUpgradesHoldBuy
Nov 2017BairdMaintainsNeutral

View More Analyst Ratings for ADDYY
View the Latest Analyst Ratings

 

Related Articles (GCO + ADDYY)

View Comments and Join the Discussion!

Posted-In: Baird JourneysAnalyst Color Earnings Downgrades Price Target Analyst Ratings Movers Best of Benzinga

Latest Ratings

StockFirmActionPT
WWEEvercore ISI GroupUpgrades
INTB of A SecuritiesUpgrades40.0
BLDPBMO CapitalInitiates Coverage On39.0
SSYSStifelInitiates Coverage On40.0
CMGGoldman SachsInitiates Coverage On1,650.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com