Genesco Plunges After Q2 Revenue Miss, FY23 Outlook Cut

  • Genesco Inc GCO reported a second-quarter FY23 sales decline of 4% year-on-year to $535 million, missing the consensus of $546.43 million.
  • Total comparable sales declined 2% versus last year.
  • Overall sales dropped 7% at Journeys, fell 4% at Schuh, up 22% at Johnston & Murphy, and declined 10% at Licensed Brands versus Q2 FY22.
  • Adjusted EPS of $0.59 beat the analyst consensus of $0.27.
  • Gross margin was 47.5%, a 160 basis points contraction Y/Y. Operating margin was 1.7%, and operating income for the quarter was $9.1 million.
  • The company held $44.9 million in cash and equivalents as of July 30, 2022.
  • Inventories increased 55% on a Y/Y basis as outsized stimulus demand and supply chain limitations resulted in extremely low inventory last year.
  • Outlook: Genesco lowered FY23 adjusted EPS guidance to $6.25 - $7.00 from $7.00 - $7.75, against a consensus of $7.35. The company's expectation for adjusted EPS stands near the mid-point of the range.
  • The company has also lowered FY23 sales growth expectations to down 3% - flat versus the prior view of up 1% - 3%.
  • Price Action: GCO shares are trading lower by 15.85% at $47.61 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceSmall CapMoversTrading IdeasBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!