Why Specialty Retailer Genesco Shares Are Tumbling Today

Author: Lekha Gupta | January 08, 2024 09:42am

Genesco Inc (NYSE:GCO) company shares are trading lower after it reported weak comparable sales and lowered FY24 outlook.

Comparable sales, including stores and direct sales, fell 4% for the quarter-to-date period ending December 30, 2023. 

Same-store sales were down 6%, and sales for the company's e-commerce businesses rose 3% on a comparable basis for that period. 

Also, the company lowered FY24 adjusted EPS to $0.65-$0.85 (vs. $1.73 estimate) from $1.50-$2.00 earlier and expects it to be near the midpoint of this range.

Mimi E. Vaughn, chair, president, and chief executive officer, said, "Following a positive start to the holiday season, sales decelerated in the weeks approaching Christmas, as consumer shopping trends remained choppy and peak shopping days were not enough to offset the lulls in between. This was most pronounced at Journeys, where store results were pressured despite our more promotional stance." 

"While consumer appetite for key items remained strong, there was less interest in boots, which are a meaningful part of our winter assortment. Positively, momentum remained strong at Johnston & Murphy, helping to counter the lower-than-expected results at Journeys, and our online businesses continued to post solid gains."

Last month, Genesco reported Q3 net sales fell 4% Y/Y to $579.3 million, missing the consensus of $583.0 million, and adjusted EPS from continuing operations of $0.57 missed the consensus of $0.82.

Price Action: GCO shares are down 12.40% at $27.21 premarket on the last check Monday.

Posted In: GCO