Genesco Rating Cut to Neutral; Q1 Sales Slated at $468M, EPS Loss $2.58
GCO•Seaport Research Partners cut Genesco’s rating from Buy to Neutral, citing consumer caution, rising fuel costs and weakening European sales at Journeys and schuh. First-quarter sales are expected at $468 million with an adjusted EPS loss of $2.58 versus a prior-year loss of $2.05.
1. Rating Downgrade
Seaport Research Partners lowered Genesco’s rating from Buy to Neutral, highlighting consumer caution, rising fuel costs and declining spending in Europe as headwinds for Journeys and schuh.
2. First-Quarter Projections
Genesco expects Q1 fiscal 2027 sales of about $468 million and an adjusted EPS loss of $2.58 versus $2.05 a year earlier, forecasting a slight uptick in comparable sales but an overall revenue decline ahead of the May 29 earnings release.
3. Full-Year Outlook and Risks
Genesco maintained full-year guidance calling for 50–60 basis points of gross margin expansion and adjusted EPS of $1.90–$2.30, but noted that current economic pressures and recent share gains near $37.38 versus a 52-week range of $19.62–$38.95 may complicate target achievement.
