Genesco (GCO) First Quarter Earnings Report Preview: What to Watch For

Footwear, clothing and accessories retailer Genesco (NYSE:GCO) will report earnings tomorrow morning. Here’s what investors need to know.

Genesco beat analysts’ revenue expectations by 4.8% last quarter, reporting revenue of $739 million, up 1.9% year-over-year. It was a weaker quarter for the company, with disappointing full-year earnings forecasts and no analyst earnings estimates.

Does the purchase or sale of Genesco affect earnings? Read our full analysis here, it’s free.

Analysts expect Genesco’s revenue this quarter to decline 7.8% year-over-year to $445.7 million, matching the 7.2% decline seen in the same quarter last year. Adjusted loss is expected to be -$2.66 per share.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Over the past two years, Genesco has topped Wall Street revenue estimates four times.

Looking at Genesco’s competitors in the footwear segment, some have already released first-quarter results, which gives us a hint of what to expect. Deckers reported revenue growth of 21.2% year-over-year, beating analyst expectations by 8%, and Crocs reported revenue growth of 6.2%, beating estimates of 6.1%. After the results, Deckers’ sales increased by 14.2% and Crocs also increased by 7.1%.

Read our full analysis of Deckers’ results here and Crocs’ results here.

There is a positive sentiment among investors in the footwear segment, with share prices increasing by an average of 2.1% over the past month. Genesco is up 4.8% over the same period and is heading toward earnings, with an average analyst price target of $25 (versus the current share price of $26.98).

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