Driven by the holiday season, Genesco Inc. saw a 10% increase in comparable sales in Q4 2024.
Genesco company management upgraded fiscal 2025 earnings guidance of 80 cents to $1.00 per share.
The Zacks Consensus Estimate for Genesco earnings per share (EPS) suggests annual growth of 44.6%.
Genesco Inc. GCO announced an impressive 10% increase in comparable sales for the fourth-quarter-to-date period ended Dec. 28, 2024. This growth includes physical stores and e-commerce channels, reflecting a solid performance across its portfolio. Same-store sales rose 6%, while comparable e-commerce sales surged 20%, signaling the strength of the company's omnichannel strategy.
Breaking down the numbers, the Journeys Group led the charge with a 14% year-over-year increase in comparable sales. The Schuh Group reported a modest growth of 3%, while the Johnston & Murphy Group saw a slight decline of 1%.
Holiday Season Drives GCO’s Sales Momentum
According to Mimi E. Vaughn, Genesco’s board chair, president and CEO, sales at Journeys Group exceeded expectations during the holiday season, fueled by strong full-price selling in the weeks leading up to Christmas. Vaughn credited the exceptional efforts of Genesco’s teams for delivering double-digit growth across both brick-and-mortar and digital channels.
The quarter’s success also triggered additional incentive compensation expenses and accelerated store closures as part of the company’s ongoing strategy to optimize its retail footprint. Vaughn emphasized that these steps align with Genesco’s broader goals to enhance profitability and efficiency.
Genesco Reaffirms Fiscal 2025 Guidance
Based on quarter-to-date results, management reiterated its fiscal 2025 earnings guidance of 80 cents to $1.00 per share. This suggests a sharp improvement from earnings of 56 cents reported in fiscal 2024. The outlook highlights GCO’s confidence in enhancing profitability and streamlining operations.
Looking ahead to fiscal 2026, Genesco plans to capitalize on Journeys' recent success and drive growth across its businesses. The company aims to achieve sustainable profitability through continued investments in digital platforms, cost optimization and a refined store portfolio.
GCO Positioned for Long-Term Success
Genesco’s fourth-quarter-to-date performance reflects its resilience and ability to adapt to evolving market dynamics. The strong sales growth, driven by both physical stores and digital platforms, demonstrates the effectiveness of its strategies. While challenges remain, including optimizing the Johnston & Murphy Group, the reaffirmed guidance and focus on profitability position Genesco for continued progress.
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Should You Invest in GCO Stock?
Genesco’s strategic focus on enhancing its core brands and aligning with consumer trends has fortified its position in the competitive retail landscape. By continually refining its product assortment and ensuring it resonates with evolving consumer preferences, particularly among style-conscious teens, the company has strengthened its appeal. GCO’s investments in digital marketing, customer relationship management and loyalty programs have amplified its reach and engagement.
Optimizing its store footprint while introducing modern, consumer-focused designs underscores Genesco's commitment to efficiency and customer experience. By selectively remodeling stores and creating environments that reflect the premium nature of its products, the company is not only driving traffic but also enhancing brand perception.
The Zacks Consensus Estimate for Genesco’s current financial-year earnings per share (EPS) suggests growth of 44.6% from the year-ago reported figures. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 46.8% compared with the industry’s rise of 13.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
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