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Investing.com - Seaport Global Securities upgraded Genesco (NYSE:GCO) from Neutral to Buy on Tuesday, setting a price target of $38.00 ahead of the company’s second-quarter earnings report. The stock has shown strong momentum, gaining nearly 10% in the past week and trading at 0.6x book value, according to InvestingPro data.
The upgrade comes as Genesco prepares to announce its Q2 fiscal 2026 results on Thursday, August 28. While InvestingPro data shows that three analysts have recently revised their earnings estimates downward, Seaport Global believes the company’s Journeys footwear chain performed slightly better than planned during the quarter and has started the third quarter strongly.
Seaport Global noted that Journeys has posted positive comparable sales for three consecutive quarters, driven by a successful product pivot. The firm highlighted that Genesco will face more challenging year-over-year comparisons in the second half of fiscal 2026, with double-digit comps to beat versus single-digit declines in the first half.
The research firm identified three key factors enabling Journeys to maintain momentum: an improved product assortment compared to last year, store remodels that are outperforming the chain average, and expanded targeting of female consumers.
Seaport Global also expressed confidence that the drivers behind Journeys’ strong back-to-school performance should continue to benefit the retailer during the upcoming holiday shopping period.
In other recent news, Genesco Inc . reported its first-quarter financial results for 2025, showcasing a revenue increase to $474 million, which exceeded forecasts. The company also slightly surpassed expectations with an adjusted diluted loss of $2.05 per share, compared to the anticipated $2.06. Truist Securities responded to these results by raising their price target for Genesco’s stock to $25 from $23 while maintaining a Hold rating. This decision reflects the company’s strong performance and its reaffirmed full-year earnings per share guidance. Genesco has been proactive in addressing the impact of tariffs on its gross margins through sourcing and efficiency initiatives, alongside selective price increases planned for later in the fiscal year. The effectiveness of these strategies remains to be seen as consumer reactions to price adjustments are uncertain. These developments highlight Genesco’s ongoing efforts to navigate market challenges and capitalize on growth opportunities.
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