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On Wednesday, Truist Securities analysts reiterated a Hold rating for Genesco stock (NYSE: GCO) and affirmed the price target at $23.00. The decision followed Genesco’s first-quarter results, which aligned closely with both the firm’s and Wall Street’s expectations.
The company reported stronger sales and effectively managed selling, general, and administrative expenses, which helped counterbalance a slightly lower gross margin percentage of 47.17%. Despite current tariff impacts, Genesco maintained its full-year earnings per share outlook, with InvestingPro analysts forecasting a return to profitability this year. The company’s current ratio of 1.6 indicates strong liquidity, supporting its turnaround efforts.
Truist Securities highlighted that the results indicate promising demand in the category, though they expressed caution regarding macroeconomic uncertainties in the second half of the fiscal year. The analysts’ comments came ahead of a scheduled call with Genesco executives later in the day.
The reaffirmed Hold rating suggests that while the company is making progress, potential investors should remain cautious due to broader market conditions.
In other recent news, Genesco Inc (NYSE:GCO). reported first-quarter results that surpassed expectations and reiterated its full-year earnings guidance. The company posted an adjusted loss of $2.05 per share, which was narrower than the $2.10 per share loss from the same period last year. Revenue increased by 4% to $474 million, with comparable sales rising 5%, driven by an 8% gain at the Journeys brand. E-commerce sales also saw growth, increasing by 7% and accounting for 23% of total retail sales. Genesco maintained its full-year adjusted earnings guidance of $1.30 to $1.70 per share, expecting total sales growth of 1-2% for the year. The company noted a decline in gross margin by 90 basis points to 46.7% due to brand mix changes and promotional activities, though selling and administrative expenses improved as a percentage of sales. CEO Mimi Vaughn expressed satisfaction with the company’s performance, highlighting the third consecutive quarter of positive comparable sales increases. Additionally, Genesco repurchased 604,531 shares for $12.6 million and ended the period with 1,256 stores, a decrease from 1,321 stores a year ago.
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