Truist Securities raises Genesco stock price target to $25 from $23

Published 04/06/2025, 20:50
Truist Securities raises Genesco stock price target to $25 from $23

On Wednesday, Truist Securities analysts increased their price target for Genesco stock to $25 from $23, maintaining a Hold rating. The decision follows Genesco’s announcement of strong first-quarter results and the reaffirmation of its full-year earnings per share guidance. According to InvestingPro data, analysts expect the company to return to profitability this year with projected earnings of $1.42 per share. The company has factored in the impact of current tariffs, as the turnaround at its Journeys brand continues to gain momentum.

Genesco, listed on the New York Stock Exchange under the ticker (NYSE:GCO), has implemented strategies to counteract the negative effects of tariffs on gross margins, which currently stand at 47.2%. These strategies include sourcing and efficiency initiatives, as well as selective price increases expected in the second half of the fiscal year. The company maintains a healthy current ratio of 1.6, indicating strong ability to meet short-term obligations. However, there remains uncertainty about how consumers will respond to these price adjustments.

The analysts from Truist Securities expressed their cautious stance on the macroeconomic environment, which may present challenges due to potential demand fluctuations. These concerns are reflected in the stock’s performance, with InvestingPro data showing a 41.5% decline over the past six months. These fluctuations are compounded by challenging comparisons to a strong holiday season in fiscal year 2025.

Despite these concerns, Truist Securities acknowledged the positive progress in the turnaround of the Journeys brand. The company remains focused on navigating the evolving market landscape while addressing tariff-related challenges.

Genesco continues to work on its strategic initiatives to maintain its market position and achieve its financial targets, while closely monitoring consumer behavior and market conditions.

In other recent news, Genesco Inc . has reported its first-quarter financial results for 2025, showing a revenue increase to $474 million, which exceeded forecasts. The company also posted an adjusted diluted loss per share of $2.05, slightly better than the expected loss of $2.06. This revenue growth marks a 4% increase year-over-year, and the company also reported a 5% increase in comparable sales. In strategic moves, Genesco repurchased 5% of its outstanding shares, aiming to enhance shareholder value.

In terms of market analysis, Genesco’s stock was notably upgraded by analysts, reflecting confidence in its financial performance and strategic initiatives. The company’s focus on the teen market and premium footwear brands appears to be paying off, as evidenced by the strong results from its Journeys segment. Additionally, Genesco is managing its exposure to potential tariff impacts, as discussed by CEO Mimi Vaughan, who emphasized the company’s strategic efforts to mitigate cost pressures. These recent developments underscore Genesco’s resilience in navigating a challenging retail environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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