Truist Financial Lowers Genesco (NYSE:GCO) Price Target to $38.00

Key Points

• Truist Financial lowered Genesco’s price target to $38 from $40 while maintaining a “hold” rating, implying approximately 7.7% upside from the stock’s $35.28 price. The broader analyst consensus is also “Hold,” with a $36 target.
• Genesco’s latest results exceeded expectations: the company reported an adjusted loss of $0.83 per share versus the projected $1.37 loss, while revenue reached $529.9 million. Management raised fiscal 2027 adjusted EPS expectations to the high end of its $2.00–$2.40 range.
• Despite improved margins and stronger Journeys and Johnston & Murphy comparable sales, total sales fell 3% year over year and e-commerce comparable sales declined 6%. A $22.5 million tariff refund boosted results, raising questions about the sustainability of the turnaround.

Genesco (NYSE:GCO - Get Free Report) had its price objective reduced by analysts at Truist Financial from $40.00 to $38.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a "hold" rating on the stock. Truist Financial's target price would suggest a potential upside of 7.71% from the company's current price.

Other research analysts also recently issued research reports about the company. Zacks Research downgraded Genesco from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 31st. Weiss Ratings lowered shares of Genesco from a "hold (c)" rating to a "sell (d+)" rating in a report on Friday, June 12th. Wall Street Zen downgraded shares of Genesco from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Finally, Seaport Research Partners cut shares of Genesco from a "buy" rating to a "neutral" rating in a report on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Genesco has an average rating of "Hold" and a consensus target price of $36.00.

Genesco Stock Performance

GCO traded up $0.84 during trading hours on Friday, hitting $35.28. The stock had a trading volume of 119,269 shares, compared to its average volume of 229,305. Genesco has a 1 year low of $21.92 and a 1 year high of $43.60. The company's fifty day simple moving average is $35.48 and its 200 day simple moving average is $33.35. The stock has a market cap of $391.96 million, a PE ratio of 20.46 and a beta of 1.80. The company has a quick ratio of 0.37, a current ratio of 1.83 and a debt-to-equity ratio of 0.08.

Genesco (NYSE:GCO - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported ($0.83) earnings per share for the quarter, topping analysts' consensus estimates of ($1.37) by $0.54. The firm had revenue of $529.86 million during the quarter, compared to analyst estimates of $527.26 million. Genesco had a net margin of 0.80% and a return on equity of 2.66%. During the same quarter last year, the business earned ($1.79) earnings per share. Genesco has set its FY 2027 guidance at 2.000-2.400 EPS. Equities analysts anticipate that Genesco will post 2.25 earnings per share for the current year.

Insider Transactions at Genesco

In other news, Director Gregory Sandfort bought 2,958 shares of Genesco stock in a transaction that occurred on Thursday, July 9th. The shares were acquired at an average price of $33.80 per share, with a total value of $99,980.40. Following the completion of the purchase, the director directly owned 29,172 shares in the company, valued at $986,013.60. The trade was a 11.28% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 23.11% of the company's stock.

Hedge Funds Weigh In On Genesco

Institutional investors have recently modified their holdings of the company. Group One Trading LLC bought a new stake in Genesco in the 4th quarter worth approximately $26,000. Jones Financial Companies Lllp bought a new stake in shares of Genesco in the 1st quarter worth approximately $26,000. New York State Teachers Retirement System purchased a new stake in shares of Genesco in the 1st quarter valued at $27,000. Optiver Holding B.V. grew its holdings in shares of Genesco by 550.6% during the 1st quarter. Optiver Holding B.V. now owns 1,106 shares of the company's stock valued at $32,000 after purchasing an additional 936 shares during the last quarter. Finally, Legal & General Group Plc bought a new position in shares of Genesco during the 2nd quarter valued at $32,000. 94.51% of the stock is currently owned by institutional investors.

Key Genesco News

Here are the key news stories impacting Genesco this week:

• Positive Sentiment: Genesco reported adjusted EPS of a $0.83 loss, substantially better than the $1.37 loss analysts expected, while revenue of $529.9 million exceeded consensus by approximately $2.7 million. The result also improved significantly from a $1.79 per-share loss a year earlier. Genesco Boosts FY27 Adjusted EPS Outlook
• Positive Sentiment: Management raised its fiscal 2027 adjusted EPS outlook to the high end of its $2.00-$2.40 range, implying roughly $2.40 per share versus the current consensus estimate of $2.25. Revenue guidance remained approximately $2.4 billion. Genesco Fiscal 2027 Outlook
• Positive Sentiment: Journeys comparable sales rose 2%, and Johnston & Murphy comparable sales increased 4%. Genesco also plans approximately 95 Journeys 4.0 store openings, supporting expectations for continued growth in its key banner. Genesco Turnaround and Journeys Growth
• Neutral Sentiment: GAAP net income was $3.5 million, compared with an $18.5 million loss last year, while gross margin improved to 51.4% from 45.8%. The company received $22.5 million in tariff refunds, including interest, during the quarter, which materially boosted reported results. Genesco Fiscal 2027 Results
• Negative Sentiment: Sales declined 3% year over year, total comparable sales fell 1%, and comparable e-commerce sales dropped 6%. The company also ended the quarter with 25 fewer stores, highlighting ongoing pressure in parts of the retail portfolio.
• Negative Sentiment: Investors may discount the reported profit because the tariff refund is a one-time cash benefit. The sustainability of Genesco’s turnaround will depend more heavily on merchandise margins, Journeys’ momentum and improving digital sales. One-Time Cash Payments and Genesco’s Results

About Genesco

Genesco Inc is a Nashville, Tennessee-based retailer, wholesaler and licensee specializing in branded footwear, headwear, apparel and accessories. Through its portfolio of retail chains, wholesale distribution channels and licensing agreements, Genesco brings a range of product offerings to consumers in North America and Europe.

The company's retail segment includes specialty chains such as Journeys, which targets fashion-focused teens and young adults in the United States and Canada, and Schuh, a footwear retailer with locations in the United Kingdom and Ireland.

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