Fund 1 Investments LLC Has $20.60 Million Stake in Genesco Inc. $GCO

Key Points

• Fund 1 Investments increased its Genesco stake by 43.4% in the second quarter to 609,963 shares, worth approximately $20.6 million and representing 5.49% of the company.
• Genesco’s latest results beat expectations, with an adjusted loss of $0.83 per share versus the expected $1.37 loss and revenue of $529.9 million. The company raised its fiscal 2027 adjusted EPS outlook to the high end of its $2.00–$2.40 range, though sales and comparable-store trends remained weak and results benefited from a $22.5 million tariff refund.
• Analyst sentiment is cautious: Genesco has a consensus “Hold” rating and an average price target of $36, while shares recently traded near $35.90. Institutional investors own 94.51% of the stock.

Fund 1 Investments LLC lifted its stake in shares of Genesco Inc. (NYSE:GCO - Free Report) by 43.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 609,963 shares of the company's stock after acquiring an additional 184,653 shares during the quarter. Genesco comprises about 3.4% of Fund 1 Investments LLC's investment portfolio, making the stock its 9th biggest holding. Fund 1 Investments LLC owned 5.49% of Genesco worth $20,598,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in GCO. Group One Trading LLC bought a new position in Genesco during the 4th quarter valued at $26,000. Jones Financial Companies Lllp bought a new stake in shares of Genesco in the 1st quarter worth $26,000. New York State Teachers Retirement System bought a new stake in shares of Genesco in the 1st quarter worth $27,000. Optiver Holding B.V. lifted its holdings in shares of Genesco by 550.6% in the first quarter. Optiver Holding B.V. now owns 1,106 shares of the company's stock valued at $32,000 after buying an additional 936 shares during the period. Finally, Legal & General Group Plc acquired a new stake in shares of Genesco in the second quarter valued at $32,000. Institutional investors own 94.51% of the company's stock.

Key Headlines Impacting Genesco

Here are the key news stories impacting Genesco this week:

• Positive Sentiment: Genesco reported an adjusted loss of $0.83 per share, significantly better than the $1.37 loss analysts expected and improved from a $1.79 loss a year earlier. Revenue of approximately $529.9 million also exceeded consensus estimates of $527.3 million. Genesco Boosts FY27 Adjusted EPS Outlook
• Positive Sentiment: The company raised its fiscal 2027 adjusted EPS outlook to the high end of its existing $2.00-$2.40 range, implying confidence in its turnaround plan. Revenue guidance of about $2.4 billion was maintained, broadly matching analyst expectations. Genesco Signals Fiscal 2027 EPS at High End
• Positive Sentiment: Journeys comparable sales rose 2%, while Johnston & Murphy comparable sales increased 4%. Genesco also plans to open approximately 95 Journeys 4.0 locations, supporting expectations for future growth.
• Positive Sentiment: GAAP gross margin expanded to 51.4% from 45.8%, and the company swung to $3.5 million of net income from an $18.5 million loss in the prior-year quarter.
• Neutral Sentiment: Truist Financial lowered its price target from $40 to $38 and kept a “hold” rating. The revised target still indicates modest upside, but signals limited near-term conviction.
• Negative Sentiment: Sales declined 3% year over year, comparable sales fell 1%, and e-commerce comparable sales dropped 6%. An analysis also cautioned that the $22.5 million tariff refund, including interest, materially boosted quarterly results and may obscure underlying operating performance. One-Time Cash Payments Distort the Real Picture

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Wall Street Zen lowered Genesco from a "buy" rating to a "hold" rating in a report on Saturday, June 13th. Zacks Research downgraded shares of Genesco from a "strong-buy" rating to a "hold" rating in a report on Friday, July 31st. Weiss Ratings lowered shares of Genesco from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, June 12th. Truist Financial lowered their price objective on shares of Genesco from $40.00 to $38.00 and set a "hold" rating on the stock in a research note on Friday. Finally, Seaport Research Partners downgraded shares of Genesco from a "buy" rating to a "neutral" rating in a report on Wednesday, May 27th. One research 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 stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $36.00.

Genesco Stock Up 4.2%

GCO stock opened at $35.90 on Friday. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.58 and a quick ratio of 0.37. The firm has a market capitalization of $398.85 million, a P/E ratio of 9.35 and a beta of 1.80. Genesco Inc. has a 52-week low of $21.92 and a 52-week high of $43.60. The company's 50 day simple moving average is $35.48 and its 200-day simple moving average is $33.36.

Genesco (NYSE:GCO - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported ($0.83) EPS for the quarter, topping analysts' consensus estimates of ($1.37) by $0.54. Genesco had a net margin of 1.71% and a return on equity of 3.13%. The firm had revenue of $529.86 million during the quarter, compared to analyst estimates of $527.26 million. During the same quarter last year, the business posted ($1.79) EPS. Genesco has set its FY 2027 guidance at 2.000-2.400 EPS. As a group, equities research analysts anticipate that Genesco Inc. will post 2.35 EPS for the current year.

Insider Activity

In other Genesco news, Director Gregory Sandfort bought 2,958 shares of the firm's stock in a transaction dated Thursday, July 9th. The stock was acquired at an average price of $33.80 per share, with a total value of $99,980.40. Following the completion of the transaction, the director directly owned 29,172 shares in the company, valued at approximately $986,013.60. This represents a 11.28% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 23.11% of the stock is owned by insiders.

Genesco Company Profile

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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