Overview

• U.S. footwear retailer's fiscal Q1 revenue rose 3%, beating analyst expectations

• Adjusted EPS loss for fiscal Q1 was smaller than analysts expected

• Company announced new $40-50 mln cost savings program and raised full-year EPS outlook

Outlook

• Genesco raises FY27 adjusted EPS outlook to $2.00-$2.40 from $1.90-$2.30

• Company expects FY27 comparable sales growth of 1%-2%

• Genesco announces $40-$50 mln cost savings program through FY29

Result Drivers

• SEGMENT PERFORMANCE - Journeys and Johnston & Murphy posted strong comparable sales growth, while Schuh's sales declined due to reduced promotions

• GROSS MARGIN IMPROVEMENT - Gross margin rose due to efficiencies in shipping and warehouse costs and less promotional activity, partly offset by changes in brand mix

• COST MANAGEMENT - Selling and administrative expenses fell as a percentage of sales, driven by cost savings initiatives and lower selling salaries, occupancy, freight and warehouse expenses

Company press release: ID:nBw8SPJdsa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$487 mln	$475 mln (4 Analysts)
Q1 Adjusted EPS	Beat	-$2.18	-$2.56 (4 Analysts)
Q1 EPS		-$1.42
Q1 Gross Margin		47.00%
Q1 Adjusted Operating Margin		-4.90%
Q1 Operating Income		-$15.40 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

• Wall Street's median 12-month price target for Genesco Inc is $32.00, about 12% below its May 28 closing price of $36.38

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

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