The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Genesco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share expanded significantly.
Margins increased across the board.
Genesco logged revenue of $723.4 million. The eight analysts polled by S&P Capital IQ expected to see revenue of $717.2 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $560.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.97. The nine earnings estimates compiled by S&P Capital IQ averaged $1.66 per share on the same basis. GAAP EPS of $1.72 for Q4 were 31% higher than the prior-year quarter's $1.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.4%, 70 basis points better than the prior-year quarter. Operating margin was 9.9%, 120 basis points better than the prior-year quarter. Net margin was 5.7%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $578.5 million. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $2.57 billion. The average EPS estimate is $4.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members rating the stock outperform and 16 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Genesco a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genesco is outperform, with an average price target of $70.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.