The 10-second takeaway
For the quarter ended April 28 (Q1), Genesco beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Genesco booked revenue of $600.1 million. The nine analysts polled by S&P Capital IQ expected net sales of $577.2 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $481.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The nine earnings estimates compiled by S&P Capital IQ forecast $0.74 per share. GAAP EPS of $0.85 for Q1 were 35% higher than the prior-year quarter's $0.63 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.5%, 10 basis points better than the prior-year quarter. Operating margin was 6.0%, 40 basis points better than the prior-year quarter. Net margin was 3.4%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $531.7 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $4.72.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 115 members out of 131 rating the stock outperform, and 16 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 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 $82.50.
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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.