The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Genesco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins grew, net margins expanded.
Genesco chalked up revenue of $664.5 million. The nine analysts polled by S&P Capital IQ predicted revenue of $659.9 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $616.5 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 $1.44. The nine earnings estimates compiled by S&P Capital IQ predicted $1.33 per share. GAAP EPS of $1.68 for Q3 were 54% higher than the prior-year quarter's $1.09 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 50.3%, 30 basis points worse than the prior-year quarter. Operating margin was 7.9%, 40 basis points better than the prior-year quarter. Net margin was 6.2%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $798.4 million. On the bottom line, the average EPS estimate is $2.20.
Next year's average estimate for revenue is $2.60 billion. The average EPS estimate is $5.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 113 members out of 129 rating the stock outperform, and 16 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 $82.17.
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