The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Genesco beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded. GAAP earnings per share shrank.
Gross margins dropped, operating margins were steady, net margins contracted.
Genesco logged revenue of $796.7 million. The eight analysts polled by S&P Capital IQ expected revenue of $774.5 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $723.4 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 $2.16. The eight earnings estimates compiled by S&P Capital IQ predicted $2.11 per share. Non-GAAP EPS of $2.16 for Q4 were 9.6% higher than the prior-year quarter's $1.97 per share. GAAP EPS of $1.62 for Q4 were 5.8% lower than the prior-year quarter's $1.72 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 48.2%, 120 basis points worse than the prior-year quarter. Operating margin was 9.9%, much about the same as the prior-year quarter. Net margin was 4.8%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $617.6 million. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $2.80 billion. The average EPS estimate is $5.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 130 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 $71.88.
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