Tags: Genesco | speedy | shoe | GCO

Genesco: Speedy Shoe Retailer

By    |   Tuesday, 01 Nov 2011 04:37 PM

Specialty shoe retailer Genesco (GCO) should sell some running shoes to its own, speedy stock. Through mid-October the share price was up 60 percent for the most recent 52 weeks while the S&P 500 was basically flat. The growth appears to be based on timely product offerings and some strategic acquisitions.

Genesco sells shoes, hats, sportswear and accessories through several brands of retail stores. Brands include Journeys, Journeys Kidz, Hatworld, Lids, Cap Connection and Johnston & Murphy. Currently there are more than 2,200 retail stores under the different brands. Genesco also designs and sells through wholesale channels the Johnston & Murphy and Dockers shoe brands. The company uses third-party manufacturers for all of its wholesale and retail products.

For the first six months of the 2012 fiscal year which ended on July 31, Genesco reported revenues of $952 million, up 24 percent from sales of $765 million a year earlier. Net income from continuing operations was 89 cents per share, up from 40 cents earned in the same six months of fiscal 2011. In the second quarter, same store sales results increased by 14 percent.

Growth could accelerate

In June, Genesco completed the acquisition of the U.K.’s Schuh Group. Schuh operates 59 stores and 16 concessions selling casual and athletic footwear throughout the United Kingdom and Ireland.

Schuh also has an extensive online selling presence in its market. The purchase is Genesco's first move outside of North America and will be immediately accretive to earnings. In the second quarter earnings release, Genesco management increased their own full year guidance by 45 cents per share to a range of $3.35 to $3.42. The 2011 full year earnings were $2.48.

Piper Jaffray analyst Jeff Klinefelter recently reiterated his overweight rating on GCO and raised his target price by $6 per share. A few weeks later, the analysts at Avondale Partners followed suit, raising their target price by a similar amount and confirming a market outperform rating.

The company next reports on Nov. 23.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
Companies
Specialty shoe retailer Genesco (GCO) should sell some running shoes to its own, speedy stock. Through mid-October the share price was up 60 percent for the most recent 52 weeks while the S P 500 was basically flat. The growth appears to be based on timely product offerings...
Genesco,speedy,shoe,GCO
331
2011-37-01
Tuesday, 01 Nov 2011 04:37 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved