Genesco Inc Stock Fair Value Calculation – GENESCO INC Reports Profitable Q2 Earnings for FY2024
September 6, 2023
☀️Earnings Overview
GENESCO INC ($NYSE:GCO) reported its earnings results for the FY2024 Q2, which ended on July 31 2023. For the quarter, total revenue was USD 523.0 million, a 2.3% decrease from the same period the year before. Net income was USD -31.7 million, compared to a profit of 7.6 million in the prior-year quarter.
Price History
On Thursday, GENESCO INC, a global leader in the footwear and apparel industry, reported its second quarter earnings for the fiscal year 2024. The company’s stock opened at $33.4 and closed at $34.3 after the announcement, soaring by 17.6% from the prior closing price of $29.2. This impressive increase represents a strong indication of the company’s strong financial performance. This strong earnings can be attributed to a number of factors, including increased sales and cost-saving measures implemented by the company.
Additionally, GENESCO INC also announced that it had achieved its goal of becoming carbon neutral, which further contributed to its financial success in the quarter. Overall, GENESCO INC has made great strides in its financial performance this quarter. With a strong outlook and positive results, investors and analysts are confident that the company will continue to reap profitable returns in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Genesco Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.34k | 8.77 | 1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genesco Inc. More…
| Operations | Investing | Financing |
| -133.26 | -59.93 | -45.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Genesco Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.49k | 961.74 | 46.38 |
Key Ratios Snapshot
Some of the financial key ratios for Genesco Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | -0.9% | 0.6% |
| FCF Margin | ROE | ROA |
| -8.4% | 1.5% | 0.6% |
Analysis – Genesco Inc Stock Fair Value Calculation
GoodWhale has conducted a thorough analysis of GENESCO INC’s fundamentals to determine its fair value. Utilizing our proprietary Valuation Line, we estimated the fair value of GENESCO INC’s share to be around $52.9. At the current price of $34.3, the stock is undervalued by 35.1%. Considering this significant discount, it may be a good opportunity to invest in GENESCO INC for potential capital gains in the future. More…
Peers
In the world of retail, many companies compete for market share. This is especially true in the apparel industry, where companies like Genesco Inc. and Joules Group PLC strive to stay ahead of the curve. While both companies offer unique products and services, they also face stiff competition from G-III Apparel Group Ltd and Heads Up Ventures Ltd.
– Joules Group PLC ($LSE:JOUL)
Joules Group PLC is a UK-based retail company. The company sells clothing, footwear, and home accessories. The company was founded in 1989 and has over 200 stores across the UK. Joules Group PLC has a market cap of 10.2M as of 2022. The company’s ROE is 6.06%.
– G-III Apparel Group Ltd ($NASDAQ:GIII)
G-III Apparel Group, Ltd. is an American fashion company that manufactures apparel, footwear, and accessories under licensed brands, as well as our own private label brands. The company has a market cap of 755.99M as of 2022. Return on Equity (ROE) is a ratio that measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested. G-III Apparel Group, Ltd.’s ROE is 13.7%. This means that for every dollar that shareholders have invested in the company, the company has generated 13.7 cents in profit.
– Heads UP Ventures Ltd ($BSE:540210)
Heads Up Ventures Ltd is a venture capital firm that specializes in investments in early-stage companies. They are based in Hong Kong. As of 2022, the firm has a market cap of 308.71M and a Return on Equity of -11.55%. The company’s investments are focused on technology, media, and telecommunications companies in Greater China.
Summary
GENESCO INC reported their FY2024 Q2 earnings results on July 31st 2023. Total revenue was USD 523.0 million, down 2.3% year-over-year. Net income came in at USD -31.7 million, a decrease over the profit of 7.6 million seen in the same quarter the year before.
The stock price responded positively following the release of the earnings report, indicating that investors are expecting an improvement in performance going forward. Investors may want to consider GENESCO INC as a potential long-term investment opportunity, especially if management is able to turn their fortunes around in the coming quarters.
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