Analyst: Buy Genesco on dip

By Geert De Lombaerde Posted on January 19, 2010 at 8:00 am

Avondale Partners’ David Turner says that, despite reporting quarter-to-date sales that were not well received, the mid- to long-term thesis at Genesco remains intact. He has lowered his estimates by about 2 percent, but retained his ‘market outperform’ rating and $29 price target on the shares. (Ticker: GCO)

Weakish top-line trends at Journeys undoubtedly mar visibility, but the softness appears relegated to one category and inventory levels are clean which should minimize further risk to EPS. Also, multiple cost items continue to subtly move in favor of the company and should become more meaningful going forward.

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Tags: analyst actions, Avondale Partners LLC, David Turner, earnings estimates, Genesco Inc., retail, stock valuation  

Genesco an Avondale best idea

By Geert De Lombaerde Posted on December 14, 2009 at 8:08 am

Helped by their cost-cutting efforts and the demise of several prominent names, many retailers head into 2010 poised to capitalize on “an extremely powerful earnings power environment” once the consumer returns for real, says Avondale analyst David Turner. One of his two top recommendations for the coming year is Genesco, whose shares (Ticker: GCO) have lost some momentum after the company’s Q3 report. Says Turner, “We would be buyers at this level.”

SEE ALSO: The Motley Fool community of investors agrees.

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Tags: Avondale Partners LLC, consumer spending, David Turner, Genesco Inc., retail, stock valuation  

Avondale: Genesco cream of the footwear crop

By Geert De Lombaerde Posted on November 16, 2009 at 8:22 am

David Turner at Avondale Partners has conducted the channel checks and says athletic clothing sales are lagging big time. But the so-called “black/brown/casual” sector showed third-quarter growth of more than 4 percent, which plays right into the hands of Nashville-based Genesco, Turner’s only outperform-rated stock (Ticker: GCO).

Our street-high Q3′10 (current quarter) EPS estimate of $0.46 is now visible, in our opinion, as is Q4, the company’s highest volume quarter. If our secular thesis is to be believed, more upside remains to GCO’s earnings.

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Tags: analyst actions, Avondale Partners LLC, consumer spending, David Turner, Genesco Inc., retail, stock valuation  

Genesco positioned to grab market share

By Geert De Lombaerde Posted on August 28, 2009 at 10:57 am

After Genesco’s well-received Q2 earnings, Avondale analyst David Turner says the Nashville-based shoe and hat retailer has several good things going for it.

Multiple cost items, including occupancy which accounts for roughly one-third of GCO’s cost structure, are subtly moving in the company’s favor… Genesco’s dynamic revenue model (dominant concepts focusing on lucrative demographics, supported by a strong vendor base) paves the way for the company to continue to carve out market share gains.

Shares of Genesco (Ticker: GCO), which Turner rates ‘market outperform,’ are taking a small breather after their big day yesterday.

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Tags: analyst actions, Avondale Partners LLC, David Turner, Genesco Inc., retail, stock valuation  

Avondale trims Genesco estimates on soft back-to-school season

By Geert De Lombaerde Posted on August 26, 2009 at 3:16 pm

Ahead of Genesco’s second-quarter earnings report tomorrow, David Turner at Nashville-based Avondale Partners today cut his profit estimates for the period by four cents, citing weaker-than-expected sales at the company’s Journeys and Hat World divisions. Going forward, Turner also trimmed his Q3 number, “reflecting what we believe is generally a weak start to back-to-school, with the caveat that major markets such as Texas and Florida have started the season later this year.”

But on the whole, Turner isn’t worried about Genesco’s prospects. He has maintained his ‘market outperform’ rating and $29 price target and doesn’t see management cutting its full-year guidance tomorrow. Shares of Genesco (Ticker: GCO) rose more than 3 percent today and are up about 23 percent so far this year.

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Tags: analyst actions, Avondale Partners LLC, David Turner, earnings estimates, earnings reports, Genesco Inc., retail