Avondale: Genesco cream of the footwear crop
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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Go, Genesco, go
Posted on November 6, 2009 at 11:56 am
Robert W. Baird analyst Mitch Kummetz has raised his rating on the Nashville retailer to ‘outperform.’ Kummetz, who two months ago was quite sober about the company’s prospects, also has lifted his price target to $34 from $25. On a lackluster day for the market, Genesco shares (Ticker: GCO) are up more than 3 percent.
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Another heady buy for Genesco
Posted on November 4, 2009 at 7:40 am
The Nashville-based retailer has acquired Sports Fan-Attic, a chain of 37 stores in seven states, adding another headwear brand to an arsenal it’s been building up since 2004. The companies aren’t disclosing the deal’s price just yet, but if Sports Fan-Attic’s valuation is in line with Genesco’s deals for Hat World and Hat Shack, it was worth about $13 million to Genesco, whose shares (Ticker: GCO) fell almost 2 percent after hours Tuesday.
“We see great long-term potential for growing the Sports Fan-Attic store base, and look forward to bringing Genesco’s collective strength in the mall real estate market and our experience in managing new store growth to that process.”
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Genesco in stock-for-debt swap
Posted on November 3, 2009 at 8:10 amNashville-based retailer Genesco will convert almost $30 million of bonds into common shares over the course of the next month. When that’s done, the company (Ticker: GCO) will have less than $25 million of long-term debt on its books. (Search for ‘Note 7.’)
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Genesco gets upgrade
Posted on September 24, 2009 at 10:55 am
Susquehanna analysts have upgraded shares of Nashville-based Genesco to ‘positive’ from ‘neutral,’ saying the company’s sales appear to be improving and that its lower rent costs give it ‘a certain margin of error‘ heading into the crucial holiday season. Genesco (Ticker: GCO) is up 2.5 percent this morning, bucking the broader market’s losses.
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Another ‘buy’ rating for Genesco
Posted on September 18, 2009 at 7:33 am
Analysts at SunTrust Robinson Humphrey say shares of the Nashville-based shoe and hat retailer can rally to $28 in the coming months, about 20 percent above where they are now. Genesco (Ticker: GCO) is up almost 40 percent this year.
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Genesco isn’t skating by
Posted on September 2, 2009 at 9:17 amRobert W. Baird analyst Mitch Kummetz says Genesco is performing well, but that the economy won’t allow it to post earnings growth in the current quarter. Shares of the Nashville-based retailer (Ticker: GCO) are up 23 percent this year.
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Genesco positioned to grab market share
Posted on August 28, 2009 at 10:57 amAfter 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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Avondale trims Genesco estimates on soft back-to-school season
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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Better TV at Genesco stores
Posted on June 30, 2009 at 4:47 pm
An L.A. company has revamped the video content for the Journeys and Journeys Kidz chains.
“It is important that the content we air connects with our core customer base and inspires them,” said Jim Estepa, President and Chief Executive Officer for Genesco Retail Group. “We are pleased with the direction Channel M has taken with the programming and believe that it supports and reflects our customer’s lifestyle and sets us apart from our competition.”
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A second-day pop for Genesco
Posted on May 29, 2009 at 2:37 pm
After the shoe and hat retailer reported strong results yesterday, the stock (Ticker: GCO) did next to nothing. It took an upgrade from Sterne Agee, which raised its view from ‘neutral’ to ‘buy,’ to lift the shares.
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Analyst action: Genesco, Gaylord
Posted on May 6, 2009 at 9:05 amAnalysts at Piper Jaffray like what’s happening at Genesco (Ticker: GCO). They’ve raised their rating to a ‘buy’ and hiked their price target by more than 50 percent.
Over at Friedman Billings, analyst Patrick Scholes has also raised his price target on Gaylord Entertainment (Ticker: GET) to $14 from $9. He still has the shares rated a ‘market perform.’
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Maybe spiking that deal was the right thing to do
Posted on March 27, 2009 at 8:21 amRemember Finish Line? The erstwhile buyer of Genesco lost more money during its fourth quarter and is seeing same-store sales fall by almost 4 percent. Things aren’t exactly peachy at Genesco (Ticker: GCO), but the Nashville company sure appears to be in better shape at this point in the cycle.
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Browsing Genesco’s Q4 call transcript
Posted on March 5, 2009 at 11:48 pmIf we can just make it through this…
Genesco captain Robert Dennis sees good things for his crew in the long run.
The competitive landscape is likely to be much cleaner when this is over. It is likely that a number of retailers, especially small independent operators, will not survive. We expect to be a relative beneficiary of consolidation and see real potential to increase our market share.
Also on Genesco’s Q4 conference call:
- The company has acquired a small Wisconsin-based venture that markets branded apparel to high school coaches and teams. Said Dennis: ‘The team dealer business is consolidating and so this is our first step into it.’
- Dennis said the company’s Underground Station concept will continue to be whittled down – from 223 in 2007 to about 170 by the end of this year – but will not be shut down altogether. Too expensive.
- Unlike several other local companies, goodwill impairment will – fingers crossed – not be an issue. The company is carrying about $112 million on its books from buying Hat World in 2004.
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Analyst: Little downside to Genesco, but it ain’t goin’ up, either
Posted on March 3, 2009 at 9:09 amIn lowering the Nashville-based retailer to ‘neutral,’ Susquehanna Financial says the economic headwinds will depress earnings for several quarters, but that its concepts will emerge in good shape.
“The company could make a meaningful turnaround when comp trends improves, but do not expect this to happen until at least 2H.”
Despite Susquehanna seeing “little downside risk,” Genesco shares (Ticker: GCO) are down more than 8 percent in early trading. They must have meant after the downgrade.
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