Shares of shoe and cap retailer Genesco (NYSE:GCO) nosedived today as investors took to the sidelines following the company’s earnings miss and weak outlook. The firm based its reduced outlook on a shift to promotional activity for the remainder of the holiday season.
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Confirming these developments, CEO Mimi Vaughn explained that the shift in focus was to help the company be more competitive and drive sales. Moreover, the CEO noted that consumer shopping behavior during the holiday season remains choppy. In addition, Vaughn stated that the company saw a delayed start to the autumn selling season, and demand in October dropped amid a difficult operating climate.
Earlier today, Genesco reported Q3 EPS of $0.57, which was significantly lower than analysts estimate of $0.83. Revenue also slumped, coming in at $579M against consensus expectations of $582.98M.
Furthermore, the company’s management said it now expects EPS to be in the range of $1.50 to $2.00, a drop from an earlier projection of $2.00 to $2.50. Similarly, Genesco anticipates a sales drop of between 1% and 2% year-over-year, or 2% and 3% when excluding the 53rd week this year.
What is the Target Price for GCO?
A look at the past five trading days for GCO stock highlights the level of impact today’s news had on it. Indeed, shares fell over 20% at the time of writing. As a result, investors are now down 4.75% during this timeframe.
