Genesco downgraded to Neutral from Buy at B. Riley

B. Riley downgraded Genesco to Neutral from Buy with a price target of $31, down from $43, ahead of the Q4 report on March 8. The firm is still a believer that the investment thesis on which it based its Buy-rated initiation on December 14 will play out, but it sees the inflection point being pushed out six, or possibly 12 months longer than previously anticipated. The analyst also sees the bottoming process likely to play out over the next six months to be a bit deeper than originally anticipated. Genesco’s Journeys division “may be caught a bit flat-footed” in the first half of 2024 as footwear lead times don’t allow retailers to quickly pivot and sub-optimal product decisions were likely made roughly six months ago, the analyst tells investors in a research note.