2024-06-30 03:30:29 ET
Summary
- Genesco's 1Q25 results show flat to down revenues, with margins protected by store closures.
- The company plans to incrementally pivot away from brands like Vans and Converse in the second half of the year.
- Stock price offers little protection given the uncertain consumer environment and risky assortment transition, leading to a Hold rating.
Genesco's 1Q25 results were not out of expectations, with revenues down on an absolute basis but not so much comparatively and margins protected by store closures. The company's low seasonal quarter is relatively unimportant compared to the second half, and management provided strategic guidance for that period as it tries to pivot away from brands like Vans and Converse....
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Genesco's Assortment Bet For H2 2025 Is Risky, The Stock Is Still A Hold