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Genesco Hits 52-week High - Analyst Blog

By: Zacks.com
Posted: 3/24/2014 10:50:00 AM
Referenced Stocks: ANN;FL;GCO;HIL

Shares of Genesco Inc. ( GCO ) attained a 52-week high of $80.52 on the last trading day, eventually closing at $78.79. Moreover, the company has amassed a return of 32.7% over the past one year.

Genesco is currently trading at a forward P/E of 14.2x, a 15.3% discount to the peer group average of 16.76x. Average volume of shares traded in the last 3 months is $174.9K. Also, the company has long-term growth rate of 15%, marginally above the peer group average of 14.8%.   

The stock has been gaining momentum following its fourth quarter fiscal 2014 earnings results, since when the company's shares have gained 7.2% to date.

Although this Zacks Rank #4 (Sell) company's earnings missed estimates this past quarter, over the last 14 quarters it has delivered an average positive earnings surprise of 26.7%. Its fourth-quarter earnings of $2.16 per share came in line with its prior-year figure. Also, for the full year, the company's adjusted earnings from continuing operations came in at $5.09 per share, slightly above the fiscal 2013 earnings of $5.06.

Genesco's Lids Sports Group and Johnston & Murphy Group performed well as they delivered positive comparable store sales (comps) of 4% and 11%, respectively. Partly offset by a 7% comps decline at Schuh Group and flat comps at Journeys Group. Overall comps at Genesco rose by 1%. Excluding the effect of one extra week in the fourth quarter of fiscal 2013, quarterly net sales increased 4% year over year.

Genesco's lower cost of sales, as a percentage of sales facilitated gross margin expansion of 50 basis points (bps) to 48.7%, which in turn led to a 10 bps improvement in the adjusted operating margin of 10.4%.

Further, the company's focus on its expansion plans is well evident from the introduction of 48 new stores and acquisition of 8 new stores during the fourth quarter. These new stores are likely to augment Genesco's top line and enhance results, making investors positive on the company.

Apart from Genesco, ANN INC. ( ANN ), Foot Locker, Inc. ( FL ) and Hill International, Inc. ( HIL ) hit 52 week highs of $43.61, $46.94 and $5.09, respectively on the last trading day.



ANN INC (ANN): Free Stock Analysis Report

FOOT LOCKER INC (FL): Free Stock Analysis Report

GENESCO INC (GCO): Free Stock Analysis Report

HILL INTL INC (HIL): Free Stock Analysis Report

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