Wall Street expects Genesco Inc. (NYSE:GCO) to report an earnings per share (EPS) of -$2.06 and revenue of approximately $463.9 million.
The company’s negative price-to-earnings (P/E) ratio of -12.36 and earnings yield of -8.09% highlight its current unprofitability.
Valuation metrics suggest GCO might be undervalued, with a price-to-sales ratio of 0.10 and an enterprise value to sales ratio of 0.29.
Genesco Inc. (NYSE:GCO) is a retailer specializing in footwear and accessories, operating under various brand names. The company is set to release its quarterly earnings on June 4, 2025. Wall Street anticipates an earnings per share (EPS) of -$2.06, with projected revenue of approximately $463.9 million. Despite the expected revenue increase, the earnings are predicted to decline, as highlighted by Zacks Investment Research.
The anticipated decline in earnings, despite increased revenue, suggests that GCO is facing challenges in managing its costs or margins. The company’s negative price-to-earnings (P/E) ratio of -12.36 indicates ongoing losses. This negative ratio reflects the company’s current unprofitability, which is further emphasized by a negative earnings yield of -8.09%.
GCO’s valuation metrics suggest a potentially undervalued stock. The price-to-sales ratio of 0.10 and enterprise value to sales ratio of 0.29 indicate that the stock is relatively undervalued compared to its sales and overall valuation. These figures suggest that investors might find value in the stock if the company can improve its profitability.
The company’s financial health shows a moderate level of debt, with a debt-to-equity ratio of 0.89. This indicates that GCO has a balanced approach to leveraging debt. Additionally, the current ratio of 1.60 suggests that the company has a good level of liquidity to cover its short-term liabilities, which is a positive sign for its financial stability.
The upcoming earnings report and conference call will be crucial for investors. If GCO’s actual results exceed estimates, the stock might see an upward movement. Conversely, a miss could lead to a decline in stock value. The management’s discussion during the earnings call will be key in determining the sustainability of any immediate price changes and future earnings expectations.
