Genesco Stock Falls After Q2 Results; Dodges Outlook

Genesco Inc GCO reported second-quarter FY22 sales growth of 42% year-on-year, to $555.18 million, beating the analyst consensus of $517.76 million.
Comparable direct sales were down 23%, compared to up 144% for Q2 FY21 and up 20% versus Q2 FY20.
Overall sales were up 25% at Journeys, up 48% at Schuh, up 154% at Johnston & Murphy, and up 122% at Licensed Brands versus Q2 FY21. While, sales were up 10% at Journeys, up 15% at Schuh, and up 260% at Licensed Brands versus Q2 FY20.
E-commerce sales increased 97% compared to Q2 FY20.
The gross profit rose 63.2% Y/Y to $272.5 million with a gross margin of 49.1%, a 640 basis points expansion.
The operating margin was 2.3%, and operating income for the quarter was $12.9 million.
The company held $304 million in cash and equivalents as of July 31, 2021.
Non-GAAP EPS from continuing operations increased to $1.05 versus $(1.23) last year and $0.15 two years ago.
The company did not repurchase any shares during Q2. It has $90 million remaining on the $100 million board authorization from September 2019.
Genesco did not guide at this time, citing continued uncertainty in the overall economy driven by the COVID-19 pandemic.
Price Action: GCO shares are trading lower by 6.61% at $58.77 on the last check Thursday.

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