Genesco Inc (NYSE: GCO) was one of the top gainers at the close of the week. The stock gained by 32.27% to close the session at $48.82. This was driven by strong Q3 results that beat the consensus earnings estimates.
The company announced an EPS of $1.33, while analysts were expecting an EPS of $1.10. Earnings were also much higher than a similar quarter a year ago, when it had an EPS of $0.95. In the last four consecutive quarters, the company has beat the projected EPS four times.
In terms of revenues, the company posted revenues of $537.26 million, a figure that slightly missed analyst projections by 1.26%. The figure is also lower than in a similar quarter a year ago when the company posted revenues of $713.07 million. The company attributed the lower figure to lower exchange rates, stating that revenues would have been higher by up to $2 million. It also attributed it to lower sales due to some closed stores.
Nonetheless, the company noted that, Q3 saw a continuation of the growth in transaction sizes. This led to solid growth in revenues even as store traffic reduced. On top of that, the company’s e-commerce recorded its highest growth on a year-to-year basis. The company noted that, most business had shifted online, and impacted on brick-and-mortar stores.
These results have come just a month after the company named its COO, Mimi Vaugh as its new CEO. Mimi replaced Robert Dennis and will take over officially in February 2020.
From a look at the charts, the stock opened Friday’s session with a gap up. It traded between a low of 42.27 and a high of $49.69 before closing the day at $48.82. Volumes in the day stood at 2.24 million.
About Genesco Inc
Genesco Inc is a retailer and wholesaler of apparel, footwear, and related products. It has its headquarters in Nashville, Tennessee.