DB:GN8

Stock Analysis Report

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Executive Summary

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Genesco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GN8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.0%

GN8

4.1%

DE Specialty Retail

2.2%

DE Market


1 Year Return

-59.4%

GN8

1.5%

DE Specialty Retail

5.6%

DE Market

Return vs Industry: GN8 underperformed the German Specialty Retail industry which returned -0.1% over the past year.

Return vs Market: GN8 underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

GN8IndustryMarket
7 Day-11.0%4.1%2.2%
30 Day-22.8%10.4%7.3%
90 Day5.8%27.8%22.1%
1 Year-59.4%-59.4%1.8%1.5%7.9%5.6%
3 Year-46.5%-46.5%-19.2%-23.3%4.5%-3.8%
5 Year-74.8%-74.8%-11.3%-54.6%12.5%-2.7%

Price Volatility Vs. Market

How volatile is Genesco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Genesco undervalued compared to its fair value and its price relative to the market?

0.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GN8 (€14.6) is trading above our estimate of fair value (€9.98)

Significantly Below Fair Value: GN8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GN8 is unprofitable, so we can't compare its PE Ratio to the XE Specialty Retail industry average.

PE vs Market: GN8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GN8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GN8 is good value based on its PB Ratio (0.6x) compared to the DE Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Genesco forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

150.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GN8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GN8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GN8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GN8's revenue (9.4% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: GN8's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GN8's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Genesco performed over the past 5 years?

-18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GN8 is currently unprofitable.

Growing Profit Margin: GN8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GN8 is unprofitable, and losses have increased over the past 5 years at a rate of 18.2% per year.

Accelerating Growth: Unable to compare GN8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GN8 is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-4.6%).


Return on Equity

High ROE: GN8 has a negative Return on Equity (-16.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is Genesco's financial position?


Financial Position Analysis

Short Term Liabilities: GN8's short term assets ($735.0M) exceed its short term liabilities ($430.0M).

Long Term Liabilities: GN8's short term assets ($735.0M) do not cover its long term liabilities ($849.2M).


Debt to Equity History and Analysis

Debt Level: GN8's debt to equity ratio (46.8%) is considered high.

Reducing Debt: GN8's debt to equity ratio has increased from 2.9% to 46.8% over the past 5 years.

Debt Coverage: GN8's debt is well covered by operating cash flow (55.7%).

Interest Coverage: GN8 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Genesco current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GN8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GN8's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GN8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GN8's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GN8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Mimi Vaughn (53yo)

0.42

Tenure

US$2,805,206

Compensation

Ms. Mimi Eckel Vaughn has been President and Chief Executive Officer of Genesco Inc. since February 02, 2020. Ms. Vaughn serves as Chairman at Genesco Inc. since July 1, 2020. Ms. Vaughn served as Senior V ...


CEO Compensation Analysis

Compensation vs Market: Mimi's total compensation ($USD2.81M) is above average for companies of similar size in the German market ($USD735.88K).

Compensation vs Earnings: Mimi's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Mimi Vaughn
CEO, President & Chairman0.42yrUS$2.81m1.37% $3.0m
Melvin Tucker
Senior VP of Finance & CFO1.08yrsUS$1.50m0.26% $562.6k
Parag Desai
Senior Vice President of Strategy & Shared Services5.58yrsUS$1.73m0.43% $936.3k
Mario Gallione
Senior VP & President Journeys1yrUS$1.83m0.42% $900.5k
Daniel Ewoldsen
Senior VP1yrUS$649.61k0.18% $394.0k
Brently Baxter
VP & Chief Accounting Officer0.75yrno data0.049% $104.8k
David Slater
Vice President of Financial Planning & Analysis and IRno datano datano data
Scott Becker
Senior VP0.75yrno data0.15% $318.6k
Matthew Johnson
VP & Treasurer9.25yrsno datano data
Susan Peterson
Controller of Underground Station11.75yrsno datano data

1.0yrs

Average Tenure

54yo

Average Age

Experienced Management: GN8's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mimi Vaughn
CEO, President & Chairman0.42yrUS$2.81m1.37% $3.0m
Kathleen Mason
Independent Director24.5yrsUS$162.10k0.32% $690.3k
Matthew Diamond
Independent Lead Outside Directorno dataUS$205.18k0.35% $762.5k
Thurgood Marshall
Independent Director8.33yrsUS$162.10k0.11% $239.5k
Marty Dickens
Independent Director16.75yrsUS$186.89k0.20% $425.0k
Joanna Barsh
Independent Director6.67yrsUS$191.85k0.19% $405.0k
Kevin McDermott
Independent Director4.42yrsUS$197.06k0.15% $330.2k

8.3yrs

Average Tenure

66yo

Average Age

Experienced Board: GN8's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GN8 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Genesco Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genesco Inc.
  • Ticker: GN8
  • Exchange: DB
  • Founded: 1924
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$245.483m
  • Listing Market Cap: US$216.000m
  • Shares outstanding: 14.68m
  • Website: https://www.genesco.com

Number of Employees


Location

  • Genesco Inc.
  • Genesco Park
  • 1415 Murfreesboro Road
  • Nashville
  • Tennessee
  • 37217
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GCONYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
GN8DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968

Biography

Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Licensed Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. The Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear for men and women, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment is involved in the retail, e-commerce, and catalog operations; and wholesale distribution of footwear, apparel, and accessories primarily for men. It also offers footwear and leather accessories under the H.S. Trask brand through retailers and department stores, an e-commerce Website, and catalog. The Licensed Brands segment markets casual footwear under the Dockers brand for men. As of September 6, 2019, the company operated approximately 1,490 retail stores in the United States, Canada, the United Kingdom, and the Republic of Ireland primarily under the Journeys, Journeys Kidz, Schuh, Schuh Kids, Little Burgundy, and Johnston & Murphy names. Its Internet Websites include journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, littleburgundyshoes.com, johnstonmurphy.com, johnstonmurphy.ca, trask.com, and dockersshoes.com. Genesco Inc. was founded in 1924 and is headquartered in Nashville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 21:41
End of Day Share Price2020/07/15 00:00
Earnings2020/05/02
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.