Genesco (GCO) Stock Forecast & Price Target

Genesco Inc. has raised its FY26 topline forecast, anticipating total sales growth of 3%-4% and comparable store sales growth of 4%-5%, both surpassing previous projections and market expectations. Early performance results indicate approximately a 25% increase in comparable store sales, driven by improved customer traffic, conversion rates, and transaction values. Additionally, substantial revenue growth was reported in the Journeys segment, which demonstrated a 9% increase in comparable store sales during the second quarter, contributing to total revenues of $546 million, exceeding analyst estimates.

Genesco Inc. is facing significant challenges as projections indicate a contraction in gross margins (GMs) between 50 to 70 basis points for the third quarter, which is notably worse than previous expectations of flat GMs year-over-year. Furthermore, the company's outlook for fiscal year 2026 anticipates a decline of 50 to 60 basis points in GMs, a sharp downgrade from earlier forecasts. Additionally, the Schuh Group is experiencing severe traffic and promotional pressures within the UK footwear market, compounded by weakening consumer spending trends driven by macroeconomic factors and rising prices.