By Shares of Genesco took a significant hit on Monday, plummeting 16% to $26 in pre-market trading. The sharp decline came after the footwear retailer severely cut its outlook for the year, citing a disappointing holiday season.
Despite experiencing a positive start to the holiday season, Genesco reported that sales decelerated in the weeks leading up to Christmas. Chief Executive Mimi Vaughn expressed her concerns about the inconsistent shopping trends and noted that peak shopping days were not enough to make up for the slower periods in between.
As a result of these challenges, Genesco revised its adjusted earnings per share guidance to be in the range of 65 cents to 85 cents for the year. This is a significant decrease from their previous outlook of $1.50 to $2.00.
Furthermore, the company expects its sales to decline by 1% to 2% by the end of this fiscal year in January. However, Genesco is actively working towards resolving these issues and aims to enter its fiscal year 2025 with clean inventories. Their focus is on better aligning their inventory with consumer demand and restructuring their cost base.
Overall, Genesco remains determined to overcome these setbacks and regain momentum in the market.
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