Genesco Rallies on Holiday Sales Strength and Higher FY26 View

Shares of Genesco Inc. GCO jumped 8.1% during yesterday’s trading session, following an impressive holiday season performance. This footwear, apparel and accessories retailer reported a solid 9% increase in comparable sales for the fourth-quarter-to-date period ended Dec. 27, 2025. This growth includes physical stores and e-commerce channels, reflecting a solid performance across its portfolio. Same-store sales rose 10%, while comparable e-commerce sales jumped 9%, signaling the strength of the company's omnichannel strategy. Breaking down the numbers, the Journeys Group led the charge with a 12% year-over-year increase in comparable sales. The Schuh Group reported modest growth of 6%, while the Johnston & Murphy Group saw a marginal increase of 1%.Holiday Season Drives GCO’s Sales MomentumThe holiday season proved to be a boon for Genesco, driven by strong consumer demand and effective operational execution. Mimi Vaughn, the company’s CEO, highlighted that Journeys Group stood out with a double-digit increase in comparable sales, building on the significant growth achieved in the prior-year period. This success was attributed to a well-curated product mix that encouraged customers to buy at full price during the peak December shopping period.Meanwhile, Schuh Group's results exceeded top-line expectations, though this growth was largely driven by heavy markdowns. The company utilized these discounts to stay competitive in a highly promotional U.K. footwear market and to keep inventory lean heading into the new year.Genesco Raises Fiscal 2026 Earnings ViewBuoyed by stellar holiday season results, Genesco now forecasts fiscal 2026 adjusted earnings of at least $1.30 per share, a significant jump from its previous guidance of 95 cents a share. This revised outlook, though slightly tempered by margin compression at Schuh Group during the remainder of the fourth quarter, represents a substantial year-over-year increase from the 94 cents earned in fiscal 2025.To navigate increasingly volatile consumer behavior and demand spikes around peak shopping periods, management is prioritizing operational discipline and rigorous cost controls to close out the year. Image Source: Zacks Investment ResearchShares of this Zacks Rank #5 (Strong Sell) company have declined 21.7% in the past three months against the industry’s rise of 4.1%.Picks You Can’t Miss Out OnAmerican Eagle Outfitters, Inc. AEO, a leading global specialty retailer with a portfolio of apparel brands, including American Eagle and Aerie, currently sports a Zacks Rank #1 (Strong Buy). AEO has a trailing four-quarter earnings surprise of 35.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales calls for growth of 2.4% from the year-ago reported numbers.The Gap, Inc. GAP, one of the largest specialty apparel companies, currently sports a Zacks Rank #1. GAP has a trailing four-quarter earnings surprise of 19.1%, on average. The Zacks Consensus Estimate for Gap’s current financial-year sales implies growth of 1.8% from the year-ago reported numbers.Victoria's Secret & Co. VSCO, a specialty apparel retailer focused on lingerie, intimates and related categories, currently sports a Zacks Rank #1. VSCO has a trailing four-quarter earnings surprise of 55.5%, on average. The Zacks Consensus Estimate for Victoria's Secret’s current financial-year sales suggests growth of 4.2% from the year-ago reported numbers.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report The Gap, Inc. (GAP): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Victoria's Secret & Co. (VSCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks