Stock Story -
What Happened: Shares of footwear, apparel, and accessories retailer Genesco (NYSE:GCO) fell 12.2% in the morning session after the company reported third quarter results with same-store sales, revenue, and EPS all falling below Wall Street's expectations. Management blamed "a challenging operating environment" and a delayed ERP system implementation internally for the weakness. Consumer demand remains "choppy" and Genesco plans to increase promotions to bring in shoppers, which will likely lead to weaker gross margins. The most worrisome aspect of the quarter was that the company's full-year earnings forecast was lowered drastically and underwhelmed. Overall, this was a mediocre quarter for Genesco.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Genesco? Find out by reading the original article on StockStory.
What is the market telling us: Genesco's shares are somewhat volatile and over the last year have had 27 moves greater than 5%. But moves this big are very rare even for Genesco and that is indicating to us that this news had a significant impact on the market's perception of the business.
Genesco is down 35.2% since the beginning of the year, and at $29.01 per share it is trading 42.4% below its 52-week high of $50.33 from February 2023. Investors who bought $1,000 worth of Genesco's shares 5 years ago would now be looking at an investment worth $665.52.
![Why Genesco (GCO) Shares Are Plunging Today](https://d68-invdn-com.investing.com/content/picc5a752b859500beef2234da8ef14eb15.jpeg)