Genesco

Genesco - GCO . NYSE

This is what I thought in September 2020 when I first bought the stock...

Genesco is a mall-based retailer that sells shoes under three different retail banners: Journeys, Schuh (in the UK) and Johnston & Murphy. They primarily target the younger consumer with their core brand, Journeys but when I bought in to this company their smaller men’s dress shoe brand, Johnston & Murphy was dragging down profitability for the entire group. The coronavirus was keeping many professionals working from home and traffic had nearly dried up at this subsidiary division. That and the unknown economic fall-out from the covid pandemic had the potential to be a drag on profits for some time to come but the low p:e to last year’s earnings (around 4.7 at the $21.50 price I bought in at) and a p:b of 0.7 with a strong balance sheet emboldened me to take a chance on this retailer.

What's changed since I made my first purchase of this stock? Follow the ongoing story in the posts below...

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