Mark Montagna at Avondale Partners has cut his earnings estimate for Genesco's first fiscal quarter to 82 cents from 92 cents because of the abnormally cold March experienced in much of the country as well as in the United Kingdom. While acknowledging that Genesco isn't as exposed as some other retailers to sales of open-toed footwear, he says the lingering cold nevertheless kept some shoppers out of malls. He has cut his same-store sales projection to a drop of 5 percent and sees operating margins slipping to 5.2 percent — his previous estimate was 5.7 percent — versus 6.5 percent last year.
Montagna still has a 'market outperform' rating on Genesco, though, based on valuation, and sees it rising to $66 from its current $58 and change. The stock (Ticker: GCO) has risen about 8 percent year to date.