Genesco Inc. - GCO STOCK NEWS

Legion Partners, holding approximately 5.9% of Genesco's shares, has called for shareholder rights in electing board members. They urge Genesco to adopt a universal proxy card, allowing shareholders to vote on their nominated candidates alongside existing board members. Legion Partners expresses concern over Genesco's lack of response to their proposal and criticizes the company's recent director refresh as insufficient. They emphasize the importance of corporate governance and shareholder engagement, urging Genesco to respect shareholder democracy ahead of the delayed Annual Meeting.

Genesco Inc. (GCO) reported a strong financial performance for the first quarter of Fiscal 2022, with net sales jumping 93% to $539 million. This marked a 71% increase in GAAP operating income compared to two years ago. The company achieved a GAAP EPS of $0.60, recovering from a loss of ($9.54) last year. Inventory decreased by 23%, and comparable direct sales rose by 43%. The outlook remains cautious due to ongoing pandemic impacts, preventing specific guidance for the remainder of the fiscal year.

Legion Partners Asset Management, owning approximately 5.9% of Genesco (NYSE: GCO), has issued an open letter to shareholders advocating for substantial board changes. They aim to elect four independent candidates to the nine-member board at the upcoming Annual Meeting, citing Genesco's poor long-term performance compared to peers. Despite recent board refreshment efforts by Genesco, Legion Partners believes these changes are insufficient and reflects a culture of underperformance. They seek a universal proxy card for shareholders to choose board members effectively.

Genesco Inc. (NYSE: GCO) appointed three new independent directors, enhancing board diversity and expertise. The new directors are Angel Martinez, Mary Meixelsperger, and Greg Sandfort, who bring extensive experience in retail and brand management. This move is part of Genesco's ongoing board refreshment to support its transformation into a footwear-focused company. Current directors Kathleen Mason and Marty Dickens will retire at the upcoming Annual Meeting. The board composition is set to ensure effective oversight and strategic direction amidst evolving retail dynamics.

Genesco Inc. (NYSE: GCO) will announce its first quarter fiscal 2022 results on May 27, 2021, before market opening. The company will host a quarterly earnings conference call at 7:30 a.m. (central) on the same day. A live audio webcast and an archive of the call will be accessible on their website. Genesco operates over 1,455 retail stores in North America and the UK, selling footwear and accessories under brands like Journeys and Johnston & Murphy. For a detailed summary of the results, visit their official site on the reporting date.

Genesco Inc. (NYSE: GCO) has appointed Parag Desai as the senior vice president - chief strategy and digital officer. Desai, with the company since 2014, previously served as senior vice president of strategy. He will lead efforts in executing Genesco's footwear strategy and enhancing digital capabilities. Following significant investments in technology, the company reported record digital revenue of nearly $450 million, up nearly 75% year-over-year. Desai will further drive synergies in e-commerce and optimize customer insights.

Legion Partners Asset Management, owning approximately 5.9% of Genesco's common shares, criticized the delay of the Annual Meeting until mid-July, alleging it undermines corporate democracy. They argue the Board is attempting to avoid shareholder-driven change by restructuring internally. Legion Partners has nominated a diverse slate of qualified candidates for Board election, emphasizing the need for significant shareholder influence in governance. The letter urges the Board to abandon its current trajectory and prioritize shareholder interests.

Genesco Inc. (NYSE: GCO) announced that Legion Partners Asset Management intends to nominate a controlling slate of seven individuals for the Board of Directors at the 2021 Annual Meeting of Shareholders. The Board will review Legion's nominees and respond in their definitive proxy materials. Despite disagreements, Genesco emphasizes its commitment to shareholder dialogue and executing its strategy focused on growth. Key achievements include record digital revenues of $450 million and a 24% increase in share price since the new CEO took over in February 2020, reflecting strong momentum heading into fiscal 2022.

Legion Partners Asset Management, owning 5.6% of Genesco (NYSE: GCO), is nominating seven independent candidates for the Board of Directors. The firm criticizes the current Board for failing to enhance shareholder value, citing years of financial underperformance, misallocated capital, and a bloated cost structure. They argue that the Board's executive compensation is misaligned with performance and lacks new perspectives. Legion plans to detail a strategic plan aimed at achieving $7.50 earnings per share by fiscal 2023, with expectations for the stock value to double.