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Another proxy adviser sides with Genesco
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Proxy adviser sides with Genesco board
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Researcher says retailer’s pandemic response sets up earnings growth
An analyst following shoe retailer Genesco says the activist investor calling for broad governance changes and the sale of several divisions is likely to struggle for traction as Genesco carries out its strategic plan.
Writing a day after Legion Partners went public with its criticisms of Nashville-based Genesco, C.L. King researcher Steve Marotta lauded the company’s response to the COVID-19 pandemic, calling it “an industry leader,” and voiced his confidence in future growth and the prospects for the stock.
“The critical question germane to our investment thesis at the current share price (or at any other point in time, frankly) is, ‘Does the company have the proper strategy in place, is this management team effective enough to execute on it and does the share price reflect potential earnings growth?’” Marotta wrote. “Our answers? Yes, yes and yes.”
Investor: Genesco on concerning, downward trajectory
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