Genesco (GCO) Reported Improved Sales Growth Amid Challenging Tariff Environment
Kingdom Capital Advisors, a private investment firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the portfolio recovered from the significant drawdowns from November 2024 to June 2025. The composite returned 20.78% (net of fees) in the quarter, compared to 12.39% for the Russell 2000 TR, 8.12% for the S&P 500 TR, and 9.01% for the NASDAQ 100 TR. The portfolio compounded at 21.06% (net of fees) since its inception vs. 4.60% for the Russell 2000 TR, 11.46% for the S&P 500 TR, and 13.48% for the NASDAQ 100 TR. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as Genesco Inc. (NYSE:GCO). Genesco Inc. (NYSE:GCO) is a retailer and wholesaler of footwear, apparel, and accessories. The one-month return of Genesco Inc. (NYSE:GCO) was -22.01%, and its shares lost 7.10% of their value over the last 52 weeks. On October 10, 2025, Genesco Inc. (NYSE:GCO) stock closed at $26.15 per share, with a market capitalization of $282.3 million.
Kingdom Capital Advisors stated the following regarding Genesco Inc. (NYSE:GCO) in its third quarter 2025 investor letter:
"While our ownership was brief, we are thankful to have owned Genesco Inc. (NYSE:GCO). Their May earnings report disappointed investors and the stock traded below $20, representing less than 5x their expected EBITDA for the year. However, while many footwear companies have floundered navigating the current tariff environment, GCO is growing sales through their revised Journey’s concept. GCO also collected a $59m tax refund in Q2 (20% of their valuation at the time) which solidified their strong financial position. The market eventually recognized the value proposition, and we sold our position for over a 50% gain after just a few months."
Genesco Inc. (NYSE:GCO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Genesco Inc. (NYSE:GCO) at the end of the second quarter, compared to 12 in the previous quarter. Genesco Inc. (NYSE:GCO) reported total revenue of $546 million in the fiscal second quarter of 2026, up 4% compared to last year. While we acknowledge the potential of Genesco Inc. (NYSE:GCO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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