Shoe Carnival ( (SCVL) ) has released its Q3 earnings. Here is a breakdown of the information Shoe Carnival presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Shoe Carnival, Inc. is a prominent family footwear retailer, offering a wide range of dress, casual, and athletic shoes under the Shoe Carnival and Shoe Station banners across the United States and Puerto Rico, with a focus on national name brands.
In its third quarter fiscal 2024 report, Shoe Carnival aligned with its earnings per share (EPS) expectations, reporting a GAAP EPS of $0.70 and adjusted EPS of $0.71. The company experienced a year-to-date net sales growth of 4.9% compared to the previous year and reiterated its EPS guidance for the full fiscal year. The company has also expanded its store rebannering test to include 25 additional stores in the first half of fiscal 2025.
Key financial highlights include third quarter net sales of $306.9 million, which were affected by a retail calendar shift, leading to a reported decline compared to the previous year. Nevertheless, adjusted for the shift, net sales rose by 2.2%. Shoe Carnival’s gross profit margin remained robust at 36%, marking the 15th consecutive quarter above 35%. The acquisition of Rogan Shoes contributed positively to net sales and synergies. Despite a decline in net income to $19.2 million from $21.9 million year-on-year, the company’s adjusted EPS matched expectations.
Shoe Carnival’s strategic initiatives include a successful rebanner growth strategy, with ten stores already converted to Shoe Station stores, leading to a sales and profitability increase. The integration of Rogan’s operations has been ahead of schedule, contributing positively to the company’s growth. Additionally, Shoe Carnival continues to maintain a strong cash position with $91.1 million in cash and no debt, reinforcing its financial stability.
Looking ahead, Shoe Carnival remains optimistic about its growth trajectory, maintaining its full-year EPS guidance and expecting continued benefits from the Rogan’s acquisition and rebannering strategy. With a focus on expanding its market presence and enhancing profitability, Shoe Carnival is poised to strengthen its position as a leading family footwear retailer in the United States.
