Shoe Carnival Posts Quarterly Beat As Sales Improve, Q2 Revenue Outlook Disappoints

Shoe Carnival’s (SCVL) fiscal first-quarter results topped consensus estimates driven by top-line growth and margin expansion. Meanwhile, shares of the shoe store company declined 7.2% in Wednesday’s extended trading session after closing 1.6% lower on the day as the company’s Q2 revenue outlook missed analysts’ expectations.

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Shoe Carnival’s Q1 earnings of $3.02 per share handily beat Street’s estimates of $1.40 per share. The company recorded a loss of $1.16 per share in the same quarter last year.

Net sales more than doubled on a year-over-year basis to $328.5 million and outpaced analysts’ expectations of $274.36 million. The outstanding performance was driven by record comparable-store sales (up 125.8%) and strong eCommerce sales (up 11.8%).

Gross profit margin increased to 39.6%, up from 21.3% in the prior-year quarter. (See Shoe Carnival stock analysis on TipRanks)

Shoe Carnival CEO Cliff Sifford said, “We are thrilled that customers are shopping in-store again, and we look forward to giving them an even more exciting shopping experience as we continue modernizing our store fleet and delivering on-trend product for the entire family at the value they expect.”

For the second quarter of the Fiscal Year 2021, the company expects EPS to be in the range of $1.00 – $1.20, versus the consensus estimate of $0.94. Revenue is anticipated to land between $268 million and $278 million, lower than analysts’ expectations of $281.9 million.

Following the results, Pivotal Research analyst Mitch Kummetz increased the stock’s price target to $81 (30% upside potential) from $74 and reiterated a Buy rating.

Kummetz is bullish on the stock and views the company’s second-quarter outlook as conservative following its “massive” first-quarter beat.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The average analyst price target of $70 implies 12% upside potential to current levels. Shares have increased 78.2% over the past six months.