Shoe Carnival Stock Rises on Strong Q2 Results and Upgraded Outlook
Shoe Carnival stock rises experienced a 3.2% increase in its stock price following the release of better-than-expected second-quarter results and an upgraded full-year outlook.
Earnings and Revenue Beat Expectations
For the quarter ending August 3, Shoe Carnival reported adjusted earnings per share (EPS) of $0.83, surpassing analysts’ expectations of $0.81. The company’s revenue also impressed, rising 12.9% year-over-year to $332.7 million, exceeding the consensus forecast of $331.47 million.
Back-to-School Sales Drive Performance
The retailer’s strong performance was largely driven by robust Back-to-School sales, particularly in children’s and athletic footwear. Comparable store sales growth during August played a significant role in this success.
Customer engagement continued to exceed our expectations, and sales momentum accelerated rapidly during our most important shopping event of the year, the Back-to-School season,” said President and CEO Mark Worden.
Upgraded Full-Year Guidance
Looking forward, Shoe Carnival raised its fiscal 2024 guidance, now projecting earnings per share of $2.60 to $2.75 on revenue of $1.23 to $1.25 billion. This outlook is slightly above analyst estimates, which predicted $2.74 EPS and $1.24 billion in revenue.
The company also revised its comparable store sales forecast, now expecting a range of -1.5% to +1% for the full year, an improvement from the previous outlook of -3% to +1%.
Strong Financial Position
Shoe Carnival ended the quarter with $84.5 million in cash and marketable securities, marking a $37.7 million increase from the previous year. This strong financial position highlights the company’s ability to capitalize on market opportunities moving forward.
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