Shoe Carnival (NASDAQ:SCVL) Releases Quarterly Earnings Results, Meets Estimates

Shoe Carnival (NASDAQ:SCVL) posted its quarterly earnings results on Thursday. The company reported $0.33 earnings per share for the quarter, meeting the consensus estimate of $0.33, FiscalAI reports. The business had revenue of $254.07 million during the quarter, compared to analysts’ expectations of $255.83 million. Shoe Carnival had a net margin of 5.06% and a return on equity of 8.75%. The business’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.54 EPS.

Here are the key takeaways from Shoe Carnival’s conference call:

• The board appointed Cliff Sifford as Interim President & CEO after Mark Worden’s departure, a permanent search is underway, and CEO transition costs will be reported separately and are excluded from the fiscal 2026 guidance.
• Fiscal 2026 guidance calls for EPS of $1.40–$1.60 (vs. $1.90 in FY2025) and ~260 bps gross margin compression to ~34%, driven mainly by the timing of tariff-related cost increases and near-term promotional activity.
• The large-scale rebanner rollout is being slowed after variability in converted store performance — 101 rebanners completed in FY25, with ~21 targeted conversions planned before back-to-school 2026 and reduced rebanner P&L spend of $10M–$15M and capex of $5M–$7M for FY26.
• Inventory was elevated to $439.6M (+14%) from opportunistic pre-tariff buys and management plans to reduce inventory by $50M–$65M in FY26 via targeted promotions, which will pressure margins early in the year but is expected to improve cash flow and margin trends in H2 and FY27.
• The company remains financially strong — debt-free for 21 years with $130.7M in cash & securities, a raised quarterly dividend to $0.17, $100M revolver availability, and $50M remaining on the share repurchase authorization.

Shoe Carnival Stock Performance

Shares of NASDAQ:SCVL traded down $1.44 on Thursday, hitting $16.43. 886,683 shares of the company’s stock were exchanged, compared to its average volume of 380,447. Shoe Carnival has a 1-year low of $15.21 and a 1-year high of $26.57. The company has a market capitalization of $449.85 million, a PE ratio of 7.82 and a beta of 1.34. The firm’s 50-day moving average is $19.35 and its 200 day moving average is $19.21.

Shoe Carnival Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 20th. Shareholders of record on Monday, April 6th will be given a $0.17 dividend. The ex-dividend date of this dividend is Monday, April 6th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 4.1%. This is a boost from Shoe Carnival’s previous quarterly dividend of $0.15. Shoe Carnival’s payout ratio is currently 28.57%.

Hedge Funds Weigh In On Shoe Carnival

Several hedge funds have recently made changes to their positions in the company. Global Retirement Partners LLC acquired a new stake in Shoe Carnival during the 4th quarter worth approximately $28,000. Kestra Advisory Services LLC acquired a new stake in shares of Shoe Carnival in the 4th quarter worth $44,000. Los Angeles Capital Management LLC acquired a new stake in shares of Shoe Carnival in the 4th quarter worth $86,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of Shoe Carnival in the fourth quarter valued at about $137,000. Finally, Raymond James Financial Inc. purchased a new position in Shoe Carnival during the second quarter worth about $146,000. Hedge funds and other institutional investors own 66.05% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. Weiss Ratings reissued a “hold (c-)” rating on shares of Shoe Carnival in a research report on Monday, December 29th. Williams Trading set a $22.00 price target on shares of Shoe Carnival in a research report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.00.

Shoe Carnival announced that its Board of Directors has initiated a share buyback program on Friday, December 12th that allows the company to buyback $50.00 million in shares. This buyback authorization allows the company to purchase up to 9.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Shoe Carnival Company Profile

Shoe Carnival, Inc (NASDAQ: SCVL) is a U.S.-based specialty retailer offering a broad assortment of footwear, apparel and accessories for the entire family. Through its network of brick-and-mortar stores and e-commerce platform, the company provides casual, athletic and dress shoes for men, women and children, as well as complementary apparel, handbags, socks and other accessories designed to deliver value and variety. Its distinctive in-store carnival host service model aims to create an engaging shopping experience and foster customer loyalty.

Founded in 1978 and headquartered in Evansville, Indiana, Shoe Carnival has expanded over four decades to operate more than 350 retail locations across over 30 states.