Shoe Carnival (NASDAQ:SHOE) Posts Quarterly Earnings Results, Misses Expectations By $0.09 EPS

Shoe Carnival (NASDAQ:SHOE) posted its earnings results on Thursday. The company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.09), Zacks reports. The firm had revenue of $284.31 million during the quarter, compared to analysts’ expectations of $297.63 million. Shoe Carnival had a net margin of 3.31% and a return on equity of 7.24%. The firm’s revenue for the quarter was down 7.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.70 earnings per share. Shoe Carnival updated its FY 2026 guidance to 0.750-0.900 EPS.

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

• Second-quarter results missed expectations: net sales fell 7.2% to $284.3 million, comparable-store sales declined 7.1%, and diluted EPS dropped to $0.23 from $0.70. Gross margin contracted 690 basis points to 31.9% amid increased promotions and accelerated clearance of aged inventory.
• The company ended the quarter with $131.6 million in cash and no debt, while inventory declined 5% year over year to $426.6 million. Management remains on track to reduce inventory by approximately $50 million by year-end and said it expects about $1.2 million in tariff refunds.
• Management said localized assortments and sizing changes are beginning to improve performance. August comparable-store sales declined 2.7%, a significant improvement from the second quarter, with adult athletic improving to low-single-digit growth and e-commerce comparable sales increasing 18.8% in Q2.
• Fiscal 2026 guidance was lowered to net sales of $1.10 billion-$1.111 billion, GAAP EPS of $0.32-$0.47, and adjusted EPS of $0.75-$0.90. The company expects continued promotional pressure and gross-margin compression, with third-quarter sales likely roughly flat before a potential improvement in the fourth quarter as boots and colder weather drive demand.
• The company has paused further store re-bannering for the remainder of fiscal 2026 to focus on assortment, presentation, and customer awareness. Management is increasing targeted advertising, particularly to explain the value proposition and merchandise selection at re-banded Shoe Station locations.

Shoe Carnival Trading Down 4.6%

Shoe Carnival stock traded down $0.59 during mid-day trading on Thursday, reaching $12.34. 4,529,707 shares of the company were exchanged, compared to its average volume of 561,776. Shoe Carnival has a twelve month low of $10.20 and a twelve month high of $24.21. The stock has a 50-day moving average price of $14.91. The stock has a market capitalization of $334.90 million, a price-to-earnings ratio of 9.14 and a beta of 1.40.

Key Shoe Carnival News

Here are the key news stories impacting Shoe Carnival this week:

• Neutral Sentiment: The company updated its fiscal 2026 earnings guidance to earnings per share of $0.75 to $0.90. Shoe Carnival also recently completed a shareholder-approved name change to Shoe Station Group, Inc. Shoe Station Group Reports Second Quarter 2026 Results
• Negative Sentiment: Second-quarter earnings were $0.23 per share, below the $0.32 analyst consensus and down sharply from $0.70 a year earlier. Revenue fell 7.2% year over year to $284.31 million, missing estimates of $297.63 million. Shoe Station Group Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Heavy promotional activity weighed on sales and gross margins, increasing concern about profitability and the company’s ability to generate consistent earnings. Analysts characterized the results as offering limited earnings visibility and viewed SHOE as less attractive as a value investment until operating trends improve. Shoe Station Q2: Not The Value Stock To Invest In Currently

Institutional Investors Weigh In On Shoe Carnival

Several large investors have recently modified their holdings of SHOE. Global Retirement Partners LLC purchased a new position in Shoe Carnival in the 4th quarter valued at $28,000. Kestra Advisory Services LLC acquired a new position in Shoe Carnival in the 4th quarter valued at $44,000. Los Angeles Capital Management LLC purchased a new position in Shoe Carnival during the 4th quarter worth $86,000. Zurcher Kantonalbank Zurich Cantonalbank raised its position in Shoe Carnival by 66.9% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,005 shares of the company’s stock worth $146,000 after buying an additional 2,809 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new position in Shoe Carnival during the 2nd quarter worth $146,000. Hedge funds and other institutional investors own 66.05% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Zacks Research cut Shoe Carnival from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 12th. Weiss Ratings began coverage on shares of Shoe Carnival in a report on Monday, June 15th. They issued a “hold (c-)” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Shoe Carnival has an average rating of “Moderate Buy” and a consensus price target of $22.00.

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.