On June 26, Seaport Research will host a virtual meeting focusing on the stock of Shoe Carnival (SCVL, Financial). This event aims to offer insights into the company's performance, aiding investors in making informed decisions. Attendees can anticipate a thorough examination of the key performance indicators (KPIs) that shed light on SCVL's market dynamics and resilience. This meeting promises to deliver valuable information to those seeking to enhance their investment strategies regarding Shoe Carnival's stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Shoe Carnival Inc (SCVL, Financial) is $22.50 with a high estimate of $24.00 and a low estimate of $21.00. The average target implies an upside of 19.74% from the current price of $18.79. More detailed estimate data can be found on the Shoe Carnival Inc (SCVL) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Shoe Carnival Inc's (SCVL, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shoe Carnival Inc (SCVL, Financial) in one year is $24.06, suggesting a upside of 28.05% from the current price of $18.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shoe Carnival Inc (SCVL) Summary page.
SCVL Key Business Developments
Release Date: May 30, 2025
- Net Sales: $277.7 million, a decline of 7.5% compared to last year.
- Net Income: $9.3 million or $0.34 per diluted share, down from $17.3 million or $0.63 per diluted share last year.
- Comparable Store Sales: Down 8.1% for the quarter.
- Shoe Station Sales Growth: Increased by 4.9% and was comp positive.
- Gross Profit Margin: 34.5%, down 110 basis points from last year.
- SG&A Expenses: $83.8 million, representing 30.2% of net sales, up 2.1 percentage points from last year.
- Cash and Cash Equivalents: $93 million, up over 30% compared to the end of Q1 last year.
- Inventory Levels: Increased by 4% compared to last year.
- Rebanner Initiative Investment: $10 million in capital expenditures during Q1, with a total expected investment of $30 million to $40 million for the year.
- Fiscal 2025 Outlook: Net sales of $1.15 billion to $1.23 billion, GAAP EPS of $1.60 to $2.10, and gross profit margins of 35% to 36%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Shoe Carnival Inc (SCVL, Financial) reported first-quarter profits that outperformed expectations by approximately 10%.
- The company's rebanner expansion plans, particularly with Shoe Station, are delivering outstanding results, with Shoe Station achieving a 4.9% sales growth.
- Shoe Carnival Inc (SCVL) maintains a debt-free balance sheet with expanded cash reserves, positioning it well for opportunistic buys and margin growth.
- The rebanner initiative has consistently yielded double-digit sales growth and accretive margins across diverse market types.
- Shoe Carnival Inc (SCVL) is strategically maintaining elevated inventory levels to navigate marketplace uncertainties and ensure product availability during key seasons.
Negative Points
- Shoe Carnival Inc (SCVL) experienced a 7.5% decline in net sales compared to the previous year, with comparable store sales down 8.1%.
- The Shoe Carnival banner saw a decline in sales, consistent with industry-wide challenges, with total sales declining 10%.
- The company anticipates continued challenges in achieving profitable sales growth in the near term due to external conditions and soft consumer confidence.
- The rebanner initiative, while promising, involves significant planned investments that have impacted near-term profitability.
- Shoe Carnival Inc (SCVL) faces uncertainty regarding consumer sentiment, which could affect future sales performance, particularly during the back-to-school season.
