Shoe Carnival (NASDAQ:SHOE) Posts Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Shoe Carnival (NASDAQ:SHOE) issued its earnings results on Thursday. The company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.11), Briefing.com reports. Shoe Carnival had a net margin of 3.31% and a return on equity of 7.24%. The firm’s revenue was down 7.2% compared to the same quarter last year. During the same quarter in the previous year, the company 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 Stock Performance

Shares of NASDAQ SHOE opened at $12.28 on Friday. Shoe Carnival has a 1 year low of $10.20 and a 1 year high of $24.21. The stock’s 50 day moving average price is $14.86. The firm has a market capitalization of $333.40 million, a price-to-earnings ratio of 9.10 and a beta of 1.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD acquired a new stake in Shoe Carnival during the fourth quarter worth about $188,000. Weiss Asset Management LP purchased a new stake in shares of Shoe Carnival during the 4th quarter worth about $220,000. Panagora Asset Management Inc. purchased a new stake in shares of Shoe Carnival during the 4th quarter worth about $192,000. Sherbrooke Park Advisers LLC acquired a new stake in Shoe Carnival during the 3rd quarter worth approximately $282,000. Finally, Inceptionr LLC purchased a new position in Shoe Carnival in the third quarter valued at approximately $217,000. Institutional investors and hedge funds own 66.05% of the company’s stock.

Analysts Set New Price Targets

SHOE has been the subject of several research analyst reports. Weiss Ratings assumed coverage on Shoe Carnival in a research report on Monday, June 15th. They issued a “hold (c-)” rating for the company. Zacks Research lowered shares of Shoe Carnival from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $22.00.

Shoe Carnival News Summary

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

• Positive Sentiment: The company remains profitable, reporting a 3.31% net margin and a 7.24% return on equity for the quarter. Management also provided full-year fiscal 2026 EPS guidance of $0.75 to $0.90, offering investors a baseline outlook despite the difficult quarter. Shoe Station Group Reports Second Quarter 2026 Results
• Neutral Sentiment: The company completed its corporate name change to Shoe Station Group, Inc., while retaining the Nasdaq ticker SHOE. Reported short interest was zero shares, implying no measurable short-selling pressure, although the data may reflect a reporting or feed issue.
• Negative Sentiment: Second-quarter EPS was $0.23, below analyst estimates ranging from $0.32 to $0.34 and down sharply from $0.70 a year earlier. The earnings miss is the primary reason the stock has decreased. Shoe Carnival Earnings Report
• Negative Sentiment: Revenue fell 7.2% year over year to $284.31 million, below the $297.63 million consensus estimate. The combination of weaker sales and lower profitability suggests continued softness in consumer footwear demand.
• Negative Sentiment: Analysts and financial coverage cited a promotional retail environment and significant gross-margin pressure. Investors are concerned that discounting is needed to drive sales, which could limit profits and make the company’s full-year guidance difficult to achieve. Shoe Station Q2 Analysis

About Shoe Carnival

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.