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

Shoe Carnival (NASDAQ:SHOE) released its quarterly earnings results on Thursday, September 10th. The company reported $0.23 earnings per share for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.11), Briefing.com reports. Shoe Carnival had a net margin of 2.20% and a return on equity of 5.32%. The business had revenue of $284.31 million during the quarter, compared to analyst estimates of $299.19 million. During the same quarter in the previous year, the firm posted $0.70 earnings per share. The firm’s quarterly revenue was down 7.2% on a year-over-year basis. 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 Price Performance

NASDAQ SHOE opened at $13.84 on Friday. The firm has a market cap of $376.17 million, a price-to-earnings ratio of 15.73 and a beta of 1.37. The stock’s 50 day moving average price is $13.79. Shoe Carnival has a 1 year low of $10.20 and a 1 year high of $21.61.

Shoe Carnival Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Tuesday, October 6th will be issued a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date of this dividend is Tuesday, October 6th. Shoe Carnival’s dividend payout ratio is 77.27%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Wall Street Zen cut Shoe Carnival from a “hold” rating to a “sell” rating in a report on Saturday, September 12th. Weiss Ratings downgraded Shoe Carnival from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday. Finally, Zacks Research lowered Shoe Carnival from a “hold” rating to a “strong sell” rating in a report on Monday, September 14th. One equities research analyst has rated the stock with a Strong Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $22.00.

Shoe Carnival Company Profile

Shoe Carnival, Inc (NASDAQ:SHOE) is a family footwear retailer serving customers through stores and e-commerce. The company offers a broad selection of men’s, women’s and children’s footwear, including athletic, casual, dress and work styles, along with accessories such as handbags, backpacks, socks and shoe care products.

Shoe Carnival sells merchandise from nationally recognized brands and selected private-label brands. Its stores emphasize value-oriented pricing, frequent promotions and a family-friendly shopping experience, while its digital platform allows customers to browse and purchase products online.

Founded in 1978, the company is headquartered in Evansville, Indiana, and operates primarily in the United States.