Shoe Carnival’s Mixed Q2 Sends Stock Down — But CEO Touts Back-to-School Gains
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Shoe Carnival Inc.’s stock is down in after-hours trading on Wednesday following the release of its mixed second-quarter financial results.
The footwear and accessories retailer saw profits that remained flat at $11.8 million compared with the prior year period, or earnings of 80 cents per diluted share — two cents ahead of market watchers’ bets. Revenues, on the other hand, were lower than the forecasted $269.9 million, dropping a slight 0.07% to $268.2 million year-over-year, while same-store sales increased 1.4%.
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Shoe Carnival Sales Miss the Mark, Retailer Reaffirms Outlook
As of 5:00 p.m. ET, shares for the company were in the red 2.74% to $25.20.
Despite the middling report, Shoe Carnival’s numbers were in line with its own expectations. The Evansville, Ind.-based firm is maintaining the high end of its full-year earnings outlook of $2.83 while raising the lower end from $2.73 to $2.77. (It puts annual revenues in the range of $1.028 billion to $1.033 billion — versus the $1.035 billion to $1.043 billion it reiterated last quarter.)
“Shoe Carnival’s robust assortment of family footwear for back-to-school is resonating with new and existing customers, resulting in an acceleration of our August sales,” said president and CEO Cliff Sifford. “Our team continues to focus on the execution of our strategic initiatives in the second half of fiscal 2019 as we build upon our strong foundation for sustainable long-term growth and shareholder value creation.”
For the year, the company has plans to open one store and shutter six others. The midprice retailer has been deliberate in its conservative stance on expanding its physical footprint amid a broader brick-and-mortar downsizing across the retail industry.
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