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

Shoe Carnival (NASDAQ:SHOE) posted its quarterly earnings results on Thursday, September 10th. The company reported $0.23 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.11), Briefing.com reports. Shoe Carnival had a return on equity of 5.32% and a net margin of 2.20%.The company had revenue of $284.31 million during the quarter, compared to analysts’ expectations of $299.19 million. During the same period in the prior year, the business earned $0.70 EPS. The company’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

Shares of NASDAQ SHOE opened at $12.58 on Monday. Shoe Carnival has a 1-year low of $10.20 and a 1-year high of $22.38. The stock’s fifty day moving average is $14.22. The stock has a market cap of $341.92 million, a PE ratio of 14.30 and a beta of 1.37.

Shoe Carnival Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Tuesday, October 6th will be paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date is Tuesday, October 6th. Shoe Carnival’s dividend payout ratio is 77.27%.

Analyst Upgrades and Downgrades

Several research firms have commented on SHOE. Weiss Ratings restated a “hold (c-)” rating on shares of Shoe Carnival in a report on Friday, September 11th. Wall Street Zen cut Shoe Carnival from a “hold” rating to a “sell” rating in a report on Saturday, September 12th. Finally, Zacks Research lowered Shoe Carnival from a “hold” rating to a “strong sell” rating in a research note on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company 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.