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

Shoe Carnival (NASDAQ:SHOE) announced its quarterly earnings results on Thursday. The company reported $0.23 earnings per share (EPS) 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%. During the same period last year, the company earned $0.70 earnings per share. The business’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 Stock Performance

Shares of SHOE opened at $12.28 on Friday. Shoe Carnival has a 12 month low of $10.20 and a 12 month high of $24.21. The stock’s fifty day moving average is $14.86. The company has a market cap of $333.40 million, a P/E ratio of 9.10 and a beta of 1.40.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Weiss Ratings began coverage on Shoe Carnival in a research note on Monday, June 15th. They issued a “hold (c-)” rating for the company. Zacks Research lowered Shoe Carnival from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $22.00.

Institutional Trading of Shoe Carnival

A number of hedge funds and other institutional investors have recently made changes to their positions in SHOE. New South Capital Management Inc. lifted its holdings in Shoe Carnival by 10.3% in the 4th quarter. New South Capital Management Inc. now owns 744,519 shares of the company’s stock valued at $12,567,000 after acquiring an additional 69,474 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Shoe Carnival by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 448,424 shares of the company’s stock worth $7,570,000 after purchasing an additional 4,859 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Shoe Carnival by 24.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 441,679 shares of the company’s stock worth $7,456,000 after purchasing an additional 86,075 shares in the last quarter. Wasatch Advisors LP increased its position in Shoe Carnival by 8.5% during the third quarter. Wasatch Advisors LP now owns 397,677 shares of the company’s stock worth $8,268,000 after buying an additional 31,024 shares during the last quarter. Finally, Nokomis Capital L.L.C. increased its holdings in shares of Shoe Carnival by 13.0% during the 3rd quarter. Nokomis Capital L.L.C. now owns 374,103 shares of the company’s stock valued at $7,778,000 after acquiring an additional 43,000 shares during the last quarter. 66.05% of the stock is currently owned by institutional investors.

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

Shoe Carnival Company Profile

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.