Shoe Carnival (NASDAQ:SHOE) Announces Earnings Results, Misses Estimates By $0.09 EPS

Shoe Carnival (NASDAQ:SHOE) issued its quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.09), Zacks reports. Shoe Carnival had a return on equity of 5.31% and a net margin of 2.20%.The business had revenue of $284.31 million during the quarter, compared to the consensus estimate of $297.63 million. During the same quarter last year, the firm posted $0.70 earnings per share. Shoe Carnival’s revenue was down 7.2% compared to the same quarter last year. 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 Up 3.5%

SHOE stock opened at $12.71 on Friday. Shoe Carnival has a one year low of $10.20 and a one year high of $24.10. The stock has a market capitalization of $345.08 million, a price-to-earnings ratio of 14.44 and a beta of 1.40. The firm’s 50-day moving average price is $14.82.

More Shoe Carnival News

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

• Positive Sentiment: FY 2026 guidance was maintained or updated: Shoe Carnival projected earnings of $0.75–$0.90 per share for fiscal 2026. The guidance provides investors with a defined earnings outlook following the quarterly results. Shoe Carnival quarterly results press release
• Neutral Sentiment: Short-interest data showed no measurable bearish position: Reported short interest was zero shares, with a zero-day short-interest ratio. Because the figures were unchanged at zero and included an invalid percentage comparison, the data offers little meaningful insight into trading sentiment.
• Negative Sentiment: Quarterly earnings missed expectations: Shoe Carnival reported adjusted earnings of $0.23 per share, below consensus estimates ranging from $0.32 to $0.34 and well below $0.70 a year earlier. Revenue of $284.31 million also missed estimates of approximately $298–$299 million. Shoe Carnival earnings report
• Negative Sentiment: Sales trends deteriorated: Quarterly revenue declined 7.2% year over year, while the company reported a relatively low 3.31% net margin and 7.24% return on equity. The earnings decline raises concerns about promotional pressure, demand, and profitability.
• Negative Sentiment: Bearish options activity increased sharply: Investors purchased 5,887 put options, roughly 342% above typical put volume of 1,333 contracts. This unusually high activity indicates increased demand for downside protection or speculation on further weakness.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on SHOE. Wall Street Zen cut shares of Shoe Carnival from a “hold” rating to a “sell” rating in a report on Saturday. Weiss Ratings began coverage on Shoe Carnival in a research note on Monday, June 15th. They set a “hold (c-)” rating for the company. Finally, Zacks Research lowered Shoe Carnival from a “strong-buy” rating to a “hold” rating in a research note on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $22.00.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in SHOE. Global Retirement Partners LLC purchased a new stake in shares of Shoe Carnival in the 4th quarter valued at approximately $28,000. Kestra Advisory Services LLC purchased a new position in Shoe Carnival during the 4th quarter worth approximately $44,000. Los Angeles Capital Management LLC purchased a new position in Shoe Carnival during the 4th quarter worth approximately $86,000. Wilmington Savings Fund Society FSB purchased a new position in Shoe Carnival during the 4th quarter worth approximately $137,000. Finally, Raymond James Financial Inc. acquired a new stake in Shoe Carnival during the 2nd quarter valued at $146,000. 66.05% of the stock is owned by hedge funds and other institutional investors.

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.