tiprankstipranks
Shoe Carnival Posts Quarterly Beat As Sales Improve, Q2 Revenue Outlook Disappoints
Market News

Shoe Carnival Posts Quarterly Beat As Sales Improve, Q2 Revenue Outlook Disappoints

Shoe Carnival’s (SCVL) fiscal first-quarter results topped consensus estimates driven by top-line growth and margin expansion. Meanwhile, shares of the shoe store company declined 7.2% in Wednesday’s extended trading session after closing 1.6% lower on the day as the company’s Q2 revenue outlook missed analysts’ expectations.

Shoe Carnival’s Q1 earnings of $3.02 per share handily beat Street’s estimates of $1.40 per share. The company recorded a loss of $1.16 per share in the same quarter last year.

Net sales more than doubled on a year-over-year basis to $328.5 million and outpaced analysts’ expectations of $274.36 million. The outstanding performance was driven by record comparable-store sales (up 125.8%) and strong eCommerce sales (up 11.8%).

Gross profit margin increased to 39.6%, up from 21.3% in the prior-year quarter. (See Shoe Carnival stock analysis on TipRanks)

Shoe Carnival CEO Cliff Sifford said, “We are thrilled that customers are shopping in-store again, and we look forward to giving them an even more exciting shopping experience as we continue modernizing our store fleet and delivering on-trend product for the entire family at the value they expect.”

For the second quarter of the Fiscal Year 2021, the company expects EPS to be in the range of $1.00 – $1.20, versus the consensus estimate of $0.94. Revenue is anticipated to land between $268 million and $278 million, lower than analysts’ expectations of $281.9 million.

Following the results, Pivotal Research analyst Mitch Kummetz increased the stock’s price target to $81 (30% upside potential) from $74 and reiterated a Buy rating.

Kummetz is bullish on the stock and views the company’s second-quarter outlook as conservative following its “massive” first-quarter beat.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys. The average analyst price target of $70 implies 12% upside potential to current levels. Shares have increased 78.2% over the past six months.

Related News:
CAE Q4 Profit Drops 77% on Weaker Aviation Demand; Shares Plunge 8%
Agiliti Posts Strong Q1 Results After IPO
Transcat’s Q4 Results Beat Expectations; Shares Dip

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles