Shoe Carnival reports in-line Q4 earnings, slight revenue beat
SCVL
+3.23%
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EVANSVILLE, Ind. – Shoe Carnival , Inc. (NASDAQ:SCVL), a prominent family footwear retailer, announced its fourth quarter financial results, matching analyst expectations for adjusted EPS and slightly exceeding revenue estimates.
For the quarter ended February 3, 2024, the company reported an adjusted EPS of $0.59, aligning with the consensus estimate. Revenue reached $280.2 million, marginally surpassing the anticipated $279.81 million and representing a 3.6% decrease from the $290.8 million reported in the same quarter last year.
President and CEO Mark Worden attributed the quarter’s performance to robust December holiday sales and the company’s strategic growth initiatives, including the acquisition of Rogan’s, which is expected to be immediately accretive to the company’s 2024 results. Despite a YoY decline in net sales and a comparable store sales dip of 9.4%, Shoe Carnival (NYSE:CCL)’s gross profit margin remained strong at 35.6%.
Looking ahead, Shoe Carnival has provided a positive outlook for Fiscal 2024, projecting net sales to be in the range of $1.21 billion to $1.25 billion, indicating a growth of 4.0% to 6.0% over Fiscal 2023. The company’s guidance for adjusted EPS is set between $2.55 and $2.75, excluding expected costs related to the Rogan’s acquisition. This forecast reflects the company’s confidence in the continued strength of the Shoe Station banner, e-commerce growth, and improving trends in the Shoe Carnival banner.
Worden expressed gratitude towards team members and vendor partners for their contributions to the company’s growth trajectory and emphasized the accelerated integration of Rogan’s, which is expected to yield approximately $2.5 million in annual synergies by Fiscal 2025. The company also announced a dividend increase of 12.5%, demonstrating its commitment to returning value to shareholders.
Shoe Carnival’s strategic investments in CRM capabilities, e-commerce infrastructure, store modernization, and acquisitions have been pivotal in its long-term profit transformation, which has seen an 84% increase in EPS since 2019. The company’s capital management remains robust, ending Fiscal 2023 with no debt and significant increases in cash and cash equivalents, as well as operating cash flow.
