Shoe Carnival Increases Profit Forecast Amid Ongoing Rebranding Initiatives
Earnings Report Reaction: Shoe Carnival's stock fell 3.6% after the company reported a 2.7% decline in comparable store sales for Q3, with Shoe Station showing a 5.3% increase while Shoe Carnival's sales dropped 5.2%.
Gross Profit Margin Improvement: The company's gross profit margin improved by 160 basis points to 37.6%, driven by better merchandise margins and strategic inventory investments, which offset some cost increases.
Updated EPS Outlook: Shoe Carnival reaffirmed its FY25 net sales outlook and raised its EPS guidance to a range of $1.80 to $2.10, with the midpoint exceeding analyst expectations.
Rebranding Initiative Progress: The company is on track to operate 215 Shoe Station stores by back-to-school 2026, aiming for over 90% of its fleet to be rebranded by the end of FY28.
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Validea's Leading Consumer Discretionary Stocks Inspired by Benjamin Graham - December 16, 2025
Top Rated Consumer Discretionary Stocks: The article highlights top-rated Consumer Discretionary stocks according to Validea's Value Investor model, which is based on Benjamin Graham's deep value methodology focusing on low P/B and P/E ratios, low debt, and solid long-term earnings growth.
Shoe Carnival Inc (SCVL): Shoe Carnival is a family footwear retailer with a 100% rating based on its fundamentals and valuation, operating approximately 431 stores across the U.S. and Puerto Rico, offering a wide range of branded footwear.
Carter's Inc (CRI): Carter's, a marketer of children's apparel, also received a 100% rating based on its fundamentals and valuation, with operations in the U.S., Canada, and Mexico, selling products through retail stores and e-commerce platforms.
Stride Inc (LRN) and Lennar Corp (LEN): Stride, a mid-cap value stock in the education sector, has an 86% rating, while Lennar, a large-cap homebuilder, has a 71% rating, both evaluated based on their underlying fundamentals and stock valuations.
Shoe Carnival Declares $0.15 Quarterly Dividend and $50M Buyback Program
- Quarterly Dividend: Shoe Carnival's Board of Directors has approved a quarterly cash dividend of $0.15 per share, payable on January 26, 2026, reflecting the company's ongoing commitment to shareholder returns while maintaining a debt-free balance sheet.
- Share Repurchase Program: The newly authorized $50 million share repurchase program, effective January 1, 2026, replaces an existing program of the same amount, aimed at enhancing shareholder value through strategic buybacks.
- Strategic Execution: CEO Mark Worden noted that the 55th consecutive dividend and new repurchase authorization demonstrate the company's ability to execute its
