What Happened?
Shares of footwear retailer Shoe Carnival (NASDAQ: SCVL) jumped 6.3% in the afternoon session after company reported decent first quarter 2025 results: profits ran ahead of expectations, but sales fell short. The upside came from Shoe Station, which posted nearly 5% sales growth while the rest of the market shrank.
Adding to the positive aspect, its full-year revenue and EPS guidance exceeded Wall Street's estimates. Overall, this print was mixed but still had some key positives.
After the initial pop the shares cooled down to $19.34, up 4.7% from previous close.
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What The Market Is Telling Us
Shoe Carnival’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 13.3% on the news that the company reported strong second-quarter earnings. Notably, the Back-to-School shopping season (the company's most important sales period) was highly successful, driving strong sales momentum. As a result, the company achieved its highest second-quarter sales on record. However, same-store sales came in below expectations, leading to a revenue miss. Its full-year revenue guidance was underwhelming as well. Regardless, the company provided encouraging long-term projections, indicating strong demand for its offerings, as it expects to operate more than 500 stores by 2028 (vs the current count of 430).
Overall, this was a decent quarter, with the market cheering the improved momentum following the successful Back-to-School campaign.
Shoe Carnival is down 40.1% since the beginning of the year, and at $19.34 per share, it is trading 57.8% below its 52-week high of $45.82 from September 2024. Investors who bought $1,000 worth of Shoe Carnival’s shares 5 years ago would now be looking at an investment worth $1,487.
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