SCVL Witnesses Strong Product Momentum
Analysts at Susquehanna Financial maintained their "positive" rating on Shoe Carnival Inc (NASDAQ: SCVL). The target price for SCVL is set to $23.
According to Susquehanna Financial, Shoe Carnival’s same-store sales for 4Q09 are likely to be higher than the guidance due to strong merchandise trends, better product margins ad increasing store productivity. Wellness products are likely to have been boosting SCVL’s sales and margins, the analysts say.
Shoe Carnival’s operating margins are likely to improve significantly over the forthcoming quarters due to its lean cost structure, productive store base and favorable top-line trends, the analysts mentioned. The company has been building cash to pursue unit expansion in Atlanta, Houston, and Cleveland, the analysts said. Susquehanna Financial expects the company’s product momentum to continue into 1Q10.
