Shoe Carnival Stock Falls After Q2 Results

Shoe Carnival Stock Falls After Q2 Results
  • Shoe Carnival Inc SCVL reported second-quarter FY21 sales growth of 10.5% year-on-year, to $332.2 million, beating the analyst consensus of $293.56 million. Comparable store sales increased 11.4%.
  • The revenue increase was driven by continued broad-based demand for product offerings, a more normalized beginning to the back-to-school season, improving macroeconomic factors in the U.S., and the easing of COVID-19 restrictions.
  • Gross profit rose 64.3% Y/Y to $135.8 million, with the margin expanding 1340 basis points to 40.9%.
  • The operating margin was 18%, and operating income for the quarter rose 314.6% to $59.7 million.
  • Shoe Carnival held $146.5 million in cash and equivalents as of July 31, 2021.
  • Net cash provided by operating activities for the six months totaled $79.8 million.
  • EPS was $1.54, adjusted for the two-for-one stock split effected July 20, 2021.
  • For the first three weeks of August, comparable-store sales improved 23%, and product margins increased nearly 11 percentage points versus August 2019.
  • Outlook: Shoe Carnival sees Q3 FY21 sales of $307 million - $315 million versus the consensus of $292.85 million. It sees Q3 EPS of $1.10 - $1.15.
  • For FY21, the company expects sales of $1.21 billion - $1.23 billion versus the consensus of $1.17 billion. It sees EPS of $4.35 - $4.50.
  • Price Action: SCVL shares are trading lower by 6.77% at $37.61 on the last check Wednesday.

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