Financial Data and Key Metrics Changes - The company reported third quarter adjusted EPS of $0.71, consistent with expectations, and year-to-date adjusted EPS totaled $2.19, an increase of 3.8% compared to the prior year [11][76] - Year-to-date net sales reached $939.9 million, reflecting a 4.9% increase, while adjusted operating income was $78.4 million, up 6.6% year-over-year [12][73] - Gross profit margin for the quarter was 36%, marking the 15th consecutive quarter above 35% [11][45] Business Line Data and Key Metrics Changes - The acquisition of Rogan's contributed approximately $22.3 million in net sales for the quarter, with year-to-date sales of $63.9 million, aligning with expectations [67][68] - Comparable store sales for the quarter decreased by 4.1%, primarily due to a decline in boot sales, which were down over 35% in October [48][64] - The company achieved solid comparable store net sales growth during the back-to-school season, particularly in Children's and Athletics categories [18][43] Market Data and Key Metrics Changes - Sales were significantly impacted by hurricanes Helene and Milton, affecting about half of the stores and leading to a disruption in customer shopping behavior [20][95] - The warm weather delayed the start of the winter boot season, contributing to lower sales in that category [21][89] - The company anticipates a continued decline in customer purchasing behavior during the current nonevent period until the holiday season [23][84] Company Strategy and Development Direction - The company is focusing on profitable M&A activity, with Rogan's integration ahead of schedule and capturing significant profit synergies [27][70] - The rebanner strategy is being expanded, with plans to rebanner an additional 25 stores in the first half of fiscal 2025, aiming for long-term growth [35][37] - The company is committed to a digital-first marketing approach, allowing for flexible spending based on customer engagement [16][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about pent-up demand for boots as the weather turns colder, although they do not expect recovery from lost business in Q3 [98][104] - The company revised its full-year sales guidance downward due to Q3 performance, but reiterated EPS guidance based on strong margins [81][91] - Management remains confident in the ability to deliver a profitable quarter despite challenges faced in Q3 [88][92] Other Important Information - The company ended the quarter with total cash and marketable securities of approximately $91 million, an increase of $20 million year-over-year [77] - The company has maintained a debt-free status for 19 consecutive years [76] - Carl Scibetta, Chief Merchandising Officer, announced plans to retire in spring 2025, with a succession plan underway [40][41] Q&A Session Summary Question: Impact of hurricanes on sales - Management estimated that about half of the sales loss was due to the hurricanes, with the other half attributed to warm weather affecting boot sales [95][96] Question: Expectations for fourth quarter boot sales - Management believes there is some pent-up demand for boots, but does not expect recovery from lost business in Q3 [98][104] Question: Changes in sales guidance - The company confirmed that the lower end of the sales guidance reflects the impact of persistent warm weather and the retail calendar shift [103][104] Question: Performance of rebannered stores - Early results from rebannered stores have shown strong performance, exceeding expectations, and the company plans to expand this strategy further [105][121]

Financial Performance - Shoe Carnival reported quarterly earnings of $0.71 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, but down from $0.80 per share a year ago, representing an earnings surprise of 16.39% [1] - The company posted revenues of $306.89 million for the quarter ended October 2024, missing the Zacks Consensus Estimate by 1.18%, and down from $319.91 million year-over-year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $279.82 million, and for the current fiscal year, it is $2.54 on revenues of $1.22 billion [7] - The estimate revisions trend for Shoe Carnival is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Retail - Apparel and Shoes industry, to which Shoe Carnival belongs, is currently in the top 50% of over 250 Zacks industries, suggesting that companies in this segment are likely to outperform those in the bottom 50% [8] - Another company in the same industry, American Eagle Outfitters, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year decline of 6.1% [9]

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and traditional valuation metrics [2][3] Company Analysis: Shoe Carnival (SCVL) - Shoe Carnival holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is currently trading with a P/E ratio of 12.16, significantly lower than the industry average of 16.06 [4] - SCVL's Forward P/E has fluctuated between 6.47 and 15.85 over the past year, with a median of 12.64 [4] - The P/B ratio for SCVL is 1.56, which is attractive compared to the industry's average P/B of 4.45 [5] - Over the past 12 months, SCVL's P/B has ranged from 1.03 to 2.01, with a median of 1.59 [5] - SCVL's P/CF ratio is 9.12, lower than the industry's average of 12.88, indicating a solid cash outlook [6] - The P/CF for SCVL has varied from 5.38 to 11.74 over the past year, with a median of 9.24 [6] Company Analysis: Tapestry (TPR) - Tapestry also holds a Zacks Rank of 2 (Buy) and a Value score of A, making it another attractive option for value investors [7] - The Forward P/E ratio for TPR is 9.83, which is favorable compared to the industry average of 16.06 [7] - TPR's PEG ratio is 1.63, which is higher than the industry's average PEG ratio of 1.37 [7] - The price-to-earnings ratio for TPR has ranged from 6.25 to 10.91 over the past year, with a median of 9.18 [8] - TPR's P/B ratio is 3.57, lower than the industry's average P/B of 4.45, indicating relative value [8] - The P/B for TPR has fluctuated between 2.52 and 4.19 over the past year, with a median of 3.40 [8] Conclusion - Both Shoe Carnival and Tapestry exhibit strong value metrics, suggesting they are likely undervalued in the current market [9]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find compani ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, inves ...

Shoe Carnival Inc. NASDAQ: SCVL is one of the largest family footwear retailers in the United States, operating 430 stores under the Shoe Carnival, Shoe Station and Rogan's Shoes banners. Like the name, the atmosphere of the self-serve stores is bright, colorful, high energy and family-oriented with its iconic Spin 'N Win wheel with loads of promotions. They carry top brands and private label merchandise with a heavy emphasis on off-price brand discounts, which is why their business is booming despite gener ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth p ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional v ...

Shoe Carnival (SCVL) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.80 per share. This compares to earnings of $0.71 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.75%. A quarter ago, it was expected that this footwear retailer would post earnings of $0.60 per share when it actually produced earnings of $0.64, delivering a surprise of 6.67%. Over the last four quarters, the ...

H Nikola Stojadinovic Thesis Shoe Carnival (NASDAQ:SCVL), is currently navigating a complex retail landscape by leveraging strategic acquisitions and enhancing its digital-first marketing approach, which includes innovative features like the "Fit Finder" to improve customer experience and reduce operational costs. While the increased risk of integration, fierce competition, and possible economic challenges are noteworthy, I see the company's expansion opportunities in a more optimistic light. However, with ...