Shoe Carnival Q3 Earnings Beat Estimates, Comparable Sales Dip Y/Y

Core Insights - Shoe Carnival, Inc. reported third-quarter fiscal 2024 results with net sales of $306.9 million, down 4.1$311 million [4] - Adjusted earnings per share were 71 cents, surpassing the Zacks Consensus Estimate of 61 cents, but down from 80 cents in the same quarter last year [3] Financial Performance - The company experienced a decline in adjusted gross profit, which decreased by 6% year over year to $110.6 million, with an adjusted gross margin of 36.1$24.9 million, representing 8.1% of net sales, a decline of 60 basis points [8] - Selling, general and administrative expenses decreased by 4.5% year over year to 85.7 million, with SG&A as a percentage of net sales declining by 10 basis points to 28% [6][7] Strategic Developments - The company made progress on its store rebanner strategy, converting seven Shoe Carnival stores to Shoe Station stores, with plans to rebanner 25 more in the first half of fiscal 2025 [10] - As of November 21, 2024, Shoe Carnival operated 431 stores, including 361 Shoe Carnival, 42 Shoe Station, and 28 Rogan's locations [9] Fiscal 2024 Outlook - The company revised its fiscal 2024 sales guidance to a range of 1.20 billion to $1.23 billion, down from the previous range of$1.23 billion to $1.25 billion, indicating growth of 2$2.55 and $2.70, while adjusted EPS is expected to be between$2.60 and $2.75 [14] - The fiscal 2024 period consists of 52 weeks compared to 53 weeks in fiscal 2023, which is expected to impact fourth-quarter net sales by approximately$20 million [15]