Shoe Carnival Does Not Deserve A 14x Earnings Multiple

Company Performance - Shoe Carnival (NASDAQ: SCVL) reported a decline in sales for 2Q25, mirroring the performance seen in 1Q25 [1] - Despite a significant improvement in gross margins, the gains were insufficient to offset the deleverage in selling, general, and administrative (SG&A) expenses [1] - Profits for the company were lower compared to the previous year, with expectations of continued decline [1] Investment Perspective - The investment approach focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The strategy emphasizes holding companies for the long term, with a preference for a small fraction of companies being classified as a buy at any given time [1]