Core Viewpoint - Shoe Carnival (SCVL) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended July 2025, with the consensus outlook indicating a significant impact on the stock price based on actual results compared to estimates [1][3]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.55 per share, reflecting a year-over-year decrease of 33.7%, while revenues are projected to be $309.96 million, down 6.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 15.25% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. - The stock currently holds a Zacks Rank of 5, which complicates predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Shoe Carnival exceeded the expected earnings of $0.27 per share by delivering $0.34, resulting in a surprise of +25.93% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - Shoe Carnival does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Financial Data and Key Metrics Changes - Total revenue for Q2 was $546 million, up 4% compared to last year, driven by overall comparable sales growth of 4% [27] - Gross margin for the quarter was 45.8%, down 100 basis points compared to last year, impacted by a more promotional environment in the UK and higher tariffs [28] - Adjusted operating loss for the quarter was $14.3 million, compared to a loss of $9.3 million a year ago [29] - Free cash flow for the quarter was $72 million, compared to $20 million in the same period last year [30] Business Line Data and Key Metrics Changes - Journeys reported a 9% comparable sales growth, while Johnston and Murphy had a 1% comp growth, partially offset by a 4% decline at Schuh [27] - Journeys delivered significant SG&A leverage of about 200 basis points due to strong comp results and store fleet optimization efforts [29] - Johnston and Murphy saw positive comp sales in full-price stores and digital channels, driven by gains in conversion and transaction size [18] Market Data and Key Metrics Changes - The UK retail environment remains challenging, with Schuh experiencing comp declines in May and June, but positive trends in July and August [14][15] - The consumer environment is characterized by cautious spending, with purchases driven by necessity rather than discretionary shopping [14] Company Strategy and Development Direction - The company is focused on broadening the customer base for Journeys, targeting a market that is six to seven times larger than historically served [42] - The strategic plan includes enhancing product offerings, improving customer experience through store remodels, and increasing brand awareness [20][23] - The company is also working on a new footwear partnership with Wrangler, aiming to build the footwear category from the ground up [19][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from back-to-school shopping and the potential for improved sales and profits during the holiday season [25] - The company is mindful of external uncertainties, particularly regarding tariffs and consumer sentiment, but remains optimistic about achieving its full-year adjusted EPS guidance of $1.3 to $1.7 [26][32] Other Important Information - The company has opened 55 Journeys four-point-zero stores, which have shown a sales lift of more than 25% [23][70] - The company plans to continue investing in store remodels and digital initiatives to enhance customer experience [31][32] Q&A Session Summary Question: About the product pivot at Journeys - Management noted that the product assortment has improved significantly, with a focus on casual, canvas, and athletic styles, leading to double-digit growth [39][40] Question: Targeting a wider audience at Journeys - The company is in the early stages of broadening its customer base and has developed marketing strategies to reach this wider audience [42][44] Question: Performance of Schuh - Schuh experienced negative comps in the quarter but saw improvements in July and August, with expectations of continued volatility in the UK market [50][52] Question: New brand introductions - New brands have positively impacted customer reactions, with a focus on lifestyle running and other categories important to the teen customer [57][60] Question: Long-term ticket and transaction dynamics - The company is seeing elevated price points across both casual and athletic categories, with consumers willing to pay for must-have products [62][64] Question: Performance of four-point-zero stores - The remodels have attracted new customers and significantly increased sales, with plans to expand the number of remodeled stores [71][72] Question: Outlook for the UK market - Management anticipates a quieter period between back-to-school and holiday shopping, but is focused on product assortment and execution to navigate the market [76][78]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $546 million, up 4% compared to last year, driven by overall comparable sales growth of 4% [26] - Adjusted operating loss for the quarter was $14.3 million, compared to a loss of $9.3 million a year ago [28] - Adjusted diluted loss per share was $1.14 versus a loss of $0.83 a year ago [28] - Free cash flow for the quarter was $72 million, compared to $20 million in the same period last year [29] - Gross margin for the quarter was 45.8%, down 100 basis points compared to last year [27] Business Line Data and Key Metrics Changes - Journeys experienced a 9% comp growth, while Johnston and Murphy had a 1% comp growth, and Schuh saw a 4% decline in comps [26] - Journeys delivered significant SG&A leverage of about 200 basis points due to strong comp results and store fleet optimization [28] - Johnston and Murphy's comp sales in full-price stores and digital channels were positive, driven by gains in conversion and transaction size [15] Market Data and Key Metrics Changes - The UK retail environment remains challenging, with Schuh experiencing comp declines in May and June, but positive trends in July and August [12][14] - The consumer environment is characterized by cautious spending, with customers shopping when there is a reason to do so [5] Company Strategy and Development Direction - The company is focused on broadening the customer base for Journeys, targeting a market that is six to seven times larger than its historical audience [43] - The strategic plan includes enhancing product offerings, improving customer experience through store remodels, and increasing brand awareness [19][22] - The company is committed to elevating its product assortment and has introduced new brands to capture market interest [57][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from the back-to-school season and the potential for improved sales and profits during the holiday season [24] - The company is aware of the challenges posed by tariffs and the uncertain consumer environment, particularly in the UK [25][32] - Management reiterated full-year adjusted EPS guidance of $1.3 to $1.7, reflecting higher sales projections and better expense leverage [33] Other Important Information - The company has opened 55 Journeys four-point-zero stores, which have shown a sales lift of more than 25% [22][70] - The Wrangler partnership is expected to provide significant growth opportunities in the footwear category, with a product launch planned for fall 2026 [18][79] Q&A Session Summary Question: How is the product pivot at Journeys performing? - Management noted that the product assortment has diversified significantly, leading to strong performance for back-to-school [38][41] Question: What is the status of targeting a wider audience at Journeys? - The company is in the early stages of broadening its customer base and has developed marketing strategies to reach this wider audience [43][45] Question: Is Journeys running double-digit comps through early Q3? - Yes, Journeys is running double-digit comps, building on last year's strong performance [47][49] Question: What is the outlook for Schuh in the UK market? - Schuh experienced negative comps in the quarter but saw improvements in July and August, with expectations of continued volatility [50][52] Question: How are new brand introductions performing? - New brands have positively impacted customer reactions and are validating Journeys' position in categories where it previously lacked strength [56][58] Question: What is the growth potential for the Wrangler partnership? - The Wrangler partnership is seen as a significant opportunity, with plans to introduce a diverse range of footwear styles [78][79]

Core Viewpoint - Best Buy reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, but down from $1.34 per share a year ago, indicating a mixed performance in earnings [1][2] Group 1: Earnings Performance - Best Buy's earnings surprise for the quarter was +4.92%, and it had a previous surprise of +5.5% in the last quarter [1][3] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $1.30, with revenues expected to be $9.45 billion [7] Group 2: Revenue Performance - The company posted revenues of $9.44 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.57% and up from $9.29 billion year-over-year [2] - Best Buy has also topped consensus revenue estimates three times over the last four quarters [2] Group 3: Stock Performance and Outlook - Best Buy shares have declined approximately 12.1% since the beginning of the year, contrasting with the S&P 500's gain of 10.2% [3] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The outlook for the Retail - Consumer Electronics industry is currently in the top 45% of Zacks industries, suggesting a favorable environment for Best Buy [8]

Financial Performance - Sales reached $546 million, a 4% increase compared to Q2 FY2025 [7] - E-commerce sales accounted for 22% of total retail sales [7] - Gross margin was 458%, a decrease of 100 basis points compared to Q2 FY2025 [7] - GAAP EPS was ($179) and Non-GAAP EPS was ($114) [7] - The company is reiterating its full-year EPS outlook inclusive of tariffs and raising sales [8] Segment Performance - Journeys Group comps increased by 9% [7, 43, 44] - Schuh Group comps decreased by 4% [43] - Johnston & Murphy Group comps increased by 1% [43] Strategic Initiatives - The company is focused on creating leading footwear brands and becoming the destination for consumers' favorite fashion footwear [10] - Key strategic initiatives include maximizing physical and digital presence, deepening consumer insights, reshaping the cost base, pursuing growth and acquisitions, accelerating digital capabilities, and intensifying product innovation [12] - Journeys is expanding its reach among teens with a focus on females [17] Capital Allocation - Total liquidity is approximately $322 million [46] - Inventory is $501 million, an 11% increase compared to Q2 FY2025 [46] - Capital expenditures were $15 million, with approximately 80% allocated to stores and 20% to other areas [46]

Core Insights - Descartes Systems Group announced that Walking Comfort is utilizing Descartes Sellercloud™ to enhance ecommerce growth by centralizing and synchronizing product listings, inventory, orders, and fulfillment across various online sales channels [1][2] Company Overview - Walking Comfort is a Utah-based retailer specializing in footwear, including running shoes, slippers, sandals, and accessories like insoles. The company was founded in 2008 and operates two brick-and-mortar locations with a workforce of 35 employees [4] Product and Service Details - Descartes Sellercloud is a cloud-based ecommerce platform designed for small and mid-market retailers, distributors, wholesalers, and manufacturers. It centralizes the management of catalog, inventory, orders, purchasing, fulfillment, and shipping, featuring over 350 integrations with various marketplaces and logistics partners [2][3] - The platform has enabled Walking Comfort to save hundreds of hours weekly by automating data consolidation across sales channels, reducing shipping costs by over 55%, and allowing for dropshipping directly from retail locations when convenient [2] Operational Benefits - The use of Descartes Sellercloud has allowed Walking Comfort to reduce operational complexity by updating inventory and orders in real-time, preventing underselling and overselling, and maintaining compliance with marketplace requirements [3]

Core Viewpoint - Designer Brands Inc. is under investigation for potential securities fraud and unlawful business practices following a significant drop in stock price after the company withdrew its 2025 guidance due to a challenging macroeconomic environment and declining consumer sentiment [1][3]. Financial Performance - On June 10, 2025, Designer Brands reported its financial results for Q1 2025 and announced the withdrawal of its 2025 guidance, attributing this decision to a "soft start to 2025" and "deteriorating consumer sentiment" [3]. - Following the announcement, Designer Brands' stock price decreased by $0.68 per share, representing an 18.23% decline, closing at $3.05 per share on the same day [3]. Legal Investigation - Pomerantz LLP is investigating claims on behalf of investors regarding potential securities fraud or other unlawful business practices by Designer Brands and its officers and/or directors [1].

Core Viewpoint - Designer Brands Inc. is under investigation for potential securities fraud and unlawful business practices following a significant drop in stock price after the withdrawal of its 2025 guidance due to a challenging macro environment and consumer sentiment [1][2]. Financial Performance - On June 10, 2025, Designer Brands reported a soft start to 2025 and announced the withdrawal of its 2025 guidance, attributing this decision to an unpredictable macro environment and deteriorating consumer sentiment [2]. - The company's stock price fell by $0.68 per share, or 18.23%, closing at $3.05 per share on the same day [2]. Legal Investigation - Pomerantz LLP is investigating claims on behalf of investors of Designer Brands regarding possible securities fraud or other unlawful business practices by the company and its officers and/or directors [1].

Financial Data and Key Metrics Changes - For the first quarter of fiscal 2025, net sales were $687 million, down 8% year-over-year, with comparable sales down 7.8% [28] - Consolidated gross margin decreased by nearly 120 basis points to 43%, primarily due to increased markdowns [30] - Adjusted operating income was essentially breakeven compared to $14.7 million last year, with an adjusted net loss of $12.5 million versus a gain of $4.8 million last year [32] Business Line Data and Key Metrics Changes - U.S. Retail segment sales were down 7.7%, with comparable sales down 7.3%, affected by lower traffic [28][9] - Canadian Retail segment sales declined 2.9%, with comparable sales down 9.2%, reflecting similar consumer sentiment challenges as in the U.S. [10][28] - Brand Portfolio segment sales were down 7.9%, but operating income grew by over 30% due to expense efficiency measures [30][12] Market Data and Key Metrics Changes - The first quarter saw a decline in consumer sentiment, with February being the weakest month due to unfavorable weather [6] - DSW gained 10 basis points in athleisure footwear market share during Q1, indicating some market resilience [16] Company Strategy and Development Direction - The company is focusing on enhancing customer value, optimizing product assortments, and diversifying sourcing strategies to mitigate tariff impacts [20][21] - Plans to reestablish private label brands as margin drivers and invest in growth brands like Topo and Keds are ongoing [20][22] - The company is adapting to a volatile environment by implementing cost-cutting measures expected to save $20 million to $30 million in 2025 [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic challenges while acknowledging increased uncertainty in consumer behavior [6][25] - The decision to withdraw forward-looking guidance was made due to the unpredictable environment and cautious consumer sentiment [25][34] Other Important Information - The company ended the quarter with total inventories up 0.5% year-over-year, maintaining flexibility to respond to demand [33] - Total debt outstanding was $522.9 million, with total liquidity at $171.5 million [33] Q&A Session Summary Question: Can you elaborate on the $20 million to $30 million in savings related to SG&A? - Management explained that the savings are due to a lack of bonus accrual this year and additional cuts implemented, resulting in a projected reduction in SG&A for the full year [36][38] Question: What are the expectations for the Canadian and brand portfolio performance? - Management noted that Canadian consumer sentiment mirrors that of the U.S., with Topo performing exceptionally well, growing 84% in the quarter [39][43] Question: What trends are observed in Q2 and the impact of tariffs? - Management indicated that Q2 trends are similar to Q1, with ongoing concerns about the indirect impact of tariffs on consumer sentiment [47][48] Question: How is the company planning for back-to-school and holiday inventory? - Management expressed cautious optimism for back-to-school, highlighting strong inventory management and a diversified sourcing strategy [58][60]

Financial Data and Key Metrics Changes - For the first quarter of fiscal 2025, net sales were $687 million, down 8% year-over-year, with comparable sales down 7.8% [26] - Consolidated gross margin decreased by nearly 120 basis points to 43%, primarily due to increased markdowns [28] - Adjusted operating income was essentially breakeven compared to $14.7 million last year, with an adjusted net loss of $12.5 million versus a gain of $4.8 million last year [30] Business Line Data and Key Metrics Changes - U.S. Retail segment sales were down 7.7%, with comparable sales down 7.3%, affected by lower traffic [26] - Canadian Retail segment sales declined 2.9%, with comparable sales down 9.2%, reflecting similar consumer sentiment challenges as in the U.S. [27] - Brand Portfolio segment sales were down 7.9%, but operating income grew by over 30% due to expense efficiency measures [28] Market Data and Key Metrics Changes - The first quarter saw a decline in consumer sentiment, with February being the weakest month due to unfavorable weather [5] - DSW gained 10 basis points in athleisure footwear market share during Q1, indicating some market resilience [14] Company Strategy and Development Direction - The company is focusing on enhancing customer value, optimizing product assortments, and diversifying sourcing strategies to mitigate tariff impacts [11][18] - Plans include scaling private label offerings and investing in strategic brands like Topo and Keds to drive growth [10][20] - The company has withdrawn its forward-looking guidance due to the volatile macro environment and consumer sentiment [23][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainty in consumer behavior and a softer start to the year, leading to a decline in comparable sales [5][25] - The company is committed to disciplined execution and adapting to the current environment while focusing on long-term value creation [24][32] Other Important Information - The company is implementing expense cuts expected to deliver $20 million to $30 million in savings for fiscal 2025 [6][29] - Inventory levels were up 0.5% year-over-year, with a focus on delivering products ahead of tariff increases [31] Q&A Session Summary Question: Can you speak to the relationship between the $20 million to $30 million in savings and the anticipated increase in SG&A? - Management explained that the absence of a bonus accrual this year provided about $10 million in favorability in expenses for Q1, but a headwind of approximately $10 million is expected in Q3 due to last year's bonus reversal [35][36] Question: Can you elaborate on the performance in Canada and the brand portfolio? - Management noted that Canadian consumer sentiment mirrors that of the U.S., with Topo performing strongly, growing 84% in the quarter, while Keds faced some headwinds [38][40] Question: What are the expectations for Q2 and the impact of tariffs? - Management indicated that trends in Q2 are similar to Q1, with concerns about indirect impacts of tariffs on consumer sentiment [45][46] Question: How is the company planning for back-to-school and holiday inventory? - Management expressed cautious optimism for back-to-school, highlighting strong past performance and effective inventory management [55][57] Question: How is the company navigating tariff mitigation strategies? - Management confirmed ongoing efforts to diversify sourcing outside of China and manage pricing increases in collaboration with brand partners [61][62]