Core Insights - Shoe Carnival, Inc. (SCVL) reported third-quarter fiscal 2025 results, with both earnings per share (EPS) and net sales meeting the Zacks Consensus Estimate, although both metrics declined year over year [1][10] - Comparable store sales decreased by 2.7% year over year in the fiscal third quarter [2][10] Financial Performance - EPS for the quarter was 53 cents, down 24.3% from 70 cents in the same quarter last year, with rebanner investments estimated to have reduced EPS by approximately 22 cents [1][10] - Net sales totaled $297.2 million, reflecting a 3.2% decline year over year [2][10] - Gross profit increased by 1.3% year over year to $111.8 million, with an adjusted gross margin of 37.6%, expanding 160 basis points year over year [4] - Operating income decreased by 24.1% year over year to $18.6 million, with this metric as a percentage of net sales declining 170 basis points to 6.3% [6] Strategic Initiatives - The One Banner Strategy, aimed at consolidating operations under the Shoe Station brand, is progressing, with Shoe Station now accounting for 34% of the store fleet, up from 10% at the beginning of fiscal 2025 [8][9] - The company plans to operate 215 Shoe Station locations by Back-to-School 2026, expecting this banner to represent 51% of the fleet by then [11] - Annual cost savings of approximately $20 million are anticipated from the One Banner Strategy, alongside a projected inventory investment decline of $100 million, or 20-25% [12][13] Future Outlook - For fiscal 2025, net sales are expected to range from $1.12 billion to $1.15 billion, with EPS guidance updated to a range of $1.80 to $2.10 [16] - Fiscal 2026 is projected to see a decline in net sales in the low-to-mid single digits during the first half, with a return to flat-to-low single-digit growth in the second half as Shoe Station surpasses 51% of the store base [16]

Financial Data and Key Metrics Changes - The company reported Q3 EPS of $0.53 and net sales of $297.2 million, both exceeding consensus expectations [3][4] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][18] - Net income for Q3 was $14.6 million, down from $19.2 million year-over-year, primarily due to re-banner investments impacting EPS by $0.22 [19][20] Business Line Data and Key Metrics Changes - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while Shoe Station specifically saw double-digit growth [4][16] - Shoe Station's net sales grew by 5.3%, while Shoe Carnival's net sales declined by 5.2%, indicating a significant performance gap of 10.5 percentage points [5][19] - Non-athletic categories represented 43% of total sales in Q3, with a mid-single-digit comparable sales decline [4][17] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, which are under economic pressure, to focus on higher-income consumers with median household incomes of $60,000-$100,000 [6][9] - The company expects to reach a critical threshold of 51% of stores operating as Shoe Station by back-to-school 2026, which is anticipated to restore comparable sales growth [8][30] Company Strategy and Development Direction - The company announced a name change to Shoe Station Group, reflecting a strategic focus on building a stronger, more profitable company [3][14] - The plan includes converting underperforming locations to the Shoe Station format, with 101 store re-banners completed in fiscal 2025 [7][21] - The consolidation to one brand is expected to yield $20 million in annual cost savings and improved operational efficiencies by the end of fiscal 2027 [9][28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining pricing discipline and not chasing unprofitable sales, especially in the lower-income segment [6][10] - The company anticipates modest gains beginning in 2027, with meaningful acceleration in 2028 as the transformation progresses [13][31] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [14][30] Other Important Information - The company ended the quarter with over $107 million in cash equivalents and remains debt-free, providing financial flexibility for ongoing investments [20][30] - The company expects to free up $100 million in working capital through inventory reductions as it transitions to the Shoe Station model [10][26] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering expenses next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs front-loaded due to the conversion of approximately 70 stores [35][41] Question: How will the company handle inventory reductions and margin pressure? - Management acknowledged that there will be margin pressure from liquidating non-GoForward products, but emphasized the importance of not carrying over unsold inventory [58][69] Question: What is the timeline for reaching 80% of stores rebannered? - Management confirmed that the focus is on surpassing the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [71][72] Question: How much of the $20 million in savings is expected to flow to the bottom line? - Management stated that the full benefit of the $20 million savings is expected to manifest in 2028, as 2026 will be an investment year with ongoing re-banner costs [73][75]

Financial Data and Key Metrics Changes - The company reported Q3 EPS of $0.53 and net sales of $297.2 million, both exceeding consensus expectations [3] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][17] - Net income for Q3 was $14.6 million, down from $19.2 million year-over-year, primarily due to re-banner investments impacting EPS by $0.22 [18] Business Line Data and Key Metrics Changes - Shoe Station net sales grew by 5.3%, while Shoe Carnival net sales declined by 5.2%, reflecting a significant performance gap of 10.5 percentage points [5][15] - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while non-athletic categories saw a mid-single-digit comp decline [4][16] - Shoe Station's product margins expanded by 260 basis points, contrasting with Shoe Carnival's decline due to economic pressures on lower-income households [5][18] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, focusing on customers with median incomes of $60,000-$100,000 [5][9] - The competitive response in the lower-income segment is driving margins down across the industry, while Shoe Station is positioned to capture premium brand demand [5][9] Company Strategy and Development Direction - The company plans to consolidate to one brand, Shoe Station, to improve operational efficiency and capitalize on the stronger performance of this banner [8][9] - By the end of fiscal 2027, the company expects to achieve $20 million in annual cost savings and $100 million in working capital freed from inventory reduction [9][27] - The transition to Shoe Station is expected to restore comparable sales growth and expand EPS significantly by fiscal 2028 [12][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted that fiscal 2026 will be an investment year, with expectations of continued pressure on sales in the first half, followed by a potential turnaround in the second half as Shoe Station becomes the dominant brand [22][23] - The company remains debt-free with over $100 million in cash, allowing it to fund its transformation without external financing [10][13] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [29] Other Important Information - The company completed 101 store re-banners during fiscal 2025, with plans to reach 51% of its stores operating as Shoe Station by back-to-school 2026 [7][28] - The Rogan's acquisition is fully integrated into Shoe Station, and results will be reported under this banner starting in Q4 [20] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs being front-loaded due to the conversion of approximately 70 stores [30][31] Question: How will the company manage inventory reductions? - The company plans to liquidate non-GoForward products aggressively and expects some margin pressure during this process [52][53] Question: What is the outlook for the boot business? - Management noted that while the boot season started slowly, there were double-digit increases in sales as inventory improved in October [35] Question: Will the company be able to elevate its product assortment at Shoe Station? - Management confirmed that there are ongoing discussions with premium brands to enhance the product assortment at Shoe Station [37] Question: What is the timeline for achieving the 80% re-bannering goal? - Management stated that the focus is on reaching the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [54]

Shoe Carnival gave a deeper look at its rebanner strategy on Thursday during its third-quarter earnings report. The Fort Mill, S.C.-based footwear retailer reported that net income in the third quarter was $14.6 million, or 53 cents per diluted share, compared to $19.2 million, or 70 cents per diluted share in the prior year. More from WWD Net sales were $297.2 million compared to $306.9 million in third quarter 2024, a decrease of 3.2 percent. By banner, the company noted that Q3 trends continued to hi ...

Core Insights - Shoe Carnival, Inc. reported third quarter results for the period ending November 1, 2025, with earnings per share (EPS) of $0.53 and net sales of $297.2 million, surpassing consensus expectations [1] Financial Performance - The company's net sales for Shoe Station increased by 5.3 percent [1] - Product margins for Shoe Station expanded by 2 percentage points [1] Outlook and Strategy - The company updated its Fiscal 2025 outlook and discussed expected impacts from its One Banner Strategy [1]

Core Insights - On Holding AG (NYSE:ONON) reported strong earnings, raising its full-year guidance for the third consecutive time, with revenue of CHF794 million and earnings of CHF0.47, both exceeding analyst expectations [2] - The company increased its full-year revenue guidance to CHF2.98 billion from CHF2.91 billion, slightly above estimates [2] - Despite a 3% decline in shares since August, the stock surged by 20% following the earnings announcement [2] Management and Market Sentiment - Jim Cramer praised On Holding's management, highlighting their performance and suggesting that short sellers have made a mistake by betting against the stock [3] - Cramer expressed confidence in the company's future performance, indicating that the results were in line with his expectations for the next quarter [3]

Shoe Carnival Inc. is changing its name. On Thursday, the Fort Mill, S.C.-based footwear retailer said that its board of directors unanimously voted to change the corporate name to Shoe Station Group, Inc. The change is subject to approval by the company’s shareholders at its annual meeting in June 2026. More from WWD The retailer noted that the name change reflects the “winning” performance of its Shoe Station banner, which the company acquired in 2021 for $67 million. With its new name, the company sa ...

Nov 6, 2025 4:10 PM Eastern Standard Time FORT MILL, S.C.--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL) (the "Company†), a leading retailer of footwear and accessories for the family, today announced that third quarter 2025 earnings results will be released on Thursday, November 20, 2025, before the market open. The Company will host its quarterly conference call to discuss third quarter 2025 results at 9:00 a.m. Eastern Time. Shoe Carnival to Report Third Quarter Financial Results on November 20, ...

Core Viewpoint - Wall Street shows strong bullish sentiment towards the stocks discussed, with price targets indicating significant upside potential, although analysts tend to avoid sell ratings due to potential conflicts of interest [1]. Group 1: Stocks to Sell - **Shoe Carnival (SCVL)**: - Current trading price is $16.84 per share, with a consensus price target of $22, suggesting a 30.6% implied return [3][5]. - The stock is valued at 11.3x forward EV-to-EBITDA, indicating potential overvaluation [5]. - **CarMax (KMX)**: - Current stock price is $31.45, with a consensus price target of $55.50, implying a 76.5% upside [6][8]. - Valuation ratio stands at 11.7x forward P/E, suggesting that there may be better investment opportunities available [8]. Group 2: Stock to Buy - **Zeta Global (ZETA)**: - Consensus price target is $29.36, indicating a 50.2% implied return [9]. - The company has faced weak same-store sales trends over the past two years, indicating a need for changes in pricing and marketing strategies [9][10]. - Zeta Global operates a data-driven cloud platform powered by AI, processing over one trillion consumer signals monthly to enhance personalized marketing [11].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Macy's Inc. (M), California Water Service Group (CWT), Shoe Carnival (SCVL), Pebblebrook Hotel Trust (PEB), and FTI Consulting Inc. (FCN) have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Macy's Inc. (M)**: Undergoing a transformation with its "Bold New Chapter" program, focusing on digital initiatives and strong fundamentals, currently has a Value Score of A and Zacks Rank 1 [12][13] - **California Water Service Group (CWT)**: Aims to expand operations in the western U.S. through acquisitions, with a Value Score of B and Zacks Rank 2 [14][15] - **Shoe Carnival (SCVL)**: Transitioning to a higher-end market with a disciplined strategy, currently has a Zacks Rank 1 and Value Score of A [16][17] - **Pebblebrook Hotel Trust (PEB)**: Focused on operational efficiency and capital allocation, with a Value Score of A and Zacks Rank 1 [18][20] - **FTI Consulting Inc. (FCN)**: A global advisory firm with a diversified platform, currently has a Value Score of B and Zacks Rank 2 [21][22]