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Shoe Carnival(SCVL) - 2025 Q4 - Earnings Call Transcript
2025-03-20 21:52
Financial Data and Key Metrics Changes - Net sales for fiscal 2024 were $1,200,000,000, reflecting a growth of 2.3% compared to the previous year, despite the industry contracting in mid-single digits [7][30] - Adjusted net income grew to $75,000,000 or $2.72 per share, compared to $74,000,000 or $2.70 per share in fiscal 2023 [10][35] - Gross profit margin for the fourth quarter was 34.9% on a GAAP basis and 35% on an adjusted basis, compared to 35.6% in the previous year [31][34] Business Line Data and Key Metrics Changes - The Shoe Station growth banner achieved an industry-leading growth of 5.7%, successfully entering new markets and capturing new customers [7][10] - Rogan's acquisition contributed approximately $16,500,000 in net sales for the fourth quarter and over $80,000,000 for the year, exceeding initial operating income targets by over 20% [33][34] Market Data and Key Metrics Changes - The company gained market share in 2024, entering new geographies and expanding its customer base [5][6] - The lower-income customer segment at the Carnival banner continued to pull back on spending during non-event periods, reflecting broader industry trends [9][19] Company Strategy and Development Direction - The company announced a strategic plan to scale up Shoe Station from a regional retailer to a national footwear leader, with 51% of the store fleet expected to operate under the Shoe Station banner within 24 months [10][18] - The first phase of the plan includes rebranding 50 to 75 stores, with a focus on markets where Shoe Station is already known [14][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as inflationary pressures and customer spending pullbacks, particularly among lower-income households [4][19] - Despite market volatility expected in 2025, the company is well-positioned with a strong balance sheet to advance its strategies and invest for long-term profit growth [19][45] Other Important Information - The company ended fiscal 2024 with zero debt for the twentieth consecutive year and increased its cash balance to approximately $123,000,000 [37][38] - A dividend increase of 11% was announced, marking the 52nd consecutive dividend payment [38] Q&A Session Summary Question: Can you provide details on the rebranding strategy? - The initial 10-store test was conducted in existing markets, showing over 10% sales growth compared to Shoe Carnival [48][50] - The plan includes rebranding stores in both existing and new markets, with a focus on demographics that align with the Shoe Station brand [51][52] Question: What are the expectations regarding tariffs and pricing? - Vendors are currently negotiating costs, with some price increases expected but not across the board [54][56] - The guidance assumes modest price increases, with no significant impacts from tariffs yet observed [58] Question: What is the outlook for gross margins and sales? - The company expects gross profit margins to remain above 35% for the upcoming year, despite some deleverage due to anticipated sales declines [60][61] - For Q1, sales trends are expected to mirror those of Q4, with additional headwinds from the rebranding strategy [62][64]
Shoe Carnival(SCVL) - 2024 Q4 - Earnings Call Transcript
2025-03-20 19:42
Financial Data and Key Metrics Changes - For fiscal 2024, net sales reached $1.203 billion, reflecting a growth of 2.3% compared to the previous year, despite the industry contracting in mid-singles [10][48] - Adjusted net income grew to $75 million or $2.72 per diluted share, compared to $74 million or $2.70 in fiscal 2023 [14][57] - Gross profit margin for Q4 was 34.9% on a GAAP basis and 35% on an adjusted basis, down from 35.6% in Q4 2023 [49][50] Business Line Data and Key Metrics Changes - The Shoe Station growth banner achieved an industry-leading sales growth of 5.7%, contributing significantly to overall sales growth [11][57] - Rogan's Shoes, acquired during the year, generated approximately $16.5 million in net sales for Q4 and over $80 million for the year, exceeding initial operating income targets by over 20% [53][57] - Sales in the Carnival banner declined during non-event periods, with comparable sales down 3.9% for the year [48][57] Market Data and Key Metrics Changes - The company gained market share in 2024, entering new geographies and expanding its customer base [7][8] - The footwear industry faced challenges due to inflationary pressures affecting lower-income households, leading to reduced spending during non-key shopping periods [6][30] Company Strategy and Development Direction - The company announced a strategic plan to scale Shoe Station from a regional retailer to a national footwear leader, with plans to rebanner 50 to 75 stores in fiscal 2025 [15][20] - The rebannering strategy is expected to result in 51% of the store fleet operating under the Shoe Station banner within 24 months, significantly increasing profitability [22][24] - The company remains committed to pursuing mergers and acquisitions to achieve its long-term vision of being the leading footwear retailer for families [25][26] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pressure on sales from lower-income households in non-event periods, with expectations of mid- to high-single declines in the Carnival banner [30][71] - Despite market volatility, the company is well-positioned with a strong balance sheet to invest in growth strategies during the downturn [30][71] - The first quarter of 2025 is expected to reflect similar trends to Q4 2024, with no improvement in comparable store sales anticipated [70][93] Other Important Information - The company ended fiscal 2024 with no debt for the 20th consecutive year and increased its cash balance to approximately $123 million [59][60] - A dividend increase of 11% to $0.15 per share was announced, marking 52 consecutive quarters of dividends [60][61] - Carl Scibetta, the Chief Merchandising Officer, is set to retire, with Tanya Gordon appointed as his successor [31][32] Q&A Session Summary Question: Can you elaborate on the rebannering strategy and its market impact? - The initial 10-store test was successful, and the upcoming 50 to 75 stores will primarily be in existing markets where Shoe Station is already known, with plans to expand into new markets later [76][78][81] Question: What are the expectations regarding pricing and tariffs? - Current vendor pricing is unsettled, with some mid-single-digit increases expected, but no significant across-the-board price hikes have been observed yet [84][86] Question: Can you provide details on the comp outlook and margin expectations? - The guidance for total sales and comparable sales is expected to be consistent, with gross profit margins anticipated to remain above 35% despite some deleverage [92][120]
Shoe Carnival(SCVL) - 2025 Q4 - Annual Results
2025-03-20 10:30
Financial Performance - Net sales for the fourth quarter of Fiscal 2024 were $262.9 million, a decrease from $280.2 million in the fourth quarter of Fiscal 2023, with a comparable store sales decline of 6.3 percent[6][7]. - Fiscal 2024 net sales totaled $1.203 billion, an increase of $27.0 million, or 2.3 percent, compared to Fiscal 2023, driven by a 5.7 percent sales growth from Shoe Station and over $80 million from Rogan's acquisition[10][11]. - The company achieved a GAAP EPS of $2.68 and an adjusted EPS of $2.72 for Fiscal 2024, with net income growing to $73.8 million[6][11]. - The gross profit margin for Fiscal 2024 was 35.6 percent, marking the fourth consecutive year above 35 percent[11]. - The company expects net sales for Fiscal 2025 to range from $1.15 billion to $1.23 billion, with GAAP EPS guidance of $1.60 to $2.10[29]. - Reported net income for the weeks ended February 1, 2025, was $73,766 million, representing a 0.6% increase from $73,348 million for the weeks ended February 3, 2024[44]. - Adjusted net income increased to $74,950 million, up from $73,958 million, maintaining a stable adjusted net income margin of 6.2%[44]. Store Operations and Strategy - The company plans to rebanner 175 stores to the Shoe Station banner over the next 24 months, expecting to operate 218 Shoe Station stores, representing 51 percent of its current store fleet[4][21]. - The first-year investment for the rebanner strategy is forecasted to decrease Fiscal 2025 operating income by $20 to $25 million, resulting in an approximate $0.65 decline in EPS[23]. - Rogan's acquisition contributed over $80 million in net sales in Fiscal 2024, exceeding initial operating income targets by more than 20 percent[13]. Cash and Assets - The company ended Fiscal 2024 with approximately $123.1 million in cash and cash equivalents, marking the 20th consecutive year with no debt[17]. - Cash and cash equivalents increased to $108,680 thousand as of February 1, 2025, compared to $99,000 thousand as of February 3, 2024[38]. - Total assets increased to $1,124,133 thousand as of February 1, 2025, compared to $1,042,025 thousand as of February 3, 2024[38]. Expenses and Margins - Selling, general and administrative expenses rose to $337,642 million, accounting for 28.0% of net sales, up from 27.8% in the previous year[44]. - Adjusted operating income was $92,716 million, reflecting a margin of 7.7%, compared to 8.0% in the prior year[44]. - The amortization expense related to fair value adjustments was $994 million, impacting gross profit and operating income[44]. - Acquisition-related fees and expenses were recorded at $570 million, compared to $806 million in the previous year[44]. Dividends - The board approved an 11.1 percent increase in the quarterly dividend to 15.0 cents per share, marking the 11th consecutive year of dividend increases[15]. Inventory and Profitability - Merchandise inventories rose to $385,605 thousand as of February 1, 2025, up from $346,442 thousand in the previous year, indicating an 11.3% increase[38]. - Gross profit for the thirteen weeks ended February 1, 2025, was $91,669 thousand, representing a gross margin of 34.9%, down from 35.6% in the prior year[42]. - Operating income decreased to $14,037 thousand for the thirteen weeks ended February 1, 2025, compared to $19,969 thousand for the same period in 2024, reflecting a decline in operating margin from 7.1% to 5.3%[36][42]. - Adjusted net income for the thirteen weeks ended February 1, 2025, was $14,876 thousand, compared to $16,130 thousand for the same period in 2024[42].
SCVL Marks 11th Straight Year of Dividend Growth With 11% Increase
ZACKS· 2025-03-18 15:16
Core Viewpoint - Shoe Carnival, Inc. has announced an increase in its quarterly cash dividend, reflecting the company's commitment to shareholder value and confidence in its growth trajectory [1][2]. Dividend Information - The company has approved a dividend payment of 15 cents per share, marking an 11.1% increase and bringing the annualized dividend rate to 60 cents per share [1][2]. - This is the 52nd consecutive quarterly dividend and the 11th straight year of dividend growth, with the new annualized rate representing a 238% increase compared to five years ago [2]. Financial Position - As of the end of the third quarter of fiscal 2024, Shoe Carnival reported a cash balance of $91 million, an increase of $20 million from the previous year, demonstrating liquidity generation despite challenges [2]. - The company generated $58.1 million in cash flow from operations over the past nine months of fiscal 2024, allowing it to fund growth initiatives internally [3]. - Shoe Carnival has maintained a debt-free status for 19 consecutive years, providing financial flexibility and reducing risks associated with interest payments [4]. Upcoming Earnings Expectations - The company is expected to report a year-over-year decrease in revenue for the fourth quarter of fiscal 2024, with consensus estimates pegged at $263.9 million, indicating a 5.8% decline from the prior year [5][6]. - The consensus estimate for earnings per share is stable at 42 cents, reflecting a decrease of 28.8% from the year-ago quarter [6]. Stock Performance - Shares of Shoe Carnival have declined by 34.2% over the past three months, compared to a 21.5% decline in the industry [8].
Mega Buybacks in 2025: Why These 3 Leading Stocks Are Buys
MarketBeat· 2024-12-26 14:56
Summary of Kroger's Recent Developments Core Viewpoint - Kroger's financial position remains strong despite the failed acquisition of Albertsons, leading to a significant share buyback initiative [1][2]. Financial Position - Kroger has authorized a $7.5 billion share buyback plan, representing approximately 17% of its market capitalization [2]. - Of this, $5.5 billion is allocated for an accelerated buyback expected to be completed by mid-December, while the remaining funds are likely to be utilized in 2025 [2]. Market Performance - Kroger's stock price is currently at $61.95, with a 52-week range between $44.48 and $63.59, and a dividend yield of 2.07% [1]. - The company's P/E ratio stands at 16.39, with a price target set at $65.79 [1]. Analyst Ratings - Kroger holds a "Moderate Buy" rating among analysts, although it is not currently listed among the top recommended stocks by leading analysts [5].
Shoe Carnival's Q3 2024 Was Better Than Reported, But The Stock Is Not Attractive
Seeking Alpha· 2024-11-28 06:37
Company Performance - Shoe Carnival (NASDAQ: SCVL) reported earnings showing a mixed performance, with comparable sales down 4%, consistent with a challenging performance in the first half of 2024 [1] - The decline in sales is attributed to external factors, including hurricanes impacting Southeast markets and a mild fall season [1] Investment Perspective - The analysis emphasizes a long-only investment approach, focusing on operational aspects and the long-term earnings potential of companies rather than market-driven dynamics [1] - The strategy involves holding companies independently of future price movements, with most recommendations being holds, reflecting a cautious outlook in a bullish market [1]
Shoe Carnival Q3 Earnings Beat Estimates, Comparable Sales Dip Y/Y
ZACKS· 2024-11-22 15:51
Core Insights - Shoe Carnival, Inc. reported third-quarter fiscal 2024 results with net sales of $306.9 million, down 4.1% year over year, missing the consensus estimate of $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%, contracting by 70 basis points [5] - Adjusted operating income fell 10.9% year over year to $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% to 4.5% compared to fiscal 2023 [13] - GAAP earnings per share is forecasted to be between $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]
Shoe Carnival(SCVL) - 2025 Q3 - Earnings Call Transcript
2024-11-22 03:37
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]
Shoe Carnival (SCVL) Tops Q3 Earnings Estimates
ZACKS· 2024-11-21 13:25
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]
Is Shoe Carnival (SCVL) Stock Undervalued Right Now?
ZACKS· 2024-10-28 14:46
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]