What To Expect When Shoe Carnival Reports Q1

Earnings Preview: Shoe Carnival
A Shoe Carnival store location
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Family footwear continues to be in the sweet spot as overall retail struggles to find its bearings, experts say.

In the current landscape, market watchers remain upbeat on family-footwear retailer Shoe Carnival Inc. as a “go-to” for many consumers who have been generally more skittish on footwear and apparel spending lately.

Shoe Carnival is managing a tough retail environment well,” Sterne Agee CRT analyst Sam Poser wrote on Friday. “Of the family-footwear retailers, Shoe Carnival has the most upside to estimates.”

Susquehanna Financial Group LLLP analyst Christopher Svezia also expressed confidence in the firm, reiterating a positive rating on the stock today.

For the first quarter, which the company will report on Thursday, analysts expect the firm to produce a 10 percent rise in diluted earnings per share, to 57 cents, and 4 percent rise in revenues, to $263.5 million.

Poser said he expects Shoe Carnival to post a 4 percent rise in same-store sales, in line with consensus, adding that several of the company’s new initiatives continue to bode well for revenues.

Shoe Carnival is increasing the reach of its loyalty program through the ongoing rollout of e-commerce and mobile commerce platforms, national advertising, and expansion of branded women’s assortments to additional doors,” Poser said. “The loyalty program will continue to drive improving conversions and higher sales & margins. Improved conversion will also come from the recent implementation of ‘Shoes To You,’ buy online, pickup in-store and buy online, ship to store.”