Shares for Shoe Carnival Inc. are surging in after-hours trading — up 17.6 percent, to $24.25 as of 5 p.m. ET — after the firm reported better-than-expected third-quarter results and raised its full-year outlook.
The family-footwear retailer said its Q3 sales increased 4.7 percent, to $287.5 million, while analysts had forecast sales of $286.1 million. Despite the impact of Hurricanes Harvey, Irma and Maria in Texas, Puerto Rico and Florida — which negatively affected store traffic — Shoe Carnival also pulled off a comparable sales gain of 4.4 percent.
Profits during the period rose 10 percent to $10.7 million, or 66 cents per diluted share, handily topping estimates for diluted earnings per share of 62 cents.
“We are very pleased with our third-quarter financial results, which reflect the strength of our selection of family footwear for the back-to-school season and our team’s ability to increasingly connect with customers across Shoe Carnival’s multi-channel presence,” president and CEO Cliff Sifford said. “During the quarter, our traffic was down low single digits, particularly due to the three hurricanes affecting Texas, Florida and Puerto Rico. Despite the inclement weather in these regions, we experienced solid increases in both units per transaction and conversion which helped drive [the] increase in comparable store sales for the quarter.”
Looking ahead, the company now expects fiscal 2017 net sales to be in the range of $1.020 billion to $1.025 billion, with comparable store sales flat-to-up-low-single digits. Diluted EPS are expected to be in the range of $1.42 to $1.49. This compares with previous guidance for net sales to be in the range of $1.006 billion to $1.019 billion, with comparable store sales flat-to-down-low-single digits. Diluted EPS were previously projected in the range of $1.35 to $1.45.