Shoe Carnival Stock Jumps on Raised Guidance

Shoe Carnival Inc. expects to end the year on a high note.

The Evansville, Ind. retailer raised its full-year guidance Thursday on the back of strong third-quarter results. It now expects to see annual diluted earnings per share of $2.85 to $2.89, up from its previous guidance of $2.77 to $2.83.

For the quarter ended Nov. 2, its net sales increased 2% to $274.6 million compared to the third quarter last year, ahead of analysts’ estimate of $273.2 million. Despite industry-wide headwinds, it posted record earnings per diluted share of $0.94, topping the consensus forecast of $0.89 per share and up 23.7% over the same period last year.

Cliff Sifford, Shoe Carnival’s vice chairman and CEO, credited the results to the company’s continued upward momentum, investment in new customer relationship management technology and a back-to-school season that surpassed expectations, propelling comparable store sales growth of 3.5%. As of its earnings date, the company operated 393 stores in 35 states and Puerto Rico.

“Our record earnings were fueled by solid comparable store sales growth throughout the quarter, including our 17th consecutive positive comparable store sales for the month of August,” he said in a statement. “This demonstrates that Shoe Carnival remains a destination for back-to-school family footwear. Our customer-centric organization and fun, engaging shopping environment continues to resonate with consumers and gives us confidence in our raised outlook for fiscal 2019. Going forward, we believe our strong foundation, combined with the recent addition of new customer data-driven resources, positions us well for sustainable, profitable growth for many years to come.”

Shoe Carnival’s stock was up more than 8% in after-hours trading.

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