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EVANSVILLE, Ind. - Shoe Carnival Inc. (NASDAQ:SCVL) reported fourth-quarter earnings that beat expectations, but shares fell sharply after the footwear retailer issued weak guidance for the upcoming fiscal year.
The company posted adjusted earnings per share of $0.54 for the quarter ended February 1, topping the analyst consensus of $0.47. However, revenue of $262.9 million missed estimates of $283.5 million.
For fiscal 2025, Shoe Carnival forecast earnings per share of $1.60 to $2.10, well below Wall Street’s expectation of $2.63. The company projects revenue of $1.15 billion to $1.23 billion, compared to the $1.22 billion analysts were expecting.
The disappointing outlook sent shares tumbling 6.2% in after-hours trading following the earnings release.
"We achieved the very top end of our annual profit guidance and drove solid sales growth despite a challenging economic landscape," said Mark Worden, President and CEO. He noted that the Shoe Station banner expanded at an industry-leading pace of 5.7% sales growth.
Comparable store sales declined 6.3% in the fourth quarter, primarily due to continued declines at Shoe Carnival stores during non-event periods.
The company announced plans to rebanner 175 Shoe Carnival stores to the Shoe Station banner over the next 24 months as part of a new long-term growth strategy. Shoe Carnival expects this initiative to decrease fiscal 2025 operating income by $20 million to $25 million.
For the full fiscal year 2024, net sales increased 2.3% to $1.2 billion. Adjusted earnings per share rose to $2.72 from $2.70 the prior year.
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