Overview

• U.S. footwear retailer's Q1 sales declined yr/yr but beat analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company repurchased $7 mln in shares during Q1

Outlook

• Shoe Carnival sees Fiscal 2026 net sales of $1.125 bln to $1.147 bln

• Company expects Fiscal 2026 adjusted EPS of $1.40 to $1.60

• Shoe Carnival says back-to-school and fall periods will drive most annual earnings

Result Drivers

• PROMOTIONAL ACTIVITY - Co said increased promotional activity and higher e-commerce shipping costs drove gross margin decline

• SALES TREND IMPROVEMENT - Shoe Carnival banner narrowed its sales decline compared to prior quarters, per CEO Cliff Sifford

• REBANNER STRATEGY REVIEW - Co recorded charges related to strategic review and impairment of store locations, impacting reported results

Company press release: ID:nBw4l1YNsa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$270.73 mln	$267.7 mln (3 Analysts)
Q1 Adjusted EPS	Beat	$0.23	$0.20 (3 Analysts)
Q1 Net Income		-$5.63 mln
Q1 Gross Profit		$90.1 mln
Q1 Operating Income		-$6.04 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

• Wall Street's median 12-month price target for Shoe Carnival Inc is $22.00, about 39.5% above its May 20 closing price of $15.77

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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