what happened
Shares of Shoe carnival (SCVL 11.02%) climbed higher today after the shoe retailer posted strong results in its second quarter earnings report. Although revenue and profits fell from the year-ago quarter, that was more the result of tough comparisons to a quarter that benefited from stimulus checks and the economic reopening than any actual difficulties.
The stock closed up 11% today after the news.
And what
Shoe Carnival reported revenue of $312.3 million, up 16.4% from the second quarter of 2019, the equivalent period before the pandemic, but down 6% from the year-ago quarter as the company operates in a stronger macroeconomic environment. difficult.
The retailer also maintained much of the profitability gains it made during the pandemic as gross margin was 36.2%, compared with 30.6% in the second quarter of 2019, and operating margin came in at 12.4%, more than double the 5.8% it had in the quarter. second 2019 Although both of these margins were down from a year ago, they were still strong enough to satisfy investors.
Ultimately, the company reported earnings per share of $1.04, which beat analysts’ estimates of $1.02, and compares to 2Q2021 EPS of $1.54 and $0.40 in Q4 2021. second 2019.
The company also said Shoe Station, the retailer it bought late last year, was delivering better-than-expected results with sales more than 10% above the previous expectation of $100 million a year.
CEO Mark Worden summed up the performance, saying:
The Shoe Carnival team delivered outstanding profitability in a challenging economic environment. The nearly $2.00 of EPS earned during the first half of 2022 is greater than any full-year earnings in our 44 years of operation, excluding last year’s incentive results.
Now what
Shoe Carnival said the back-to-school season was off to a strong start, and it reaffirmed its full-year guidance, calling for earnings per share of $3.95 to $4.15, well above its prior level. pandemic of $1.46 and over analyst. consensus at $3.97, showing how much his cost-cutting efforts have paid off.
Based on this forecast, the stock looks like a bargain with a price-to-earnings ratio of just 6.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
