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Category: Stock Market and Shoe Carnival
Date: 24 November 2019 Stock Price: $36.30 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Shoe Carnival, one of the United States' largest footwear retailers with over 393 in over 35 states.
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About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of November 21, 2019, the Company operates 393 stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com. Headquartered in Evansville, IN,
Shoe Carnival store entrance
Overview of Shoe Carnival's 3rd quarter 2019 earnings report
Data below refers to the latest quarter's data unless specified otherwise:
- Net sales: $274.645 million (up from $269.181 million for the same quarter of the prior year)
- Net sales increased by 2% over the last 12 months
- Cost of sales : $189.911 million (up from $187.963 million for the same quarter of the prior year)
- Cost of sales expenses increased by 1.03% over the last 12 months
- Net earnings: $13.726 million (down from $12.046 million for the same quarter of the prior year)
- Diluted earnings per share: $0.94 (up from $0.76 for the same quarter of the prior year)
- Shares outstanding : 14.556 million (down from 15.821 million for the same quarter of the prior year)
- Cash and cash equivalents: $33.707 million
- Cash and cash equivalents per share: $2.31
- Cash and cash equivalents makes up 6.3% of Shoe Carnival's market capital
- Cash and cash equivalents makes up 5.2% of Shoe Carnival's total assets
- Merchandise inventories: $298.002 million
- Merchandise inventories makes up 46% of Shoe Carnival's total assets
- Stockholders equity in Shoe Carnival: $300.748 million
- Stockholders equity per Shoe Carnival's stock: $20.66
- Shoe Carnival is trading at 1.75 times its stockholders equity per share which is just outside the expected range of between 2 and 4 times that most firms tend to trade at
Shoe Carnival's management commentary on their 3rd quarter 2019 earnings
EVANSVILLE, Ind.--(BUSINESS WIRE)--Nov. 21, 2019-- Shoe Carnival, Inc. (Nasdaq: SCVL) (“the Company”), a leading retailer of moderately priced footwear and accessories, today reported results for the third quarter and nine months ended November 2, 2019.
Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer, commented, “We are very pleased with our broad-based strength across all product categories, geographies and sales channels in the third quarter. Our record earnings were fueled by solid comparable store sales growth throughout the quarter, including our seventeenth consecutive positive comparable store sales for the month of August. 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.”
Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer, commented, “We are very pleased with our broad-based strength across all product categories, geographies and sales channels in the third quarter. Our record earnings were fueled by solid comparable store sales growth throughout the quarter, including our seventeenth consecutive positive comparable store sales for the month of August. 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.”
Fiscal 2019 Outlook
The Company is raising its annual outlook based on its results year-to-date and its outlook for the remainder of the fiscal year. The Company now expects annual diluted earnings per share of $2.85 to $2.89 compared to its previous guidance of $2.77 to $2.83. This compares to diluted earnings per share of $2.45 in the prior fiscal year. Total net sales for the fiscal year 2019 are now expected to be in the range of $1.033 billion to $1.036 billion and the Company is reiterating its annual comparable store sales guidance of a low single-digit increase.
The Company is raising its annual outlook based on its results year-to-date and its outlook for the remainder of the fiscal year. The Company now expects annual diluted earnings per share of $2.85 to $2.89 compared to its previous guidance of $2.77 to $2.83. This compares to diluted earnings per share of $2.45 in the prior fiscal year. Total net sales for the fiscal year 2019 are now expected to be in the range of $1.033 billion to $1.036 billion and the Company is reiterating its annual comparable store sales guidance of a low single-digit increase.
Shoe Carnival (NASDAQ: SCVL) stock price history
The image below obtained from Google, shows the stock price history of Shoe Carnival (NASDAQ: SCVL) for the last 5 years. 5 years ago the stock of Shoe Carnival was trading at around $20.30 and its currently trading at $36.30 a stock. That's a very strong gain of 78.8% returned to Shoe Carnival stockholders.
The stock of Shoe Carnival is trading at a lost closer to its 52 week high of $41.84 than it is to its 52 week low of $21.47 which to us is a clear indication that the short term sentiment and momentum of Shoe Carnival stock is negative.
The stock of Shoe Carnival is trading at a lost closer to its 52 week high of $41.84 than it is to its 52 week low of $21.47 which to us is a clear indication that the short term sentiment and momentum of Shoe Carnival stock is negative.
Shoe Carnival (NASDAQ: SCVL) stock price history over the last 5 years.
Recent coverage of Shoe Carnival
The extract below covers the latest regarding Shoe Carnival as obtained from TheStreet.com
In trading on Thursday, shares of Shoe Carnival, Inc. (SCVL - Get Report) crossed below their 200 day moving average of $31.75, changing hands as low as $31.30 per share. Shoe Carnival, Inc. shares are currently trading off about 1.7% on the day.
In trading on Thursday, shares of Shoe Carnival, Inc. (SCVL - Get Report) crossed below their 200 day moving average of $31.75, changing hands as low as $31.30 per share. Shoe Carnival, Inc. shares are currently trading off about 1.7% on the day.
Shoe Carnival store
Shoe Carnival (NASDAQ: SCVL) stock valuation
So based on Shoe Carnival's latest earnings report what do we value the company's stock at? Based on Shoe Carnival's earnings report our valuation model we have a target (full value) price for Shoe Carnival at $42.30 a stock. We therefore believe the stock of Shoe Carnival is undervalued
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $42.30.A good entry point into the stock of Shoe Carnival would therefore be at $38.10 or below. Since the stock of Shoe Carnival is trading at well below our suggested entry point we rate Shoe Carnival as a buy
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $42.30.A good entry point into the stock of Shoe Carnival would therefore be at $38.10 or below. Since the stock of Shoe Carnival is trading at well below our suggested entry point we rate Shoe Carnival as a buy
Next earnings release of Shoe Carnival (NASDAQ: SCVL)
It is expected that Shoe Carnival will release their 4th quarter and full fiscal 2019 earnings report towards the end of February 2020