Shoe Carnival (NASDAQ:SHOE) Issues Earnings Results, Misses Estimates By $0.11 EPS

Posted by Geri Gentry on Sep 12th, 2026

Shoe Carnival (NASDAQ:SHOE – Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.11), Briefing.com reports. Shoe Carnival had a net margin of 2.20% and a return on equity of 5.31%. The business had revenue of $284.31 million during the quarter, compared to analyst estimates of $299.19 million. During the same quarter in the previous year, the firm posted $0.70 earnings per share. The firm’s quarterly revenue was down 7.2% on a year-over-year basis. Shoe Carnival updated its FY 2026 guidance to 0.750-0.900 EPS.

Here are the key takeaways from Shoe Carnival’s conference call:

Second-quarter results missed expectations: net sales fell 7.2% to $284.3 million, comparable-store sales declined 7.1%, and diluted EPS dropped to $0.23 from $0.70. Gross margin contracted 690 basis points to 31.9% amid increased promotions and accelerated clearance of aged inventory.
The company ended the quarter with $131.6 million in cash and no debt, while inventory declined 5% year over year to $426.6 million. Management remains on track to reduce inventory by approximately $50 million by year-end and said it expects about $1.2 million in tariff refunds.
Management said localized assortments and sizing changes are beginning to improve performance. August comparable-store sales declined 2.7%, a significant improvement from the second quarter, with adult athletic improving to low-single-digit growth and e-commerce comparable sales increasing 18.8% in Q2.
Fiscal 2026 guidance was lowered to net sales of $1.10 billion-$1.111 billion, GAAP EPS of $0.32-$0.47, and adjusted EPS of $0.75-$0.90. The company expects continued promotional pressure and gross-margin compression, with third-quarter sales likely roughly flat before a potential improvement in the fourth quarter as boots and colder weather drive demand.
The company has paused further store re-bannering for the remainder of fiscal 2026 to focus on assortment, presentation, and customer awareness. Management is increasing targeted advertising, particularly to explain the value proposition and merchandise selection at re-banded Shoe Station locations.

Shoe Carnival Trading Up 3.5%

SHOE opened at $12.71 on Friday. The company has a market cap of $345.08 million, a PE ratio of 14.44 and a beta of 1.40. The firm has a fifty day simple moving average of $14.82. Shoe Carnival has a 1-year low of $10.20 and a 1-year high of $24.10.

More Shoe Carnival News

Here are the key news stories impacting Shoe Carnival this week:

Positive Sentiment: FY 2026 guidance was maintained or updated: Shoe Carnival projected earnings of $0.75–$0.90 per share for fiscal 2026. The guidance provides investors with a defined earnings outlook following the quarterly results. Shoe Carnival quarterly results press release
Neutral Sentiment: Short-interest data showed no measurable bearish position: Reported short interest was zero shares, with a zero-day short-interest ratio. Because the figures were unchanged at zero and included an invalid percentage comparison, the data offers little meaningful insight into trading sentiment.
Negative Sentiment: Quarterly earnings missed expectations: Shoe Carnival reported adjusted earnings of $0.23 per share, below consensus estimates ranging from $0.32 to $0.34 and well below $0.70 a year earlier. Revenue of $284.31 million also missed estimates of approximately $298–$299 million. Shoe Carnival earnings report
Negative Sentiment: Sales trends deteriorated: Quarterly revenue declined 7.2% year over year, while the company reported a relatively low 3.31% net margin and 7.24% return on equity. The earnings decline raises concerns about promotional pressure, demand, and profitability.
Negative Sentiment: Bearish options activity increased sharply: Investors purchased 5,887 put options, roughly 342% above typical put volume of 1,333 contracts. This unusually high activity indicates increased demand for downside protection or speculation on further weakness.

Institutional Trading of Shoe Carnival

Several hedge funds and other institutional investors have recently modified their holdings of SHOE. Royal Bank of Canada raised its holdings in Shoe Carnival by 13.0% in the 1st quarter. Royal Bank of Canada now owns 80,923 shares of the company’s stock valued at $1,779,000 after acquiring an additional 9,298 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Shoe Carnival by 367.2% during the first quarter. AQR Capital Management LLC now owns 52,303 shares of the company’s stock worth $1,150,000 after acquiring an additional 41,108 shares during the period. Millennium Management LLC boosted its holdings in shares of Shoe Carnival by 215.9% during the first quarter. Millennium Management LLC now owns 321,764 shares of the company’s stock worth $7,076,000 after acquiring an additional 219,918 shares during the period. Empowered Funds LLC grew its position in shares of Shoe Carnival by 3.0% in the first quarter. Empowered Funds LLC now owns 140,151 shares of the company’s stock valued at $3,082,000 after purchasing an additional 4,108 shares during the last quarter. Finally, Legal & General Group Plc grew its position in shares of Shoe Carnival by 4.5% in the second quarter. Legal & General Group Plc now owns 46,758 shares of the company’s stock valued at $875,000 after purchasing an additional 1,998 shares during the last quarter. Institutional investors own 66.05% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on SHOE shares. Wall Street Zen downgraded Shoe Carnival from a “hold” rating to a “sell” rating in a research report on Saturday. Zacks Research cut Shoe Carnival from a “strong-buy” rating to a “hold” rating in a research report on Friday, June 12th. Finally, Weiss Ratings initiated coverage on Shoe Carnival in a research note on Monday, June 15th. They issued a “hold (c-)” rating for the company. One analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $22.00.

Get Our Latest Stock Report on SHOE

About Shoe Carnival

(Get Free Report)

Shoe Carnival, Inc (NASDAQ: SCVL) is a U.S.-based specialty retailer offering a broad assortment of footwear, apparel and accessories for the entire family. Through its network of brick-and-mortar stores and e-commerce platform, the company provides casual, athletic and dress shoes for men, women and children, as well as complementary apparel, handbags, socks and other accessories designed to deliver value and variety. Its distinctive in-store carnival host service model aims to create an engaging shopping experience and foster customer loyalty.

Founded in 1978 and headquartered in Evansville, Indiana, Shoe Carnival has expanded over four decades to operate more than 350 retail locations across over 30 states.