Shares of Shoe Carnival (SCVL) tumbled 8.17% in pre-market trading on Thursday after the footwear retailer reported disappointing fourth-quarter results and provided a weaker-than-expected outlook for fiscal year 2025.
The company's fourth-quarter earnings per share came in at $0.54, beating analyst estimates of $0.43 but declining 8.5% from the same period last year. However, sales for the quarter were $262.94 million, missing analyst expectations of $274.21 million and falling 6.15% year-over-year. Comparable store sales declined 6.3% during the quarter, primarily due to continued declines at the main Shoe Carnival banner.
Shoe Carnival's guidance for fiscal year 2025 fell short of Wall Street projections, further pressuring the stock. The company expects full-year sales between $1.15 billion and $1.23 billion, below the analyst consensus of $1.24 billion. Earnings per share are forecast at $1.60 to $2.10, significantly lower than the $2.67 per share analysts were expecting. Adding to investor concerns, Shoe Carnival announced plans to rebanner 50 to 75 Shoe Carnival stores to Shoe Station stores in fiscal 2025, a move expected to decrease earnings per share by approximately $0.65 due to associated costs and temporary store closures.
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