Shoe Carnival Registers 4% Top-Line Decline In Q3 Amid Challenging Inflationary Environment

Shoe Carnival Inc SCVL reported a third-quarter FY22 sales decline of 4.1% year-on-year to $341.66 million, missing the consensus of $342.72 million.
Net sales grew 24.4% compared to Q3 FY19, with both store banners contributing to the growth.
EPS of $1.18 beat the consensus of $1.14.
Gross profit fell 9.2% Y/Y to $130.8 million, with the margin contracting 210 basis points to 38.3%.
Selling, general and administrative expenses rose 6.9% Y/Y to $87.3 million.
The operating margin compressed from 17.5 % to 12.8%, and operating income for the quarter declined 30.2% to $43.6 million.
Shoe Carnival held $47.5 million in cash and equivalents as of October 29, 2022. Net cash provided by operating activities for nine months totaled $18.9 million.
Outlook: Shoe Carnival sees FY22 EPS in the tightened range of $3.95 - $4.10 (prior view $3.95 - $4.15) versus the consensus of $3.95.
SCVL sees FY22 sales of $1.27 billion - $1.30 billion (prior view $1.29 billion - $1.34 billion) versus an estimate of $1.30 billion.
It raised the FY22 operating margin outlook from 11.4% - 11.6% to 11.5% - 11.7%.
Price Action: SCVL shares are trading lower by 0.45% at $24.35 in premarket on the last check Wednesday.
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