Shares of Shoe Carnival (NASDAQ: SCVL), a leading retailer of family footwear with brand names and private label merchandise, are soaring 28% as of 11:30 a.m. EST Friday after the company released better-than-expected earnings that boosted confidence with investors.
Continue Reading Below
Shoe Carnival recorded a 4.7% increase in net sales to $287.5 million, driven by a strong 4.4% increase in comparable store sales. The bottom line was even better for investors: Shoe Carnival's earnings per share (EPS) jumped 22.2% to $0.66.
Cliff Sifford, Shoe Carnival's president and chief executive officer, said the following in a press release:
Right now, Shoe Carnival is in the process of optimizing its stores and locations. While it expects to close 26 stores during fiscal 2017, it also plans to open 19 stores during the same time period. And despite slowing foot traffic due to hurricanes, the optimization of its inventory, which was down 4.3% on a per-store basis during the third quarter, and closing poor performing stores enabled the company to boost its bottom line. If the company can continue to execute, investors can expect more quarters similar to this -- however, investors have to expect large volatility each quarterly report, depending on positive or negative news.
10 stocks we like better than Shoe CarnivalWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Shoe Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 6, 2017