Shares of Shoe Carnival Soar 28% After 3rd-Quarter Results Trump Hurricane Headwinds

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What happened?

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.

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So what

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:

Now what

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.

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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.