Sterne Agee CRT Reiterates Buy on Shoe Carnival (SCVL) Following 3Q

Sterne Agee CRT reiterated a Buy rating and $26.00 price target on Shoe Carnival (NASDAQ: SCVL) following the company's 3Q earnings report. SCVL reported EPS of $0.47 versus Sterne Agee CRT's estimate of $0.45. Revenue was $270M versus estimates of $262M. 4Q guidance calls for EPS of $0.15-$0.20 on total sales of $230M-$237M.

Analyst Sam Poser commented, "SCVL is navigating the tough retail environment better than its competitors as evidenced by 3Q SSS of +6%. Strong SSS despite negative traffic are coming via better conversion, as the result of the implementation of "shoes to you," which allows store associates to order products that are not in the store to the customer's home, and thus not lose the sale. SCVL's loyalty program made up 57% of 3Q's sales, and it allows better communication with customers. 4Q15 guidance assumes that the SCVL will be aggressive on promotions (especially on certain boot styles) not only to make sure inventory remains clean, but also to drive SSS. Management was able to see a tough 4Q ahead, and has managed inventory well, only +0.3% at the end of 3Q."

For an analyst ratings summary and ratings history on Shoe Carnival click here. For more ratings news on Shoe Carnival click here.

Shares of Shoe Carnival closed at $19.48 yesterday.

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