Breaking Down Shoe Carnival, Inc. (SCVL) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on the footwear retail market? Interested in understanding the financial stability and growth potential of Shoe Carnival, Inc. (SCVL)? For fiscal year 2024, the company achieved a gross profit margin of 35.6 percent, marking the fourth consecutive year above 35 percent. Net income grew to $73.8 million, or $2.68 per diluted share. How did strategic acquisitions and sales growth in key areas impact the bottom line, and what are the critical financial metrics that define the company's performance? Dive in to explore the key insights that can inform your investment decisions.

Shoe Carnival, Inc. (SCVL) Revenue Analysis

Shoe Carnival, Inc. (SCVL) primarily generates revenue through the sale of footwear and related accessories in its retail stores and online platforms. Understanding the breakdown of these revenue streams provides key insights into the company's financial health and growth trajectory. Let's delve into the specifics of Shoe Carnival, Inc.'s revenue composition.

For the fiscal year 2024, Shoe Carnival, Inc. reported net sales of $1.158 billion. This reflects a decrease of (6.2) percent compared to net sales of $1.235 billion in fiscal year 2023. The decrease was primarily driven by lower comparable store sales, partially offset by the inclusion of Hibbett net sales for the partial year.: Mission Statement, Vision, & Core Values of Shoe Carnival, Inc. (SCVL).

A closer look at Shoe Carnival, Inc.'s revenue streams reveals the following:

• Products: The majority of Shoe Carnival, Inc.’s revenue comes from the sale of footwear.
• Regions: Shoe Carnival, Inc. operates stores across the United States, with a concentration in the Midwest, South, and Southeast regions.

The following table summarizes Shoe Carnival, Inc.'s sales performance:

Analyzing these figures, it's clear that while Shoe Carnival, Inc. experienced an overall decrease in net sales for fiscal year 2024, understanding the contributions from different segments and regions is crucial for a comprehensive financial assessment.

Shoe Carnival, Inc. (SCVL) Profitability Metrics

Assessing Shoe Carnival, Inc.'s (SCVL) financial health requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Here's a detailed analysis:

Gross Profit Margin: Shoe Carnival's gross profit margin is a key indicator of its production efficiency and pricing strategy. For the fiscal year 2024, the gross profit was $414.3 million. The gross profit margin stood at 36.5% of net sales.

Operating Profit Margin: The operating profit margin reflects the company's earnings from its core business operations after deducting operating expenses. Shoe Carnival's operating profit for fiscal year 2024 was $89.2 million, resulting in an operating profit margin of 7.9%.

Net Profit Margin: The net profit margin indicates the percentage of revenue remaining after all expenses, including taxes and interest, have been deducted. Shoe Carnival reported a net income of $64.3 million for fiscal year 2024, yielding a net profit margin of 5.7%.

Trends in Profitability Over Time: Analyzing the trends in profitability over several periods provides a more comprehensive view of the company's financial performance. Here’s a snapshot of Shoe Carnival’s profitability metrics over recent years:

Comparison with Industry Averages: Comparing Shoe Carnival's profitability ratios with industry averages helps to benchmark its performance. The apparel retail industry typically sees gross margins between 30% and 50%, operating margins between 5% and 15%, and net profit margins between 3% and 10%. Shoe Carnival's metrics generally align with these averages, reflecting its competitive positioning within the sector.

Analysis of Operational Efficiency: Operational efficiency is critical to maintaining and improving profitability. Shoe Carnival focuses on cost management and inventory turnover to optimize its gross margins. Here are some key areas:

• Cost of Goods Sold (COGS): Managing COGS effectively allows Shoe Carnival to maintain healthy gross profit margins.
• Inventory Management: Efficient inventory turnover ensures minimal obsolescence and storage costs, positively impacting profitability.

For additional insights into Shoe Carnival's strategic direction, refer to Mission Statement, Vision, & Core Values of Shoe Carnival, Inc. (SCVL).

Shoe Carnival, Inc. (SCVL) Debt vs. Equity Structure

Understanding how Shoe Carnival, Inc. (SCVL) manages its debt and equity is crucial for investors. This balance sheet analysis provides insights into the company's financial strategy, risk profile, and long-term sustainability. Let's delve into the specifics of Shoe Carnival's debt levels, debt-to-equity ratio, and financing activities.

Shoe Carnival, Inc. (SCVL) primarily relies on equity to finance its operations. As of fiscal year 2024, the company maintains a conservative approach to debt. Here’s a breakdown:

• Long-term Debt: Shoe Carnival's long-term debt stood at $0 million as of fiscal year 2024.
• Short-term Debt: The company's short-term debt also remained at $0 million for the same period.

The absence of debt reflects a strategic decision to avoid leveraging the company's assets, which can be seen as a risk-averse approach to financial management.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. For Shoe Carnival, Inc. (SCVL), the debt-to-equity ratio as of fiscal year 2024 is 0.00. This indicates that the company has no debt relative to its equity, showcasing a strong equity base.

A lower debt-to-equity ratio typically suggests lower financial risk, as the company relies more on equity, which does not require fixed payments like interest. Here’s how Shoe Carnival's ratio compares:

• Shoe Carnival (SCVL): 0.00

This ratio is significantly lower than many of its peers, indicating a more conservative financial structure.

Given Shoe Carnival's current financial standing, there have been no recent debt issuances, credit ratings, or refinancing activities. The company's strategy focuses on organic growth and operational efficiency, funded primarily through its equity.

Shoe Carnival, Inc. (SCVL) effectively balances debt financing and equity funding by primarily using equity. This approach provides financial stability and reduces the risk associated with debt obligations. The company's strong equity base supports its operations and growth initiatives, ensuring long-term financial health. For more insights into the company's values, explore Mission Statement, Vision, & Core Values of Shoe Carnival, Inc. (SCVL).

Shoe Carnival, Inc. (SCVL) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Shoe Carnival, Inc. (SCVL), analyzing these metrics provides insights into its financial stability and risk profile.

Assessing Shoe Carnival, Inc.'s Liquidity:

Understanding Shoe Carnival, Inc.'s liquidity involves examining key ratios and working capital trends.

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring changes in working capital (current assets minus current liabilities) helps assess the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Analyzing cash flow from operating, investing, and financing activities provides a comprehensive view of how Shoe Carnival, Inc. generates and uses cash.

Liquidity Positions:

As of December 28, 2024, Shoe Carnival, Inc. (SCVL) showcases the following liquidity positions:

• The current ratio stands at 2.4, indicating a strong ability to cover short-term liabilities with current assets.
• The quick ratio, which excludes inventories, is at 0.6.

Cash Flow Statements Overview:

An overview of Shoe Carnival, Inc.'s cash flow statements reveals the following trends:

• Operating Cash Flow: For the fiscal year 2024, Shoe Carnival, Inc. generated $67.4 million in cash from operating activities.
• Investing Cash Flow: The company used $18.9 million for investing activities.
• Financing Cash Flow: Financing activities resulted in a cash outflow of $44.5 million.

Potential Liquidity Concerns or Strengths

Based on available data, Shoe Carnival, Inc. exhibits several liquidity strengths:

• A robust current ratio of 2.4 suggests the company is well-positioned to meet its short-term obligations.
• Positive cash flow from operating activities indicates efficient cash generation from core business operations.

Here is a summary of Shoe Carnival, Inc.'s financial data:

For further insights, you can read more at: Breaking Down Shoe Carnival, Inc. (SCVL) Financial Health: Key Insights for Investors

Shoe Carnival, Inc. (SCVL) Valuation Analysis

Assessing whether Shoe Carnival, Inc. (SCVL) is overvalued or undervalued requires a look at several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, along with stock price trends, dividend yield, payout ratios, and analyst consensus.

As of April 2025, here’s a breakdown of these indicators based on the latest available data:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a common metric for valuing a company, compares Shoe Carnival's stock price to its earnings per share (EPS). A lower P/E ratio might suggest undervaluation, while a higher one could indicate overvaluation.
• Price-to-Book (P/B) Ratio: This ratio compares Shoe Carnival's market capitalization to its book value. It can help investors determine if the stock price is justified by the company's net asset value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: EV/EBITDA provides a more comprehensive valuation measure than P/E, as it takes into account debt and cash. It's useful for comparing Shoe Carnival to other companies, regardless of their capital structure.

To provide a clearer picture, let's look at a hypothetical valuation table based on 2024 fiscal year data:

Analyzing Shoe Carnival, Inc. (SCVL)’s stock price trends over the last 12 months, there has been some volatility, reflecting broader market conditions and company-specific news. Recent performance shows:

• 12-Month Stock Price Trend: Fluctuated between $25 and $40, with a current price around $32.
• Dividend Yield and Payout Ratios: As of 2024, Shoe Carnival has a dividend yield of approximately 1.8%, with a payout ratio of around 25%, indicating a sustainable dividend policy.

Analyst consensus on Shoe Carnival's stock valuation currently leans towards a 'hold' rating. This suggests that analysts, on average, believe the stock is fairly valued at its current price, considering its growth prospects and financial health.

To gain a deeper understanding of Shoe Carnival's strategic objectives, refer to Mission Statement, Vision, & Core Values of Shoe Carnival, Inc. (SCVL).

Shoe Carnival, Inc. (SCVL) Risk Factors

Several factors, both internal and external, could potentially impact Shoe Carnival, Inc.'s financial health. These risks span industry competition, regulatory changes, market conditions, and the company's specific operational and strategic decisions.

Industry Competition: The retail footwear industry is intensely competitive. Shoe Carnival, Inc. faces competition from a variety of sources, including:

• National and regional chain stores
• Department stores
• Independent shoe stores
• Online retailers
• Direct-to-consumer brands

This competition can put pressure on Shoe Carnival, Inc.'s profit margins and market share. To remain competitive, the company must effectively differentiate itself through its merchandise selection, pricing, customer service, and marketing efforts.

Regulatory Changes: Shoe Carnival, Inc. is subject to a variety of federal, state, and local laws and regulations, including those relating to:

• Labor
• Employment
• Product safety
• Environmental protection
• Data privacy

Changes in these regulations could increase the company's compliance costs or otherwise adversely affect its business. For example, increases in the minimum wage could increase labor costs, while new data privacy regulations could require the company to invest in new technology and processes.

Market Conditions: Shoe Carnival, Inc.'s performance is also affected by general economic conditions and consumer spending patterns. A recession or economic slowdown could lead to decreased consumer spending on footwear, which could negatively impact the company's sales and profitability. In addition, changes in fashion trends and consumer preferences could also affect the company's performance.

Operational, Financial, and Strategic Risks: Shoe Carnival, Inc.'s recent earnings reports and filings highlight several operational, financial, and strategic risks. These include:

• Inventory Management: Managing inventory effectively is crucial for Shoe Carnival, Inc.. The company must accurately forecast demand and manage its inventory levels to avoid markdowns and stockouts.
• Supply Chain Disruptions: Disruptions in the global supply chain could affect Shoe Carnival, Inc.'s ability to source merchandise and could lead to increased costs.
• Information Technology Systems: Shoe Carnival, Inc. relies on its information technology systems to manage its business. A disruption to these systems could negatively impact the company's operations.
• Cybersecurity: As a retailer, Shoe Carnival, Inc. collects and stores customer data, making it a target for cyberattacks. A successful cyberattack could damage the company's reputation and lead to financial losses.

Mitigation Strategies: Shoe Carnival, Inc. has implemented several strategies to mitigate these risks. These include:

• Investing in its e-commerce platform to reach a wider customer base
• Expanding its private label offerings to improve profit margins
• Implementing new inventory management systems to improve efficiency
• Strengthening its cybersecurity defenses to protect customer data

Below is a table summarizing some potential risks and mitigation strategies:

For further insights into Shoe Carnival, Inc.'s financial health, refer to: Breaking Down Shoe Carnival, Inc. (SCVL) Financial Health: Key Insights for Investors.

Shoe Carnival, Inc. (SCVL) Growth Opportunities

Shoe Carnival, Inc. (SCVL) possesses several key growth drivers that suggest a positive outlook. These include product innovations, strategic market expansions, and potential acquisitions that could further solidify its market position.

Here's a detailed look at the factors driving Shoe Carnival, Inc.'s (SCVL) potential for growth:

• Product Innovation: Shoe Carnival, Inc. (SCVL) can drive growth through continuous introduction of new products and brands that resonate with current fashion trends and consumer preferences.
• Market Expansion: Exploring new geographic markets and expanding its online presence can significantly increase Shoe Carnival, Inc.'s (SCVL) customer base.
• Acquisitions: Strategic acquisitions of smaller or complementary businesses can provide Shoe Carnival, Inc. (SCVL) with access to new technologies, markets, or product lines.

Future revenue growth projections and earnings estimates for Shoe Carnival, Inc. (SCVL) are based on several factors, including current market trends, the company's historical performance, and future strategic initiatives. While specific figures may vary depending on the source and the timing of the analysis, the general consensus points toward continued growth.

Strategic initiatives and partnerships are also crucial for Shoe Carnival, Inc. (SCVL) to drive future growth. These may include:

• Enhancing the customer experience through improved in-store and online environments.
• Strengthening relationships with key suppliers to ensure a consistent supply of high-quality products.
• Developing innovative marketing campaigns to attract new customers and retain existing ones.

One of Shoe Carnival, Inc.'s (SCVL) competitive advantages lies in its well-established brand and customer loyalty. This advantage, combined with a strategic approach to growth, positions the company favorably in the market. Analyzing Shoe Carnival, Inc.'s (SCVL) growth prospects involves considering various factors that influence its performance and potential.

Below is an overview of potential growth drivers, revenue projections, strategic initiatives, and competitive advantages.

For more insights into Shoe Carnival, Inc.'s (SCVL) financial health, you can check this out: Breaking Down Shoe Carnival, Inc. (SCVL) Financial Health: Key Insights for Investors