Shoe Carnival, Inc. (NASDAQ:SCVL) shares surged after reporting second-quarter results. Adjusted earnings per share of 91 cents beat analyst estimates, but quarterly sales of $306.388 million missed expectations. Comparable sales declined 7.5%, with Shoe Station showing growth and Shoe Carnival facing a decline due to lower-income shopper pressure.

Shoe Station led in sales growth, while Shoe Carnival and Rogan’s also posted growth to support the rebanner strategy. Gross profit margin rose to 38.8%, highlighting the effectiveness of the company’s rebanner strategy. Merchandise margin expanded 390 basis points due to disciplined pricing and strategic inventory moves.

As of August 2, the company operated 428 stores, with Shoe Station store count doubling since 2024. The company returned to positive comparable sales ahead of schedule in fiscal August. Cash, equivalents, and marketable securities totaled $91.9 million at quarter end.

Shoe Carnival raised its fiscal 2025 GAAP EPS outlook to $1.70–$2.10, up from $1.60–$2.10. Sales guidance was lowered to $1.120 billion–$1.150 billion, below estimates. Sales declines are expected to ease in the second half, supported by the rebanner strategy and growth at Shoe Station. SCVL shares traded higher by 19.41% to $25.71.

Read more at Yahoo Finance: Shoe Carnival Lifts Profit Outlook As CEO Praises Rebanner Momentum, Stock Soars