Shares of footwear retailer Shoe Carnival (NASDAQ:SCVL) fell 6.9% in the morning session after the company reported third quarter results that missed analysts' revenue and EPS estimates, with management attributing the shortfall to softening trends, largely influenced by unseasonably warm weather. Additionally, the company lowered its full-year guidance for revenue, operating income, and EPS, indicating a less optimistic outlook. The company expressed concerns about uncertainty in customer holiday shopping and ongoing volatility in broader macro-economic conditions. Overall, this was a mediocre quarter for Shoe Carnival.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Shoe Carnival? Access our full analysis report here, it's free.
What is the market telling us:
Shoe Carnival's shares are not very volatile than the market average and over the last year have had only 17 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Shoe Carnival is down 1.8% since the beginning of the year, and at $22.43 per share it is trading 21.8% below its 52-week high of $28.70 from January 2023. Investors who bought $1,000 worth of Shoe Carnival's shares 5 years ago would now be looking at an investment worth $1,123.
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