Shoe Carnival, Inc. ( SCVL ) shares are trading higher on Thursday.

The company reported that the second quarter adjusted earnings per share was 83 cents, in line with the street view. Quarterly sales of $332.696 million (+12.9%) beat the analyst consensus of $330.05 million.

“Our Back-to-School results were very strong with comparable sales growth achieved in August, driven by the children’s and athletic categories,” said Mark Worden, President and Chief Executive Officer.

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In the second quarter of 2024, the company reported a 23.7% increase in adjusted operating income to $30.5 million, with net sales exceeding expectations due to double-digit growth at Shoe Station, improved trends at Shoe Carnival ( SCVL ), and increased ecommerce sales.

Gross profit margin rose to 36.1%, marking the 14th consecutive quarter above 35%. Comparable store sales declined 2.1% but showed improvement from the first quarter.

Inventory increased to $425.5 million, influenced by Rogan’s acquisition but expected to be lower by 5% year-over-year by the fiscal year-end.

The company operated 430 stores as of September 5, and aims to surpass 500 stores by 2028 through organic growth and acquisitions.

Outlook: For the third quarter, Shoe Carnival ( SCVL ) expects net sales of approximately $320 million, slightly below the $321.5 million consensus, and GAAP EPS of 70 cents.

Shoe Carnival ( SCVL ) has revised its 2024 outlook, now expecting net sales of $1.23 billion to $1.25 billion versus the previous outlook of $1.21 billion to $1.25 billion and against the $1.243 billion consensus.

The company anticipates adjusted EPS of $2.60 to $2.75 in 2024, compared to the prior range of $2.55 to $2.75 and against the $2.74 consensus.

Comparable store sales are now expected to range from a decrease of 1.5 percent to an increase of 1 percent.

“Our long-term strategies to increase sales and drive profitability are working, and we are well positioned to further increase shareholder value and execute on our vision to be the nation’s leading family footwear retailer,” Worden added.

Price Action: SCVL shares are trading higher by 12.9% to $42.38 at last check Thursday.

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