Shoe Station Slashes FY Guidance After Q2 Profit Plunges 67%
SHOE is trading near its 52-week low of $12.63 (17% below the low) on elevated volume (2.4× avg).
Summary
Shoe Station cut full-year adjusted EPS guidance to $0.75-$0.90 from $1.40-$1.60 and sales guidance to $1.10B-$1.11B from $1.13B-$1.15B. Q2 profit fell 67% to $6.3M ($0.23/share) from $19.2M ($0.70/share) a year ago, with sales down 7.2% to $284.3M, missing estimates. Same-store sales fell 7.1%. Management cited aggressive promotions, liquidation of aged inventory, and assortments that missed customer preferences. The promotional environment is expected to persist through year-end, keeping margin pressure high. This follows the 8-K filed earlier today; the article adds specific figures and management commentary. Watch for further promotional activity and any strategic shifts under interim CEO Cliff Sifford.
At the time of this announcement, SHOE was trading at $10.51 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $351.1M. The 52-week trading range was $12.63 to $24.23. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.