Shoe Carnival, a footwear and accessories retailer, has revised its outlook for 2023 due to ongoing softness in consumer spending and uncertainty during the holiday season. The company now forecasts sales between $1.16 billion and $1.18 billion, with earnings per share projected to range between $2.65 and $2.75. Previously, Shoe Carnival had anticipated sales between $1.19 billion and $1.21 billion, with earnings per share estimated between $3.10 and $3.25.
The Evansville, Ind.-based business attributes its updated outlook to a projected decline in fourth-quarter net sales of 9% to 12%. The company anticipates net sales of approximately $265 million to $285 million, with earnings per share expected to fall between 54 cents and 64 cents. However, analysts polled by FactSet were predicting sales of $290.3 million.
Shoe Carnival explained that the softer-than-expected start to the fall seasonal categories has persisted into November, leading to uncertainty surrounding customer holiday shopping. Additionally, the company highlights the volatile nature of the broader macro-economic conditions.
This revised guidance follows Shoe Carnival's recent decline in third-quarter results. Chief Executive Mark Worden attributes the decline to persistently hot and dry weather, which impacted seasonal sales and caused a sluggish start to the boot season.
Overall, Shoe Carnival remains cautious in its outlook for 2023, considering the challenges faced in the current market climate.