Sam Poser, an analyst from Williams Trading, maintained the Hold rating on Shoe Carnival. The associated price target remains the same with $21.00.
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Sam Poser has given his Hold rating due to a combination of factors that reflect both positive and uncertain elements in Shoe Carnival’s outlook. The decision to upgrade the estimates for the second quarter and fiscal year 2025 is based on the unexpectedly strong performance during the back-to-school season, which indicates a temporary boost in sales. However, the long-term projections for fiscal year 2026 have been adjusted downward to account for the strategic shift in store conversions.
Poser acknowledges the strategic plan to transform 80% of Shoe Carnival stores into Shoe Station stores by the first quarter of 2027. This move is seen as beneficial because Shoe Station’s product offerings attract a broader customer base, and the competitive landscape for Shoe Station is less intense compared to Shoe Carnival. Despite these promising changes, the lack of clear visibility on the full impact of these conversions leads to a cautious Hold rating, suggesting investors should wait for more clarity before making further investment decisions.
Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Canada Goose Holdings, and Crocs. According to TipRanks, Poser has an average return of 17.6% and a 52.53% success rate on recommended stocks.