Shoe Carnival Inc. (SCVL) Stock Exhibits Minor Volatility Following Disclosure of Financial Reports for Q2 2021

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Shoe Carnival Inc. (SCVL) stock prices were down by 6.20% shortly after market trading commenced on August 25th, 2021. This brought the price per share down to USD$37.83 early on in the trading day.

SCVL Stock’s Net Sales Reports

The second quarter of fiscal 2021 saw the company report net sales in the amount of USD$332.2 million. This represents a 10.5% increase from the USD$300.8 million reported in the prior-year quarter. This year-over-year difference was largely driven by continued broad-based demand for SCVL stock’s product offerings, as well as a more normalized start to the back-to-school season. Further driving the yearly increase were improved macroeconomic factors in the U.S and the easing of restrictions related to the Covid-19 pandemic.

SCVL Stock’s Gross Profit Reports

Gross profit margin for the second quarter of fiscal 2021 reported a 13.4 percentage point increase to 40.9. This is comparable to the 27.5% reported in the second quarter of the prior fiscal year. The merchandising margin was up 13.3 percentage points, reflecting the strengthening of consumer demand for product offerings. This resulted in the need for less promotional activity as compared to the prior-year quarter. Buying, distribution, and occupancy expenses declined slightly as a percentage of net sales as compared to the prior-year quarter. This was due to higher freight and distribution labor costs substantially offsetting the leveraging effect of higher sales.

SG&A Expenses

Selling, general, and administrative costs were up to USD$76 million for the second quarter of fiscal 2021. SG&A expenses were up 0.2 percentage points to 22.9% of net sales. This increase reflects the correlation of SG&A costs with the company’s continued record performance, with store level wages and incentive compensation comprising a majority of the increase.

Net Income Reports

SCVL stock reported net income in the amount of USD$44.2 million for the second quarter of fiscal 2021. This represents a net income of USD$1.54 per diluted share. This is comparable to the USD$10.1 million in net income reported for the second quarter of fiscal 2020. This represented a net income of USD$0.35 per diluted share.

Future Outlook for SCVL Stock

The company reported a strong financial quarter, rife with various developments that result in an expanded scope of opportunities for SCVL stock. The company is keen to leverage the resources at its disposal to facilitate organic growth over the long term. Current and potential investors are hopeful that management will be able to facilitate consistent increases in shareholder value.

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