Shoe Station Group's Q2 sales miss estimates, lowers outlook

Overview

• U.S. footwear retailer's Q2 sales declined and missed analyst expectations

• Company lowered full-year guidance due to ongoing promotional market and misaligned assortments

Outlook

• Company lowers fiscal 2026 net sales outlook to $1.100 bln-$1.111 bln, down 2-3% vs 2025

• Shoe Station Group cuts fiscal 2026 GAAP EPS forecast to $0.32-$0.47, Adjusted EPS to $0.75-$0.90

• Company expects promotional environment to persist through rest of year

Result Drivers

• PROMOTIONAL PRESSURE - Co said increasingly promotional footwear market and competitive pricing pressured sales and gross margin

• ASSORTMENT MISALIGNMENT - Co said sales were hurt by merchandise assortments not fully aligned with customer preferences

• INVENTORY LIQUIDATION - Co said liquidation of aged and excess inventory contributed to lower gross profit margin

Company press release: ID:nBw5JDZQ5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

• Wall Street's median 12-month price target for Shoe Station Group Inc is $19.00, about 46.9% above its September 9 closing price of $12.93

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Sept 9 - Footwear retailer Caleres' Q2 sales beat estimates on gains across brands

• Sept 9 - Signet shares soar as jeweler lifts annual profit forecast

• Sept 9 - American Eagle sticks to annual sales forecast again, shares slump

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)