SCVL - Shoe Carnival: Finding Growth In A Stagnant Industry

2024-02-17 05:25:02 ET

Summary

• Shoe Carnival has focused on steady growth through store expansion, M&A, and share buybacks, but questions remain about the strength of its business model.
• The company saw a decline in sales in 2022 and expects further declines in 2023.
• Shoe Carnival recently announced a $45 million deal to acquire Rogan Shoes, which could boost growth in 2024.

Shoe Carnival ( SCVL ) has been a somewhat undercovered and murky business which has focused on creating growth for investors by steadily growing the store count, employing bolt-on M&A, and using excess cash flows to buyback shares....

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