Delores B. Weaver, a 10% owner of Shoe Carnival Inc. (NASDAQ:SCVL), a footwear retailer with a market capitalization of approximately $930 million, recently acquired a significant amount of the company's common stock. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.88x, indicating robust liquidity. On December 6, Weaver purchased 285,500 shares at a price of $33.91 per share, totaling approximately $9.68 million. These shares were bought by Weaver's spouse in a private transaction from the J. Wayne Weaver 2020 Grantor Retained Annuity Trust for Leigh Anne Weaver. Following this transaction, Weaver's indirect ownership, attributed to shares held by her spouse, increased to 4,173,529 shares. Additionally, Weaver holds 4,999,844 shares directly. The stock, which InvestingPro analysis suggests is currently undervalued, has shown a strong performance with a 27.6% return over the past year, despite its characteristic price volatility. The company has maintained dividend payments for 13 consecutive years, with a current dividend yield of 1.6%.
In other recent news, Shoe Carnival (NYSE:CCL) Inc. reported steady Q3 results for 2024, despite challenges posed by hurricanes and unusually warm weather. The company's adjusted earnings per share (EPS) met market expectations at $0.71, marking a slight year-over-year increase. However, net sales saw a slight decline of 4.1%, totaling $306.9 million. Despite this, the company's gross profit margin remained stable at 36%. The recent acquisition of Rogan's positively impacted the quarter's performance, contributing net sales of $22.3 million.
Shoe Carnival's year-to-date adjusted EPS rose by 3.8% to $2.19. The company also achieved full run-rate synergies from Rogan's six months ahead of schedule. Looking forward, Shoe Carnival revised its full-year net sales guidance to between $1.200 billion and $1.230 billion, maintaining its EPS guidance of $2.60 to $2.75. However, due to warm weather, the lower end of the guidance range is expected.
These developments come amidst a challenging retail environment, with the company's boot category sales dropping over 35% in October and comparable store sales falling by 4.1%, primarily due to adverse weather conditions. Despite these challenges, the back-to-school season performed well, particularly in children's and athletics categories. The company's re-bannering initiative is also progressing, with plans to convert 25 more stores in the first half of fiscal 2025.
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