2 Ways Shoe Carnival May Achieve Its Multi-Billion Dollar Goals
Appearing to be on a roll over the past few weeks, affordable footwear seller Shoe Carnival (NASDAQ: SCVL) first revealed strong third-quarter results in its late November 2021 earnings report and announced the acquisition of privately held Shoe Station. The deal is expected to start boosting earnings in the coming fiscal year, along with accelerating Shoe Carnival's ambitious expansion strategy. While the company's future looks quite sunny, there is one potential risk counterbalancing at least two big upsides.
As it launches the next phase of its plans to build itself from a company with an approximate $1 billion market capitalization (market cap) into a multi-billion enterprise, Shoe Carnival is fresh from a record-setting Q3 giving it plentiful resources to work with. Store traffic rose more than 40%, driving a 39.9% year-over-year revenue surge to $356.3 million. Comparable store sales, or comps, grew 30.1%.
Image source: Getty Images.
Source Fool.com
