Shoe Carnival, Inc. (NASDAQ:SCVL) shares are trading higher after reporting first-quarter results.

Net sales in first quarter results were $300.4 million, increasing 6.8% year over year. Revenues beat the street view of $294.54 million.

Shoe Carnival's inventory totaled $411.6 million in the quarter under review, an increase of approximately $22.1 million year over year.

Gross profit margin increased to 35.6% in the first quarter due to higher merchandise margins and leverage in buying, distribution, and occupancy on higher sales.

Operating income totaled $22.5 million and increased 7.5% year over year.

Shoe Carnival reported adjusted earnings per share of 64 cents, beating the street view of 59 cents. EPS growth in first quarter 2024 compared to prior year was primarily driven by the net sales performance and higher gross profit margin.

As of May 4, the company had grown to an all-time high of 430 stores, with 371 Shoe Carnival stores, 31 Shoe Station stores, and the 28 Rogan's locations acquired in February 2024.

Shoe Carnival said it has its strategic growth roadmap to surpass 500 stores in 2028, including organic growth and strategic M&A activity.

The company continues to expect total capital expenditures of $25 million to $35 million in fiscal 2024 as the store modernization program nears completion.

Outlook: Shoe Carnival reiterated its FY24 adjusted EPS outlook of $2.55 – $2.75 versus the $2.63 estimate, with net sales growth forecast of 4% to 6%.

Price Action: SCVL shares are trading higher by 5.5% to $36.29 at last check Thursday.

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