12 Most Undervalued Retail Stocks To Buy According to Analysts

3. Shoe Carnival, Inc. (NASDAQ:SCVL)

Forward P/E: 13.25

Analyst Upside: 42.74%

Shoe Carnival, Inc. (NASDAQ:SCVL) is a family footwear retailer that offers an assortment of casual, dress, and athletic footwear for women, men, and children with a focus on national name brands. The company’s omnichannel stores offer easy access to its elaborate array of branded footwear, with its physical stores carrying shoes in the athletics and non-athletic categories. They are further divided into sub-categories for women, men, and children, along with accessories.

The company attained solid comparable store net sales growth during the back-to-school season, with the most growth attributed to athletics and children’s categories. Its digital-first marketing strategy boosted customer engagement while simultaneously slashing advertising costs. Increased profitability was also attributed to the company’s elaborate brand assortment in this peak shopping season. In addition, the company’s rebannering strategy of converting Shoe Carnival stores to Shoe Station stores delivered positive results, with sales and profit increases exceeding 10% in early tests.

Although Shoe Carnival, Inc. (NASDAQ:SCVL) maintained a strong balance sheet with increased cash reserves and no debt in fiscal Q3 2024, its sales were significantly impacted by two hurricanes. This led to disruptions in customer shopping behavior and store closures. In addition, the relatively warm October weather delayed the winter boot season, causing a 35% decline in boot sales for the company in the month. The retail calendar shift also affected the company’s net sales, which reached $306.9 million in fiscal Q3 2024 compared to $319.9 million in fiscal Q3 2023.