Shoe Carnival Rises On Upgrade, Earnings

NEW YORK (AP) — Shares of shoe retailer Shoe Carnival Inc. ticked higher on Friday, a day after the company reported second-quarter profit above expectations and as an analyst upgraded the stock.

On Thursday, Shoe Carnival reported profit edged up 1 percent, helped by cost cutting and lower inventory, ahead of analysts predictions, even as sales dipped 4 percent.

The company also said during the first three weeks of August, its sales in stores open at least one year are up about 11 percent.

On Friday, Sterne Agee analyst Sam Poser commended the company, saying second-quarter results were "strong" and expense controls were "great."

"Based on the results delivered over the past few quarters, and the strong start to the third quarter, it is evident to us that Shoe Carnival is focusing its product offerings (in order) to drive sales through a 'narrow and deep' assortment," he wrote. "Whether or not we are coming out of the recession, we are confident that Shoe Carnival will continue to turn lemons into lemonade."

He upped his rating on the company to "Buy" from "Neutral," and holds an $18 price target on the stock.

Shares rose 78 cents, or 5.1 percent, to $15.95 during afternoon trading. The stock has traded between $6.05 and $18.45 over the past year.