Shoe Station Group (SHOE) PT Lowered to $15 at Williams Trading

Williams Trading analyst Sam Poser lowered the price target on Shoe Station Group (NASDAQ: SHOE) to $15.00 while maintaining a Buy rating.

The analyst comments "We remain confident that SHOE's SSS and margins will sequentially improve for the balance of the fiscal year, as merchandise assortments become more targeted and localized, and increased marketing efforts drive more traffic to the stores. Further, SHOE plans to reduce its inventory level by $50M YoY by the end of FY26. As a result of the localized assortments and cleaner inventory, we believe that FY27 gross margin may improve to near the FY24 level of 35.7%, which would be increase of ~300bps from the high end of FY26 gross margin guidance. However, we are modeling a 190bp increase in FY27 gross margin. As far as FY26 goes, we are reducing our SSS estimate from -0.4% to -2.5%, and cutting our EPS estimate from $1.44 to $0.85 (Guidance calls for FY26 EPS of $0.75-$0.90). We have reduced our FY27 EPS estimate from $1.87 to $1.51."

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