UPDATE: Sterne Agee Downgrades Shoe Carnival on Multiple Challenges Ahead

In a report published Monday, Sterne Agee analyst Sam Poser downgraded the rating on Shoe Carnival (NASDAQ: SCVL) from Buy to Neutral.

In the report, Sterne Agee noted, “SCVL's customer base has been pressured by the government shutdown, which continues to hurt store traffic. Trends in athletic footwear from key brands are deteriorating in the family footwear channel. There are few fashion footwear trends to offset the weakening athletic sales. No relief in 4Q from earlier tax refunds as was previously expected. Downgrading from Buy to Neutral and lowering FY13 & FY14 EPS estimates from $1.52 & $1.89 to $1.42 & $1.77.”

Shoe Carnival closed on Friday at $27.77.