Companies

Shoe Carnival confirms full year outlook

Jun 4, 2025 United States

Despite declining sales in the first quarter, the US-based footwear retailer has confirmed its full year outlook, mainly thanks to a successful growth strategy for its Shoe Station banner

“Our first quarter results reflect the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 percent despite the challenging macroeconomic and retail environment. The Shoe Station growth strategy is working exceptionally well, delivering industry-leading sales growth and accretive margins across diverse market types. This consistent outperformance versus both Shoe Carnival and industry trends across all footwear categories has given us the confidence to accelerate our rebanner initiative”, commented Mark Worden, President and Chief Executive Officer.

First Quarter Results

In the three months up to the 3^rd of May, the company’s total net sales decreased by 7.5%, as compared to the same period last year, reaching 277.7 million US dollars. During this period, comparable store net sales decreased by 8.1% year-on-year, 1% of which was due to lost sales resulting from the rebanning strategy, Shoe Carnival estimates.

While the Shoe Station banner recorded a 4.9% increase in net sales, driven by double-digit growth in comparable stores from the company’s rebanning strategy, the Shoe Carnival banner recorded a decline of 10.0%. First quarter net sales from Rogan’s, which was acquired in February 2024, “were in-line with integration and synergy plans and exceeded 19 million US dollars in both first quarter 2025 and first quarter 2024”.

In the first quarter of 2025, the company’s gross profit margin decreased from 35.6% to 34.5%, as compared to the same quarter last year. Although this figure includes a 50-basis-point increase in merchandise margin, the gross profit margin decreased by 160 basis points due to lower net sales, primarily as a result of deleverage.

Shoe Carnival reported a first quarter net income of 9.3 million US dollars, or 0.34 US dollars per diluted share, on a comparable basis to a net income of 17.3 million US dollars, or 0.63 US dollars per diluted share in the same quarter of 2024.

Shoe Carnival estimates that the reduction in earnings per share by 0.15 US dollars was driven by investments in its rebanning strategy. This included costs relating to store closures and the construction of new stores, as well as the amortisation of these stores, temporary shutdowns for renovations, customer acquisition, and other related expenses.

Shoe Station Rebanner Strategy Acceleration

“Today, we’re announcing an ambitious expansion of our rebanner strategy, with Shoe Station now expected to represent over 80% of our store fleet by March 2027, up from our previous target of 51%. We’re making these investments from a position of financial strength, with growing cash reserves and no debt. This is a pivotal moment for our company as we transform from a traditional family footwear retailer to a premium brand-focused national leader in footwear.”

Shoe Carnival now expects approximately 120 stores to be operating as Shoe Stations by the end of fiscal year 2025. An additional 51 stores are expected to rebrand in fiscal year 2025 (20 in the second quarter, 25 in the third quarter and six in the fourth quarter), with stores expanding into new markets and into existing markets.

Fiscal Year 2025 Outlook

The Company confirmed its entire fiscal 2025 outlook based on first quarter earnings per share exceeding market expectations, rebanner strategy momentum, and some improvement in macroeconomic uncertainties.

It therefore expects full year net sales to be between 1.15 billion and 1.23 billion US dollars, representing a decline of between 4% and 2%, as compared to 2024. GAAP earnings per share are expected to be between 1.60 and 2.10 US dollars, including the initial year costs of the rebranding strategy.

Image Credits: easternshorecentre.com

United States Companies Footwear Quarter Results Results Shoe Carnival