Companies

Shoe Carnival reiterates outlook and long-term focus

Nov 26, 2025 United States

The US-based footwear retailer has reiterated its net sales outlook for the full year, emphasising the success of the Shoe Station banner and its commitment to the long-term strategy

“Third quarter results exceeded expectations. Shoe Station is winning - up over 5% in sales with 260 basis point margin expansion. We’re consolidating to one brand because the performance gap is undeniable. Over time, this unlocks 20 million US dollars in savings and 100 million US dollars in working capital to fund growth from our debt-free balance sheet”, said Mark Worden, President and Chief Executive Officer.

Third Quarter Results

In the third quarter of the 2025 fiscal year, which ended on the 1^st of November, Shoe Carnival reported net sales of 297.2 million US dollars, marking a 3.2% decrease on a comparable basis to the same period of last year. Compared to the same period last year, comparable store sales decreased by 2.7%.

The footwear retailer emphasised that the performance of its banners demonstrates the effectiveness of the One Banner Strategy announced earlier this month, which includes a name change to Shoe Station.

While Shoe Carnival’s net sales declined by 5.2% (with comparable store sales down mid-single digits) during this period, Shoe Station’s net sales increased by 5.3% (including a mid-single digit increase in comparable store sales). Meanwhile, Rogan’s generated over 21 million US dollars in net sales, in line with integration plans.

In the third quarter of this year, the company’s gross profit margin increased by 160 basis points year-on-year, reaching 37.6%. The merchandise margin improved by 190 basis points, driven by disciplined pricing, a favourable shift in the product mix towards higher-income Shoe Station customers, and strategic inventory investments. This offset approximately 30 basis points of deleverage in buying, distribution, and occupancy costs.

Shoe Carnival reported a net income of 14.6 million US dollars for the third quarter, or 0.53 US dollars per diluted share. This is a decrease from 19.2 million US dollars, or 0.70 US dollars per diluted share, in the same quarter of the previous year. Included in this figure is the negative impact of approximately 0.22 US dollars from banner investments in the third quarter of 2025.

As of the 20^thof November, Shoe Station comprised 144 stores, representing 34% of the company’s 428-store portfolio, up from 10% at the beginning of fiscal year 2025. In October, the company also completed the integration of its 28-store Rogan’s acquisition into the Shoe Station banner.

The company is therefore on track to operate 215 Shoe Station stores by the back-to-school season in 2026, representing 51% of the fleet, and expects that more than 90% of its stores will operate under the Shoe Station brand before the end of fiscal year 2028. The remaining locations are being evaluated for rebanning, repositioning as outlets, or closure.

Full Year Outlook

Following its third quarter results and accelerated rebanner execution, Shoe Carnival has reiterated its net sales outlook and updated its earnings per share outlook. The company now expects earnings per share for the full year to be in the range of 1.80 to 2.10 US dollars, which is an increase of 0.10 US dollars at the lower end of the range.

Source: sourcingjournal.com

United States Companies Footwear Quarter Results Results Shoe Carnival