Shoe Carnival Lifts Profit Outlook As CEO Praises Rebanner Momentum, Stock Soars

Shoe Carnival, Inc. (NASDAQ:SCVL) shares surged Thursday after the company reported its second-quarter results.

The company reported second-quarter adjusted earnings per share of 91 cents, beating the analyst consensus estimate of 58 cents.

Quarterly sales of $306.388 million (down 7.9% year over year) missed the Street view of $313.121 million.

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Comparable sales declined 7.5%, including a high-single digit decline at Shoe Carnival and break-even results at Shoe Station.

In the second quarter, Shoe Station posted 1.6% sales growth. Shoe Carnival saw a 10.1% drop as lower-income shoppers stayed under pressure. Rogan’s delivered over $20 million in sales, aligning with integration goals.

Shoe Station led with strong gains in children’s and adult athletics, alongside margin expansion.

Shoe Carnival and Rogan’s also posted comparable sales growth, supporting the rebanner strategy.

GAAP earnings per share were 70 cents per diluted share, compared to 82 cents per diluted share in the prior year.

The company estimates second-quarter EPS included a 21-cent negative impact from rebanner investments, while first-quarter 2025 EPS included a 15-cent negative impact.

Gross profit margin rose to 38.8% in the second quarter, up from 36.1% a year earlier. The gain highlights the effectiveness of the company’s rebanner strategy.

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Merchandise margin expanded 390 basis points on disciplined pricing, favorable mix, and strategic inventory moves. These improvements outweighed a 120-basis-point increase in buying, distribution, and occupancy costs.

As of August 2, the company operated 428 stores: 313 Shoe Carnival stores, 87 Shoe Station stores, and 28 Rogan’s stores.

The Shoe Station store count has more than doubled since the second quarter of 2024.

In fiscal August, the company returned to positive comparable sales ahead of schedule.

As of quarter end, cash, equivalents, and marketable securities totaled $91.9 million.

Mark Worden, President and CEO, said, “Our rebanner strategy continues to deliver strong results.”

“Our debt-free balance sheet with strong cash reserves allows us to invest aggressively in this proven model while remaining ready for strategic opportunities,” he added.

Shoe Carnival raised its fiscal 2025 GAAP EPS outlook to $1.70–$2.10, up from $1.60–$2.10, compared with the $1.75 consensus estimate.

The company lowered its fiscal 2025 sales guidance to $1.120 billion–$1.150 billion, down from $1.150 billion–$1.230 billion. The revised sales forecast sits slightly below the $1.157 billion Wall Street estimate.

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