Latest news with #MarkWorden
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
American footwear retailer Shoe Carnival's sales drop 7.5% in Q1 FY25
The net sales of Shoe Carnival, a leading US-based retailer of footwear, declined 7.5 per cent to $277.7 million in the first quarter (Q1) of fiscal 2025 (FY25) as compared to $300.4 million in first quarter of 2024. Comparable stores net sales declined 8.1 per cent, of which the company estimates approximately 1 per cent was due to lost sales as impacted by the rebanner strategy. In the first quarter, the company's Shoe Station banner contributed a 4.9 per cent increase in net sales compared to the first quarter of 2024. These industry-leading results were primarily driven by double-digit comparable stores net sales growth from the company's rebanner strategy. The company's Shoe Carnival banner contributed a net sales decline of 10.0 per cent. First quarter 2025 net sales from Rogan's, which was acquired on February 13, 2024, were in-line with integration and synergy plans and exceeded $19 million in both first quarter of 2025 and first quarter of 2024, the company said in a press release. Gross profit margin was 34.5 per cent compared to 35.6 per cent in the first quarter of 2024. Gross profit margin included a 50 basis point increase in merchandise margin while buying, distribution and occupancy costs decreased gross profit margin by 160 basis points primarily due to deleverage from lower net sales. Selling, general, and administrative costs (SG&A) decreased $0.5 million in Q1. SG&A increases associated with the rebanner strategy were more than offset by the timing of selling expenses from other stores. As a per cent of net sales, SG&A were 30.2 per cent in first quarter 2025 compared to 28.1 per cent in first quarter 2024, with rebanner investment as the primary driver of this increase. 'Our first quarter results reflect the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 per cent despite the challenging macroeconomic and retail environment,' said Mark Worden, president and chief executive officer . '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.' 'Today, we're announcing an ambitious expansion of our rebanner strategy, with Shoe Station now expected to represent over 80 per cent of our store fleet by March 2027, up from our previous target of 51 per cent. 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,' Worden concluded. Fibre2Fashion News Desk (RR)
Business Wire
3 days ago
- Business
- Business Wire
Shoe Carnival Appoints Kerry Jackson as Senior Vice President, New Business Development
FORT MILL, S.C.--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL) (the 'Company'), a leading retailer of footwear and accessories for the family, today announced the appointment of Kerry Jackson as Senior Vice President, New Business Development. In this newly created role, Mr. Jackson will report directly to President and Chief Executive Officer, Mark Worden, and spearhead the Company's merger and acquisition activities, integration of acquired businesses and synergy capture initiatives as part of the Company's strategic vision to become the nation's leading family footwear retailer. Mr. Jackson brings 35 years of experience with Shoe Carnival, including 27 years serving as Chief Financial Officer before retiring in 2023. He will begin his role on June 9, 2025, working from the Company's Fort Mill headquarters. 'Kerry's return is a tremendous asset for our growth strategy,' said Mark Worden, President and Chief Executive Officer. 'His deep institutional knowledge, combined with his proven financial acumen and strategic insight, makes him uniquely qualified to partner with me in driving our M&A initiatives. Kerry's passion for building business ultimately brought him back to us, and we're fortunate to have his continued leadership as we expand our national footprint.' The appointment supports the Company's ongoing expansion strategy through strategic mergers and acquisitions to broaden customer reach and strengthen its position in the competitive footwear retail market. About Shoe Carnival Shoe Carnival, Inc. is one of the nation's largest family footwear retailers, offering a broad assortment of dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of June 2, 2025, the Company operated 429 stores in 35 states and Puerto Rico under its Shoe Carnival, Shoe Station and Rogan's store fronts and offers shopping at and Headquartered in Fort Mill, SC, and with distribution and support operations located in Evansville, IN, Shoe Carnival, Inc. trades on The Nasdaq Stock Market LLC under the symbol SCVL.
Yahoo
6 days ago
- Business
- Yahoo
Shoe Carnival CEO Is Upbeat About Shoe Station: Here's Why
Shoe Carnival CEO Mark Worden has reasons to be upbeat about the future, which contributed to the retailer's reaffirmation of Fiscal Year 2025 guidance after posting first quarter earnings results on Friday. He sees the current environment, although volatile, as an 'opportunistic one' for the footwear retailer. With a debt free balance sheet and no manufacturing or wholesale operations, the company can more easily pivot as required by the changing retail landscape. That's where the rebanner of existing Shoe Carnival stores to the Shoe Station brand comes into play. More from WWD Name Game: Shoe Carnival Is Converting More Stores to Shoe Station Banner The Maesa Magic: Building the Next Generation of Beauty Brands Allbirds, Which Produces Most of Its Shoes in Vietnam, Is Tightening Inventory and Adjusting Prices Amid Trump's Tariff Trade War 'I may be a contrarian on this next statement, but I'm starting to feel cautiously optimistic about back-to-school as we have a compelling assortment in hand and our product costs have not skyrocketed,' Worden told analysts during a company conference call on Friday. And added benefit has been the close collaboration with vendor partners. 'We have not yet experienced, nor do we have visibility to any massive product cost or price increases outside of ranges considered in our guidance,' he said, adding that the situation could evolve and that the singular corporate purpose is to be the leading footwear retailer for families. He also cited another benefit: 'We operate no wholesale businesses, and this has us in a comparatively solid and flexible stance to shift our buying decisions as costs evolve. This does not mean we're immune to vendor price volatility.' Since it is not a wholesaler, it also doesn't have any direct manufacturing exposure, the CEO highlighted, noting that the absence also means it is not locked into any production commitments that could 'force uncompetitive decisions.' Moreover, the company's debt free balance sheet and expanded cash reserves 'has us poised to make opportunistic buys in this volatile time and capture margin growth prospects ahead,' Worden said. 'Given all these variables, the executive team does not view it appropriate to withdraw 2025 guidance and today are reaffirming our annual profit guidance as the most likely outcome. For the first quarter ended May 3, net income was $9.3 million, or 34 cents a diluted share, on net sales that fell 7.5 percent to $277.7 million. For Fiscal Year 2025, the company expects earnings per share at between $1.60 to $2.10 on net sales of $1.15 billion to $1.23 billion. The CEO said that the customer was becoming more cautious during the quarter, particularly at Shoe Carnival, which targets a lower-income household, while tax refund season saw 'muted results' that indicated consumer concerns about prices and the speculation of higher prices to come. 'As previously shared, I do not anticipate a Shoe Carnival nor the family footwear industry return to profitable sales growth in the near term based on the current external conditions and soft consumer confidence we are seeing,' he said. Shoe Carnival sales were down 10 percent in the quarter, while those at Shoe Station rose 4.9 percent. The company sees the opportunity to move Shoe Station from a regional chain to a national footwear chain. 'Shoe Station is our premium retail banner attracting higher income households, providing customers the top brands [and] assortments for both non-athletic and athletic branded footwear,' Worden said, adding that the concept offers high levels of service and a contemporary shopping environment. A total of 75 Shoe Carnival stores will be rebranded to the Shoe Station banner this year, ending 2025 with 120 locations. More rebranding will continue in 2026 and by March 2027, over 80 percent of the store fleet will operate under the Shoe Station banner. Worden said Shoe Station has been outpacing the industry and the Shoe Carnival banner quarter-after-quarter for over two years, including producing increased AURs (average unit retail) and accretive product margins 'in markets we expected to win in more affluent, suburban, mature customers.' The CEO said the company is expanding significantly into new markets in Alabama, Mississippi, Georgia, Louisiana, South Carolina, Tennessee and Florida. All are locations where data indicates that metrics for the Shoe Station banner will surpass those for Shoe Carnival. According to Worden, it is 'crystal clear that Shoe Station is the future of our organic growth and future of our store base.' He also noted that vendors and key stakeholders support the rebanner initiative. 'Will Shoe Station represent 100 percent of the current store fleet in the future? I can share the organization is deeply evaluating that,' Worden said. He explained that the company will test the urban market to see if the 'Station banner can better meet all of our store needs,' noting that the company first has to find out how it can satisfy the needs of the 'low household income, highly diverse customer base' in cities such as Chicago and Houston. Looking ahead to the fall, back-to-school and holiday, the CEO said the company made a 'deliberate decision' to maintain elevated inventory levels to better navigate what he described as marketplace uncertainties. 'With our cash rich position we determined the best approach to serve customers during back-to-school and holiday seasons was to invest early in key products, maximize our in-stock position and ensure our stores are fully prepared,' Worden said. 'I want to assure you our customers will find their favorite brands fully stocked across Shoe Station, Shoe Carnival and Rogan's locations throughout 2025.' He added that men's and women's performance running brands continue to deliver 'exceptional results' and were particularly strong with double-digit growth at Shoe Station, where styles for back-to-school have 'robust' AURs over $130 on average. And separately, the CEO said the company remains committed to pursuing M&A—when the right opportunity at a fair valuation becomes avaialble—to achieve its long-term vision to be the nation's leading footwear retailer for families. 'Our M&A targeting focus is on market leading footwear retailers with scale, providing geographic expansion and/or diversifying to a higher income customer base. The leadership team will pursue scale changing M&A,' he told analysts on the call. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos]
Yahoo
7 days ago
- Business
- Yahoo
Shoe Carnival Stockpiles Inventory To Dodge Tariffs, Ramps Up Rebannering
Shoe Carnival, Inc. (NASDAQ:SCVL) on Friday reported first-quarter adjusted earnings per share of 49 cents, beating the analyst consensus estimate of 30 cents. On a GAAP basis, Shoe Carnival registered net income per diluted share of 34 cents, compared with 63 cents a year ago. The company estimates that first-quarter 2025 EPS was reduced by about 15 cents due to costs tied to its rebanner strategy, including store closures, construction, grand reopening delays, and customer acquisition company said Shoe Station has been the fastest-growing retailer in its sector over the past two years, while Shoe Carnival and the broader family footwear industry have declined. Shoe Carnival aims to leverage this success by expanding Shoe Station from a Southeast leader to a national presence. They tested rebannering 10 stores in FY2024 and converted 24 more in Q1 2025. Shoe Carnival is now accelerating this strategy, planning to have approximately 120 stores (28% of its fleet) operating as Shoe Station by the end of FY2025, with 51 additional conversions scheduled throughout the remainder of the year, including expansion into new markets. Quarterly sales of $277.71 million (down 7.5% year over year) missed the Street view of $323.64 million. Comparable stores net sales declined 8.1 percent, of which the company estimates approximately 1 percent was due to lost sales as impacted by the rebanner strategy. Shoe Carnival's President and CEO, Mark Worden, reported strong first-quarter results, with profits exceeding expectations by about 10% despite a challenging economic and retail climate. He highlighted the success of the Shoe Station growth strategy, which is delivering industry-leading sales growth and margin improvements across various markets, outperforming both Shoe Carnival and general industry trends. Due to this success, the company is accelerating its 'rebanner initiative,' now aiming for Shoe Station to represent over 80% of its store fleet by March 2027, a significant increase from the previous 51% target, he said. This expansion is being funded by the company's strong financial position, characterized by growing cash reserves and no debt, marking a pivotal shift from a traditional family footwear retailer to a premium, brand-focused national leader, Worden said. The first quarter 2025 gross profit margin was 34.5%, down from 35.6% in the first quarter of 2024. Shoe Carnival said it invested $16.8 million in additional merchandise inventory compared to the year-ago period. Additional inventory purchases were made in the quarter before the tariff increases were announced on April 2. As of May 3, the company had 429 stores, with 334 Shoe Carnival stores, 67 Shoe Station stores, and 28 Rogan's stores. The Shoe Station store count has more than doubled since the end of the first quarter 2024. Going ahead, the company said it is accelerating its rebanner strategy and now expects approximately 120 stores, or 28% of the store fleet, to operate as a Shoe Station store by the end of Fiscal 2025. Shoe Carnival reaffirmed its FY2025 GAAP EPS outlook of $1.60 to $2.10, compared to the $1.94 estimate. The company also maintained its FY2025 sales guidance of $1.15 billion to $1.23 billion, compared with the $1.19 billion consensus. Price Action: SCVL shares are trading higher by 4.77% to $19.32 at last check Friday. Read Next:Photo by JHVEPhoto via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SHOE CARNIVAL (SCVL): Free Stock Analysis Report This article Shoe Carnival Stockpiles Inventory To Dodge Tariffs, Ramps Up Rebannering originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Shoe Carnival (NASDAQ:SCVL) Reports Sales Below Analyst Estimates In Q1 Earnings, But Stock Soars 11.2%
Footwear retailer Shoe Carnival (NASDAQ:SCVL) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 7.5% year on year to $277.7 million. On the other hand, the company's full-year revenue guidance of $1.19 billion at the midpoint came in 1.9% above analysts' estimates. Its GAAP profit of $0.34 per share was 47.8% above analysts' consensus estimates. Is now the time to buy Shoe Carnival? Find out in our full research report. Revenue: $277.7 million vs analyst estimates of $282.5 million (7.5% year-on-year decline, 1.7% miss) EPS (GAAP): $0.34 vs analyst estimates of $0.23 (47.8% beat) Adjusted EBITDA: $12.05 million vs analyst estimates of $15.3 million (4.3% margin, 21.3% miss) The company reconfirmed its revenue guidance for the full year of $1.19 billion at the midpoint EPS (GAAP) guidance for the full year is $1.85 at the midpoint, beating analyst estimates by 3.9% Operating Margin: 4.3%, down from 7.7% in the same quarter last year Free Cash Flow was -$22.98 million, down from $6.87 million in the same quarter last year Same-Store Sales fell 8.1% year on year (-3.4% in the same quarter last year) Market Capitalization: $504 million '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,' said Mark Worden, President and Chief Executive Officer. Known for its playful atmosphere that features carnival elements, Shoe Carnival (NASDAQ:SCVL) is a retailer that sells footwear from mainstream brands for the entire family. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $1.18 billion in revenue over the past 12 months, Shoe Carnival is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. As you can see below, Shoe Carnival grew its sales at a sluggish 2.4% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts). This quarter, Shoe Carnival missed Wall Street's estimates and reported a rather uninspiring 7.5% year-on-year revenue decline, generating $277.7 million of revenue. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a slight deceleration versus the last six years. This projection is underwhelming and suggests its products will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. A retailer's store count influences how much it can sell and how quickly revenue can grow. Shoe Carnival opened new stores at a rapid clip over the last two years, averaging 4.9% annual growth, much faster than the broader consumer retail sector. This gives it a chance to scale into a mid-sized business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. Note that Shoe Carnival reports its store count intermittently, so some data points are missing in the chart below. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. Shoe Carnival's demand has been shrinking over the last two years as its same-store sales have averaged 5.9% annual declines. This performance is concerning - it shows Shoe Carnival artificially boosts its revenue by building new stores. We'd like to see a company's same-store sales rise before it takes on the costly, capital-intensive endeavor of expanding its store base. In the latest quarter, Shoe Carnival's same-store sales fell by 8.1% year on year. This decrease represents a further deceleration from its historical levels. We hope the business can get back on track. We were impressed by how significantly Shoe Carnival blew past analysts' EPS expectations this quarter. We were also glad its full-year revenue and EPS guidance exceeded Wall Street's estimates. On the other hand, its revenue and EBITDA fell short. Overall, this print was mixed but still had some key positives. The stock traded up 11.2% to $20.54 immediately after reporting. Is Shoe Carnival an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
