Latest news with #Worden
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)
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 Reports First Quarter Fiscal 2025 Results
FORT MILL, S.C., May 30, 2025--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL) (the "Company"), a leading retailer of footwear and accessories for the family, today reported results for the first quarter ended May 3, 2025 and reaffirmed its previously issued Fiscal 2025 outlook. First Quarter Fiscal 2025 Highlights Profits outperformed market expectations by over 10 percent with $0.34 EPS achieved. Rebanner strategy delivered double-digit comparable net sales growth and accretive margins. Shoe Station banner net sales grew 4.9 percent while family footwear industry declined. Accelerated expansion plan: Shoe Station to represent over 80 percent of the store fleet by March 2027. Balance sheet strengthened with no debt and over 30 percent additional cash on hand compared to first quarter 2024. "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. "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." Mr. Worden continued, "Today, we're announcing an ambitious expansion of our rebanner strategy, with Shoe Station now expected to represent over 80 percent of our store fleet by March 2027, up from our previous target of 51 percent. 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." First Quarter Operating Results In first quarter 2025, the Company's Shoe Station banner contributed a 4.9 percent increase in net sales compared to first quarter 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 percent. 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 2025 and first quarter 2024. Total Company net sales in first quarter 2025 declined 7.5 percent to $277.7 million as compared to $300.4 million in first quarter 2024. 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. First quarter 2025 gross profit margin was 34.5 compared to 35.6 percent in first quarter 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. First quarter 2025 selling, general, and administrative costs ("SG&A") decreased $0.5 million. SG&A increases associated with the rebanner strategy were more than offset by the timing of selling expenses from other stores. As a percent of net sales, SG&A were 30.2 percent in first quarter 2025 compared to 28.1 percent in first quarter 2024, with rebanner investment as the primarily driver of this increase. First quarter 2025 net income was $9.3 million, or $0.34 per diluted share ("EPS"), compared to first quarter 2024 net income of $17.3 million, or $0.63 per diluted share. The Company estimates first quarter 2025 EPS was negatively impacted by approximately $0.15 of rebanner strategy investment, inclusive of store closing costs, amortization of new store construction costs, a four-to-six-week store closure period through each store's grand opening, customer acquisition costs and other costs. Capital Management and Cash Flow The 2024 fiscal year end marked the 20th consecutive year the Company ended a year with no debt, fully funding its operations, acquisitions and investments from operating cash flow. In first quarter 2025, the Company also funded its operations without incurring any debt and growing its cash, cash equivalents and marketable securities $23.5 million compared to balances at the end of first quarter 2024. At the end of first quarter 2025, the Company had approximately $93.0 million available to fund growth objectives. During first quarter 2025, the Company invested $16.8 million in additional merchandise inventory compared to inventories at the end of first quarter 2024. Additional inventory purchases were made in first quarter 2025 in advance of the tariff increases announced on April 2nd. Rebanner-related expense and these accelerated inventory purchases were the primary drivers of negative cash flow from operating activities in first quarter 2025. In first quarter 2025, capital expenditures totaled $13.3 million and primarily reflect the 24 stores rebannered and one new store opened. As of May 3, 2025, the Company had $50 million available for future repurchases under its share repurchase program. During first quarter 2025, the Company did not repurchase any shares. The Company paid a $0.15 per share quarterly cash dividend on April 21, 2025. On an annualized basis, this dividend is a 238 percent increase compared to the rate paid to shareholders five years ago. The dividend paid in first quarter 2025 marked the 11th consecutive year the Company increased its dividend, and the Company has now paid a dividend for 52 consecutive quarters. Store Count As of May 3, 2025, 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 first quarter 2024. Shoe Station Rebanner Strategy Acceleration Shoe Station has been the industry's fastest growing retailer over the last two years, according to industry data. Over this same period, the Company's Shoe Carnival banner and the family footwear industry have experienced declines. Earlier this year, the Company announced plans to grow its Shoe Station banner from a market leader in the Southeast into a national footwear and accessories leader. As part of this plan, the Company rebannered 10 stores during a test phase in Fiscal 2024 and rebannered 24 stores in first quarter 2025. The Company is accelerating its rebanner strategy and now expects that approximately 120 stores, or 28 percent of the store fleet, to operate as a Shoe Station store by the end of Fiscal 2025. An additional 51 stores are expected to rebanner in Fiscal 2025 (20 in second quarter 2025, 25 in third quarter 2025 and 6 in fourth quarter 2025), with stores expanding into new markets and in markets where the brand is already known. By March 2027, the Company now expects over 80 percent of the current fleet to operate as a Shoe Station store. The Company expects the following prospects and impacts from the rebanner strategy: Significant market share growth in regions where the Company has underperformed with its Shoe Carnival concept or can perform even better under its Shoe Station concept. Significant financial leverage from a more productive store base. Fiscal 2025 rebanner investment impacting operating income in a range of $20 to $25 million, resulting in an approximate $0.65 decline in Fiscal 2025 EPS, of which the Company estimates $0.15 was incurred in first quarter 2025. Recovery of this first-year investment over a two-to-three-year period following a store's grand opening. As Shoe Station stores surpass over half of the store fleet by back-to-school shopping in Fiscal 2026, achievement of overall comparable stores net sales growth in third quarter 2026. As a future phase of the growth strategy, the Company continues to expect to enter new markets where it does not compete today. Fiscal 2025 Outlook Based on first quarter EPS exceeding market expectations, rebanner strategy momentum, and some improvement in macroeconomic uncertainties, the Company reaffirmed its entire Fiscal 2025 outlook and continues to expect the following: Net Sales: $1.15 billion to $1.23 billion, representing a range of down 4 percent to up 2 percent versus Fiscal 2024. GAAP EPS: $1.60 to $2.10, inclusive of the rebanner strategy's initial year costs. Gross Profit Margin: 35 percent to 36 percent. SG&A: $350 million to $360 million. Capital Expenditures: $45 to $60 million. Annual Shareholder Meeting As previously announced, the Company will hold its Annual Meeting of Shareholders at 9:00 a.m. Eastern Time on June 25, 2025. Information about the annual meeting and related material, including the Company's proxy statement and annual report, can be found on the Company's website. Conference Call Today, at 9:00 a.m. Eastern Time, the Company will host a conference call to discuss its first quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival's Investors webpage at While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of the webcast will be available on the Company's website beginning approximately two hours after the conclusion of the conference call and will be archived for one year. 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 May 30, 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. Press releases and annual reports are available on the Company's website at Cautionary Statement Regarding Forward-Looking Information As used herein, "we", "our" and "us" refer to Shoe Carnival, Inc. This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties, such as statements about our future growth, operations, cash flows and shareholder returns. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: our ability to increase our comparable stores Net Sales and achieve expected operating results from rebannering Shoe Carnival locations into Shoe Station locations within expected time frames, or at all; our ability to achieve expected operating results from, and planned growth of, our Shoe Station banner within expected time frames, or at all; the impact of competition and pricing, including our ability to maintain current promotional intensity levels; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; our ability to control costs and meet our labor needs in a rising wage, inflationary, and/or supply chain constrained environment; the effects and duration of economic downturns and unemployment rates; the potential impact of national and international security concerns, including those caused by war and terrorism, on the retail environment; general economic conditions in the areas of the continental United States and Puerto Rico where our stores are located; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to successfully utilize the e-commerce sales channel and its impact on traffic and transactions in our physical stores; the success of the open-air shopping centers where many of our stores are located and the impact on our ability to attract customers to our stores; our ability to attract customers to our e-commerce platform and to successfully grow our omnichannel sales; the effectiveness of our inventory management, including our ability to manage key merchandise vendor relationships and direct-to-consumer initiatives; changes in our relationships with other key suppliers; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; our ability to successfully manage our current real estate portfolio and leasing obligations; changes in weather, including patterns impacted by climate change; changes in consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations including at our distribution center located in Evansville, IN; the impact of natural disasters, public health and political crises, civil unrest, and other catastrophic events on our operations and the operations of our suppliers, as well as on consumer confidence and purchasing in general; the duration and spread of a public health crisis and the mitigating efforts deployed, including the effects of government stimulus on consumer spending; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cybersecurity breach; our ability to effectively achieve the operating results from, and maintain the synergies, efficiencies and other benefits gained through, our acquisition strategy, including our recent acquisition of Rogan's; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to identify, consummate or effectively integrate future acquisitions, our ability to implement and adapt to new technology and systems, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; an increase in the cost, or a disruption in the flow, of imported goods; the impact of regulatory changes in the United States, including minimum wage laws and regulations, and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; continued volatility and disruption in the capital and credit markets; future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company's SEC filings, including the Company's latest Annual Report on Form 10-K. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as "believes," "expects," "aims," "on track," "may," "will," "should," "seeks," "pro forma," "anticipates," "intends" or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments. Financial Tables Follow SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Thirteen Thirteen Weeks Ended Weeks Ended May 3, 2025 May 4, 2024 Net sales $ 277,715 $ 300,365 Cost of sales (including buying, distribution and occupancy costs) 181,938 193,565 Gross profit 95,777 106,800 Selling, general and administrative expenses 83,812 84,293 Operating income 11,965 22,507 Interest income (1,103 ) (803 ) Interest expense 78 136 Income before income taxes 12,990 23,174 Income tax expense 3,647 5,888 Net income $ 9,343 $ 17,286 Net income per share: Basic $ 0.34 $ 0.64 Diluted $ 0.34 $ 0.63 Weighted average shares: Basic 27,233 27,142 Diluted 27,476 27,408 Cash dividends declared per share $ 0.150 $ 0.135 SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) May 3, February 1, May 4, 2025 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 78,476 $ 108,680 $ 56,919 Marketable securities 14,477 14,432 12,555 Accounts receivable 8,745 9,018 5,868 Merchandise inventories 428,424 385,605 411,619 Other 18,509 18,409 17,992 Total Current Assets 548,631 536,144 504,953 Property and equipment – net 178,424 172,806 172,182 Operating lease right-of-use assets 341,815 343,547 345,881 Intangible assets 40,956 40,968 41,001 Goodwill 18,018 18,018 15,223 Other noncurrent assets 12,314 12,650 13,342 Total Assets $ 1,140,158 $ 1,124,133 $ 1,092,582 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 66,592 $ 52,030 $ 71,234 Accrued and other liabilities 24,699 25,382 21,938 Current portion of operating lease liabilities 58,355 53,013 56,025 Total Current Liabilities 149,646 130,425 149,197 Long-term portion of operating lease liabilities 306,987 314,974 313,302 Deferred income taxes 19,624 18,879 15,999 Deferred compensation 9,539 10,011 12,157 Other 781 848 4,123 Total Liabilities 486,577 475,137 494,778 Total Shareholders' Equity 653,581 648,996 597,804 Total Liabilities and Shareholders' Equity $ 1,140,158 $ 1,124,133 $ 1,092,582 SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Thirteen Thirteen Weeks Ended Weeks Ended May 3, 2025 May 4, 2024 Cash Flows From Operating Activities Net income $ 9,343 $ 17,286 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 8,335 7,385 Stock-based compensation 1,546 1,757 Loss on retirement and impairment of assets, net 596 117 Deferred income taxes 745 326 Non-cash operating lease expense 15,876 14,926 Other 317 277 Changes in operating assets and liabilities: Accounts receivable 272 (904 ) Merchandise inventories (42,819 ) (23,387 ) Operating leases (16,789 ) (14,916 ) Accounts payable and accrued liabilities 12,256 7,886 Other 685 6,306 Net cash (used in) provided by operating activities (9,637 ) 17,059 Cash Flows From Investing Activities Purchases of property and equipment (13,346 ) (10,192 ) Investments in marketable securities (678 ) (17 ) Acquisition, net of cash acquired 0 (44,577 ) Net cash used in investing activities (14,024 ) (54,786 ) Cash Flow From Financing Activities Proceeds from issuance of stock 48 39 Dividends paid (4,418 ) (3,705 ) Shares surrendered by employees to pay taxes on stock-based compensation awards (2,173 ) (688 ) Net cash used in financing activities (6,543 ) (4,354 ) Net decrease in cash and cash equivalents (30,204 ) (42,081 ) Cash and cash equivalents at beginning of period 108,680 99,000 Cash and cash equivalents at end of period $ 78,476 $ 56,919 View source version on Contacts Patrick C. EdwardsChief Financial Officer, Treasurer and Secretary(812) 867-4034 (812) 867-6471 Sign in to access your portfolio
Business Wire
7 days ago
- Business
- Business Wire
Shoe Carnival Reports First Quarter Fiscal 2025 Results
FORT MILL, S.C.--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL) (the 'Company'), a leading retailer of footwear and accessories for the family, today reported results for the first quarter ended May 3, 2025 and reaffirmed its previously issued Fiscal 2025 outlook. First Quarter Fiscal 2025 Highlights Profits outperformed market expectations by over 10 percent with $0.34 EPS achieved. Rebanner strategy delivered double-digit comparable net sales growth and accretive margins. Shoe Station banner net sales grew 4.9 percent while family footwear industry declined. Accelerated expansion plan: Shoe Station to represent over 80 percent of the store fleet by March 2027. Balance sheet strengthened with no debt and over 30 percent additional cash on hand compared to first quarter 2024. '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. '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.' Mr. Worden continued, 'Today, we're announcing an ambitious expansion of our rebanner strategy, with Shoe Station now expected to represent over 80 percent of our store fleet by March 2027, up from our previous target of 51 percent. 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.' First Quarter Operating Results In first quarter 2025, the Company's Shoe Station banner contributed a 4.9 percent increase in net sales compared to first quarter 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 percent. 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 2025 and first quarter 2024. Total Company net sales in first quarter 2025 declined 7.5 percent to $277.7 million as compared to $300.4 million in first quarter 2024. 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. First quarter 2025 gross profit margin was 34.5 compared to 35.6 percent in first quarter 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. First quarter 2025 selling, general, and administrative costs ('SG&A') decreased $0.5 million. SG&A increases associated with the rebanner strategy were more than offset by the timing of selling expenses from other stores. As a percent of net sales, SG&A were 30.2 percent in first quarter 2025 compared to 28.1 percent in first quarter 2024, with rebanner investment as the primarily driver of this increase. First quarter 2025 net income was $9.3 million, or $0.34 per diluted share ('EPS'), compared to first quarter 2024 net income of $17.3 million, or $0.63 per diluted share. The Company estimates first quarter 2025 EPS was negatively impacted by approximately $0.15 of rebanner strategy investment, inclusive of store closing costs, amortization of new store construction costs, a four-to-six-week store closure period through each store's grand opening, customer acquisition costs and other costs. Capital Management and Cash Flow The 2024 fiscal year end marked the 20th consecutive year the Company ended a year with no debt, fully funding its operations, acquisitions and investments from operating cash flow. In first quarter 2025, the Company also funded its operations without incurring any debt and growing its cash, cash equivalents and marketable securities $23.5 million compared to balances at the end of first quarter 2024. At the end of first quarter 2025, the Company had approximately $93.0 million available to fund growth objectives. During first quarter 2025, the Company invested $16.8 million in additional merchandise inventory compared to inventories at the end of first quarter 2024. Additional inventory purchases were made in first quarter 2025 in advance of the tariff increases announced on April 2nd. Rebanner-related expense and these accelerated inventory purchases were the primary drivers of negative cash flow from operating activities in first quarter 2025. In first quarter 2025, capital expenditures totaled $13.3 million and primarily reflect the 24 stores rebannered and one new store opened. As of May 3, 2025, the Company had $50 million available for future repurchases under its share repurchase program. During first quarter 2025, the Company did not repurchase any shares. The Company paid a $0.15 per share quarterly cash dividend on April 21, 2025. On an annualized basis, this dividend is a 238 percent increase compared to the rate paid to shareholders five years ago. The dividend paid in first quarter 2025 marked the 11th consecutive year the Company increased its dividend, and the Company has now paid a dividend for 52 consecutive quarters. Store Count As of May 3, 2025, 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 first quarter 2024. Shoe Station Rebanner Strategy Acceleration Shoe Station has been the industry's fastest growing retailer over the last two years, according to industry data. Over this same period, the Company's Shoe Carnival banner and the family footwear industry have experienced declines. Earlier this year, the Company announced plans to grow its Shoe Station banner from a market leader in the Southeast into a national footwear and accessories leader. As part of this plan, the Company rebannered 10 stores during a test phase in Fiscal 2024 and rebannered 24 stores in first quarter 2025. The Company is accelerating its rebanner strategy and now expects that approximately 120 stores, or 28 percent of the store fleet, to operate as a Shoe Station store by the end of Fiscal 2025. An additional 51 stores are expected to rebanner in Fiscal 2025 (20 in second quarter 2025, 25 in third quarter 2025 and 6 in fourth quarter 2025), with stores expanding into new markets and in markets where the brand is already known. By March 2027, the Company now expects over 80 percent of the current fleet to operate as a Shoe Station store. The Company expects the following prospects and impacts from the rebanner strategy: Significant market share growth in regions where the Company has underperformed with its Shoe Carnival concept or can perform even better under its Shoe Station concept. Significant financial leverage from a more productive store base. Fiscal 2025 rebanner investment impacting operating income in a range of $20 to $25 million, resulting in an approximate $0.65 decline in Fiscal 2025 EPS, of which the Company estimates $0.15 was incurred in first quarter 2025. Recovery of this first-year investment over a two-to-three-year period following a store's grand opening. As Shoe Station stores surpass over half of the store fleet by back-to-school shopping in Fiscal 2026, achievement of overall comparable stores net sales growth in third quarter 2026. As a future phase of the growth strategy, the Company continues to expect to enter new markets where it does not compete today. Fiscal 2025 Outlook Based on first quarter EPS exceeding market expectations, rebanner strategy momentum, and some improvement in macroeconomic uncertainties, the Company reaffirmed its entire Fiscal 2025 outlook and continues to expect the following: Net Sales: $1.15 billion to $1.23 billion, representing a range of down 4 percent to up 2 percent versus Fiscal 2024. GAAP EPS: $1.60 to $2.10, inclusive of the rebanner strategy's initial year costs. Gross Profit Margin: 35 percent to 36 percent. SG&A: $350 million to $360 million. Capital Expenditures: $45 to $60 million. Annual Shareholder Meeting As previously announced, the Company will hold its Annual Meeting of Shareholders at 9:00 a.m. Eastern Time on June 25, 2025. Information about the annual meeting and related material, including the Company's proxy statement and annual report, can be found on the Company's website. Conference Call Today, at 9:00 a.m. Eastern Time, the Company will host a conference call to discuss its first quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival's Investors webpage at While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of the webcast will be available on the Company's website beginning approximately two hours after the conclusion of the conference call and will be archived for one year. 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 May 30, 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. Press releases and annual reports are available on the Company's website at Cautionary Statement Regarding Forward-Looking Information As used herein, 'we', 'our' and 'us' refer to Shoe Carnival, Inc. This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties, such as statements about our future growth, operations, cash flows and shareholder returns. A number of factors could cause our actual results, performance, achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to: our ability to increase our comparable stores Net Sales and achieve expected operating results from rebannering Shoe Carnival locations into Shoe Station locations within expected time frames, or at all; our ability to achieve expected operating results from, and planned growth of, our Shoe Station banner within expected time frames, or at all; the impact of competition and pricing, including our ability to maintain current promotional intensity levels; changes in the political and economic environments in, the status of trade relations with, and the impact of changes in trade policies and tariffs impacting, China and other countries which are the major manufacturers of footwear; our ability to control costs and meet our labor needs in a rising wage, inflationary, and/or supply chain constrained environment; the effects and duration of economic downturns and unemployment rates; the potential impact of national and international security concerns, including those caused by war and terrorism, on the retail environment; general economic conditions in the areas of the continental United States and Puerto Rico where our stores are located; changes in the overall retail environment and more specifically in the apparel and footwear retail sectors; our ability to successfully utilize the e-commerce sales channel and its impact on traffic and transactions in our physical stores; the success of the open-air shopping centers where many of our stores are located and the impact on our ability to attract customers to our stores; our ability to attract customers to our e-commerce platform and to successfully grow our omnichannel sales; the effectiveness of our inventory management, including our ability to manage key merchandise vendor relationships and direct-to-consumer initiatives; changes in our relationships with other key suppliers; our ability to successfully manage and execute our marketing initiatives and maintain positive brand perception and recognition; our ability to successfully manage our current real estate portfolio and leasing obligations; changes in weather, including patterns impacted by climate change; changes in consumer buying trends and our ability to identify and respond to emerging fashion trends; the impact of disruptions in our distribution or information technology operations including at our distribution center located in Evansville, IN; the impact of natural disasters, public health and political crises, civil unrest, and other catastrophic events on our operations and the operations of our suppliers, as well as on consumer confidence and purchasing in general; the duration and spread of a public health crisis and the mitigating efforts deployed, including the effects of government stimulus on consumer spending; risks associated with the seasonality of the retail industry; the impact of unauthorized disclosure or misuse of personal and confidential information about our customers, vendors and employees, including as a result of a cybersecurity breach; our ability to effectively achieve the operating results from, and maintain the synergies, efficiencies and other benefits gained through, our acquisition strategy, including our recent acquisition of Rogan's; our ability to successfully execute our business strategy, including the availability of desirable store locations at acceptable lease terms, our ability to identify, consummate or effectively integrate future acquisitions, our ability to implement and adapt to new technology and systems, our ability to open new stores in a timely and profitable manner, including our entry into major new markets, and the availability of sufficient funds to implement our business plans; higher than anticipated costs associated with the closing of underperforming stores; the inability of manufacturers to deliver products in a timely manner; an increase in the cost, or a disruption in the flow, of imported goods; the impact of regulatory changes in the United States, including minimum wage laws and regulations, and the countries where our manufacturers are located; the resolution of litigation or regulatory proceedings in which we are or may become involved; continued volatility and disruption in the capital and credit markets; future stock repurchases under our stock repurchase program and future dividend payments; and other factors described in the Company's SEC filings, including the Company's latest Annual Report on Form 10-K. In addition, these forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as 'believes,' 'expects,' 'aims,' 'on track,' 'may,' 'will,' 'should,' 'seeks,' 'pro forma,' 'anticipates,' 'intends' or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments. SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) May 3, February 1, May 4, 2025 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 78,476 $ 108,680 $ 56,919 Marketable securities 14,477 14,432 12,555 Accounts receivable 8,745 9,018 5,868 Merchandise inventories 428,424 385,605 411,619 Other 18,509 18,409 17,992 Total Current Assets 548,631 536,144 504,953 Property and equipment – net 178,424 172,806 172,182 Operating lease right-of-use assets 341,815 343,547 345,881 Intangible assets 40,956 40,968 41,001 Goodwill 18,018 18,018 15,223 Other noncurrent assets 12,314 12,650 13,342 Total Assets $ 1,140,158 $ 1,124,133 $ 1,092,582 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 66,592 $ 52,030 $ 71,234 Accrued and other liabilities 24,699 25,382 21,938 Current portion of operating lease liabilities 58,355 53,013 56,025 Total Current Liabilities 149,646 130,425 149,197 Long-term portion of operating lease liabilities 306,987 314,974 313,302 Deferred income taxes 19,624 18,879 15,999 Deferred compensation 9,539 10,011 12,157 Other 781 848 4,123 Total Liabilities 486,577 475,137 494,778 Total Shareholders' Equity 653,581 648,996 597,804 Total Liabilities and Shareholders' Equity $ 1,140,158 $ 1,124,133 $ 1,092,582 Expand SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Weeks Ended Weeks Ended May 3, 2025 May 4, 2024 Cash Flows From Operating Activities Net income $ 9,343 $ 17,286 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 8,335 7,385 Stock-based compensation 1,546 1,757 Loss on retirement and impairment of assets, net 596 117 Deferred income taxes 745 326 Non-cash operating lease expense 15,876 14,926 Other 317 277 Changes in operating assets and liabilities: Accounts receivable 272 (904 ) Merchandise inventories (42,819 ) (23,387 ) Operating leases (16,789 ) (14,916 ) Accounts payable and accrued liabilities 12,256 7,886 Other 685 6,306 Net cash (used in) provided by operating activities (9,637 ) 17,059 Cash Flows From Investing Activities Purchases of property and equipment (13,346 ) (10,192 ) Investments in marketable securities (678 ) (17 ) Acquisition, net of cash acquired 0 (44,577 ) Net cash used in investing activities (14,024 ) (54,786 ) Cash Flow From Financing Activities Proceeds from issuance of stock 48 39 Dividends paid (4,418 ) (3,705 ) Shares surrendered by employees to pay taxes on stock-based compensation awards (2,173 ) (688 ) Net cash used in financing activities (6,543 ) (4,354 ) Net decrease in cash and cash equivalents (30,204 ) (42,081 ) Cash and cash equivalents at beginning of period 108,680 99,000 Cash and cash equivalents at end of period $ 78,476 $ 56,919 Expand
