Shoe Carnival Tops Profit Forecasts as Retailer Continues Rebranding Effort

Shares of Shoe Carnival (SCVL) advanced Friday after the footwear retailer’s profit easily beat estimates, boosted by its Shoe Station stores, which it plans to grow through rebranding.

The company posted first-quarter earnings per share of $0.34, more than double the $0.15 average estimate of analysts surveyed by Visible Alpha. Revenue declined 7.5% year-over-year to $277.7 million, short of forecasts.

Sales at Shoe Station stores increased 4.9%, which the firm explained was primarily because of “double-digit comparable stores net sales growth from the Company’s rebanner strategy.” Shoe Carnival store sales fell 10.0%. Sales at Rogan’s, which the company acquired in February 2024, were flat. 

Earlier this year, the company announced it would “grow its Shoe Station banner from a market leader in the Southeast into a national footwear and accessories leader.” It rebranded 10 stores in fiscal 2024 and 24 during the first quarter, and explained that it was accelerating that effort, looking to have about 120 stores, or 28% of its locations, under the Shoe Station banner by the end of fiscal 2025.

CEO Touts ‘Continued Success of Our Strategic Transformation’

CEO Mark Worden said the Q1 performance reflected “the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 percent despite the challenging macroeconomic and retail environment.” Worden added that “the Shoe Station growth strategy is working exceptionally well.”

Shoe Carnival also affirmed its full-year sales outlook of $1.15 billion to $1.23 billion.

Even with today’s 7% gains, Shoe Carnival shares have lost about 40% of their value this year.