Shoe Carnival Inc
NASDAQ:SCVL
Shoe Carnival Inc
Shoe Carnival, Inc. engages in the retail of footwear products. The company is headquartered in Evansville, Indiana and currently employs 2,600 full-time employees. The firm offers customers an assortment of dress, casual and athletic footwear for men, women and children. The firm provides customers to shop at any of its physical stores or shop online through its e-commerce platform. The company operates a single approximately 410,000 square foot distribution center located in Evansville, Indiana. The firm owns trademarks and service marks, including Shoe Carnival and associated trade dress and related logos, Y-NOT?, UNR8ED, Solanz, Shoe Perks, SC Work Wear, When You Want To 2, A Surprise In Store, Shoes 2U, Laces for Learning, Princess Lacey’s Laces, Shoe Station, Shoe Station Super Store and Shoe Station Select. The Company’s facility supports the processing and distribution needs of over 460 stores. The company has the right to expand the facility by 200,000 square feet, which provides the processing capacity to support approximately 650 stores.
Shoe Carnival, Inc. engages in the retail of footwear products. The company is headquartered in Evansville, Indiana and currently employs 2,600 full-time employees. The firm offers customers an assortment of dress, casual and athletic footwear for men, women and children. The firm provides customers to shop at any of its physical stores or shop online through its e-commerce platform. The company operates a single approximately 410,000 square foot distribution center located in Evansville, Indiana. The firm owns trademarks and service marks, including Shoe Carnival and associated trade dress and related logos, Y-NOT?, UNR8ED, Solanz, Shoe Perks, SC Work Wear, When You Want To 2, A Surprise In Store, Shoes 2U, Laces for Learning, Princess Lacey’s Laces, Shoe Station, Shoe Station Super Store and Shoe Station Select. The Company’s facility supports the processing and distribution needs of over 460 stores. The company has the right to expand the facility by 200,000 square feet, which provides the processing capacity to support approximately 650 stores.
EPS & Sales Beat: Q3 EPS of $0.53 and net sales of $297.2 million both exceeded consensus expectations.
Gross Margin Expansion: Gross profit margin rose 160 basis points to 37.6%, driven by pricing discipline and a shift to higher-income customers.
Shoe Station Outperformance: Shoe Station net sales grew 5.3% and product margins expanded by 260 basis points, while Shoe Carnival net sales declined 5.2%.
One Banner Strategy: Management is accelerating conversion to Shoe Station, expecting over 51% of stores to be Shoe Station by back-to-school 2026, aiming for $20 million in annual cost savings by end of 2027.
Inventory Reduction: The company plans to free up $100 million in working capital by reducing inventory through the Shoe Station model over the next two years.
Raised EPS Guidance: Full-year EPS guidance was raised to $1.80–$2.10 (up $0.10 at the low end); net sales guidance of $1.12–$1.15 billion reaffirmed.
Investment Phase: 2026 will be another investment year with continued margin and EPS pressure, but company expects a return to sales and EPS growth in 2027 and acceleration in 2028.
