FORT MILL, S.C.--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL), a leading retailer of footwear and accessories for the family, announced today that Cliff Sifford, the Company's current Vice Chairman of the Board, has been named the Interim President and Chief Executive Officer of the Company, effective February 24, 2026. Mr. Sifford succeeds Mark Worden, who departed from his position as the Company's President and Chief Executive Officer and resigned as a member of the Board of Directors. ...

Core Viewpoint - The company is undergoing a transformation by converting its Shoe Carnival stores into Shoe Station stores, which is expected to yield positive results over the next few years [1]. Group 1: Company Transition - The transition from Shoe Carnival to Shoe Station is a strategic move aimed at enhancing the company's market position and operational efficiency [1]. Group 2: Analyst Background - The author has a background in writing for financial publications and focuses on sectors such as restaurants, retailers, and food manufacturers, emphasizing long-term investment opportunities [1].

Core Viewpoint - The company is undergoing a transformation by converting its Shoe Carnival stores into Shoe Station stores, which is expected to yield positive results over the next few years [1]. Group 1: Company Transition - The transition from Shoe Carnival to Shoe Station is a strategic move aimed at enhancing the company's market position and operational efficiency [1].

Core Points - Shoe Carnival, Inc. announced a quarterly cash dividend of $0.15 per share, payable on January 26, 2026, to shareholders of record as of January 12, 2026 [1] - The Board of Directors also authorized a new share repurchase program for up to $50 million of its outstanding common stock [1]

Financial Performance - Net Income for Q3 2025 was $14.6 million, or $0.53 per diluted share, down from $19.2 million, or $0.70 per diluted share in Q3 2024[77]. - Net Sales declined 3.2% in Q3 2025, primarily due to a 5.2% decline at the Shoe Carnival banner, while Shoe Station achieved a 5.3% increase in Net Sales[78]. - Comparable stores Net Sales decreased by 2.7%, with Shoe Station growing mid-single digits and Shoe Carnival declining mid-single digits[79]. - Net Sales for third quarter 2025 were $297.2 million, a decrease of $9.7 million, or 3.2%, compared to third quarter 2024, primarily due to a 5.2% decline in Shoe Carnival sales[89]. - Year-to-date 2025 Net Sales were $881.3 million, a decrease of $58.7 million, or 6.2%, compared to year-to-date 2024, with an 8.5% decline in Shoe Carnival sales[94]. Profitability and Margins - Gross Profit margin improved to 37.6%, up 160 basis points from Q3 2024, with Gross Profit increasing to $111.8 million compared to $110.4 million in Q3 2024[80]. - Gross Profit for third quarter 2025 was $111.8 million, with a gross profit margin of 37.6%, an increase of 160 basis points compared to the same quarter in 2024[90]. - Selling, General and Administrative Expenses (SG&A) increased to $93.2 million in third quarter 2025, representing 31.3% of Net Sales, up from 28.0% in the same quarter of 2024[92]. - Operating Income was reduced by approximately $25 million in Fiscal 2025 due to rebannering costs, with an estimated impact of $8.1 million in third quarter 2025 alone[85]. Cash Flow and Capital Expenditures - Cash, Cash Equivalents, and Marketable Securities increased by $16.6 million, or 18.2%, to $107.7 million by the end of Q3 2025[81]. - Cash generated from operating activities was $37.3 million in year-to-date 2025, down from $58.1 million in year-to-date 2024, primarily due to increased inventory purchases[101]. - Capital expenditures for the rebanner initiative totaled approximately $31 million in year-to-date 2025, with expectations of $25 million to $35 million for further expansion by Back-to-School 2026[85][86]. - Capital expenditures for Fiscal 2025 are expected to be between $45 million and $55 million, including approximately $31 million for rebanner capital expenditures[114]. Store Operations and Strategy - The acquisition of Rogan's added 28 physical stores, enhancing market presence in Wisconsin and Minnesota[67]. - Shoe Station stores now account for approximately 34% of the current store fleet, up from 10% at the beginning of Fiscal 2025, with a total of 144 stores as of the end of third quarter 2025[84]. - The company expects to have 215 Shoe Station stores by Back-to-School 2026, representing approximately 51% of the current store base[86]. - The company currently operates 428 stores, with plans to increase to 215 Shoe Station stores by Back-to-School 2026, representing approximately 51% of the current store base[115][116]. - In Fiscal 2025, the company rebannered a total of 72 Shoe Carnival stores and closed 3, resulting in a net decrease to 285 Shoe Carnival stores[115]. - The company expects limited store openings and closures in the near term as it executes its One Banner Strategy and increases scale through acquisitions[115]. Shareholder Returns and Market Risks - The quarterly cash dividend was increased to $0.15 per share in Q3 2025, up from $0.135 per share in Q3 2024, returning $12.6 million to shareholders year-to-date 2025[117]. - A share repurchase program for up to $50 million was authorized, effective January 1, 2025, with no repurchases made to date in Fiscal 2025[118][119]. - The company is exposed to market risk due to variable interest rates under its Credit Agreement, with no borrowings outstanding during year-to-date 2025[123]. - The Credit Agreement permits the payment of dividends and share repurchases, subject to certain covenants and restrictions[120]. Taxation - The effective income tax rate for year-to-date 2025 was 26.2%, compared to 25.5% for year-to-date 2024, influenced by adjustments related to share-settled equity awards[98]. Seasonal Trends - The company has three distinct peak selling periods: Easter, back-to-school, and Christmas, which significantly impact operating results[121].

Core Insights - Shoe Carnival, Inc. reported an EPS of $0.53, matching estimates, with revenue of approximately $297.2 million, slightly below expectations but surpassing consensus [2][6] - The company operates in the footwear and accessories market, utilizing strategic initiatives like the One Banner Strategy to maintain its market position [1] Financial Metrics - The Price-to-Earnings (P/E) ratio is approximately 7.89, indicating a relatively low valuation compared to earnings, suggesting potential value for investors [3][6] - The Price-to-Sales ratio is about 0.40, meaning investors are paying 40 cents for every dollar of sales, which is considered attractive [3] - The enterprise value to sales ratio is approximately 0.63, reflecting the market's valuation of the company's overall business operations [4] - The enterprise value to operating cash flow ratio is around 11.07, providing insight into the market's valuation of the company's cash flow generation capabilities [4] Financial Health - The debt-to-equity ratio is about 0.53, indicating a moderate level of debt relative to equity [5] - The current ratio is approximately 4.05, suggesting strong liquidity and the company's capability to cover short-term liabilities [5][6]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if they have an ad-blocker enabled [1]

Core Viewpoint - Shoe Carnival, Inc. reported third-quarter sales of $297.155 million, surpassing expectations, while comparable store sales declined by 2.7% [1][3] Financial Performance - Gross profit increased to $111.8 million from $110.4 million year-over-year, with a gross profit margin climbing to 37.6%, an increase of 160 basis points [4][5] - The company reported adjusted earnings per share of 75 cents for the third quarter [5] - Cash, cash equivalents, and marketable securities totaled $107.7 million at the end of the quarter, an increase of 18.2% compared to the prior year [6] Strategic Initiatives - The One Banner Strategy is gaining traction, with Shoe Station achieving 5.3% net sales growth [1] - The company plans to transition to a single Shoe Station banner, expecting to unlock significant operational and financial gains by fiscal 2027, including $20 million in annual cost savings [8] - Management aims to reach 215 Shoe Station stores by Back-to-School 2026, with over 90% of locations expected to operate as Shoe Station by the end of fiscal 2028 [7][8] Market Positioning - Shoe Station's core customer has a median household income of $60,000-$100,000, showing a preference for premium products and elevated service [2] - The company is intentionally moving away from lower-income consumers, which has led to a 5.2% sales decline at Shoe Carnival [3][4] Future Outlook - The company raised its 2025 GAAP earnings outlook to a range of $1.80 to $2.10 per share, while reaffirming its full-year sales forecast of $1.12 billion to $1.15 billion [11] - Despite expected sales declines in early 2026 due to rebranding efforts, inventory reductions of up to $60 million should fund the conversion program [10]

Core Insights - Shoe Carnival, Inc. (SCVL) reported third-quarter fiscal 2025 results, with both earnings per share (EPS) and net sales meeting the Zacks Consensus Estimate, although both metrics declined year over year [1][10] - Comparable store sales decreased by 2.7% year over year in the fiscal third quarter [2][10] Financial Performance - EPS for the quarter was 53 cents, down 24.3% from 70 cents in the same quarter last year, with rebanner investments estimated to have reduced EPS by approximately 22 cents [1][10] - Net sales totaled $297.2 million, reflecting a 3.2% decline year over year [2][10] - Gross profit increased by 1.3% year over year to $111.8 million, with an adjusted gross margin of 37.6%, expanding 160 basis points year over year [4] - Operating income decreased by 24.1% year over year to $18.6 million, with this metric as a percentage of net sales declining 170 basis points to 6.3% [6] Strategic Initiatives - The One Banner Strategy, aimed at consolidating operations under the Shoe Station brand, is progressing, with Shoe Station now accounting for 34% of the store fleet, up from 10% at the beginning of fiscal 2025 [8][9] - The company plans to operate 215 Shoe Station locations by Back-to-School 2026, expecting this banner to represent 51% of the fleet by then [11] - Annual cost savings of approximately $20 million are anticipated from the One Banner Strategy, alongside a projected inventory investment decline of $100 million, or 20-25% [12][13] Future Outlook - For fiscal 2025, net sales are expected to range from $1.12 billion to $1.15 billion, with EPS guidance updated to a range of $1.80 to $2.10 [16] - Fiscal 2026 is projected to see a decline in net sales in the low-to-mid single digits during the first half, with a return to flat-to-low single-digit growth in the second half as Shoe Station surpasses 51% of the store base [16]

Financial Data and Key Metrics Changes - The company reported Q3 EPS of $0.53 and net sales of $297.2 million, both exceeding consensus expectations [3][4] - Gross profit margin expanded by 160 basis points to 37.6%, driven by disciplined pricing and a shift towards higher-income customers [4][18] - Net income for Q3 was $14.6 million, down from $19.2 million year-over-year, primarily due to re-banner investments impacting EPS by $0.22 [19][20] Business Line Data and Key Metrics Changes - Athletics represented 51% of total sales in Q3, with low single-digit growth overall, while Shoe Station specifically saw double-digit growth [4][16] - Shoe Station's net sales grew by 5.3%, while Shoe Carnival's net sales declined by 5.2%, indicating a significant performance gap of 10.5 percentage points [5][19] - Non-athletic categories represented 43% of total sales in Q3, with a mid-single-digit comparable sales decline [4][17] Market Data and Key Metrics Changes - The company is strategically shifting away from lower-income households, which are under economic pressure, to focus on higher-income consumers with median household incomes of $60,000-$100,000 [6][9] - The company expects to reach a critical threshold of 51% of stores operating as Shoe Station by back-to-school 2026, which is anticipated to restore comparable sales growth [8][30] Company Strategy and Development Direction - The company announced a name change to Shoe Station Group, reflecting a strategic focus on building a stronger, more profitable company [3][14] - The plan includes converting underperforming locations to the Shoe Station format, with 101 store re-banners completed in fiscal 2025 [7][21] - The consolidation to one brand is expected to yield $20 million in annual cost savings and improved operational efficiencies by the end of fiscal 2027 [9][28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining pricing discipline and not chasing unprofitable sales, especially in the lower-income segment [6][10] - The company anticipates modest gains beginning in 2027, with meaningful acceleration in 2028 as the transformation progresses [13][31] - Management expressed confidence in the long-term value creation potential of the one-banner strategy, emphasizing the shift in consumer preferences towards premium brands [14][30] Other Important Information - The company ended the quarter with over $107 million in cash equivalents and remains debt-free, providing financial flexibility for ongoing investments [20][30] - The company expects to free up $100 million in working capital through inventory reductions as it transitions to the Shoe Station model [10][26] Q&A Session Summary Question: What is the expected drag on earnings from re-bannering expenses next year? - Management indicated that re-banner expenses for the next year are expected to be between $25 million and $30 million, with costs front-loaded due to the conversion of approximately 70 stores [35][41] Question: How will the company handle inventory reductions and margin pressure? - Management acknowledged that there will be margin pressure from liquidating non-GoForward products, but emphasized the importance of not carrying over unsold inventory [58][69] Question: What is the timeline for reaching 80% of stores rebannered? - Management confirmed that the focus is on surpassing the critical 51% threshold by summer 2026, with plans to exceed 90% by the end of fiscal 2028 [71][72] Question: How much of the $20 million in savings is expected to flow to the bottom line? - Management stated that the full benefit of the $20 million savings is expected to manifest in 2028, as 2026 will be an investment year with ongoing re-banner costs [73][75]