Shoe Carnival Reports 12.9% Revenue Growth in Q2 2024, Driven by Rogan Shoes Acquisition and Calendar Shift

Shoe Carnival, Inc. reported significant financial growth in its second quarter and year-to-date results for 2024, reflecting a robust performance compared to the previous fiscal period. For the thirteen weeks ended August 3, 2024, net sales reached $332.7 million, marking a 12.9% increase from $294.6 million in the same period of 2023. This growth was bolstered by the acquisition of Rogan Shoes, which contributed $22.0 million in net sales during the quarter, and a favorable calendar shift that added approximately $20 million in sales.

Gross profit for the second quarter was $119.9 million, up from $105.5 million in the prior year, resulting in a gross profit margin of 36.1%, an increase of 30 basis points year-over-year. Operating income also saw a substantial rise, totaling $30.1 million, a 22.0% increase from $24.6 million in the second quarter of 2023. Net income for the quarter was $22.6 million, or $0.82 per diluted share, compared to $19.4 million, or $0.71 per diluted share, in the previous year.

For the year-to-date period ending August 3, 2024, total net sales amounted to $633.1 million, a 9.9% increase from $575.8 million in the same period of 2023. The increase was attributed to the Rogan acquisition, a calendar shift contributing approximately $25 million, and new store growth, despite a 2.8% decline in comparable store sales. Gross profit for the year-to-date period was $226.7 million, with a gross profit margin of 35.8%, up from 35.4% in the prior year.

Shoe Carnival's total current assets increased to $537.1 million as of August 3, 2024, from $481.3 million on February 3, 2024. Total assets rose to $1.1 billion, while shareholders' equity grew to $618.5 million, up from $583.4 million in the previous quarter. The company reported retained earnings of $747.0 million, reflecting a steady increase from $714.6 million in the prior quarter.

The acquisition of Rogan Shoes, completed on February 13, 2024, added 28 store locations and positioned Shoe Carnival as a market leader in Wisconsin. The integration of Rogan's stores into the Shoe Station banner is expected to enhance the company's market presence and operational efficiency.

Shoe Carnival's cash and cash equivalents decreased to $71.6 million as of August 3, 2024, from $99.0 million in the previous quarter, although this was an increase from $34.6 million a year earlier. The company has maintained a strong liquidity position, with a current ratio of 3.4, up from 3.1 in the prior year.

Overall, Shoe Carnival's strategic initiatives, including acquisitions and a focus on e-commerce, have contributed to its positive financial trajectory in 2024.