Shoe Carnival Reports 2.3% Net Sales Increase to $1.2 Billion for Fiscal Year Ending February 2025

Shoe Carnival, Inc. reported a net sales increase of 2.3% for the fiscal year ending February 1, 2025, reaching $1.2 billion, compared to $1.18 billion in the previous fiscal year. The growth was primarily driven by a 5.7% increase in sales from the Shoe Station banner and the acquisition of Rogan Shoes, which contributed $80.3 million in sales. However, comparable store sales declined by 3.9%, largely due to a decrease in traffic at Shoe Carnival stores during non-event periods. The company's gross profit margin remained stable at 35.6%, slightly down from 35.8% in the prior year, attributed to increased buying, distribution, and occupancy costs.

In terms of strategic developments, Shoe Carnival completed the acquisition of Rogan Shoes in February 2024, which added 28 stores and positioned the company as a market leader in Wisconsin. The company also plans to implement a rebanner strategy, converting 50 to 75 underperforming Shoe Carnival stores to the Shoe Station banner in Fiscal 2025, with a long-term goal of operating 218 Shoe Station stores, representing 51% of its total store fleet. This strategy is expected to enhance profitability, with anticipated sales and profit contributions over 10% higher at the new Shoe Station stores compared to the previous Shoe Carnival locations.

Operationally, Shoe Carnival ended Fiscal 2024 with 430 stores, including 360 Shoe Carnival stores, 42 Shoe Station stores, and 28 Rogan's stores. The company reported an increase in Shoe Perks membership to 36.8 million, a 7% rise from the previous year, with purchases from these members accounting for approximately 73% of comparable store net sales. The company’s workforce comprised about 5,500 employees, with a significant portion being part-time staff, reflecting the seasonal nature of retail operations.

Looking ahead, Shoe Carnival anticipates that the rebanner strategy will initially decrease operating income by $20 to $25 million in Fiscal 2025 due to associated costs, but expects to recover this investment over a two-to-three-year period. The company remains focused on expanding its e-commerce capabilities, which accounted for approximately 10% of merchandise sales, and aims to enhance customer engagement through its CRM initiatives. The outlook for the upcoming fiscal year includes continued investment in store modernization and strategic acquisitions, supported by a strong cash position of $123.1 million and no outstanding debt.