Shoe Carnival CEO is optimistic about future growth and potential rebranding to Shoe Station.
From Yahoo Finance.: 2025-05-30 15:32:00
Shoe Carnival CEO Mark Worden remains optimistic about the future, reaffirming fiscal year 2025 guidance after posting first-quarter earnings. The retailer, debt-free with no manufacturing or wholesale operations, sees an opportunity to pivot in the changing retail landscape. Worden also highlights close collaboration with vendor partners and the potential for margin growth.
For the first quarter ended May 3, Shoe Carnival reported net income of $9.3 million on net sales of $277.7 million. Fiscal year 2025 guidance includes earnings per share of $1.60 to $2.10 on net sales of $1.15 billion to $1.23 billion. The CEO notes a cautious consumer sentiment, especially at Shoe Carnival targeting lower-income households.
Shoe Carnival sales were down 10 percent in the quarter, while Shoe Station saw a 4.9 percent increase. Plans are in place to rebrand 75 Shoe Carnival stores to Shoe Station this year, aiming to transition to a national footwear chain. Worden emphasizes the success of Shoe Station and its potential for organic growth.
Shoe Station has been outperforming Shoe Carnival for over two years, with plans to expand into new markets in the Southeast. Worden sees Shoe Station as the future of the company’s store base, with the potential for all stores to operate under the Shoe Station banner in the future. The company is evaluating urban markets for expansion.
Looking ahead to the fall, back-to-school, and holiday seasons, Shoe Carnival has maintained elevated inventory levels to navigate marketplace uncertainties. The company aims to invest early in key products, maximize in-stock positions, and fully prepare stores for customer needs during these critical seasons. Worden stresses the importance of being well-prepared. Shoe Station, Shoe Carnival, and Rogan’s locations will be fully stocked with customers’ favorite brands through 2025. Men’s and women’s performance running brands are seeing double-digit growth, with Shoe Station reporting robust average unit retail prices of over $130 for back-to-school styles.
The company CEO is committed to pursuing mergers and acquisitions to become the nation’s leading footwear retailer for families. Focus is on market-leading retailers with scale, geographic expansion, and diversification to a higher income customer base. The leadership team will pursue scale-changing M&A opportunities when the right valuation is available.
Read more at Yahoo Finance.: Shoe Carnival CEO Is Upbeat About Back-to-school: Here’s Why