Shoe Carnival reported a 7.9% decrease in net sales for Q2 2025, with operating income at $25.2m and net income at $19.2m. Earnings per share of $0.70 exceeded consensus by over 20%, and gross profit margin increased to 38.8%. Shoe Station’s rebanner strategy resulted in 8% comparable sales growth.

The company operated 428 stores as of August 2, 2025, including 313 Shoe Carnival stores, 87 Shoe Station stores, and 28 Rogan’s stores. Shoe Station store count doubled since Q2 2024. Shoe Carnival completed 20 rebanner conversions in Q2 2025 and plans to have 145 Shoe Station stores by year-end.

CEO Mark Worden stated that the rebanner strategy is delivering strong results, with Shoe Station outperforming Shoe Carnival. The company expects 2025 net sales to be $1.12bn to $1.15bn, gross profit margin to be 36.5% to 37.5%, and GAAP EPS to be $1.70 to $2.10. Sales declines are expected to slow in the second half of the year.

Back-to-School results and the continued momentum of the rebanner strategy are driving the company’s positive outlook. Shoe Station’s growth is expected to offset challenges faced by Shoe Carnival. However, the wide EPS range reflects macro uncertainty and expected traffic volatility outside key selling periods.

Read more at Yahoo Finance: Shoe Carnival Q2 sales drop 7.9.% but back-to-school shows promise