Shoe Carnival (SCVL) Q1 2026 earnings summary

Executive summary

• Q1 2025 profits exceeded expectations by over 10%, with net income of $9.3 million ($0.34 per diluted share), driven by Shoe Station's outperformance and the rebanner strategy, despite industry headwinds and planned investments.

• Net sales declined 7.5% year-over-year to $277.7 million, mainly due to a 10% drop in the Shoe Carnival banner, partially offset by 4.9% growth in the Shoe Station banner.

• Comparable store net sales decreased 8.1%, but rebannered Shoe Station stores delivered double-digit sales and profit growth.

• The accelerated rebanner strategy aims for over 80% of stores to operate as Shoe Station by March 2027, up from the previous 51% target.

• The company reaffirmed its 2025 annual profit guidance and maintains a strengthened, debt-free balance sheet.

Financial highlights

• Q1 2025 net income was $9.3 million ($0.34 per diluted share), down from $17.3 million ($0.63 per share) in Q1 2024, reflecting rebanner investments.

• Net sales for Q1 2025 were $277.7 million, down 7.5% year-over-year; comparable store sales declined 8.1%.

• Gross profit margin was 34.5%, down from 35.6% in Q1 2024, mainly due to deleverage on lower sales, but merchandise margins improved by 50 basis points.

• SG&A expenses were $83.8 million (30.2% of net sales), up from 28.1% last year due to rebanner costs.

• Ended Q1 with $93 million in cash and equivalents, up over 30% year-over-year, and maintained a debt-free position.

Outlook and guidance

• Fiscal 2025 net sales expected between $1.15 billion and $1.23 billion (down 4% to up 2% vs. 2024).

• GAAP EPS guidance is $1.60–$2.10; gross profit margin 35%–36%; SG&A $350–$360 million; CapEx $45–$60 million, with $30–$40 million for rebannered stores.

• Rebanner investment to impact 2025 operating income by $20–$25 million, reducing EPS by ~$0.65, with a 2–3 year payback per store.

• Q2 2025 net sales forecasted at $310–$320 million, EPS $0.55–$0.65, and gross margin 36%–36.5%.

• Moderating sales declines expected in the back half of 2025, with potential for comp growth in Q3 2026 as Shoe Station scales.