Shoe Carnival (SCVL) Q2 2025 earnings summary

Executive summary

• Q2 2024 net sales reached a record $332.7 million, up 12.9% year-over-year, driven by strong Back-to-School season, digital-first marketing, and Rogan's acquisition.

• Operating income increased 22% to $30.1 million; net income was $22.6 million ($0.82 per share GAAP, $0.83 adjusted), both exceeding guidance.

• Gross profit margin expanded to 36.1%, up 30 basis points year-over-year, marking the 14th consecutive quarter above 35%.

• Rogan's contributed $22 million in Q2 sales and is being integrated into the Shoe Station banner.

• Early results from the banner switch strategy (Shoe Carnival to Shoe Station) in test markets show over 15% sales growth and over 20% profit growth.

Financial highlights

• Year-to-date net sales reached $633.1 million, up 9.9% from last year.

• Operating cash flow year-to-date was $40.7 million, up from $22.4 million last year.

• Ended Q2 with $84.5 million in cash and no debt; cash and equivalents exceeded $120 million by end of August.

• Inventory at quarter-end was $425.5 million, up $16.1 million due to Rogan's, but down 7% excluding Rogan's.

• SG&A as a percentage of net sales was 27.1% in Q2, down from 27.4% last year.

Outlook and guidance

• Full-year 2024 net sales expected at $1.23–$1.25 billion, up 5–6% year-over-year.

• Comparable store sales guidance for the year is -1.5% to +1%; Q3 and Q4 combined expected to be flat to +5%.

• GAAP EPS guidance raised to $2.55–$2.70; adjusted EPS to $2.60–$2.75.

• Q3 net sales expected at ~$320 million; Q3 GAAP EPS guided at ~$0.70.

• Fiscal 2024 capital expenditures projected at $30–$35 million, with $20–$25 million for new/rebannered stores and modernization.