Shoe Carnival (SCVL) Q2 2026 earnings summary

Executive summary

• Q2 2025 EPS was $0.70, exceeding consensus by over 20%, with gross margin at 38.8%, the highest in years.

• Net income for Q2 2025 was $19.2 million, down from $22.6 million last year, reflecting $0.21 per share in rebanner investments.

• The rebanner strategy is exceeding targets, with Shoe Station driving a shift toward higher-income customers and 8% comparable sales growth year-to-date.

• Positive comparable sales and margin expansion achieved during the critical Back-to-School period, with each banner contributing.

• Ended Q2 with zero debt and double-digit cash growth, supporting aggressive investment in growth initiatives.

Financial highlights

• Q2 2025 net sales were $306.4 million, down 7.9% year-over-year, with comparable sales declining 7.5%.

• Gross profit margin expanded 270 basis points to 38.8%, driven by disciplined pricing and favorable mix.

• Net income was $19.2 million ($0.70 per diluted share), with Q2 including $0.21 EPS impact from rebanner investments.

• Cash and securities at quarter end were $91.9 million, rising to $148 million after August, with zero debt.

• Inventory at quarter end was $449 million, up 5% year-over-year, supporting improved product availability.

Outlook and guidance

• Fiscal 2025 net sales guidance tightened to $1.12–$1.15 billion, reflecting sequential improvement in the back half.

• EPS guidance raised to $1.70–$2.10, with the low end up $0.10, reflecting Q2 outperformance and margin confidence.

• Gross profit margin guidance increased by 150 basis points to 36.5%–37.5%.

• Q3 net sales expected at $290–$300 million, EPS at $0.50–$0.55, with comps expected to decline around 3%.

• Expect to rebanner an additional 58 stores in H2 2025, with 145 Shoe Station stores by year-end.