Shoe Station Group (SHOE) Q3 2025 earnings summary

Executive summary

• Q3 adjusted EPS was $0.71, meeting expectations; GAAP EPS was $0.70; year-to-date adjusted EPS up 3.8% year-over-year.

• Q3 net sales were $306.9 million, down 4.1% year-over-year due to a $20 million retail calendar shift; underlying sales rose 2.2% led by Rogan's acquisition and new stores.

• Comparable store net sales declined 4.1% in Q3, impacted by hurricanes and warm weather, with boot sales down over 30% and athletics partially offsetting declines.

• Rogan's contributed $22.3 million in Q3 sales and $63.9 million year-to-date; integration completed ahead of schedule, capturing over $1 million in 2024 synergies.

• Store rebanner strategy expanded, with 10 stores converted and 25 more planned for early 2025.

Financial highlights

• Year-to-date net sales reached $939.9 million, up 4.9% from prior year; gross profit margin stable at 35.9%.

• Q3 gross profit margin: 36.0%, down 80 bps year-over-year; 15th consecutive quarter above 35%.

• Q3 adjusted net income: $19.5 million; Q3 net income: $19.2 million ($0.70 per share); Q3 operating income: $24.5 million.

• SG&A as a percent of sales was 28.0% in Q3, down 10 bps year-over-year.

• Cash and equivalents at quarter-end: $91.1 million, up $20 million year-over-year; operating cash flow year-to-date: $58.1 million.

Outlook and guidance

• Full-year 2024 net sales expected at $1.20–$1.23 billion, 2%–4.5% growth; GAAP EPS guidance: $2.55–$2.70; adjusted EPS: $2.60–$2.75.

• Most likely outcome is at the lower end of guidance due to continued warm weather and delayed boot season.

• SG&A as a percent of sales expected to be 30 bps higher than 2023, improved from prior guidance.

• Retail calendar shift and 52-week year expected to reduce Q4 net sales by ~$20 million and EPS by ~$0.10.

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