Shoe Carnival’s net sales for the period ending 2 August 2025 (Q2) were $306.4m compared to $332.7m in Q2 2024, which is a decrease of 7.9%. Its comparable sales declined 7.5%, including a high-single digit decline at Shoe Carnival and break-even results at Shoe Station.
Operating income was $25.2m in Q2 compared with $30.1m in the same period last year.
Net income was $19.2m, or $0.70 per diluted share (“EPS”), compared to $22.6m, or $0.82 per diluted share in the prior year.
Shoe Carnival’s $0.70 earnings per share beat its consensus by over 20% and it enjoyed an expanded gross profit margin of 270 basis points to 38.8%.
Shoe Carnival’s president and CEO Mark Worden said: “Our second quarter results demonstrate meaningful progress, with profits beating consensus by double digits and gross margins reaching 38.8 percent – our strongest Q2 margin performance in years.
“As we moved into Back-to-School in early August, our execution hit a higher level. We delivered positive comparable store sales for the company and margin expansion across all banners during the period that drives approximately 25 percent of our annual profits. This return to growth during our highest-stakes season – ahead of our projected timeline – validates that our transformation is accelerating.”
The company’s Shoe Station rebanner strategy delivered 8% comparable sales growth through year-to-date August.
As of 2 August 2025, the company operated 428 stores: 313 Shoe Carnival stores, 87 Shoe Station stores, and 28 Rogan’s stores. The Shoe Station store count has more than doubled since Q2 2024.
Shoe Carnival completed 20 rebanner conversions during Q2 2025, bringing year-to-date conversions to 44 stores. An additional 58 stores are expected to rebanner in the second half of fiscal 2025 (29 in Q3 and 29 in Q4), bringing the total to 145 Shoe Station stores by year-end – representing 34% of the fleet. This positions the company to surpass 215 Shoe Station stores by Back-to-School 2026, achieving the critical 51% threshold where expected portfolio growth overtakes legacy declines.
Worden pointed out: “Our rebanner strategy continues to deliver strong results. Through year-to-date August, the Shoe Station banner is outperforming the Shoe Carnival banner by a wide margin, with margins up sharply over last year. Our debt-free balance sheet with strong cash reserves allows us to invest aggressively in this proven model while remaining ready for strategic opportunities.
