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.
Shoe Carnival’s key results in Q2
Operating income was $25.2m in Q2 compared with $30.1m in the same period last year.
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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.”
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By GlobalDataShoe Carnival’s rebanner strategy
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.
“By Back-to-School 2026, Shoe Station will be our majority concept, positioning us for sustained growth with a higher-income customer base, stronger margins, and improved returns.”
Shoe Carnival’s 2025 outlook
Based on Q2 results exceeding market expectations, Back-to-School results, and rebanner momentum continuing, the company now expects 2025 net Sales to be $1.12bn to $1.15bn, compared to the previous range of $1.15bn to $1.23bn.
Its gross profit margin is now expected to be 36.5% to 37.5%, a 150-basis point increase and its GAAP EPS is expected to be $1.70 to $2.10, which is an increase in the lower end of the range of $0.10.
The company anticipates sales declines will slow in the second half of the year, with the midpoint implying a 3% decline versus the 7.7% year-to-date decline.
It said this improvement reflects the rebanner strategy’s momentum and strong event period performance, including August’s positive comparable sales.
Plus, as Shoe Station grows, the company expects its gains will increasingly offset Shoe Carnival’s challenges. However, the wide EPS range reflects macro uncertainty and expected traffic volatility outside key selling periods.
