Shoe Carnival, Inc. (NASDAQ: SCVL) Q1 2025 Earnings Call | 5/30/2025
AI Summary
Shoe Carnival's Q1 2025 results exceeded expectations, with profits 10% above forecasts despite a challenging retail environment. The company reported net income of $9.3 million ($0.34 per share), down from $17.3 million ($0.63 per share) last year due to planned investments in its Shoe Station rebanner strategy. Net sales fell 7.5% to $277.7 million, with comparable store sales down 8.1%, driven by declines at Shoe Carnival, while Shoe Station saw 4.9% sales growth. The rebanner initiative, converting Shoe Carnival stores to the premium Shoe Station banner, delivered double-digit sales growth and improved margins, prompting an accelerated plan to complete 75 rebanners in 2025, increasing Shoe Station to 28% of the store fleet by year-end and over 80% by March 2027. A debt-free balance sheet and $93 million in cash (up 30% from last year) supported higher inventory levels to ensure product availability for back-to-school and holiday seasons. The company reaffirmed its 2025 guidance, projecting net sales of $1.15–$1.23 billion and EPS of $1.60–$2.10, with optimism for moderating sales declines in the second half driven by Shoe Station's momentum and compelling assortments.
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Shoe Carnival, Inc. (NASDAQ: SCVL) reported Q1 2025 results on May 30, 2025, delivering an earnings per share (EPS) of $0.34—surpassing analyst expectations by over 10%—despite a challenging retail environment. Net sales declined 7.5% year-over-year to $277.7 million, with comparable store sales down 8.1%. The Shoe Station banner stood out, posting 4.9% net sales growth and double-digit comp gains, while the core Shoe Carnival banner saw a 10% sales decline, reflecting industry-wide headwinds. Gross profit margin for the quarter was 34.5%, down 110 basis points from last year, primarily due to deleverage on lower net sales. Shoe Carnival maintained a strong balance sheet, ending the quarter with $93 million in cash and no debt—over 30% more cash than a year ago. The company accelerated its rebanner strategy, now targeting Shoe Station to represent over 80% of its store fleet by March 2027. Management reaffirmed full-year 2025 guidance, projecting net sales between $1.15 billion and $1.23 billion and EPS of $1.60 to $2.10. CEO Mark Worden highlighted the early success of the rebanner initiative and the company’s resilience, noting that Shoe Station continues to deliver industry-leading growth and margins. While the broader family footwear market remains pressured, Shoe Carnival’s strategic transformation and disciplined financial management position it for long-term growth. About Inside Ticker: For more expert analysis and real-time updates on Shoe Carnival, Inc. (NASDAQ: SCVL) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #ShoeCarnival #SCVL #EarningsCall #Q12025 #RetailStocks #ShoeStation #Footwear #StockMarket #Investing #InsideTicker
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