Shoe Carnival (SCVL) SCVL Q2 Financial Results Summary

# Shoe Carnival (SCVL) Q2 2025 Financial Results Summary

**Release Date:** September 4, 2025

Shoe Carnival, Inc. (Nasdaq: SCVL), a leading family footwear retailer, has reported its financial results for the second quarter ending August 2, 2025. The results indicate a mix of growth and challenges, particularly in the context of the retail industry’s performance amid fluctuating consumer spending. Here’s a summary of the key points from the report:

## Financial Highlights

– **Earnings Per Share (EPS):**
– Reported EPS of **$0.70**, exceeding consensus estimates by over **20%**.
– Previous year’s EPS for the same quarter was **$0.82** (down **14.6%** year-over-year).

– **Gross Profit Margin:**
– Improved to **38.8%**, up **270 basis points** from **36.1%** in the previous year, marking the highest Q2 margin performance in years.

– **Net Sales:**
– Total of **$306.4 million**, a **7.9%** decrease compared to **$332.7 million** in the same quarter last year.
– Comparable sales declined by **7.5%** year-over-year.

– **Net Income:**
– Amounted to **$19.2 million**, compared to **$22.6 million** in the prior year, reflecting a decrease of **15.1%**.

## Back-to-School Performance

– The company witnessed strong sales performance in August during the Back-to-School selling season:
– **Shoe Station** experienced high-single-digit comparable sales growth driven primarily by the children’s category.
– **Shoe Carnival** reported positive comparable sales in the children’s category, though faced challenges in other segments.

## Store and Rebranding Strategy

– **Store Count:**
– Operated a total of **428 stores** as of August 2, 2025:
– **313 Shoe Carnival** stores
– **87 Shoe Station** stores (more than doubled since Q2 2024)
– **28 Rogan’s** stores.

– **Rebranding Strategy:**
– 20 stores were converted to the Shoe Station branding during Q2, with **44 total conversions** year-to-date.
– An additional **58 conversions** planned for the second half of fiscal 2025.
– Expected to reach **145 Shoe Station** stores by year-end, representing **34%** of the fleet.

## Shareholder Returns and Capital Structure

– **Dividends:**
– Declared a quarterly dividend of **$0.15 per share**, an increase from **$0.135** in the same quarter last year.

– **Share Repurchase Authorization:**
– Approximately **$50 million** remains under the company’s share repurchase program.

– Strengthened balance sheet:
– Ended the quarter with **zero debt** and cash reserves of **$91.9 million**.

## Operating Expenses and Investments

– **Selling, General and Administrative Expenses (SG&A):**
– Elevated to **$93.6 million**, up from **$89.9 million** in the prior year, reflecting increased rebranding investments.

– **Capital Expenditures:**
– Totaled **$24.4 million** year-to-date, primarily attributed to completed rebanner conversions.

## Fiscal 2025 Outlook

– **Updated Guidance:**
– **Net Sales:** Expected to range between **$1.12 billion and $1.15 billion**, revised from the previous projection of **$1.15 billion to $1.23 billion.**
– **GAAP EPS:** Projected between **$1.70 and $2.10**, with an increase of **$0.10** at the low end.
– **Gross Profit Margin:** Expected to be between **36.5% and 37.5%**, an increase of **150 basis points** from prior expectations.
– **SG&A Expenses:** Projected between **$355 million and $360 million**.
– **Capital Expenditures:** Anticipated between **$45 to $55 million**, allocating **$30 to $35 million** specifically for rebanner initiatives.

– The company noted that while the sales decline is expected to slow in the latter half of the year, the landscape remains uncertain amid economic fluctuations.

## Conclusion

Shoe Carnival’s Q2 2025 results demonstrate a complex mix of operational progress and financial challenges, particularly as it navigates through a transformative rebranding strategy. The company appears to be aligning its offerings and store counts towards stronger growth in higher-margin segments, as reflected in its immediate commitments and strategic outlook.