Shoe Carnival See Sales Dip in Q3, But Benefits of Shoe Station Conversion Come Into Focus

Shoe Carnival gave a deeper look astatine its rebanner strategy connected Thursday during its third-quarter net report.

The Fort Mill, S.C.-based footwear retailer reported that nett income successful the 3rd 4th was $14.6 million, oregon 53 cents per diluted share, compared to $19.2 million, oregon 70 cents per diluted stock successful the anterior year.

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Net income were $297.2 cardinal compared to $306.9 cardinal successful 3rd 4th 2024, a alteration of 3.2 percent.

By banner, the institution noted that Q3 trends continued to item the spot of its “One Banner” strategy, with Shoe Station nett income increasing 5.3 percent successful the play and Shoe Carnival nett income declining 5.2 percent arsenic lower-income consumers remained pressured. At Rogan’s, nett income exceeded $21 cardinal successful Q3, accordant with integration plans.

These results travel 1 week aft the institution announced that its committee of directors unanimously approved changing the firm sanction to Shoe Station Group. The sanction alteration is taxable to shareholder support astatine the yearly gathering successful June 2026.

As of Nov. 20, Shoe Station represents 144 stores and 34 percent of the company’s 428-store fleet, up from 10 percent astatine the commencement of fiscal 2025. The institution completed integration of its 28-store Rogan’s acquisition into the Shoe Station banner successful October 2025. Beginning successful 4th fourth 2025, the institution noted that Rogan’s results volition beryllium reported arsenic portion of Shoe Station.

The institution added that it is connected way to run 215 Shoe Station stores by back-to-school 2026, representing 51 percent of the fleet. It noted that it expects good implicit 90 percent of its fleet to run arsenic Shoe Station earlier the extremity of fiscal 2028, with remaining locations evaluated for rebannering, outlet repositioning, oregon closure.

The modulation to Shoe Station arsenic the superior operating banner is expected to present $20 cardinal successful yearly outgo savings from reduced dual-brand complexity crossed merchandising, marketing, systems, proviso chain, and backmost office; $100 cardinal simplification successful inventory concern (20-25 percent) arsenic Shoe Station’s merchandising exemplary requires little inventory per store to present a superior lawsuit experience; and a instrumentality to comparable store income maturation arsenic Shoe Station becomes the ascendant banner.

To scope the captious 51 percent Shoe Station threshold by back-to-school 2026, the institution expects to rebanner 70 stores, requiring superior expenditures of $25 cardinal to $35 cardinal and rebanner concern of $25 cardinal to $30 million. This rebanner concern includes mislaid sales, store closing costs, including inventory liquidation, further depreciation, lawsuit acquisition costs and different costs. The institution continues to expect payback of this concern wrong 2 to 3 years pursuing each store’s conversion.