Shoe Carnival’s net income declined 2.2% to $19.24m during the 13 weeks to 2 November 2024 (Q3) against $21.86m registered in the same period a year ago.
The retailer attributed the decline in sales to a shift in the retail calendar, which saw approximately $20m in net sales move out of Q3 compared to the previous year.
Go deeper with GlobalData
Shoe Carnival boasts robust back to school sales in Q3 FY24
Despite this shift, the quarter was bolstered by robust back-to-school sales and growth from the recent acquisition of Rogan Shoes. However, comparable store net sales fell by 4.1% due to hurricanes disrupting operations and unseasonably warm weather affecting winter boot sales.
The retailer’s operating income for Q3 2024 was reported at $24.5m, down from $27.9m in the prior year, impacted by lower sales but partially offset by synergies from Rogan’s acquisition and reduced SG&A expenses.
The company’s gross profit margin remained strong at 36.0%, marking its 15th consecutive quarter above 35% despite an 80 basis points drop due to increased costs and lower net sales.
Its earnings per diluted share (EPS) were $0.70, against $0.80 per diluted share in Q3 FY23.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe company expects the acquisition to contribute over $80m in net sales for fiscal 2024 with $22.3m recorded in Q3 and $63.9m year-to-date.
The integration of operations has been completed ahead of schedule, leading to accelerated synergy capture expected to total around $2.5m, half of which should be realised in the latter half of fiscal 2024.
The third quarter GAAP results also included $0.3m in expenses from the Rogan’s acquisition, with an adjusted EPS of $0.71 when excluding these costs. Year-to-date adjusted EPS rose to $2.19, up by 3.8% over the previous year.
Shoe Carnival president and CEO Mark Worden said: “Our back-to-school results were strong, with comparable store sales growth across our banners and robust margins. Our flexible digital-first marketing campaign and great brand assortment drove demand during this peak shopping period and profitability in line with expectations for the third quarter.
“I am very proud of our team for delivering the company’s profit results despite two significant hurricanes disrupting third quarter sales and a very warm October that delayed the start of our winter boot season.”
As of 21 November 2024, Shoe Carnival operates 431 stores across various banners with one new Shoe Station store opening in Tennessee during Q3 as part of its rebanner growth strategy. Seven Shoe Carnival stores were converted to Shoe Station stores during the quarter, with rebannered stores performing beyond expectations.
Shoe Carnival fiscal 2024 guidance
According to year-to-date performance, which includes third-quarter profits meeting the company’s expectations and net sales falling short, the retailer has revised its guidance.
Net sales are expected to be in the range of $1.20bn to $1.23bn, reflecting a growth of 2% to 4.5% compared to fiscal 2023.
The retailer also expects gross profit margin to remain consistent with fiscal 2023.
Earlier this year Shoe Carnival said it had plans to pursue further M&A opportunities in future.
