What factors drove the changes in Shoe Carnival's revenue and profit?

What does Shoe Carnival do and what are its main business segments?

What is the revenue and EPS growth rate for Shoe Carnival year over year?

What is Shoe Carnival's gross profit margin?

What guidance did Shoe Carnival's management provide for the next earnings period?

What is Shoe Carnival's latest dividend and current dividend yield?

Did Shoe Carnival beat or miss consensus estimates last quarter?

What were the key takeaways from Shoe Carnival’s earnings call?

- **EPS Beat and Margin Expansion**: Q2 EPS of $0.70 (20% above expectations), gross margin 38.8% (270 bps expansion). 
- **Rebanner Strategy Payoff**: Shoe Station sales outperformed Carnival by 10%, with 280 bps margin expansion. 145 Shoe Station stores (20% of fleet) by year-end, targeting 51% by 2026.
- **Back-to-School Success**: All banners delivered positive comps, with Shoe Station children's sales +high single digits and adult athletics +low 20s.
- **Financial Strength**: $148M cash, no debt, $25M annual rebanner investment with 2-3 year ROI.
- **2025 Guidance Update**: EPS raised to $1.70-$2.10, gross margin 36.5%-37.5%, net sales $1.12B-$1.15B.

**【CEO Summary Section】**
- **Q2 2025 Results**: EPS of $0.70, beating expectations by over 20%, with gross margins at 38.8% (270 bps expansion). Back-to-school 2025 achieved positive comparable sales growth across all banners.
- **Rebanner Strategy Success**: Shoe Station outperformed Carnival by 10% in merchandise sales, with product margins expanding 280 bps. By end of 2025, 145 Shoe Station stores (20% of fleet) will be operational, targeting 51% of fleet by back-to-school 2026.
- **Back-to-School Performance**: Shoe Station grew sales high single digits, Carnival delivered positive children's comp sales, and Rogan expanded sales and margins during rebanner conversion.
- **Financial Strength**: $148M cash on hand (up 10% YoY), no debt, and $25M annual investment in rebanners with 2-3 year ROI.

**【CFO Financial Commentary】**
- **Q2 2025 Financials**: Net sales $306.4M (-7.9% YoY), gross margin 38.8% (270 bps expansion). SG&A $93.6M (30.6% of sales), up 200 bps due to rebanner investments.
- **Updated Guidance**: Tightened net sales to $1.12B-$1.15B, EPS raised to $1.70-$2.10. Gross margin guidance increased to 36.5%-37.5%, SG&A $355M-$360M.
- **Inventory Management**: $449M inventory (5% YoY increase) driven by strategic investments in key items, with plans to normalize in 2026.

**【Q&A Highlights】**
- **Inventory Strategy**: Excess inventory in high-margin categories (e.g., kids' athletics) will support 2026 margin growth. No immediate risk of margin erosion.
- **Gross Margin Outlook**: Q3 targeting 37%-37.5% gross margin, driven by disciplined pricing and rebanner success.
- **Shoe Carnival Transition**: Managed as a cash generator with margin discipline, reducing exposure to low-income consumer segment.
- **Future Growth**: 51% Shoe Station fleet by 2026 back-to-school expected to shift comps from negative to low single-digit growth.

Shoe Carnival, Inc. (SCVL) Q2 2025 Earnings Call Transcript

- **Q1 Outperformance**: Net income of $9.3M beat expectations by 10%, driven by Shoe Station's 4.9% sales growth and 20%+ comp in rebannered stores.
- **Expansion Acceleration**: 75 stores to be converted to Shoe Station in 2025, targeting 80% of fleet by 2027.
- **Financial Strength**: $93M cash, no debt, enabling strategic investments and inventory flexibility.
- **Back-to-School Momentum**: Shoe Station's 20%+ rural market growth and premium assortment position for market share gain.

**【CEO Summary Section】**
- Q1 net income of $9.3 million exceeded expectations by 10%, driven by Shoe Station's 4.9% sales growth and 20%+ comp growth in rebannered stores.
- Accelerated expansion plan to convert 75 stores to Shoe Station in 2025, targeting 80% of total fleet by March 2027.
- Debt-free balance sheet with $93 million in cash supports strategic investments and inventory flexibility.

**【CFO Financial Commentary】**
- Q1 GAAP EPS of $0.34 vs. $0.63 last year reflects $0.15 P&L investment in rebanner initiative.
- Gross margin of 34.5% benefited from Shoe Station's higher AURs and accretive margins.
- Inventory up 4% year-over-year, secured at competitive costs to ensure in-stock positions for back-to-school.

**【Q&A Key Takeaways】**
- 2025 P&L investment of $20-25 million expected, with 2-3 year payback period for rebannered stores.
- Cautiously optimistic on back-to-school with Shoe Station's compelling assortment and 20%+ sales growth in rural markets.
- Evaluating urban market potential for Shoe Station, with tests planned for early 2026 to validate customer appeal.

Shoe Carnival, Inc. (SCVL) Q1 2025 Earnings Call Transcript

- **Outperforming Industry**: 2.3% revenue growth vs. industry decline, driven by strategic acquisitions and digital marketing.
- **Profit Resilience**: $75 million net income (+1.36%) with no debt, reflecting disciplined cost control.
- **Premium Growth Engine**: Shoe Station's 5.7% expansion sets stage for national leadership in premium footwear.
- **Customer Dynamics**: Holiday sales strength contrasts with ongoing non-event period contraction among lower-income customers.

**【CEO Opening Remarks】**
- **2024 Fiscal Year Highlights**: Net sales reached $1.2 billion (+2.3%), outpacing the industry's mid-single-digit contraction. Adjusted net income rose to $75 million ($2.72 EPS), hitting the high end of guidance.
- **Acquisition Success**: Shoe Station grew 5.7% with profitable integration of Rogan's Shoes, capturing full synergies ahead of schedule.
- **Market Dynamics**: Digital-first marketing drove holiday sales growth, but non-event period sales contracted due to lower-income customer pullback.
- **2025 Strategy**: Announced expansion of Shoe Station to a national premium footwear leader, with investments focused on new market entry and service enhancement.

**【Financial Performance】**
- **Revenue Growth**: 2.3% YoY, despite a 52-week vs. 53-week prior year comparison.
- **Profitability**: Gross margin >35% for the fourth consecutive year; 0 debt, $75 million cash flow, and 52nd consecutive dividend.
- **Segment Performance**: Shoe Station led industry growth, while Carnival banner faced non-event period challenges.

**【Strategic Initiatives】**
- **Shoe Station Expansion**: Targeting higher-income households with premium assortments, aiming to become a national leader through strategic market entry and service innovation.
- **Risk Management**: Proactive inventory management (boot inventory down double digits) mitigated 2024's unseasonable weather impact.

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