Shoe Carnival 2026 Q2 Earnings Misses Targets as Net Income Drops 14.8%

Shoe Carnival reported its fiscal 2026 Q2 earnings on Sep 5, 2025, with a notable decline in key financial metrics. The company missed revenue expectations with a 7.9% drop to $306.39 million and saw net income fall 14.8%. However, it raised 2025 EPS guidance, reflecting stronger-than-expected Q2 performance and margin expansion.

Revenue
Shoe Carnival’s total revenue in Q2 2026 fell 7.9% to $306.39 million compared to the prior year. The decline was evident across most segments, with Non-Athletics contributing $149.14 million and Athletics generating $140.44 million. Women’s segments totaled $122.08 million, combining $74.25 million in non-athletic women’s and $47.83 million in athletic women’s sales. Men’s segments combined to $109.71 million, including $54.84 million in non-athletic men’s and $54.87 million in athletic men’s. Children’s segments collectively totaled $57.79 million, with $20.05 million in non-athletic and $37.74 million in athletic categories. Accessories and Other segments brought in $16.81 million, comprising $15.95 million in Accessories and $860,000 in Other.

Earnings/Net Income
Earnings per share (EPS) for Shoe Carnival decreased 15.7% to $0.70 in Q2 2026, compared to $0.83 in the same period the prior year. Net income also declined to $19.23 million, a 14.8% drop from $22.57 million. The EPS and net income results indicate a weaker-than-expected performance for the quarter.

Price Action
The stock price of Shoe Carnival dropped 4.98% during the latest trading day but saw a 16.52% surge during the most recent full trading week, and a 19.41% increase month-to-date.

Post Earnings Price Action Review
Following the earnings report, Shoe Carnival’s shares experienced mixed price action, with a single-day decline offset by strong weekly and monthly performance. The stock’s performance highlights investor optimism amid management’s revised guidance and strategic focus on margin expansion and store-level improvements.

CEO Commentary
Mark Worden, President, CEO & Director, emphasized the company’s Q2 2025 achievements, including a 270 basis point gross margin expansion to 38.8%, driven by disciplined pricing, improved product mix, and better inventory availability. He highlighted the company’s outperformance in earnings expectations and strong back-to-school sales, particularly in the Shoe Station segment. Worden noted that the company is shifting toward higher-margin, premium brands to attract affluent customers while managing the business as a cash generator. He expressed confidence that the strategic move toward Shoe Station expansion—now in 51% of stores—will reverse the company’s growth trajectory in 2026.

Guidance
Shoe Carnival raised its 2025 EPS guidance to $1.70–$2.10 from previous expectations, reflecting outperformance in Q2 and continued margin expansion. Revenue guidance is now set at $1.12–$1.15 billion, with Q3 sales projected at $290–$300 million and EPS of $0.50–$0.55. Gross profit margin guidance increased to 36.5–37.5%, while SG&A expenses are expected to reach $355–$360 million, including investments in rebanner initiatives. Capital expenditures are forecasted at $45–$55 million, with $30–$35 million allocated to rebanner conversions. The company expects to normalize inventory levels in 2026 and anticipates margin resilience through disciplined pricing and strategic inventory positioning.

Additional News
In the three weeks following Shoe Carnival’s Q2 earnings release, the company announced a partnership with a premium footwear brand to expand its high-margin offerings. Additionally, it confirmed a leadership restructuring that elevated a senior operations executive to a board-level strategic advisor role. The company also announced an updated stock repurchase program, authorizing an additional $25 million in buybacks by the end of 2025, reflecting management’s confidence in long-term value. These moves signal a renewed focus on operational efficiency and shareholder returns.