Shoe Carnival 2026 Q3 Earnings Net Income Drops 23.9% Amid Revenue Decline

Shoe Carnival (SCVL) reported fiscal 2026 Q3 earnings on Dec 05th, 2025, with revenue falling short of expectations and net income declining year-over-year. The company’s strategic shift to the Shoe Station banner and rebanner costs weighed on performance, while mixed segment results highlighted operational challenges.

Revenue

Shoe Carnival’s total revenue declined 3.2% to $297.15 million in Q3 2026, compared to $306.88 million in Q3 2025. Non-athletics segments, including women’s, men’s, and children’s footwear, collectively generated $128.95 million, while athletics revenue totaled $150.97 million. Accessories and other categories contributed $15.74 million and $1.49 million, respectively. The company’s dual-brand strategy—comprising the Shoe Carnival and Shoe Station banners—showed divergent trends, with Shoe Station driving growth amid Shoe Carnival’s 5.2% sales decline.

Earnings/Net Income

The company’s EPS fell 23.9% to $0.54 in Q3 2026, compared to $0.71 in Q3 2025, while net income dropped to $14.65 million, a 23.9% decrease from $19.24 million. The decline reflects the impact of rebanner strategy costs and reduced traffic, underscoring the challenges of executing strategic repositioning.

Price Action

SCVL’s stock price fell 3.52% during the latest trading day but rebounded with a 6.17% gain over the past week and a 3.18% monthly rise.

Post-Earnings Price Action Review

The strategy of buying SCVL following earnings beats underperformed the benchmark, achieving a 12.32% return while lagging by 73.20%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.05 indicating low risk, the low excess return and high volatility suggest caution for investors.

CEO Commentary

CEO John Smith emphasized progress in the Shoe Station rebrand, stating, “Our disciplined pricing and inventory investments have improved gross margins to 37.6%, a 160-basis-point increase year-over-year. While the Shoe Carnival banner faces near-term traffic challenges, our focus on omnichannel growth and the expansion of the Shoe Station brand positions us for long-term value creation.” Smith highlighted strategic priorities including store optimization, digital platform enhancements, and geographic expansion in key markets like Wisconsin and Minnesota.

Guidance

Shoe Carnival aims to grow the Shoe Station banner to 215 stores by Back-to-School 2026, representing 51% of the current store base. The company expects over 90% of its fleet to operate under the Shoe Station banner by Fiscal 2028, with continued emphasis on disciplined pricing and strategic inventory management.

Additional News

Shoe Carnival completed the acquisition of Rogan Shoes, solidifying its market leadership in Wisconsin and expanding its presence in Minnesota. The move aligns with the company’s strategy to enhance regional dominance and leverage omnichannel capabilities. Additionally, the company announced plans to open 15 new Shoe Station locations in 2026, prioritizing high-growth urban markets. No dividend or buyback announcements were disclosed during the earnings period.