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

Shoe Carnival’s Q3 2026 earnings revealed a 3.2% revenue decline to $297.15 million and a 23.9% drop in net income to $14.65 million, driven by weaker traffic and rebanner strategy costs. The company’s strategic focus on inventory optimization and omnichannel growth offset some revenue pressure, but results fell short of prior-year performance.

Revenue

Shoe Carnival’s Q3 revenue contraction to $297.15 million reflected a 3.2% year-over-year decline, with the Non-Athletics segment contributing $128.95 million and Athletics generating $150.97 million. Women’s footwear segments totaled $113 million ($62.05 million non-athletic and $50.95 million athletic), while Men’s and Children’s segments reached $101.89 million ($48.65 million and $53.24 million non-athletic; $18.25 million and $46.77 million athletic). Accessories and other categories added $15.74 million and $1.49 million, respectively. The rebanner strategy and pricing discipline impacted traffic, contributing to the overall revenue decline.

Earnings/Net Income

Earnings per share (EPS) fell 23.9% to $0.54, with net income shrinking to $14.65 million from $19.24 million. The decline was attributed to higher rebanner strategy costs and lower sales volume, despite improved gross profit margins of 37.6%. The EPS shortfall underscores operational challenges amid strategic investments.

Price Action

SCVL’s stock dipped 3.52% in the latest trading day but gained 6.17% for the week and 3.18% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

A 30-day strategy of buying SCVL after earnings beat delivered a 12.32% return, underperforming the benchmark by 73.20%. While the strategy showed a low-risk profile (maximum drawdown of 0.00%, Sharpe ratio of 0.05), its high volatility and low excess return suggest caution for investors.

CEO Commentary

CEO insights emphasized the rebanner strategy’s role in long-term growth, despite near-term revenue pressures. Strategic inventory investments and omnichannel expansion were highlighted as key priorities to drive future performance.

Guidance

No explicit forward-looking guidance was provided in the earnings report.

Additional News

Shoe Carnival’s acquisition of Rogan Shoes solidified its market presence in Wisconsin and Minnesota, creating expansion opportunities. The company plans to grow its Shoe Station banner to 215 stores by Back-to-School 2026, with 90% of its fleet expected to operate under this model by 2028. Strategic initiatives, including disciplined pricing and inventory optimization, remain central to its growth strategy.