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

Shoe Carnival reported fiscal 2026 Q3 earnings on Dec 05, 2025, with total revenue declining 3.2% year-over-year to $297.15 million. The company’s earnings performance fell short of expectations, reflecting broader challenges in its core markets.

Revenue

Shoe Carnival’s revenue contraction was driven by softness across multiple segments, with non-athletic categories showing particular weakness. The athletics segment remained a bright spot, contributing $150.97 million, while non-athletics totaled $128.95 million. Women’s footwear revenue split between $62.05 million and $50.95 million across banners, men’s footwear reached $48.65 million and $53.24 million, and children’s footwear combined to $18.25 million and $46.77 million. Accessories and other categories accounted for $15.74 million and $1.49 million, respectively.

Earnings/Net Income

The company’s net income dropped 23.9% to $14.65 million, with earnings per share (EPS) falling to $0.54 from $0.71. The decline underscores margin pressures and strategic investments, such as rebanner initiatives, which impacted profitability.

Price Action

SCVL’s stock price dipped 3.52% in the latest trading day but rebounded 6.17% over the prior week. Month-to-date, the stock gained 3.18%, showing mixed investor sentiment.

Post-Earnings Price Action Review

A strategy of buying SCVL when revenues beat expectations and holding for 30 days yielded a 12.32% return, significantly underperforming the benchmark’s 85.52% gain. The approach’s -73.20% excess return highlights its limited upside potential despite minimal risk (maximum drawdown of 0.00% and a Sharpe ratio of 0.05). This strategy may appeal to risk-averse investors prioritizing stability over growth.

CEO Commentary

CEO John Doe (title) expressed cautious optimism, noting that disciplined pricing and inventory investments stabilized gross profit margins despite revenue declines. He emphasized long-term strategic priorities, including the expansion of the Shoe Station banner and omnichannel integration, while acknowledging near-term challenges from rebanner costs and traffic fluctuations. The leadership team remains focused on driving operational efficiency and market share gains in key regions.

Additional News

In a strategic move, Shoe Carnival acquired Rogan Shoes, solidifying its presence in Wisconsin and Minnesota and creating expansion opportunities. The company also announced plans to grow the Shoe Station banner to 215 stores by Back-to-School 2026, with a goal of converting 90% of its fleet by Fiscal 2028. These initiatives aim to capitalize on omnichannel growth and geographic diversification.