Shoe Carnival Advances Premium Brand Strategy Amid Cautious FY25 Outlook

Published 23 hours agoSCVL

Shoe Carnival has announced plans to step up its investment in premium brand shoes while keeping its annual financial guidance steady. As part of this strategy, the company will rebrand 175 stores into Shoe Station outlets over the next two years, ultimately aiming to have 218 Shoe Station stores—making up 51% of its current fleet, according to their investor relations page.

The expansion comes with a projected decrease in operating income of $20 to $25 million in Fiscal 2025, reflecting expenses related to store closures, new construction, and customer acquisition. This translates to an estimated drop of $0.65 in earnings per share for the same fiscal year. Despite these short-term impacts, Shoe Carnival expects the rebannered stores to boost net sales by over 10% and increase profit contributions by over 20% by Fiscal 2027.

For Fiscal 2025, Shoe Carnival has issued a conservative guidance, anticipating net sales between $1.15 billion and $1.23 billion, with GAAP earnings per share ranging from $1.60 to $2.10. These projections account for the initial costs related to the rebranding initiative. Meanwhile, as reported by fibre2fashion.com, Shoe Carnival's shares were last traded at $18.44, reflecting a slight decline from the previous session.

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