Earnings Beat and Margin Expansion
Shoe Carnival beat earnings consensus by over 20% and expanded gross margins by 270 basis points to 38.8%, marking the strongest Q2 margin in years.
Successful Back-to-School Season
The company achieved positive comparable sales growth during the back-to-school period, a critical time that represents 25% of annual profits.
Growth in Shoe Station
Shoe Station grew sales by high single digits and expanded margins, outperforming Shoe Carnival by over 10% on merchandise sales during Q2 and back-to-school.
Rebanner Strategy Progress
The rebanner strategy is exceeding targets with Shoe Station stores doubling since acquisition, aiming to reach 51% of the fleet by back-to-school 2026.
Strong Financial Position
The balance sheet is robust with cash and securities up over 10% year-over-year at nearly $150 million and zero debt.