Full-year profit falls for Shoe Carnival
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Evansville-based Shoe Carnival Inc. is reporting fiscal full-year net income of $73.3 million, down from $110 million the previous year. CEO Mark Worden said Thursday that despite the drop, the footwear retailer is excited about future growth opportunities.
Shoe Carnival reported net sales for the fiscal year of just under $1.2 billion, which is down slightly from the previous year but at the high end of the company’s expectation, a news release said.
The fiscal year ended Feb. 1, just before the company announced its $45 million acquisition of Racine, Wisconsin-based Rogan Shoes Inc., which added 28 stores to Shoe Carnival’s portfolio.
Shoe Carnival previously said the acquisition would create $1.5 million in annual synergies by fiscal year 2026, but Worden said in a news release that estimation has grown.
“With the acquisition of Rogan’s, we are now at an all-time high of 429 stores,” Worden said. “The integration progress to date has been encouraging, and we are raising the full synergy expectation to $2.5 million and accelerating the integration schedule, with the expectation of now realizing full synergies in 2025.”
Shoe Carnival also said that its efforts to modernize its retail locations will continue in Fiscal Year 2024. As of Feb. 3, the company had completed modernization of about 60% its locations and expects to invest up to $35 million in capital expenditures this year.
The company noted that the last fiscal year was its 19th consecutive year with no debt and fully funded operations and investments from operating cash flow.
“We are well positioned to advance our strategy to be the nation’s leading family footwear retailer by accelerating growth, as well as pursuing additional growth initiatives and M&A opportunities in the future,” said Worden.
You can view the full earnings report by clicking here.