Quarterly profit drops for Shoe Carnival, but optimism remains
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Evansville-based Shoe Carnival Inc. is reporting third quarter net income of $21.9 million, down from $32.7 million during the same period last year.
Despite the drop, the footwear retailer said Thursday that its children’s category saw the second-highest sales in the company’s history due to a successful back-to-school season.
The company’s Shoe Station brand also saw a low double-digit increase in net sales during the quarter, which was driven by the opening of new stores and the launch of the Shoe Station e-commerce site earlier in the year.
However, total sales for Shoe Carnival’s third quarter fell 6.4% to just under $320 million.
“Our team delivered a successful Back-to-School season, with solid growth in the children’s business, double-digit Shoe Station banner growth and continued market share gains in the family footwear channel,” CEO Mark Worden said in a news release. “After Labor Day, Shoe Carnival banner results softened and were below our expectations, as persistently hot and dry weather led to soft seasonal sales and a sluggish start to the boot season.”
Worden said despite the sales headwinds, the company’s gross profit margins, debt-free balance sheet, and strong cash flow generation are positioning the company to pursue additional growth initiatives and merger and acquisition opportunities in 2024.
Last month, Shoe Carnival opened its 401st retail location. The last time Shoe Carnival had more than 400 stores was in 2018, and the company said it has significantly increased store productivity and profitability since that time.
Shoe Carnival aims to surpass 500 stores by 2028 with the goal of becoming a multi-billion-dollar retailer by that time.
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