Shoe Carnival adds Wisconsin footwear retailer
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Evansville-based Shoe Carnival Inc. has acquired Rogan Shoes Inc., a family-owned footwear company headquartered in Racine, Wisconsin. The all-cash deal, which adds 28 stores to Shoe Carnival’s portfolio, is valued at $45 million.
Founded in 1971, Rogan Shoes has retail locations in Wisconsin, Minnesota and Illinois. Shoe Carnival said in a news release Tuesday the deal immediately positions the company as the market leader in Wisconsin and establishes a new base with expansion opportunities in Minnesota.
“Over the past five decades the Rogan family has built a brand that is well known and trusted throughout the state of Wisconsin,” Shoe Carnival CEO Mark Worden said in the release. “As such, they have established a clear market leadership position in Wisconsin for work and family footwear, with a compelling assortment, great customer service, and a highly committed team of employees.”
Shoe Carnival said the acquisition is expected to generate approximately $84 million in sales and about $10 million in operating income.
The acquisition brings the number of retail stores under Shoe Carnival’s umbrella to a record 429. The company previously said its goal is to operate over 500 stores by 2028.
The company will implement an 18-month integration plan and expects to realize $1.5 million in annual synergies by fiscal year 2026. As part of the integration, Rogan Shoes will operate under Shoe Carnival’s Shoe Station brand.
“I am excited about the new opportunities for Rogan’s as it becomes part of the Shoe Carnival family,” Rogan Shoes CEO Pat Rogan said. “We share a strong focus on customers and employees and this transaction provides the additional scale and expertise to drive future growth, create efficiencies and expand profitability with that shared focus as the foundation.”
Shoe Carnival did not specify if the deal would have an impact on any Rogan Shoes employees.
Shoe Carnival also provided some preliminary financial results for Fiscal Year 2023, which ended on Feb. 3. The company said it achieved the high end of its sales expectations for the year with a total of $1.2 billion in net sales.
The fiscal year was the 19th consecutive year the company ended the year with no debt, fully funding operations, new store growth, and store remodels entirely with cash on hand, the company said.
Shoe Carnival’s full fiscal year earnings will be released in March.