Shoe Carnival, Inc. operates as a family footwear retailer, offering a wide range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children, along with various accessories. Shoe Carnival, Inc. operates stores and sells its products through online shopping at shoecarnival.com and through a mobile app.
Shoe Carnival, Inc. operates under two banners: Shoe Carnival and Shoe Station, with a focus on being the omnichannel retailer-of-choice for on-trend branded footwear for the entire family. The company's product assortment includes dress and casual shoes, sandals, boots, and a wide assortment of athletic shoes. The report highlights that the company's distinctive shopping experiences provide various competitive advantages, including building a loyal, repeat customer base and enhanced sell-through of in-season goods.
In terms of recent acquisitions, Shoe Carnival, Inc. acquired the physical stores and assets of Shoe Station, Inc. for approximately $70.4 million in December 2021. The company continues to operate the original 21 locations acquired under the Shoe Station banner and has opened seven new Shoe Station bannered stores since the acquisition. Additionally, on February 13, 2024, the company acquired all the stock of Rogan Shoes, Incorporated.
Shoe Carnival, Inc. experienced a decline in its diluted net income per share in Fiscal 2023 compared to Fiscal 2022, primarily due to a decrease in net sales, with the Shoe Carnival banner down 7.8% offset by a 4.5% increase from the Shoe Station banner. The company's results were impacted by continuing inflation, higher interest rates, and reduced tax refunds, particularly affecting its lower-income customers and more urban markets.
As part of its long-term growth strategy, Shoe Carnival, Inc. has invested significantly in customer relationship management, e-commerce infrastructure, modernization of its store fleet, and acquisitions as key drivers of profitable growth. The company has also made progress in reducing its merchandise inventories and optimizing inventory positions for an improved athletic assortment.
Shoe Carnival ended Fiscal 2023 with 400 total stores, comprising 372 Shoe Carnival stores and 28 Shoe Station stores. The company plans to operate 430 to 432 stores by the end of Fiscal 2024, representing net growth of 30 to 32 stores. Additionally, the company has modernized a significant percentage of its stores and expects to modernize additional stores in Fiscal 2024.
Check out the company's full 10-K submission here.
