Shoe Carnival, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and strategic initiatives. The company, founded in 1978 and headquartered in Evansville, Indiana, operates as a family footwear retailer in the United States, offering a wide range of products including dress and casual shoes, sandals, boots, and athletic shoes for men, women, and children, as well as accessories.
In the 10-K report, Shoe Carnival discussed its financial performance, including net sales of $1.2 billion in Fiscal 2024, representing a 2.3% increase compared to Fiscal 2023. The company reported a 3.9% decline in comparable stores net sales, primarily driven by a mid-single digit decline in its Shoe Carnival bannered stores. However, the Shoe Station banner's net sales increased by 5.7%, and the acquisition of Rogan's in February 2024 added $80.3 million in net sales.
Despite the challenges in comparable stores net sales, Shoe Carnival continued to focus on long-term gross profit margin expansion, with gross profit margin above 35% for the fourth consecutive year. The company also highlighted its strategic acquisition of Rogan's, which exceeded the initial $10 million operating income target for Fiscal 2024 by more than 20%.
Shoe Carnival also discussed its capital management and liquidity, emphasizing that it ended Fiscal 2024 with no debt and $123.1 million in cash, cash equivalents, and marketable securities. The company funded its operations and growth investments, including the acquisitions of Shoe Station and Rogan's, without drawing on its credit facility. Additionally, merchandise inventories totaled $385.6 million at the end of Fiscal 2024, reflecting an increase primarily due to Rogan's acquired inventory.
Looking ahead, Shoe Carnival outlined its rebanner strategy, with plans to rebanner 175 stores to the Shoe Station banner over the next 24 months, expecting to operate 218 Shoe Station stores, representing 51% of its present store fleet. The company also expects to rebanner between 50 to 75 Shoe Carnival stores to Shoe Station stores in Fiscal 2025, with total capital expenditures expected to be in a range of $45 million to $60 million to support the rebanner strategy.
The market has reacted to these announcements by moving the company's shares -4.1% to a price of $21.52. For the full picture, make sure to review Shoe Carnival's 10-K report.
