Shoe Carnival, Inc. announced a major change by renaming itself as Shoe Station Group, Inc., subject to shareholder approval in June 2026. The company expects consolidation under the Shoe Station banner to yield significant cost savings and efficiencies, including an anticipated $20 million in annual cost savings and a 20-25 percent reduction in inventory investment by the end of fiscal 2027.
The preliminary results for the third quarter of fiscal 2025 revealed a 5.3 percent growth in Shoe Station net sales, while Shoe Carnival net sales declined by 5.2 percent. Despite the decline in net sales, the third quarter net sales of $297.2 million exceeded consensus expectations, and diluted earnings per share were reported at $0.53, also exceeding consensus expectations.
The company's debt-free balance sheet and holding of over $100 million in cash and securities at the end of the third quarter of fiscal 2025 provides a strong financial standing for the company's future endeavors.
The board's decision to consolidate under one banner is aimed at creating structural advantages and efficiencies, with the expectation of annual comparable sales growth starting in fiscal 2027 as Shoe Station becomes the dominant banner.
The company will unveil complete third quarter fiscal 2025 financial results during its earnings conference call on November 20, 2025, at 9:00 a.m. Eastern Time. The management is expected to address questions regarding the strategic initiative and financial outlook at that time.
As of November 13, 2025, the company operated 428 stores in 35 states and Puerto Rico under its Shoe Carnival and Shoe Station banners. It also offers online shopping at www.shoecarnival.com and www.shoestation.com. The market has reacted to these announcements by moving the company's shares 4.54% to a price of $17.71. If you want to know more, read the company's complete 8-K report here.
