Shoe Carnival, Inc. has announced a major change in its corporate name to Shoe Station Group, Inc., subject to shareholder approval in June 2026. The company has also revealed that it expects to achieve $20 million in annual cost savings and operating efficiencies through banner consolidation by the end of fiscal 2027.
The preliminary third quarter fiscal 2025 results show a 5.3 percent growth in Shoe Station net sales, along with a 260 basis point expansion in margins. However, Shoe Carnival net sales declined by 5.2 percent, reflecting continued pressure on lower-income consumers. The third quarter net sales of the company exceeded consensus expectations, reaching $297.2 million, with diluted earnings per share at $0.53, also surpassing consensus expectations.
The consolidation toward one banner is expected to create significant structural advantages and efficiencies, including a 20-25 percent reduction in inventory investment anticipated by the end of fiscal 2027. The company's debt-free balance sheet and over $100 million in cash and securities at the end of the third quarter fiscal 2025 further underpin its financial position.
The company expects over 90 percent of its fleet to operate as Shoe Station by the end of fiscal 2028, with the remaining locations being evaluated for rebannering, outlet repositioning, or closure. The company has completed 100 store rebanners during fiscal 2025 and is on track for 51 percent of its fleet to operate as Shoe Station by the back-to-school season in 2026.
Shoe Carnival, Inc. will provide complete third quarter fiscal 2025 financial results during its earnings conference call on Thursday, November 20, 2025, at 9:00 a.m. Eastern Time. Management will be available for questions regarding this strategic initiative and financial outlook at that time. Today the company's shares have moved -0.65% to a price of $16.94. If you want to know more, read the company's complete 8-K report here.
