Shoe Carnival shares rose nearly 1.5% in pre-market trading after the company posted first-quarter results that showed the pace of its sales decline narrowing, with results in line with Wall Street expectations.
According to Yahoo Finance, shares were trading at $16.00 at 8:14 a.m. after the report. The results marked the first full quarter under interim president and CEO Cliff Sifford, who returned to the company in late February following the exit of Mark Worden.
For the first quarter ended May 2, Shoe Carnival reported a net loss of $5.6 million, or 21 cents a diluted share, compared to net income of $9.3 million, or 34 cents, in the same period a year earlier. On an adjusted basis, diluted earnings per share came in at 23 cents. Net sales slipped 2.5% to $270.7 million from $277.7 million. Comparable store sales fell 2.1%. Wall Street's consensus, per Yahoo Finance, was adjusted diluted EPS of 23 cents on revenue of $267.3 million, meaning the company beat on the top line.
Sifford addressed the performance directly in a statement, saying results were in line with analyst expectations while noting there is still work ahead. The company operates two retail banners, Shoe Carnival and Shoe Station, and Sifford said a strategic review has confirmed that both serve distinct consumer segments and should remain permanent, independent parts of the company's portfolio.
"Our review confirmed that the Shoe Carnival and Shoe Station banners each serve distinct consumer segments, and that the company is best positioned to operate both banners are permanent, independent components of our portfolio," Sifford said.
By banner, Shoe Carnival net sales were $177.3 million, representing 65% of total net sales and a 2.2% decline that included a comparable store sales decrease of 1.7%. The company said that improvement compared to mid-to-high single digit quarterly declines throughout fiscal 2025. Shoe Station net sales were $93.4 million, or 35% of total net sales, a 3.1% decline that included a comparable store sales fall of 2.9%.
"The Shoe Carnival banner narrowed its year-over-year sales decline meaningfully compared to Fiscal 2025 trends," Sifford said, adding that "we feel confident about growth opportunities for the Shoe Station banner" through new store growth and the rebannering of select Shoe Carnival locations to Shoe Station.
The company ended the quarter debt-free, with merchandise inventories at $417.2 million, down $11.2 million from year-ago levels. Shoe Carnival said it expects inventory to decline by $50 million to $65 million by the end of fiscal 2026.
