Overview

• Shoe Carnival posted Q2 net sales of $306.4 million, down 7.9% year over year, with GAAP EPS of $0.70 beating a $0.50 consensus and adjusted EPS of $0.91 topping a $0.58 estimate.
• Gross margin expanded to 38.8% on stronger pricing, mix and inventory actions, more than offsetting higher buying, distribution and occupancy costs tied to the rebanner push.
• Shoe Station sales rose 1.6% while the legacy Shoe Carnival banner fell 10.1%, Rogan’s topped $20 million, and company comparable sales turned positive in August.
• The company completed 20 store conversions in Q2 and 44 year to date, plans 58 more in the second half, and targets 145 Shoe Station locations by year-end out of 428 total stores.
• Full-year net sales guidance was cut to $1.12–$1.15 billion, GAAP EPS guidance was raised to $1.70–$2.10, and the stock rose nearly 15% in pre-market trading.