Shoe Carnival (SCVL) Q4 2026 earnings summary

Executive summary

• Leadership transition with Cliff Sifford appointed Interim President and CEO following Mark Worden's departure; search for a permanent CEO is underway.

• Fourth quarter and full year EPS exceeded consensus, with Q4 EPS at $0.33 and FY EPS at $1.90.

• Shoe Station net sales grew 2.7% for the year, outperforming the industry for the third consecutive year, with strong e-commerce growth.

• Annual gross profit margin surpassed 35% for the fifth consecutive year, up 100 basis points from FY24.

• Ended FY25 debt-free for the 21st consecutive year, holding over $130 million in cash and equivalents.

Financial highlights

• Q4 net sales were $254.1 million, down 3.4% year-over-year; comparable store sales declined 3.5%.

• FY25 net sales were $1.135 billion, down 5.6% year-over-year; comparable store sales also declined 5.6%.

• FY25 gross profit margin was 36.6%, up 100 basis points from FY24, driven by pricing and inventory management.

• FY25 net income was $52.3 million ($1.90 per diluted share), down from $73.8 million ($2.68 per share) in FY24.

• Merchandise inventories rose 14% to $439.6 million at year-end, due to pre-tariff inventory purchases.

Outlook and guidance

• FY26 net sales expected to range from down 1% to up 1% versus FY25, with improvement in the second half.

• Gross profit margin guidance at ~34%, down 260 basis points due to unwinding of temporary margin gains, tariffs, and promotional activity.

• SG&A expenses projected to decrease by $12–$14 million year-over-year, reflecting lower rebanner costs and cost discipline.

• EPS guidance for FY26 is $1.40–$1.60, excluding CEO transition costs.

• Inventory reduction of $50–$65 million targeted for FY26, with most promotional activity in the first half.