Core Insights - Shoe Carnival has appointed W Kerry Jackson as the new executive vice-president and chief financial officer (CFO), effective from September 28, 2025, marking his return after a brief retirement [1] - The company celebrated the grand opening of its 100th Shoe Station store, with plans to exceed 215 stores by July 2026, indicating significant growth [2] - Jackson's extensive experience with the company, having served as CFO for 27 years and being part of the organization for 35 years, positions him well to lead the execution of the company's strategic plan [3] Company Developments - As of September 25, 2025, Shoe Carnival operates 428 stores across 35 US states and Puerto Rico under various banners, including Shoe Carnival, Shoe Station, and Rogan's [4] - The company has enhanced its digital shopping experience by integrating Algolia's AI-powered search with Amplience's Commerce Experience platform, aimed at improving operational agility and efficiency [4] Leadership Changes - Patrick Edwards, who has been serving as senior vice-president and CFO since 2023, will transition to the role of senior vice-president and treasurer, remaining part of the finance leadership team [3] - Jackson will also take on responsibilities for investor relations and is expected to participate in the third-quarter 2025 earnings call [3]

Core Insights - W. Kerry Jackson has returned to Shoe Carnival as executive vice president and chief financial officer, effective September 28, 2023, after previously serving in this role for 27 years before retiring in May 2023 [1][2][3] Leadership Changes - Patrick C. Edwards, who was the senior vice president and chief financial officer since 2023, will now take on the role of senior vice president and treasurer while remaining a key member of the finance leadership team [3] Business Development and Growth Plans - Shoe Carnival celebrated the grand opening of its 100th Shoe Station store, expanding from 21 locations with plans to exceed 215 stores by July 2026 [4] - Jackson's return to the CFO role aligns with the company's strategic plan execution, leveraging his extensive knowledge of the business [4] Financial Performance - For the second quarter of fiscal 2025, Shoe Carnival reported net sales of $306.4 million, a decrease of 7.9% from $332.7 million in the second quarter of 2024 [4] - The net income for Q2 was $19.2 million, or 70 cents per diluted share, compared to $22.6 million, or 82 cents per diluted share in the prior year [4] - The reported results exceeded analyst expectations, which forecasted net sales of $299.02 million and earnings per share of 50 cents [5]

Core Insights - Shoe Carnival (NASDAQ: SCVL) may initially appear to be a value trap due to its focus on low-income customers and the current economic weakness affecting its clientele [1] Company Overview - The flagship brand of Shoe Carnival offers an entertaining shoe shopping experience aimed at low-income consumers [1] Economic Context - Economic weakness is impacting the purchasing behavior of many customers, which could affect Shoe Carnival's sales performance [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Points - Shoe Carnival, Inc. has declared a quarterly cash dividend of $0.15 per share, to be paid on October 20, 2025, to shareholders of record as of October 6, 2025 [1][2] - This dividend marks the 54th consecutive quarterly dividend and reflects the company's strong cash flow, with nearly $150 million in cash and securities available after the Back-to-School season [3] - The company operates with no debt on its balance sheet, positioning it well for future investments and enhancing shareholder returns [3] Company Overview - Shoe Carnival, Inc. is a leading retailer of family footwear, operating 428 stores across 35 states and Puerto Rico, and also offers online shopping [5] - The company emphasizes national name brands in its product offerings, which include dress, casual, and athletic footwear for men, women, and children [5] - Shoe Carnival trades on the Nasdaq Stock Market under the symbol SCVL [5]

Group 1 - Two apparel stocks, Zumiez Inc. and Shoe Carnival Inc., are experiencing significant declines in their Growth scores within Benzinga's Edge Stock Rankings [1][2] - A dip in growth scores indicates poor quarterly performance, negatively impacting the compounded annual growth rate and relative rankings among stocks [3] Group 2 - Zumiez Inc. has seen a drop of 39.8 points in its Growth score, falling from 62.57 to 22.77, primarily due to a disappointing second-quarter performance with same-store sales increasing only 2.5% year-over-year [4] - The company is facing ongoing losses attributed to margin pressures, litigation expenses, and macroeconomic uncertainties, including tariffs [4] - Shoe Carnival Inc.'s Growth score has decreased from 90.37 to 59.97, influenced by multiple headwinds affecting its core business and a reduction in full-year sales forecasts [6] - The decline in Shoe Carnival's Growth score has negatively impacted investment sentiment and stock performance [6]

Group 1 - Shoe Carnival (NASDAQ: SCVL) reported a decline in sales for 2Q25, mirroring the performance seen in 1Q25 [1] - Gross margins showed significant improvement, but this was insufficient to offset the deleverage in selling, general and administrative expenses (SG&A) [1] - Profits were lower compared to the previous year, and this trend is expected to continue [1]

Company Performance - Shoe Carnival (NASDAQ: SCVL) reported a decline in sales for 2Q25, mirroring the performance seen in 1Q25 [1] - Despite a significant improvement in gross margins, the gains were insufficient to offset the deleverage in selling, general, and administrative (SG&A) expenses [1] - Profits for the company were lower compared to the previous year, with expectations of continued decline [1] Investment Perspective - The investment approach focuses on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The strategy emphasizes holding companies for the long term, with a preference for a small fraction of companies being classified as a buy at any given time [1]

Financial Performance - Net Income for Q2 2025 was $19.2 million, or $0.70 per diluted share, down from $22.6 million, or $0.82 per diluted share in Q2 2024[73]. - Net Sales declined by 7.9% in Q2 2025, primarily due to a 10.1% decline at the Shoe Carnival banner, while Shoe Station saw a 1.6% increase[76]. - Net Sales for Q2 2025 were $306.4 million, a decrease of $26.3 million, or 7.9%, compared to Q2 2024, primarily due to a 10.1% decline in the Shoe Carnival banner[86]. - Year-to-date 2025 Net Sales were $584.1 million, a decrease of $49.0 million, or 7.7%, compared to year-to-date 2024, with a 10.0% decline in the Shoe Carnival banner[90]. Gross Profit and Margins - Gross Profit margin increased to 38.8%, up 270 basis points from Q2 2024, driven by a 390 basis point increase in merchandise margin[75]. - Gross Profit for Q2 2025 was $118.8 million, a decrease of $1.1 million compared to Q2 2024, with a gross profit margin of 38.8%, up from 36.1% in Q2 2024[87]. - Year-to-date 2025 Gross Profit was $214.6 million, a decrease of $12.2 million compared to year-to-date 2024, with a gross profit margin of 36.7%, up from 35.8%[91]. Operating Income and Expenses - Selling, general and administrative expenses increased to 30.6% of Net Sales in Q2 2025, compared to 27.1% in Q2 2024[72]. - The rebanner strategy impacted Operating Income by approximately $7.5 million, or $0.21 per diluted share, with a year-to-date impact of $13.0 million, or $0.36 per diluted share[82]. - SG&A expenses increased by $3.7 million in Q2 2025 to $93.6 million, representing 30.6% of Net Sales, compared to 27.1% in Q2 2024[88]. Store Operations and Strategy - The company rebannered 44 stores to Shoe Station in Fiscal 2025, with plans to rebanner an additional 58 stores in the second half of Fiscal 2025[77]. - Approximately 145 stores, or one-third of the current store fleet, are expected to operate as Shoe Station stores by the end of Fiscal 2025[78]. - The company expects 51% of its fleet to operate as Shoe Station stores by August 2026 and over 80% by March 2027[80]. - The company currently operates 428 stores and plans to rebanner 58 additional stores into Shoe Station stores by the second half of Fiscal 2025, with over 50% of the store fleet expected to operate as Shoe Station stores by Back-to-School 2026[109]. - In Fiscal 2025, the company rebannered 24 Shoe Carnival stores in Q1 and 20 in Q2, resulting in a total of 313 Shoe Carnival stores and 87 Shoe Station stores by August 2, 2025[109]. Capital and Cash Management - Cash, Cash Equivalents, and Marketable Securities totaled $91.9 million at the end of Q2 2025, with $99.0 million available under the existing credit facility[84]. - Capital expenditures for Fiscal 2025 are expected to be between $45 million and $55 million, with $30 million to $35 million allocated for rebannered stores[108]. - The company had no borrowings outstanding during year-to-date 2025, and its Credit Agreement allows for dividends and share repurchases subject to certain covenants[116]. Shareholder Returns - The Board of Directors approved a quarterly cash dividend of $0.15 per share, up from $0.135 per share in Q2 2024, returning $8.5 million to shareholders year-to-date 2025[110]. - A share repurchase program for up to $50 million was authorized, effective January 1, 2025, with no repurchases made to date in Fiscal 2025[111][112]. Tax and Inventory - The effective income tax rate for year-to-date 2025 was 26.6%, compared to 25.9% for year-to-date 2024, primarily due to discrete adjustments related to share-settled equity awards[94]. - Merchandise Inventories at the end of Q2 2025 were $449.0 million, up approximately 5% compared to Q2 2024, to support the Back-to-School selling period[85]. Seasonal Impact - The company has three peak selling periods: Easter, back-to-school, and Christmas, which significantly impact operating results and require increased inventory[114].

Group 1 - Shoe Carnival's shares increased by 20.3% on September 4th following the announcement of its second-quarter financial results [1] - The company is focused on generating cash flow, which is essential for value and growth prospects [1] Group 2 - Crude Value Insights provides an investing service centered on oil and natural gas, emphasizing cash flow analysis [2] - Subscribers have access to a stock model account and in-depth analyses of exploration and production firms [2]