Shoe Carnival(SCVL) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter of Fiscal 2024 were $262.9 million, a decrease from $280.2 million in the fourth quarter of Fiscal 2023, with a comparable store sales decline of 6.3 percent[6][7]. - Fiscal 2024 net sales totaled $1.203 billion, an increase of $27.0 million, or 2.3 percent, compared to Fiscal 2023, driven by a 5.7 percent sales growth from Shoe Station and over $80 million from Rogan's acquisition[10][11]. - The company achieved a GAAP EPS of $2.68 and an adjusted EPS of $2.72 for Fiscal 2024, with net income growing to $73.8 million[6][11]. - The gross profit margin for Fiscal 2024 was 35.6 percent, marking the fourth consecutive year above 35 percent[11]. - The company expects net sales for Fiscal 2025 to range from $1.15 billion to $1.23 billion, with GAAP EPS guidance of $1.60 to $2.10[29]. - Reported net income for the weeks ended February 1, 2025, was $73,766 million, representing a 0.6% increase from $73,348 million for the weeks ended February 3, 2024[44]. - Adjusted net income increased to $74,950 million, up from $73,958 million, maintaining a stable adjusted net income margin of 6.2%[44]. Store Operations and Strategy - The company plans to rebanner 175 stores to the Shoe Station banner over the next 24 months, expecting to operate 218 Shoe Station stores, representing 51 percent of its current store fleet[4][21]. - The first-year investment for the rebanner strategy is forecasted to decrease Fiscal 2025 operating income by $20 to $25 million, resulting in an approximate $0.65 decline in EPS[23]. - Rogan's acquisition contributed over $80 million in net sales in Fiscal 2024, exceeding initial operating income targets by more than 20 percent[13]. Cash and Assets - The company ended Fiscal 2024 with approximately $123.1 million in cash and cash equivalents, marking the 20th consecutive year with no debt[17]. - Cash and cash equivalents increased to $108,680 thousand as of February 1, 2025, compared to $99,000 thousand as of February 3, 2024[38]. - Total assets increased to $1,124,133 thousand as of February 1, 2025, compared to $1,042,025 thousand as of February 3, 2024[38]. Expenses and Margins - Selling, general and administrative expenses rose to $337,642 million, accounting for 28.0% of net sales, up from 27.8% in the previous year[44]. - Adjusted operating income was $92,716 million, reflecting a margin of 7.7%, compared to 8.0% in the prior year[44]. - The amortization expense related to fair value adjustments was $994 million, impacting gross profit and operating income[44]. - Acquisition-related fees and expenses were recorded at $570 million, compared to $806 million in the previous year[44]. Dividends - The board approved an 11.1 percent increase in the quarterly dividend to 15.0 cents per share, marking the 11th consecutive year of dividend increases[15]. Inventory and Profitability - Merchandise inventories rose to $385,605 thousand as of February 1, 2025, up from $346,442 thousand in the previous year, indicating an 11.3% increase[38]. - Gross profit for the thirteen weeks ended February 1, 2025, was $91,669 thousand, representing a gross margin of 34.9%, down from 35.6% in the prior year[42]. - Operating income decreased to $14,037 thousand for the thirteen weeks ended February 1, 2025, compared to $19,969 thousand for the same period in 2024, reflecting a decline in operating margin from 7.1% to 5.3%[36][42]. - Adjusted net income for the thirteen weeks ended February 1, 2025, was $14,876 thousand, compared to $16,130 thousand for the same period in 2024[42].