Shoe Carnival(US:SCVL) ZACKS·2025-11-20 15:26Core Insights - Shoe Carnival, Inc. (SCVL) reported third-quarter fiscal 2025 results, with both earnings per share (EPS) and net sales meeting the Zacks Consensus Estimate, although both metrics declined year over year [1][10] - Comparable store sales decreased by 2.7% year over year in the fiscal third quarter [2][10] Financial Performance - EPS for the quarter was 53 cents, down 24.3% from 70 cents in the same quarter last year, with rebanner investments estimated to have reduced EPS by approximately 22 cents [1][10] - Net sales totaled $297.2 million, reflecting a 3.2% decline year over year [2][10] - Gross profit increased by 1.3% year over year to $111.8 million, with an adjusted gross margin of 37.6%, expanding 160 basis points year over year [4] - Operating income decreased by 24.1% year over year to $18.6 million, with this metric as a percentage of net sales declining 170 basis points to 6.3% [6] Strategic Initiatives - The One Banner Strategy, aimed at consolidating operations under the Shoe Station brand, is progressing, with Shoe Station now accounting for 34% of the store fleet, up from 10% at the beginning of fiscal 2025 [8][9] - The company plans to operate 215 Shoe Station locations by Back-to-School 2026, expecting this banner to represent 51% of the fleet by then [11] - Annual cost savings of approximately $20 million are anticipated from the One Banner Strategy, alongside a projected inventory investment decline of $100 million, or 20-25% [12][13] Future Outlook - For fiscal 2025, net sales are expected to range from $1.12 billion to $1.15 billion, with EPS guidance updated to a range of $1.80 to $2.10 [16] - Fiscal 2026 is projected to see a decline in net sales in the low-to-mid single digits during the first half, with a return to flat-to-low single-digit growth in the second half as Shoe Station surpasses 51% of the store base [16]