Core Viewpoint - Shoe Carnival Inc. is changing its corporate name to Shoe Station Group, Inc., reflecting the successful performance of its Shoe Station banner acquired in 2021 for $67 million [1][2]. Group 1: Name Change and Strategic Direction - The name change is subject to shareholder approval at the annual meeting in June 2026 [1]. - The company anticipates that over 90 percent of its fleet will operate as Shoe Station by the end of fiscal 2028, with remaining locations under evaluation for rebannering, outlet repositioning, or closure [2]. Group 2: Performance Metrics - In fiscal 2025, the company has completed 100 store rebanners and expects 51 percent of its fleet to operate as Shoe Station by the back-to-school season in 2026 [3]. - Preliminary third quarter 2025 results show Shoe Station net sales grew by 5.3 percent, while Shoe Carnival net sales declined by 5.2 percent, indicating pressure on lower-income consumers [4]. - Total net sales for Q3 reached $297.2 million, exceeding consensus expectations, with diluted earnings per share at 53 cents, also surpassing expectations [4]. Group 3: Future Expectations and Operational Efficiencies - The company expects to achieve $20 million in annual cost savings and operational efficiencies by the end of fiscal 2027, along with a significant reduction in dual-brand operational complexity [5]. - Anticipated benefits include a 20 percent to 25 percent reduction in inventory investment by the end of fiscal 2027, as Shoe Station's premium assortment and efficient unit economics free up working capital [6]. - Annual comparable sales growth is expected to begin in fiscal 2027 as Shoe Station becomes the dominant banner [6].