Shoe Carnival Reports Mixed Quarter as Rogan’s Integration Takes Hold

Shoe Carnival wrapped up fiscal 2023 on Thursday by delivering a mixed quarter.

The Evansville, Ind.-based footwear retailer reported net sales in the quarter of $280.2 million, down 3.6 percent compared to the same time the prior year. This performance was driven by strong sales growth during the key December holiday period, the company said. Net income in the quarter was $15.5 million, or 57 cents per diluted share, compared to year-ago net income of $21.6 million, or 79 cents per diluted share.

For the full fiscal year 2023, net sales were $1.18 billion, down from $1.27 billion in fiscal 2022. Net income for the year was $73.3 million, or $2.68 per diluted share, down from $110.07 million, or $3.96 per diluted share in 2022.

“We are well positioned to advance our strategy to be the nation’s leading family footwear retailer by accelerating growth, as well as pursuing additional growth initiatives and M&A opportunities in the future,” Mark Worden, president and chief executive officer of Shoe Carnival, said in a statement.

These earnings come just one month after Shoe Carnival snapped up Rogan’s Shoes, a 53-year-old work and family footwear company with locations across Wisconsin, Minnesota, and Illinois, for $45 million.

According to the company, the acquisition of Rogan’s is expected to be immediately accretive to its fiscal 2024 earnings. Based on progress of integrating the new banner into the company to date, Shoe Carnival said it is increasing its full synergy expectation to approximately $2.5 million annually and is accelerating the integration plan to fully capture those synergies in fiscal 2025.

Following the acquisition of Rogan’s, the company now operates 429 stores, up from 400 locations prior to the deal. By the end of fiscal 2024, the company expects to operate 430 to 432 stores, representing net growth of 30 to 32 stores.

Looking ahead, the company said it expects to grow net sales in fiscal 2024 led by the recent Rogan’s acquisition, continued strength of the Shoe Station banner and growth in e-commerce sales, combined with the expectation of improving trends in the Shoe Carnival banner.

Net sales for the full fiscal year 2024 are expected to be in a range of $1.21 billion to $1.25 billion, representing growth of 4.0 percent to 6.0 percent versus fiscal 2023. Adjusted earnings per share is expected to be in a range of $2.55 to $2.75 for the year.