Shoe Carnival, Inc.

First-quarter net sales were $270.7 million, down from $278 million in the prior-year quarter. Total comparable store sales declined 2.1%. GAAP diluted EPS was a loss of $0.21, reflecting $13.6 million of pretax charges tied to the CEO transition and strategic review; excluding those items, adjusted diluted EPS was $0.23. Gross profit margin was 33.3%, down about 120 basis points year over year. Shoe Carnival banner net sales were $177.3 million, down 2.2%, with comp down about 1.7%; Shoe Station net sales were $93.4 million, down 3.1%, with comp down about 2.9%. For fiscal 26, management reaffirmed guidance for net sales of $1.125 billion to $1.147 billion, adjusted diluted EPS of $1.40 to $1.60, gross margin of about 34%, adjusted SG&A down $12 million to $14 million versus fiscal 25, and an adjusted tax rate of about 26%. Management said it expects inventory to decline by $50 million to $65 million by the end of fiscal 26 versus fiscal 25. It ended the quarter with $129.3 million of cash, cash equivalents and marketable securities, no debt, and about $43 million remaining under share repurchase authorization.

Clint Sifford said the strategic review clarified the company’s direction: Shoe Carnival and Shoe Station each serve different consumers and should be operated as permanent separate banners. He emphasized that the near-term work is operational—fixing assortment by store, restoring pricing and promotional cadence, and reconnecting with customers—rather than changing the banner structure again. His tone was candid but constructive, with repeated emphasis that the benefits should show up more clearly in back-to-school and fall than in the second quarter.

Kerry Jackson focused on the quarter’s financials, noting $270.7 million of sales, 33.3% gross margin, and adjusted EPS of $0.23 versus $0.34 a year ago. He detailed $13.6 million of pretax charges, including $5.3 million for CEO transition costs and $8.3 million of strategic review charges, and said adjusted SG&A was $82.5 million, down about $1.3 million year over year. He also highlighted strong liquidity with $129.3 million in cash and marketable securities, no debt, $10.4 million of Q1 capex, and 390,000 shares repurchased for about $7 million. On guidance, he reaffirmed the full-year outlook and said first-half margins will be pressured by liquidation, promotions, and tariff-related cost pressure, with normalization expected later.

Analysts focused on the store strategy, asking how many stores remain in each banner, how many closures are planned, and how many rebanners are left. Management said there are 281 Shoe Carnival stores and 145 Shoe Station stores, that most closures will be Shoe Carnival locations, and that rebanners for this fiscal year are complete. Questions also centered on localized assortments and whether the company had enough time to fix misaligned store mixes; management said the changes are already underway and will be more visible in back-to-school and the fall season. Analysts pressed on Q2 comp and margin trends, and management responded that the second quarter remains too uncertain to guide specifically because macro conditions and promotional actions could change materially.