Net sales for the quarter ending May 2, 2026 were $270.7 million, compared to $277.7 million in the first quarter of FY25. Comparable store sales decreased 2.1 percent during the quarter.
Shoe Carnival reported lower Q1 FY26 net sales of $270.7 million as both the Shoe Carnival and Shoe Station banners declined during a strategic transition. Gross margin fell to 33.3 percent and the company posted a GAAP net loss of $5.6 million after transition and rebanner charges. It ended up debt-free with $129 million in cash and reaffirmed FY26 guidance.
“Since returning to the CEO role in late February, I have worked with our board and management team to complete a comprehensive review of the company’s strategic direction and capital deployment,” he said. Cliff Sifford, interim president and CEO of Shoe Carnival.
It added that the review confirmed that Shoe Carnival and Shoe Station serve different consumer segments and that the company is best positioned to operate both brands as permanent, independent components of its portfolio.
The company posted a gross profit margin of 33.3 percent, up from 34.5 percent in the corresponding quarter of the previous year. Merchandise margin decreased 140 basis points, primarily due to increased promotional activity and higher shipping costs related to e-commerce. This was partially offset by lower purchasing, distribution and occupancy costs.
It posted a GAAP net loss of $5.6 million, or $0.21 per diluted share, compared with net income of $9.3 million, or $0.34 per diluted share, in the first quarter of 2025, Shoe Carnival said in a news release.
The company recorded pre-tax charges of $13.6 million during the quarter, of which $5.3 million was related to the CEO transition and $8.3 million tied to the completion of a strategic review of its rebanner program. These charges included store location impairments and rebanner-related and corporate fixed asset write-offs.
Shoe Carnival Banner Sales Improve Sequentially
Shoe Carnival banner net sales were $177.3 million, accounting for 65 percent of total net sales, and decreased 2.2 percent year-on-year (YoY). Comparable store net sales under this brand decreased 1.7 percent.
The company said this marked a significant improvement compared to the mid-to-high single-digit quarterly declines recorded during fiscal 2025.
Shoe Station’s net sales amounted to $93.4 million, accounting for 35 percent of total net sales, and decreased 3.1 percent year-on-year. The brand’s comparable store net sales decreased 2.9 percent.
Shoe Carnival said improved sales trends at rebanner stores were more than offset by slower growth at the Shoe Station e-commerce sales channel.
Strategic transition weighs on costs
GAAP selling, general and administrative (SG&A) expenses increased by $12.3 million compared to the first quarter of 2025.
“Our underlying business delivered Adjusted EPS in line with consensus expectations during a quarter of significant strategic transition. We ended the quarter with $129 million in cash and marketable securities and no debt, and returned $7 million to shareholders through share repurchases,” Sifford added.
FY26 Guidance Reaffirmed
Shoe Carnival reaffirmed its previously communicated fiscal 2026 guidance. The company expects net sales of $1.125 billion to $1.147 billion, representing a range of between 1 percent and a 1 percent increase compared to fiscal 2025.
Adjusted EPS is expected to be in the range of $1.4 to $1.6. Gross profit margin is projected at around 34 percent, representing approximately 260 basis points of compression compared to fiscal 2025.
The company also expects adjusted SG&A expense reductions of between $12 million and $14 million compared to fiscal 2025 and an adjusted tax rate of about 26 percent.
Sifford said the back-to-school and fall sales periods represent the bulk of the company’s expected annual profit opportunities. The company intends to manage fiscal 2026 with disciplined capital deployment, continued progress in normalizing inventory and preparing for new store openings in fiscal 2027.
Fiber2Fashion News Desk (SG)
