Overview
- The retailer posted fiscal 2025 EPS of $1.90, topping forecasts, as fourth-quarter sales fell to $254.1 million and comparable sales slipped 3.5%.
- Management projected fiscal 2026 EPS of $1.40 to $1.60 and a gross margin about 2.6 percentage points lower to roughly 34% due to higher tariffs, the lapse of a pricing timing benefit, and heavier promotions to clear stock.
- Inventory climbed 14% to $439.6 million from pre-tariff purchases, and the company plans a $50 million to $65 million reduction in fiscal 2026 to unlock cash even as discounts weigh on near-term profit.
- After mixed results from recent conversions, Shoe Carnival slowed its store rebranding program that converts locations to a new banner and now expects about 21 conversions in the first half with lower profit and capital spending tied to the effort.
- The board installed former chief Cliff Sifford as interim CEO after Mark Worden’s exit, and he pledged a more data-led, disciplined reset.