Shoe Carnival Inc. (NASDAQ:SCVL) saw its stock surge more than 11% in premarket trading Friday after the company delivered stronger-than-expected earnings for the first quarter, even as total revenue declined.
The footwear retailer reported earnings per share of $0.34 for the quarter, topping Wall Street’s estimate of $0.30. Revenue came in at $277.7 million, down 7.5% from $300.4 million a year ago and slightly below the consensus forecast of $284.91 million.
The decline in overall revenue was offset in part by strong performance from the company’s Shoe Station brand, which saw a 4.9% increase in net sales thanks to double-digit growth in comparable store sales fueled by an ongoing store conversion initiative. However, the flagship Shoe Carnival banner experienced a 10% drop in sales during the quarter.
CEO Mark Worden highlighted the results as evidence of the retailer’s continued strategic momentum. “Our first quarter results reflect the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 percent despite the challenging macroeconomic and retail environment,” he said.
Shoe Carnival reaffirmed its full-year 2025 guidance, forecasting earnings per share between $1.60 and $2.10 on total revenue between $1.15 billion and $1.23 billion.
The company also accelerated its plans to expand the Shoe Station brand, now aiming for the banner to represent more than 80% of its store fleet by March 2027 – a significant increase from its prior goal of 51%.
As of May 3, 2025, Shoe Carnival operated 429 stores across its Shoe Carnival, Shoe Station, and Rogan’s brands. The company reported zero debt on its balance sheet and a more than 30% increase in cash holdings compared to the same period last year.