Shoe Carnival Inc. (NASDAQ:SCVL) saw its shares rise 3.5% on Thursday after unveiling plans for a major corporate rebrand. The footwear retailer said it intends to change its name to Shoe Station Group, Inc., pending shareholder approval at its June 2026 annual meeting.
The board unanimously backed the name change as part of a long-term initiative to bring the company’s operations under a single, unified Shoe Station identity. By the end of fiscal 2028, more than 90% of stores are expected to carry the Shoe Station banner.
The decision follows stronger momentum at Shoe Station compared with the legacy Shoe Carnival chain. In preliminary third-quarter figures, Shoe Station posted 5.3% net sales growth and a 260-basis-point margin increase, while the Shoe Carnival brand saw sales drop 5.2%.
The company also announced preliminary Q3 revenue of $297.2 million and diluted EPS of $0.53, topping Wall Street expectations. Shoe Carnival highlighted its debt-free balance sheet, with more than $100 million in cash and marketable securities.
Management believes consolidating its banners will streamline the business and bolster efficiency, ultimately generating roughly $20 million in annual cost savings by fiscal 2027. Inventory investment is also expected to fall by 20% to 25% over the same period.
“We are building a simpler, more efficient company with one team, one infrastructure, and one P&L that is expected to generate millions in annual cost savings, sharply reduce our inventory investment, and create a balance sheet built for both organic growth and strategic acquisitions,” said Mark Worden, President and Chief Executive Officer.
The retailer has already completed 100 store rebanners in fiscal 2025 and expects more than half its store base to operate as Shoe Station by the back-to-school season in 2026.