Shoe Carnival, Inc. (NASDAQ:SCVL) reported fourth-quarter results on Thursday that beat earnings expectations but fell slightly short on revenue.
The footwear retailer posted adjusted earnings per share of $0.33, exceeding the analyst consensus of $0.30 by $0.03. Quarterly revenue totaled $254.1 million, missing the forecast of $255.83 million and declining 3.4% from $262.9 million in the same quarter a year earlier. Comparable store sales also decreased 3.5%.
Shares of the company rose 0.67% in after-hours trading following the announcement.
For fiscal 2025, Shoe Carnival reported adjusted earnings per share of $1.90, surpassing analyst estimates. Full-year revenue came in at $1.135 billion, down 5.6% from $1.203 billion recorded in fiscal 2024.
The company’s gross profit margin reached 36.6% for the year, marking the fifth straight year above the 35% threshold and representing a 100-basis-point improvement compared with the previous year.
“Fourth quarter results exceeded consensus expectations, and Fiscal 2025 demonstrated this organization’s ability to execute through a challenging retail environment,” said Cliff Sifford, Interim President and Chief Executive Officer.
Shoe Station, the retailer’s primary growth brand, generated net sales of $236.7 million in fiscal 2025. The segment accounted for roughly 21% of total revenue and delivered organic growth of 2.7% compared with the prior year.
The brand outperformed the broader family footwear industry and exceeded Shoe Carnival’s overall performance by 10.4 percentage points. However, the company said it plans to slow the pace of store conversions under the Shoe Station banner. Around 21 store conversions are scheduled for the first half of fiscal 2026, compared with 101 completed during fiscal 2025, reflecting variability in performance among rebannered locations.
Looking ahead, Shoe Carnival forecast adjusted earnings per share of between $1.40 and $1.60 for fiscal 2026, below current consensus expectations. The midpoint of $1.50 represents a notable decline from the $1.90 reported for fiscal 2025.
The company expects net sales in fiscal 2026 to range between a 1% decline and a 1% increase compared with fiscal 2025. Gross profit margin is projected to fall by about 260 basis points to around 34%, reflecting higher costs related to tariffs as well as increased promotional activity.
Shoe Carnival ended fiscal 2025 with no debt for the 21st consecutive year and held $130.7 million in cash and marketable securities. The company’s board also approved a quarterly dividend increase to $0.17 per share, marking the 12th consecutive year of dividend growth.