Shoe Carnival (SCVL) posts Q1 loss but keeps 2026 guidance intact
Rhea-AI Filing Summary
Shoe Carnival, Inc. reported first quarter 2026 net sales of $270.7 million, down slightly from $277.7 million a year earlier, and posted a GAAP net loss of $5.6 million, or $(0.21) per diluted share. Excluding $13.6 million of CEO transition and rebanner review charges, Adjusted EPS was $0.23, matching consensus expectations.
Gross margin declined to 33.3% from 34.5% as heavier promotions and higher e-commerce shipping costs weighed on profitability. Comparable store sales fell 2.1%, with Shoe Carnival banner sales down 2.2% and Shoe Station sales down 3.1%, but trends improved versus fiscal 2025.
The company ended the quarter debt-free with $129.3 million in cash, cash equivalents and marketable securities, up 39% year over year, and inventories down by $11.2 million. It returned about $12 million to shareholders through dividends and $7.0 million of share repurchases, raised its quarterly dividend to $0.17 per share, and reaffirmed full-year 2026 guidance for net sales of $1.125–$1.147 billion and Adjusted EPS of $1.40–$1.60.
Positive
- None.
Negative
- None.
Insights
Quarter shows softer margins and a GAAP loss, but cash strength and reaffirmed guidance point to stabilization.
Shoe Carnival delivered Q1 2026 net sales of $270.7M, modestly below the prior year. A $13.6M package of CEO transition and rebanner-related charges pushed results to a GAAP loss of $5.6M, while underlying operations generated Adjusted EPS of $0.23, in line with consensus.
Gross margin compressed to 33.3% from 34.5% as promotions and e-commerce shipping costs rose. However, Shoe Carnival banner sales declines narrowed versus fiscal 2025, suggesting some improvement in core trends, while Shoe Station growth was tempered by slower e-commerce performance.
Liquidity remains a key support: the company ended the quarter debt-free with $129.3M in cash and marketable securities and lower inventories. Management reaffirmed fiscal 2026 guidance, including net sales of $1.125–$1.147B and Adjusted EPS of $1.40–$1.60, with most earnings expected in the back-to-school and fall periods in 2026.
8-K Event Classification
Key Figures
Key Terms
Adjusted EPS financial
Comparable store sales financial
Gross profit margin financial
rebanner program financial
omnichannel financial
Non-GAAP financial measures financial
Earnings Snapshot
Fiscal 2026 net sales $1.125–$1.147B, Adjusted EPS $1.40–$1.60, gross margin about 34%, $12–$14M reductions in Adjusted SG&A, Adjusted tax rate about 26%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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(IRS Employer Identification No.) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
The following information shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
On May 21, 2026, Shoe Carnival, Inc. (the "Company") issued a press release announcing its operating and financial results for its first quarter ended May 2, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
Exhibit No. Exhibits
99.1 Earnings Release – First Quarter Ended May 2, 2026
104 Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL)
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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SHOE CARNIVAL, INC. |
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(Registrant) |
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Date: May 21, 2026 |
By: |
/s/ W. Kerry Jackson |
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W. Kerry Jackson |
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Executive Vice President |
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Chief Financial Officer |
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3
EX-99.1
SHOE CARNIVAL REPORTS FIRST QUARTER 2026 RESULTS
May 21, 2026
FOR IMMEDIATE RELEASE
FORT MILL, S.C. - Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading omnichannel retailer of footwear and accessories for the family, today reported results for the first quarter ended May 2, 2026.
First Quarter 2026 Highlights
(1) A description of non-GAAP Adjusted EPS and a reconciliation of non-GAAP Adjusted EPS to the corresponding GAAP measure is provided at the end of this press release.
“Since returning to the Chief Executive Officer 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,” said Cliff Sifford, Interim President and Chief Executive Officer.
“Our review confirmed that the Shoe Carnival and Shoe Station banners each serve distinct consumer segments, and that the Company is best positioned to operate both banners as permanent, independent components of our portfolio. While there is more work to do, I am pleased that our first quarter results came in within the range of consensus analyst expectations on the key financial metrics, with sales modestly ahead of consensus and Adjusted EPS matching consensus. The Shoe Carnival banner narrowed its year-over-year sales decline meaningfully compared to Fiscal 2025 trends. In addition, we continue to feel confident about growth opportunities for the Shoe Station banner - both through new
store growth in markets that serve the target consumer segment and rebannering of select Shoe Carnival locations that meet the criteria for conversion to Shoe Station.”
“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 we returned $7 million to shareholders through share repurchases. We are reaffirming our previously communicated Fiscal 2026 guidance, with the back-to-school and fall selling periods representing the bulk of our expected annual earnings opportunity. We intend to manage Fiscal 2026 with disciplined capital deployment, continued progress on inventory normalization, and preparation for opening new stores in Fiscal 2027,” concluded Mr. Sifford.
First Quarter 2026 Operating Results
Net sales in the first quarter of 2026 were $270.7 million compared to $277.7 million in the first quarter of 2025. Comparable store sales declined 2.1 percent.
By banner:
Gross profit margin in the first quarter of 2026 was 33.3 percent, a decrease of 120 basis points compared to the first quarter of 2025. Merchandise margin decreased 140 basis points primarily driven by increased promotional activity and higher e-commerce-related shipping costs. The decrease was partially offset by 20 basis points from primarily lower buying, distribution and occupancy costs.
Selling, general and administrative expenses (“SG&A”) on a GAAP basis increased $12.3 million compared to the first quarter of 2025. Non-GAAP adjusted SG&A (“Adjusted SG&A”), which excludes non-recurring charges of $13.6 million in the first quarter of 2026 related the CEO Transition and the Company’s strategic review of its rebanner strategy, decreased $1.3 million.
Income tax expense in the first quarter of 2026 was $0.6 million and was impacted by nondeductible CEO severance payments that increased income tax expense by approximately $1.6 million. The Company’s effective tax rate in the first quarter of 2026 was (11.2)% compared to 28.1% in the first quarter of 2025. The Company’s non-GAAP adjusted effective tax rate (“Adjusted Tax Rate”) in the first quarter of 2026, which excludes the impacts related to the CEO Transition and the strategic review, was 27.0 percent.
The GAAP net loss for the first quarter of 2026 was $(5.6) million, or $(0.21) per diluted share. Excluding the impacts from the non-recurring charges recorded in the quarter, non-GAAP adjusted net income (“Adjusted Net Income”) and Adjusted EPS were $6.2 million and $0.23 per diluted share, respectively, compared to net income of $9.3 million and EPS of $0.34 in the first quarter of 2025.
Descriptions of Adjusted Net Income, Adjusted EPS, Adjusted SG&A and Adjusted Tax Rate, and reconciliations to the corresponding GAAP measures, are provided at the end of this press release.
Capital Management and Cash Flow
Fiscal 2025 marked the 21st consecutive fiscal year the Company ended with no debt, fully funding operations and strategic investments from operating cash flow and cash reserves. The first quarter of
2026 was also debt-free. At the end of the first quarter of 2026, the Company held approximately $129.3 million in cash, cash equivalents, and marketable securities, an increase of 39 percent compared to the end of the first quarter of 2025. Cash flow from operations increased $32.7 million while capital expenditures declined $2.9 million.
Merchandise inventories at the end of first quarter 2026 were $417.2 million, down $11.2 million compared to the end of the first quarter of 2025. The Company continues to expect inventory declines of $50 to $65 million by the end of Fiscal 2026 compared to the end of Fiscal 2025.
Dividend and Share Repurchase Program
During the first quarter of 2026, the Company returned approximately $12 million to shareholders through dividends and share repurchases. The $5 million in dividend payments in the first quarter of 2026 were paid at an increased rate of $0.17 per share, up 13.3 percent compared to the first quarter of 2025. This increase represented the 12th consecutive year the Company increased its quarterly dividend rate. The new Fiscal 2026 annualized rate represents a compounded annual growth rate of approximately 15.5 percent over the past 12 years. The Company has now paid a dividend for 56 consecutive quarters.
Approximately $7 million of shares were repurchased during the first quarter of 2026. As of May 2, 2026, $43 million remained available under the Company's share repurchase authorization.
Fiscal 2026 Guidance
The Company is reaffirming its previously communicated Fiscal 2026 guidance, which continues to contemplate:
The Company’s Adjusted EPS, Adjusted SG&A and Adjusted Tax Rate guidance excludes the impact of the CEO Transition costs previously identified and the strategic review charges recorded during the first quarter of 2026. A reconciliation of the Adjusted EPS guidance to the corresponding GAAP measure is provided in a table at the end of this press release. Please refer to “Note Regarding Forward-Looking Non-GAAP Measures” at the end of this press release for further information regarding the reconciliation of Adjusted SG&A and Adjusted Tax Rate guidance.
Annual Shareholder Meeting
As previously announced, the Company will hold its Annual Meeting of Shareholders at 11:00 a.m. Eastern Time on June 10, 2026. Information about the annual meeting and related material, including the Company's proxy statement and annual report, can be found on the Company's website.
Conference Call
Today, at 9:00 a.m. Eastern Time, the Company will host a conference call to discuss its first quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival's Investors webpage at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of
the webcast will be available on the Company’s website shortly after the conclusion of the conference call and will be archived for one year.
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest omnichannel family footwear retailers, offering a broad assortment of dress, casual and athletic footwear for men, women and children with emphasis on national name brands. As of May 21, 2026, the Company operated 426 stores in 35 states and Puerto Rico under its Shoe Carnival and Shoe Station banners and offers shopping at www.shoecarnival.com and www.shoestation.com. Headquartered in Fort Mill, SC, and with distribution and support operations located in Evansville, IN, Shoe Carnival, Inc. trades on The Nasdaq Stock Market LLC under the symbol SCVL.
Press releases and annual reports are available on the Company's website at www.shoecarnival.com.
Contact Information
W. Kerry Jackson
Chief Financial Officer
(812) 867-4034
scvlir@scvl.com
Cautionary Statement Regarding Forward-Looking Information
As used herein, “we,” “our” and “us” refer to Shoe Carnival, Inc. This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties, such as statements about our future growth, execution of our rebanner strategy, inventory management, operations and results, cash flows, and shareholder returns. These forward-looking statements necessarily depend upon assumptions, estimates and dates that may be incorrect or imprecise and involve known and unknown risks, uncertainties, and other factors. Accordingly, any forward-looking statements included in this press release do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements can be identified by, among other things, the use of forward-looking terms such as “believes,” “expects,” “aims,” “on track,” “may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends” or the negative of any of these terms, or comparable terminology, or by discussions of strategy or intentions. Given these uncertainties, we caution investors not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We disclaim any obligation to update any of these factors or to publicly announce any revisions to the forward-looking statements contained in this press release to reflect future events or developments. A number of factors could cause our actual results, performance, achievements, or industry results to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, but are not limited to:
Financial Tables Follow
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
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Thirteen |
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Thirteen |
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||
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Weeks Ended |
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Weeks Ended |
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May 2, 2026 |
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May 3, 2025 |
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Net sales |
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$ |
270,730 |
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$ |
277,715 |
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Cost of sales (including buying, |
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180,629 |
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181,938 |
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Gross profit |
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90,101 |
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95,777 |
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Selling, general and administrative expenses |
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96,138 |
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83,812 |
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Operating (loss) income |
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(6,037 |
) |
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11,965 |
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Interest income |
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(1,062 |
) |
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(1,103 |
) |
Interest expense |
|
|
85 |
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|
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78 |
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(Loss) income before income taxes |
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(5,060 |
) |
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12,990 |
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Income tax expense |
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568 |
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3,647 |
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Net (loss) income |
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$ |
(5,628 |
) |
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$ |
9,343 |
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Net (loss) income per share: |
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Basic |
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$ |
(0.21 |
) |
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$ |
0.34 |
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Diluted |
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$ |
(0.21 |
) |
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$ |
0.34 |
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Weighted average shares: |
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Basic |
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27,387 |
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27,233 |
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Diluted |
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27,387 |
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27,476 |
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Cash dividends declared per share |
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$ |
0.170 |
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$ |
0.150 |
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SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
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May 2, |
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January 31, |
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May 3, |
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2026 |
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2026 |
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2025 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
116,100 |
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$ |
117,091 |
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$ |
78,476 |
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Marketable securities |
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13,248 |
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13,636 |
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14,477 |
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Accounts receivable |
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6,716 |
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6,370 |
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8,745 |
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Merchandise inventories |
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417,177 |
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439,638 |
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428,424 |
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Other |
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17,681 |
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19,402 |
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18,509 |
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Total Current Assets |
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570,922 |
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596,137 |
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548,631 |
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Property and equipment – net |
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177,859 |
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185,610 |
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178,424 |
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Operating lease right-of-use assets |
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340,263 |
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349,582 |
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341,815 |
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Intangible assets |
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40,911 |
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40,923 |
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40,956 |
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Goodwill |
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18,018 |
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|
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18,018 |
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18,018 |
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Other noncurrent assets |
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11,102 |
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|
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11,473 |
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|
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12,314 |
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Total Assets |
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$ |
1,159,075 |
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$ |
1,201,743 |
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$ |
1,140,158 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
65,287 |
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$ |
79,170 |
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$ |
66,592 |
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Accrued and other liabilities |
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|
18,858 |
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|
|
21,199 |
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|
|
24,699 |
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Current portion of operating lease liabilities |
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57,805 |
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|
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58,057 |
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|
|
58,355 |
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Total Current Liabilities |
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141,950 |
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|
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158,426 |
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|
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149,646 |
|
Long-term portion of operating lease liabilities |
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|
303,396 |
|
|
|
313,368 |
|
|
|
306,987 |
|
Deferred income taxes |
|
|
26,621 |
|
|
|
26,879 |
|
|
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19,624 |
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Deferred compensation |
|
|
12,682 |
|
|
|
12,114 |
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|
9,539 |
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Other |
|
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1,026 |
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1,290 |
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|
|
781 |
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Total Liabilities |
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|
485,675 |
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|
|
512,077 |
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486,577 |
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Total Shareholders’ Equity |
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673,400 |
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689,666 |
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|
653,581 |
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Total Liabilities and Shareholders’ Equity |
|
$ |
1,159,075 |
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$ |
1,201,743 |
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$ |
1,140,158 |
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SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
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Thirteen |
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Thirteen |
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Weeks Ended |
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Weeks Ended |
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May 2, 2026 |
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May 3, 2025 |
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Cash Flows From Operating Activities |
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Net (loss) income |
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$ |
(5,628 |
) |
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$ |
9,343 |
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Adjustments to reconcile net (loss) income to net |
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Depreciation and amortization |
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9,017 |
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8,335 |
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Stock-based compensation |
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3,373 |
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|
|
1,546 |
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Loss on retirement and impairment of assets, net |
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|
8,202 |
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|
596 |
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Deferred income taxes |
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|
(258 |
) |
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|
745 |
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Non-cash operating lease expense |
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13,215 |
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15,876 |
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Other |
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|
142 |
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|
|
317 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(347 |
) |
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|
272 |
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Merchandise inventories |
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22,461 |
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(42,819 |
) |
Operating leases |
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(14,119 |
) |
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|
(16,789 |
) |
Accounts payable and accrued liabilities |
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(13,538 |
) |
|
|
12,256 |
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Other |
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559 |
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|
|
685 |
|
Net cash provided by (used in) operating activities |
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23,079 |
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(9,637 |
) |
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Cash Flows From Investing Activities |
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|
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|
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||
Purchases of property and equipment |
|
|
(10,435 |
) |
|
|
(13,346 |
) |
Investments in marketable securities |
|
|
(12 |
) |
|
|
(678 |
) |
Sales of marketable securities |
|
|
600 |
|
|
|
0 |
|
Net cash used in investing activities |
|
|
(9,847 |
) |
|
|
(14,024 |
) |
|
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|
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Cash Flow From Financing Activities |
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Proceeds from issuance of stock |
|
|
46 |
|
|
|
48 |
|
Dividends paid |
|
|
(5,016 |
) |
|
|
(4,418 |
) |
Purchase of common stock for treasury |
|
|
(7,002 |
) |
|
|
0 |
|
Shares surrendered by employees to pay taxes on |
|
|
(2,247 |
) |
|
|
(2,173 |
) |
Other |
|
|
(4 |
) |
|
|
0 |
|
Net cash used in financing activities |
|
|
(14,223 |
) |
|
|
(6,543 |
) |
Net decrease in cash and cash equivalents |
|
|
(991 |
) |
|
|
(30,204 |
) |
Cash and cash equivalents at beginning of period |
|
|
117,091 |
|
|
|
108,680 |
|
Cash and cash equivalents at end of period |
|
$ |
116,100 |
|
|
$ |
78,476 |
|
SHOE CARNIVAL, INC.
GAAP TO NON-GAAP RECONCILIATIONS
ADJUSTMENTS TO REPORTED SG&A
(In thousands)
(Unaudited)
|
|
Thirteen Weeks Ended |
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|||||
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May 2, 2026 |
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May 3, 2025 |
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||
SG&A as reported |
|
$ |
96,138 |
|
|
$ |
83,812 |
|
SG&A adjustments |
|
|
|
|
|
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||
Long-lived asset impairments and |
|
|
(8,304 |
) |
|
|
0 |
|
Former CEO severance |
|
|
(5,301 |
) |
|
|
0 |
|
Total adjustments to SG&A |
|
|
(13,605 |
) |
|
|
0 |
|
Non-GAAP Adjusted SG&A |
|
$ |
82,533 |
|
|
$ |
83,812 |
|
ADJUSTMENTS TO REPORTED NET (LOSS) INCOME AND PER SHARE AMOUNTS
(In thousands, except per share data)
(Unaudited)
|
|
Thirteen Weeks |
|
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Thirteen Weeks |
|
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Pretax |
|
Net of |
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Per Share |
|
|
Pretax |
|
Net of |
|
Per Share |
|
||||||
Net income (loss) as reported |
|
|
|
$ |
(5,628 |
) |
$ |
(0.21 |
) |
|
|
|
$ |
9,343 |
|
$ |
0.34 |
|
||
SG&A adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Long-lived asset impairments and |
|
$ |
8,304 |
|
|
6,285 |
|
|
0.23 |
|
|
$ |
0 |
|
|
0 |
|
|
0 |
|
Former CEO severance |
|
|
5,301 |
|
|
5,585 |
|
|
0.20 |
|
|
|
0 |
|
|
0 |
|
|
0 |
|
Total adjustments to SG&A |
|
$ |
13,605 |
|
|
11,870 |
|
|
0.43 |
|
|
$ |
0 |
|
|
0 |
|
|
0 |
|
Non-GAAP Adjusted Net Income |
|
|
|
$ |
6,242 |
|
$ |
0.23 |
|
|
|
|
$ |
9,343 |
|
$ |
0.34 |
|
||
____________________
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP BASIS) GUIDANCE
(Unaudited)
|
|
Fiscal 2026 Guidance |
|
||||
|
|
Low |
|
High |
|
||
GAAP diluted earnings per share |
|
$ |
0.97 |
|
$ |
1.17 |
|
Long-lived asset impairments and write-offs |
|
|
0.23 |
|
|
0.23 |
|
Former CEO severance |
|
|
0.20 |
|
|
0.20 |
|
Adjusted EPS |
|
$ |
1.40 |
|
$ |
1.60 |
|
Use of Non-GAAP Measures
In this press release, to supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures, including Adjusted Net Income, Adjusted EPS, Adjusted SG&A and Adjusted Tax Rate, as shown in the tables above. These measures adjust for the charges and corresponding impact associated with (1) the CEO Transition, including cash severance, accelerated stock-based compensation, legal fees, payroll taxes, and outplacement fees, and (2) long-lived asset impairments and write-offs in connection with the completion of the Company’s strategic review of its rebanner program, as well as additional corporate assets that supported our corporate office relocation. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes that these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in the Company’s business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations.
Note Regarding Forward-Looking Non-GAAP Measures
The reconciliation of forward-looking non-GAAP measures, including Adjusted SG&A and Adjusted Tax Rate to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. Namely, we are not, without unreasonable effort, able to reliably predict the component parts of SG&A and factors that impact income taxes. In addition, the Company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors. These items are uncertain, depend on various factors and may have a material impact on our future GAAP results.