Shoe Carnival (SCVL) Q4 2026 earnings summary

Executive summary

• Leadership transition with appointment of an interim CEO following the previous CEO's departure; search for a permanent successor is underway.

• Fourth quarter and full year EPS exceeded consensus, with Q4 EPS at $0.33 and FY EPS at $1.90.

• Annual gross profit margin surpassed 35% for the fifth consecutive year, up 100 basis points from FY24.

• Ended the year debt-free for the 21st consecutive year with over $130 million in cash and securities.

• Board approved a quarterly dividend increase to $0.17 per share, marking 12 consecutive years of increases.

Financial highlights

• Q4 net sales were $254.1 million, down 3.4% year-over-year; comparable store sales declined 3.5%.

• Full-year net sales were $1.135 billion, down 5.6% year-over-year; comparable store sales also declined 5.6%.

• FY25 gross profit margin was 36.6%, up 100 basis points from FY24; Q4 gross profit margin was 34.9%, flat year-over-year.

• FY25 net income was $52.3 million ($1.90 per diluted share), down from $73.8 million ($2.68 per share) in FY24.

• Merchandise inventories rose 14% to $439.6 million at year-end, due to pre-tariff inventory purchases.

Outlook and guidance

• Fiscal 2026 net sales expected to be down 1% to up 1% versus 2025, with improvement anticipated in the second half.

• Gross profit margin guidance for 2026 is approximately 34%, down 260 basis points due to tariff costs, non-recurrence of prior price increases, and promotional activity.

• SG&A expenses expected to decrease by $12–$14 million year-over-year.

• EPS guidance for 2026 is $1.40–$1.60, excluding CEO transition costs.

• First half of FY26 expected to be more challenging, with improvement anticipated in the second half.