SCVL - Earnings call transcript Q1 2025

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Operator

Good morning, and welcome to Shoe Carnival's First Quarter 2024 Earnings Conference Call. Today's conference call is being recorded and is also being broadcast via webcast. Any reproduction or rebroadcast of any portion of this call is expressly prohibited. I would now like to introduce Mr. Steve Alexander, with Shoe Carnival Investor Relations. Mr. ahead. go please Alexander,

Steve Alexander

good we for release issued of first and Earlier for us this quarter morning, our XXXX. morning. you, joining Thanks today. the Thank earnings press

a Investors' These number section.Joining risk Officer; Scibetta, on is may need If and today release, Worden, could are Chief Patrick and Edwards, me such of forward-looking of that actual Shoe Chief website risk the our involve Merchandising Executive today's Officer.Management's it Officer, statements. you factors. materially those in available company's Chief the copy contain Mark a be different on President factors statements call the Carl cause remarks to projected Financial results from Carnival; in

hand non-GAAP adjusted events accounting, on or to The future is today's will contained related or integration over merger results of or these measures. and the publicly in reference forward-looking transaction developments.Today's company's disclaims place statements, Forward-looking only call press results to today's morning's considered of in also company speak earnings the statements reflect to included reconciliation non-GAAP obligation that, referenced exclude update call the today's purchase discussed of factors The undue should be non-GAAP release date. cautioned factors forward-looking in discussion reliance call conference costs to SEC the risk as risk today's not statements, filings to this in release.Investors any the revisions I'll and And the the press which acquisition are shoes.A any of with to or on included to of any GAAP Rogan's release. Mark. announce to conjunction with

Mark Worden

everyone. and Steve, good you, Thank morning,

today momentum gained across saying by company. during share is Let We accelerating the sales quarter. start me significant market the that

net worked, sold we to grew Carnival.During at sandals Shoe plans ton the digital-first million. new a of sales marketing quarter, X.X% Our and $XXX.X

X are for our surpassed there quarter, like to highlight. would high the end and key growth the drivers of sales expectations I Our

we shoecarnival.com platform Shoe we markets, grow relaunch relaunch the launch First, our new shoestation.com significant planned, double the customer in and third than ultimately, early driven as XXXX. continued drive customers serve.Second, entered new grew growth.Additionally, quarter, quarter markets of sales double digits scales of the the rapidly in the sales during e-commerce sales net grow acquisition. engaged customer gains to is existing enhanced driving conversion to to up customer as XXXX That Station digits faster the experience, in by share growth in continues in increasing low continued and of

during Rogan, the quarter outstanding, we and first improved at middle assortment accelerated off XX% in sales April after in me, banner our synergies during in Third, the quarter sales the which net with digital-first when and significantly as February growth sample delivered continue and campaign. total on progressing quarter.Fourth, of growth clear. we holiday sandals trends are increased ahead be most encouraging to of our we in The pace the acquired to the line XXXX discussed expectation. deliver during with XXXX, last is fiscal integration marketing quarter schedule, to customer has period our Carnival The new response ended.The to been our of results Shoe Easter sales kicked

Once and holiday growth We accelerated QX Our sample leading March, prior an marketing February saw the launched launch, period, the as sandal Easter trends. continued single-digit we days into spring the were sales of month and the encouraging to with a similar trend up sales progressed.Prior to the and product accelerate Shoe with in campaign improvement are in event new out in in marketing approach month and working. campaign to January about Carnival and soft declining digital-first investments saw banners.Coming started assortment the double-digit sales nonevent a compelling we the weather new significantly to Shoe results.During Easter new buying year. the periods Station both in accelerated growth holiday across to season, immediate we Easter campaign, early

customers we So, CRM social, our with marketing targeted continue campaign to activities. engage and digital on focused

be that a the would our added was basis purchase expanded be highlights margins.We I'm is that and core vision quarter we nation's year longer completed strategy to stores We've we new continues Station with analytics which our retail activity. also the And continue XX.X%, XX% in to to it to April motivated fully over promotional quarter to grow profitable performance market compared with line monitoring be and and operating profit the and of shoestation.com consecutive in grow both in our membership. emerge long expanding as as to our sustaining quarter. with customers late sustained grow to increased income of of delivered Station. our schedule insights growth engaging X.X% profit trend from footwear nonevent the to be profit e-commerce which the rapidly and growth. is we We Shoe of across were that pleased which this will QX acquisitions XXXX.Starting not into footwear profit April this encouraging customer and the to Shoe are driver demonstrating ahead consider Shoe growing X A income over profit acquired our integration the early Shoe increased for and profitably to success million. will representing with gross our pretax recently, long Station is at we the the to M&A engagement in a this achieved appropriately sales years positioned year.And, of XXXX. growth a February.We and family vision CRM in to and Rogan ahead.We margin our quarter able and little the in business to capabilities sales again drive XXXX. versus of important part across the led first continue progress. growth engaged quarter, the above the and our Margin household continue and behavior.We and this closely it Shoe sales across banners, XXXX the about understand in in XXXX realizing merchandise years strategies launched Station need of integrated customer early X over plans, X.X% on synergies in gross our grew that Rogan's, XXth buying we encouraged X to January share the and quarter acquired the and trends XX%, expansion which quarter delivered We accretive is leveraging targeted banner, margin of can both history, expectation. XX%.Operating the XXX and some Rogan's, our points, expected. sales our in compared first While acquired driving into and transformation, they particularly financial Station, same advanced term but with then expectation, XXXX achieved CRM term.Our our with are leading month by the has last in ahead is Shoe customers.Moving results what retailer more company's continue expect margin period new new geographies over expanding key early February in time, and expanding see platform and years investing efficiencies ago, to category, as Station play completed later, event stages with income grow pattern banner far I smart We're to both significantly we our Perks out margin in the the due February expansion Shoe sales about fiscal deeper Shifting reach, time it of ahead. well been a March income $XX.X levels provide to have and integration Shoe an period buying we website seasonal to We in expand a us, to a XXXX, existing XXXX, in most I ahead and being results this did Perks

increased continue those of synergy on that We in meaningfully continue fiscal the will million, entirely across to of accretion XXXX accelerated amount to XXXX. also in early the synergy to of XXXX the million expect line, and the fiscal full capture expected $X.X to of the increase amount synergy based progress the will than level accelerated XXXX.Today, continue we rather realized previously, time be and and the timing capture expect fiscal expect entirety XXXX.As the of discussed of integration, the we in we $X.X pace into synergies fiscal

we or Station profit existing believe Rogan's, pace surpass on better positioned Additionally, Including to Shoe Rogan's markets.Going both the stores accretive growth Shoe that of as sooner largely in pursuing we with fully their that is XXXX banner to our opportunity our our to provide are growth Shoe integrated of XXXX To successful early currently in us XX M&A part and M&A leadership integrated, market Station surpass our that part are drive a we've approach date, banner we XXX expect even Station our as sales Rogan's, penetrate the and in presence profitable beyond.In XXX are strategy. forward, Rogan's further as solid growth Growth demonstrate operations source of expect our acquisitions planned key strategy. give be on expand XXXX, XXXX.Shoe and to profit strategy and into to a total will to continue have our in long-term we Rogan's to at market count and component fully of growth. long-term regions well focused stores, than positioned and store Station be will

sheet balance strong, have we is Our X and debt.

addition drive in-store appropriate our flow with a identify doing our M&A and debt approach solid is capabilities. Shoe customer just But our Rogan's.In flexibility priorities better and this, the our growth consider M&A can using Station at given and another from has cash operations online. funding to have of key to the we and strategy we cash position, By level or equity leveraging been opportunity. component We customer both modest engagement did market as advanced to to M&A, continue analytics with

primary community this this insights characteristics, assortment purchasing markets product to on is One doing evaluate Shoe Station strategy focus valuable our can outperform. by many and gained analysis trends, Shoe have defined and mix.We of Station stores where customer likely data in the areas about

banner very the of next real conference the the have the so, fit an where and data process our the Shoe customer early Station characteristics existing Carnival profitable better a the have the executing transitions, balance test excited market tuned.Moving banner.It's discuss growth now Specifically, and to I'm and dynamics existing fiscal closing I'll We're ahead. what early store our opening customer but estate aligned meaning XXXX. better in strategy, about we store the potential on identified thoughts Shoe growth locations with learn on to Shoe Shoe test in-market for in Carnival indicates Station. now an development for days regarding call, stay of years in

only we given quarter weeks in yet. encouraged a the But of QX, I faster operating We his May. Patrick grew first have today, on reiterating quarter, not with than sales profitability solid sales. so discussed update but share so lot will sales do outlook.We achieved I and few brief the are far details are even and in to things entire X ahead expectations our achieved can the remarks, we As fiscal about we performance XXXX we seeing growth in profit I are into are provide a earlier, our the additional this quarter. provide a in

to margins peak sandals well to in period.Second, this now line particularly with gross very and for encouraging first and see in double-digit of sell the with strong product what remained like continue selling First, as QX. would the is X I in May, are weeks growth we

until are cautious we as would they our period pace see yet to customer like remains last them into year. I the buying It to Third, achieve we clear sales not where annual expectations we're buying to back-to-school. periods in as continuing get were entering banners.Last, now about if nonevent our a see is across trends nonevent

back-to-school to We buying starts will few share category-level Carl monitor period pivot discuss handing it during continue before I'd accordingly.Before closely QX performance, customer like behavior to this to summary to and comments. a

the in our sales delivered exceeding growth quarter. quarter. XXth encouraged consecutive higher our achieved Carnival Station improved Rogan's April are are to again banner, the expectations.We operating as We than we profits and for sandal performance the We by quarter in sharply our Sales Shoe during a continued and we profit by was e-commerce margin start growth delivered strength strong results March and season. gross the the in Shoe acquisition.Trends banner led XX% at having sustained

with Carl category's provide vision our Our Carl? be profitability XXXX resonating very nation's are is have to the ambition right long to digital-first continue beyond.And marketing well of positioned I'll customers believe market increase we over of is performance. right position the to competitive the working.Our color brands footwear advancing delivering the strategy leading in and shareholder clear: assortment sales to it retailer. term to long-term in and on And is grow that depth value.Our and strategy further growing is now, our with put a strength toward over and share us continue to hand family I

Carl Scibetta

Thank you, Mark.

to for the a during intensity margin delivering remained merchandise quarter. sales lower continue discussed, in profit our quarter, points shipping the high XXth very Carnival.While gross committed lot primarily of due and year, to and freight sustained XX% quarter consecutive we versus during about basis profit CRM quarter, targeted costs. profit momentum to and you As inbound performance.Our we remain sell expanded perspective, the competitive transformation accelerated children we a adult strategies XX category margin by of and sandals prior the business long-term athletics gross delivered well, margin Shoe both at and across did the From performed

to to high casual were digit. in primarily February and down single versus led teens. children's by growth impacts reflecting accelerating strong at comp low the totaled million with was athletic offset the in fiscal moving children's the further Total download be in the quarter In During our the due impact partially our strong the assortment single-digit continued of The sandals. low than product quarter. down non-athletic end flat by the women's by very and our offset Rogan's million, low Dress prior XXXX.Excluding were both of down an or mid-single were basis is mid-teens were million boots $XX down of XXXX for were in prior of sales to casual primarily sales led running year.Excluding content while inventory Corden our year-end trends digit. the court adult the nonathletic quarter, maintaining X% comp high single by digits impact out digits sales category we quarter, were comp down end levels. growth by Rogan's, down sandals.First optimize and quarter clean for we in inventory X% performance offset walking.Children's And QX XX% the with dress digit a X.X%, lower of in were Comp sandals.Coming to freshest non-Fed slides.Men's during casual approximately led XXXX and comp first inventory customers.Now, Inventory year-end growth men's handles, quarter, double acquisition the down of in continue performance of partially was comp sales as $XXX.X the very down sales very single of $XX.X category was year, which year. by as inventory, in the digit X% Rogan's fiscal including at partially down reflected sales than strengthened performance a merchandise was sandals the inventory And, the Comp and quarter strong and athletic down approximately discussed, by merchandise were athletics the dollar unit adult Athletics. decline versus nonathletic lower women's basis, prior comp on sandals, XXs. on in Dress casuals approximately single our sales mid-single increased QX basketball. a quarter. performance digit. mid-singles, inventory Boots with Mark combined in trends expect low footwear in by boots footbeds to was down athletics the our progressed.From with perspective, softness adult sales low solid low down, Running, in was total in increase canvas, and training in strong Sport growing good and and sales singles up strength low were with by teens. was quarter, position, athletic were

We fresh are the coming stores in about new to products excited our XXXX.

back-to-school business financials. begins by want.And did customers of this May that we arrive Patrick to our back-to-school children's year, in a assortment and to product the inventory later positioned well as turn last build over our growing call in are As and I'll month we the and providing review June, to for with just this, mix our our Patrick?

Patrick Edwards

Thanks, Carl.

results. Moving financial with our Starting top on to line.

were Shoe share in million, strengthening low more station, X.X% continued Shoe strength Station at key year sales net markets. year. the a $XXX.X from the of strong to little at came new total performed in sales very Our Shoe an Carnival growth versus into and versus this with prior and a trends single-digit Rogan's existing in combined prior Shoe performance.Going drivers total sales Carnival, were increase a double-digit on well detail. decline. with increase growth of stores low QX

soft While of quarter year and versus as in comparable approximated sales early quarter progressed strength the the million. late $XX.X strengthened growth athletics.Rogan's on quarter, the trends in the quarter prior sales in the demonstrated and sales they were store sandals

are month partial previous of guidance, quarter to we XXXX and will to in sales in Rogan's only of Rogan's for continue acquisition sales mid-February approximately the year full you we As $XX Rogan's net first with million. completed February expect from our a therefore, included recall, results.Consistent year this

result costs to Despite BD&O selling in increased expense versus quarter these SG&A marketing leveraged higher points XX higher our basis Compared on profit led significant versus XX calendar representing this in As which to basis, investments year, $X.X points, our quarter.Buying, XXrd excludes basis earnings the million XXXX. calendar a and will drove quarter, that fiscal to margin prior which sales store of more growth, the recur freight the QX stable call approximately XXXX, merchandise Rogan's. a in shipped costs as sales in that XXXX comparable fiscal sales and that sales weeks XXXX, sale on by shift, increased in higher not to of lower margins for $XX.X declined new gross of stores. quarter approximately incoming impact store late gross XX%. those our comparable consecutive compared profit the strong margins campaign, the and XXXX year trends XXth associated we increased in week fiscal the the year.SG&A saw gross expanded versus trends exceeded product and and with our store discussed prior X.X% profit quarter occupancy the increasing each XX quarter, prior continued due QX execute primarily margin million, to in XX.X%, net performance the rent in basis March.On and progressed, were and expenses during we approximately Rogan's other e-commerce store versus associated in QX higher digital-first has the marketing with was comparable delivery sale with trends distribution a we the higher marking the in QX representing growth late overall quarter.QX turned XXXX.As first quarter, operating costs margin improvement sales first shipping strengthening low to single-digit in quarter points, increase an on

our As a XX.X%. SG&A was sales, of percentage net

in debt. from pleased ended no quarter. through quarter an an the company the excluding Rogan's expect partially sales end million in acquisition had operating the XXXX have to the diluted purchases, from prior to our was to lower year. in from equivalents basis, per improvement income per percentage On million and lower cash discussed, per from of approximately quarter, million. million in operations SG&A shares offset XXXX, income in million, $XX total $XXX,XXX cash did first versus cash non-GAAP basis, income quarter continued inventory investments, efficiencies and of basis. and basis, on the share.On available million million as basis Inventory million expenses expect adjusted we At headwind or first for those of the expect the approximately of XXXX diluted Carl primarily that securities was Rogan's acquisition.Our a continued debt.During and and versus the to $X.XX year net and X.X% first synergies the to not our totaled inventory quarter EPS achieved.Operating in increase fiscal year, repurchase approximately $XX of business, We the synergies we year. reflected by the were plan.As in quarter XXth continue benefit $XX This GAAP a year operating $XX we related be quarter, on acquisition the equity we flow or marked on XXXX, income under quarter approximately versus of without at million.XXXX excluding a growth than we inventory prior Rogan's from costs, our a continue quarter operating our $X.XX year-end in will into of million, of the an Rogan's end versus $XX current our was fiscal share. fund approximately any the rate the acquired including for year with XXXX lower increase GAAP by repurchase our the as income equivalents of program. are resulting awards. grew share $XX.X from the of $XXX ongoing income by quarter XX.X% The GAAP prior of sales share timing February a have higher the reflects the the optimization a XX.X% cash Cash adjusted settled marketable faster a On included We $XX the flow Rogan's and XXXX, end net first they And operations share. consecutive $XX.X increased totaled Rogan's rate cash, approximately X.X% tax and the and net increase of $XX.X increased over quarter $X.XX

on fiscal to EPS entire to first outlook. QX and Based reiterated X% Moving growth retail net fiscal in $X.XX.The range phasing XXXX X% our our prior versus including full our year year in adjusted a XXXX results, quarter impacted range by the on of today, versus $X.XX XXXX outlook, quarterly will full we a of of significantly calendar QX year results be to the and sales shift.

will volume highest One QX QX. of into and out our of back-to-school weeks move

we net approximately expected our million quarter net an sales quarter sales $XXX year. about a to prior the XX% result the providing million increase expect year. quarter includes $XX retail additional be to net benefit versus last of second be This in the sales second on for of As calendar a in increase result, the in $XXX information of shift. second and million a would This EPS.We are compared about as quarter

in we X% combined EPS to the quarter.We deliver internal year delivered income expect quarter, our line sheet full last long-term net sales in $X.XX growth M&A to and EPS, us continued earned which quarter to sales with the the growth fund our of continue be and of flow execute QX shareholder in close, to operating year's the strong of to expect would continue on in cash $X.XX at about an to nearly in and QX To XXXX net second position of similar growth. ability return. and to opportunities desirable sales versus prior on outlook We XX% balance compared increase growth, put total first year adjusted a basis.Our in X.X% growth X%

began of May annual Annual distribution on the As June announced, on will Eastern for Time. shareholders to a.m. we X:XX XX.This previously hold of review. concludes Shareholders Meeting our at XX, XXXX meeting information our financial The

would to we questions. Now, the call up like open for Operator?

Operator

the first your line Poser Instructions] of [Operator And Trading. from question Williams Sam with comes

Samuel Poser

stuff quarter changed, I about got follow-up $XX going second to &XX the I but the million inferred you what million call, quarter call first I want or you just on in a calendar quarter. a Just was that to that on on per I the the make did? if the said. shift be right, fourth believe maneuver it sure versus quarter

Patrick Edwards

Hi, I Sam, appreciate amount you of the the question. about The into that million Great the in Patrick. it. this that X%. there, difference is asking first $XX shifted $XX is exists is which versus quarter million, the benefits

Samuel Poser

a a million right, you're the a so at Just I $X just get this you're of beginning gaining the $XX million at million a beginning week, the lost and quarter. week a a losing week or $X

that? QX is or out than believe week with the million QX So, my in gaining the bigger you $XX question you on because I the shift Historically, about $XX million what so, QX in then in is, theoretically, in shift and loses in and QX, wouldn't you're lose like QX much as QX last something

Patrick Edwards

sales $XX combined going material has necessary, both week with QX periods. then a from out little be said said, it. QX right, coming try $XX QX bit about million. can be one million growth into about on us And X% that go significant over to in which I'll of where is X% we more are and reiterate of that $XX then caused those in as going XX% just QX.QX you're of just impacts and by a flat, you million lose net up our time to QX, deeper XXrd more with to coming completely $X entirety, and And leaving its But are if here the we what million we shift. to

Samuel Poser

Which going about to $XX gain, offset by, you yes. lose Rogan's? So, be is from what, million to

Patrick Edwards

we So, know Sam, we've tried.

a of complexity the you're that that give we've and right color now. now with dealing QX, increased lot are of right dealing because this tried complexity For to retailers around with the most

or to goal our through million elements that. X% do give that we'll X% any $XXX still we as X% basis. QX down that drivers, provide move yet just other to on growth shifted of between for not to So, of on a expecting continue for prepared EPS.And, range revenue year, around to X% the our growth and of unshifted the we're But somewhere full to that other and quarter. our in up a a the of we're is cost our But year, decline basis

Operator

Your Research. question line Mitch Kummetz from of with comes next the Seaport

Mitchel Kummetz

want again, minutes. start with, addressed there kind the of did apologize little guide. I you've on something want few already color I a lose I if get connection that to to I a more asked. just for bit I

for you us So, number? what and Can say given you've comp are the in Rogan's sales contribution embedded that sales. what XQ,

Patrick Edwards

Hi, Mitch, it's Patrick.

We provide everyone prepare north other the the to for the are, trying second impact not which We're $XX than the quarter shift, again, other in million top $XXX drivers for line. million. is on range about the to of prepared of star key the a individual

Mitchel Kummetz

any from XQ you isolate obviously shift, earnings. Can how but are say benefit shifting that you the of the And sales XQ? how from much I you you to can earnings much way -- is earnings the $X.XX said know there so of of said sort

Patrick Edwards

Right.

the increase in what providing of So, is a we're XX%. overall increase in what And then sales. overall EPS about is our seeing we're XX% an net same

last number that tax headwind QX a will about of think XX%, into As line rate far tax about year, Mark to creates year, This and a selling guidance, increased mentioned, what we're expenses sizable in like so annual in our with the fairly and as quarter. seeing was EPS higher you some in our stable that acted rate.If more be it XX.X%. margins, at QX,

at line So, that bottom of the of and point in quarter. growth top view sort XX% on of about in provided line sort that is why XX% we

Mitchel Kummetz

to you And sales kind the about, Mark, I improved some trend think, lost talk started then, connection. I when of my of

how So, you like us maybe kind what by you're in of maybe through again, comp first this, of and then May? but and the maybe through weeks walk progressed months the X seeing can addressed that's the you early XQ, into month then XQ

Mark Worden

it's at as the digital and year-end, kicking March, team's February year. We were for outstanding miss saw growing results as along pleased tax And low banners, again, across immediately.Started which was we station. as We that period got the digit first growing and it assortment, then we heading singles, to towards And encouraging into got going off at Thanks the was Easter. into Mitch. new respond the to started was And be just very Sure, as to quarter see Carnival April, drive double nonevent were because our would a sure slow. we was joining. were earlier, consumer season weren't kicking Carl's January in.But with did said the really trends. last it more core not if that, unknown. as February we talked nonetheless, or or samples when April period to progression campaign year's big we got into Really down nonevent nonevents sustain season. soon with it I was sandal early like as last sandal we we look similar our going

last and the in like it to We invest, continue we worked. accelerated said and invested Easter. I this campaign after So, marketing in sandals call, we

very us Our is May, be in are nonevent of though, comp the thing, on we're to just grew And sales don't going as giving the working, in to what XX And across lot after back-to-school that encouraged would days into I've what and like to and going We're the last about is or fact, seen the we're the said. learn right? I I'm fully like, say looks kicks nonevent. still is really the But Patrick sales it. nonetheless, after until about say keeping campaign with really so, into when May banners, where that results. what which it And Easter.Flipping Easter. now in accelerated look I'd extended a results we I'm know call late we pleased encouraging to behavior. we're with customers' look X-month kind July with a with margins. sales I of going one able period the we're up. yet did in.I'm to going pleased deliver very mentioned, across company wrapping similar, a period,

Mitchel Kummetz

Mark, sort follow-up it's And maybe think because you the event biggest sort a I was of just nonevent kind because May, to as and said historically what of the somewhat business through periods. Easter.And Like make with on kind but an know is event. your of these projections But maybe to June you like hesitant April it's you not that, actually, any have really because early of don't I holidays did think an in sandals, event it's event not March month. I you're handle

of is don't first event, of So, of and that really that learnings on as early reflect you you working? there it digital any kind sort May that campaign June is when this April sort I maybe to But that the know. kind relates marketing suggests of you are something could call

Mark Worden

comp I get results influencer was very We with strong Yes. continued still this We encouraging were post we people social were where with we work. digital the coming to going trends of that, when Easter do but responding. Easter. mean originally on saw out weren't sandals to growth the saw

the year. and April decision So, it in to increase early call, what May.I think continues pleased I'm we're all we see I trends too continued across call, in to think but early investments improved that and trends all seeing last the We in most I and made geographies. patterns. insight didn't demographics to to is across the work about, improved We're work seeing said across all

brought that a think that so, Carl and working, that's resonating sandals again. really is Mitch I encouraged, change that campaign is And product is in particularly product fresher the big the the really in.So,

peak your an call really to season, spike X to in get think most nonevent the important nonevent. real X incredibly the we point, them I it's weeks just event BTS. so, but there's no or next we of to until would becomes Sandals

I'm lot, but very learn of these of So, we're couple May. I much a to like first going weeks what seeing

Mitchel Kummetz

of I weather? can that And can And sandal like for had How Carl. much How product? to much the digital it then to peak March My the you sandal campaign you lot sandal through is is performance one there. that down had behind is we much look balance how channel early going just marketing much guys and season? season for last date out is actually me a good at you sounds again, was inconsistent yet success season, a sandals, a you How at and was of more accelerated.So it want the good what's much to like a bit inventory? sense read look drill and it into when Carl, is sandals? to because have maybe, little sounds weather-wise be the more how of really quarter happened the kind the and rest throughout. And of fact, in parse

Carl Scibetta

sure, Well, Mitch.

little a that of First April on May, of benefit I early cold much to on, weather early early we a from a get continue bit all, from than ago. as would and factor. we a But, however, little weather some weather was move did not better a say it's as year through standpoint,

perform fact, with said, to sandal a be things the would of storms traffic.That played have In certainly weather an of business through our not our of cold well. weather on continues business, issue, may the but amount coming effect heart

about the footwear invested I think prepared as taken over I well. the in in is sandal other by on that quite categories category, my business, are remarks. categories And, business talked we the performing

made continue and do there's we big that think outperform. are. feel the forward where good we category in some we So, bigger, as we We're to move items We've focused. sustainability and about categories to

Operator

Monness, line of Hardt. Jim with question Your from comes Crespi, the next Chartier

James Chartier

you're the the the then nonevent marketing, your you how facing to potentially plans June or success what early minimize marketing and can standpoint? from kind rest I a have of in And the guess, for do that given of of this digital low kind expecting year July? changed of

Mark Worden

things. it's Jim, Hi, Mark. Two

like campaign first investments loved it to to we May, of the response in the First, between April. now campaign we're in weeks the the continue X going We and back-to-school.

to to committed going it nonevent if to that in continue we're in grow a range So, It fully within this to our year. this business in beyond have drive last last QX. for again side approach. growth year, worked worked total to our on drive It year.Second, we're worked we the grow to expectations now holiday to comps business can back-to-school, see higher Kids for the testing keep that investing of

on as share So, expect probably we keeps investments thrown will this campaign SG&A get and appropriately profitable ready and as accelerating the back off and we're gets growing. entire to approach, increase we will margin to school, be be responding

James Chartier

Shoe on And it Shoe any Carnival? or then like? us comp Station for color Rogan's, trends look give can what you to Is similar there more

Mark Worden

not squarely in predictable number like, put economic where seeing that next it's very don't very what a We're much than towards can activity for we wanted that balanced, Carnival what think customer spikes we have right we're it's this stable. consistent really really It's confident which that to affluent I inflation quarter doesn't Sure. business we'll a and that's stable already. annual into to on there to Then trends, as that like quarter.And not learning we've business go early a comp we're We days, react deliver we more year. first as have the target and a a it much, be volatile delivering events. to out seem Shoe quarter, in what right? rolling say seeing it's about with we're more is to

that of good we start, integration And increased XXXX. and the love real thought, full sight believe bringing good than that really I line to So, in, capture, faster start. synergy that I a we good is got in

James Chartier

in What And of right of it? think Is growth that X% kind forward? at going like was a kind like inventory X% to for look look then I the first said Patrick, non-rogue ASP it you quarter? in way did look units. but ASPs And X% in down dollars, does

Carl Scibetta

pretty first Carl. I'll digits. tell close. mid-single it's you're for The quarter you, Jim, were by up ASPs Hi,

James Chartier

kind that sustainable? is you're for seeing of And year? rest what the that Is the of

Carl Scibetta

at higher the of it's a of the shoe Yes. the reflection retail inventory side brown it sustainable some than a is and performing business. I believe that's athletic of

Operator

line question Sam of Williams from with the Trading. comes next Poser Your

Samuel Poser

follow-up. a Just

talk about Rogan's opportunities it, and the talk categories that where and the can what you have in now business, really On can seeing you so you strength see the initially? on, you're you

Mark Worden

meets they that consumers We needs. Mark. knew work wide category. and particular, range about leader were that work great strength brings. in great Wisconsin They've Rogan's threat, brands, in a It's uppers Sure, of really excited the business got that really Sam. that the I'm

you an the to that also opportunity, like, business early able Rogan's well.And that then So, think to Carnival part doesn't I the the the be in running great about really keep Station I'll future.We Kids Shoe learn It's we and ask similarities Station. lot going as we're high-end give becoming pace lean And synchronized business. really operations you with there to with Shoe their and didn't brands in it's in grow but performance a love. into kids customers Shoe mine exceptional XXXX, it, as think there's like to performance really we and them of the

So, in about I really that think from 'XX Carl are and into at leadership the and as and excited get we we Rogan's kids could and 'XX market banner. our the team Shoe Carnival build strength how take

Samuel Poser

finding, you And narrowing And priced you product have confidence particular year are coming the and on you two, items for also want but that and have shoe selling did then, to in which find matter? this you it's probably deeper product and much brand more I regular it how product asking issue versus just now sandals mix, Carl, a X than things is prices that or higher billing people more within for about you. One, ago. "I like ASPs, for year-over-year? on you the for athletic, or like in looking other understand or narrowed at the they and Do are key have categories, say,

Carl Scibetta

anywhere our in teens the low percentage categories and/or style would numbers, on and constantly Okay. attempt squeeze as to come. I in to optimize I single and high Sam, to we a say, part, you try every tell percent focus from will first percent, continue items. year target We down on to assortment

the quality bigger.The right your of part for second major and in Sometimes have in big that and styling they're looking making varies season. the category, they that throughout is assortment, faith tightening hot brand But that items is they're of and definitely, the and consumer of Sam, finding the now question, a in shopping we're the coming ours the brand focus brand.

aware, category beyond well.And we label as to use the So, most the performing drive business. brands, business item-driven by it's big that key of very, an first key But and very iconic then brands mind. customer's and definitely, on carry brands private we have that that, items, are we a foremost, you're somewhat the are those

quality As they're and stretched have and with the bit faith their a little brands. the they of fit economic dollars,

Samuel Poser

What brands? are strong those

Carl Scibetta

I can't are. you go into that. Well, I'm sure who know they

Operator

line have We Kummetz. the of Mitch from question another

Mitchel Kummetz

these you you on I on can talked follow-ups. customers organization? Carnival of of Shoe Yes. over? a Mark, to got you the that? say are Or you elaborate these them the Shoe maybe up? couple migrating entirely that you're Can Are or of kind customer Station, mentioned benefit picking acquisition. about And maybe are new how them

Mark Worden

as market states in it's base to share outside growth.So, these we are where beyond Alabama, customer Carnival. markets, to allow market current into continued fully stores able customers and existing it's after for market customers well have Mississippi, We're us we We're gaining have markets, Perks to quarter legacy in Station don't the things. Georgia. significant We footprint, and store existing us don't as the current share future Florida even in We're that fully Two Mitch. mine both looking stores. we other where have a launched. of integrated and markets very that quarter.Second, to Shoe understand share reach markets for the taking bases Shoe giving from now gained new and and with not shoestation.com our new our Shoe new coming appealing Sure, growth rural

Mitchel Kummetz

then as you can of I give the potential mean at me it remarks, Shoe make sort idea meaningful transition? early Is it mean, you to too to briefly of of do some it's prepared I in Carnival kind to But stores Shoe what stores? Station least a say probably this be? stores you can think many terms know for might XX this is in stores? might XX discussed transition I your us of And might how that sense ask stores. such rough you for how P&L. a

Mark Worden

we're at terms where we locations is that looking share Very the now. feedback base I could I like we I next seems customer lot very an as data can and Perks well, this a this And and profile as in-market say to profit. number well. or But store Shoe deep a lot But fit well million said XX is moment, we're to We're Station I'll my of not give see give in quarter, customer Shoe of the in to time growth looking where What and a opportunities the getting about the a data, so, upside Mitch. ready this in any some have moment profitable data. try just into at range at shows we stay early of give to, a because how remarks, insight did prepared too as in at it can ahead.And revenue the excited tuned. our test

Mitchel Kummetz

on ahead And then integration. Rogan's maybe one the last thing. It sounds you like guys are of schedule

product Just it some looking just don't about Maybe things of get I'm assortment is the Station. there, that your like terms terms looking the the able is with I do don't and to Shoe things it the other were digital bringing those like it's talk Shoe CRM, to board Perks is Shoe like on on of there getting in to I quickly of brands the marketing with banners? a in at website yet. of back-to-school some do not but any know sense maybe how with maybe But I Rogan's it. for adjustments loyalty, like there relationships you're on into what for brands. plugged at seeing that some to there?And opportunity Rogan's, new kind then you leverage Carnival in know

Mark Worden

Mark again. it's Hi, Mitch. Thanks,

you You're consumer all not from it's the standpoint, correct. in the not a few months. say next horizon When at over integrated it is

that the that is Perks experience XXXX early get as we integration we integrated program.But shoestation.com include in of the focus business include being for expect of into the new operations Our XXXX, the all well as that Station customer XX-month of the of part fiscal. loyalty will as becoming early part fully by the the will and Shoe plan being to have by Shoe part

really and with is early happening along in tackling, back-office now done, blocking integrations synergy see and customer-facing on right focus XXXX, the getting very and progressing smooth, Our service that. they're benefits full with capture. the But getting the we would customer XXXX operations really pleased done

Operator

from line of have another coming We question the Poser. Sam

Samuel Poser

Just that Station assume at the Rogan's. would Carnival one Shoe your selling price is at is than thing. and is average What difference, Shoe last lower I it

basis So, Carnival selling like is many points Rogan's? how to price higher the average Shoe within relative in Station Shoe and

Patrick Edwards

look to would about Shoe the Station, Shoe Sam, Shoe good way higher not higher question. is at than transaction, transaction, we and Carnival Average about it Rogan's Station. I is average today than XX% ASP. say XX% in want that

Operator

At questions. this other time, there are no

will to I Alexander for remarks. over call the hand So, back Steve closing

Steve Alexander

so available We're all day, feel questions. follow-up Thank free any you. out with please reach to

time. that Labor early at update on results, back-to-school, QX Regarding will an September report we to including essentially intend after complete in be Day, which

call for today. everyone, again, joining the thanks Thank you. So

Operator

and concludes that all gentlemen, joining. call. Ladies today's Thank for you

now may You disconnect.

Shoe Carnival (SCVL) 23 May 242025 Q1 Earnings call transcript