SCVL - Earnings call transcript Q2 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Shoe Carnival's Second 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 turn or introduce Mr. Steve Alexander with Shoe Carnival Investor Relations. Mr. ahead. go please Alexander,

Steve Alexander

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

a Investors section. is need If release, of website the our it you in available copy on the

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

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

Mark Worden

guidance comp members start record like team. annual on our we and during the morning, everyone. EPS and raising event season. X,XXX strong congratulating Thank our are important second new sales back-to-school sales for Based you, results, Steve, these a achieving delivered our Well I'd on the today quarter ranges. the most of year, to done, today, sales on growth by the good and team

season approach brand-focused that our swing comp growth again Shoe banners, exceeded But the geographies second the quarter end EPS in worked, in of customers that the tail and to was and significant Carnival's our back-to-school in exceeded history. During QX sales and marketing we expectations rapidly levels all exceeding assortment resonated sales achieved guidance. with our the sales our customer and once product digital-first full our net market This We engagement sales at July, and a gained share, once quarter, accelerated. drove demographics. quarter, record net previous across

During the quarter, grew net to XX.X% million. sales $XXX.X

growth drivers Our that there for expectations like to and key the several sales are highlight. quarter, would I surpassed our

continued grow existing share to are significant in going this And results detail in as our new we with forward cover strategy switch Shoe our bring customers faster our First, growth I'll a briefly into has we growth banner growth expansion last with Station additional new to sales few moments. topic test in increasing identified than banner. quarter, markets. in we've as platform grow continued as Shoe deliver digits profit-accretive our Perks Shoe opportunities that in continued to CRM mentioned double net drive markets planned, Station markets, now. I more and

during Carnival first sequentially QX the versus with transaction and XXXX, Shoe improved and remained amounts turn conversion rates versus season. sequentially strengthen and Second, continued improving traffic trends average sales strong. store quarter Store comparable to both back-to-school growth into

skill season record-setting the buys. up have back-to-school. in to for time we for This messaging was amp marketing spiked sales are was during added and exciting hot comparable investments the my campaign increased The M&A the media we as early beyond building Third, of been now our X capabilities with season approach spend synergies to approach This year. to line, and still market about that real in to all during for effectiveness expectation shareholder our targeted we to the opportunities very acquisition, intend at in each us become area influencer spending focused allowed rapidly the quarter expectations. line but contributed in up accelerated full we to available efficient school this to flexibility QX, of on fiscal testing expand pivoted locked which back post results annual set to flexibility the deliver at share. We're and and XXXX, us markets the in be as team This quarters. were and $XX has on smoothly synergies, the future go-to-market our approach to set the expected customers discussed first we to approximately worked now. that and fully to middle fourth, our increased pace school were bets internally to previously prior as we to where and nearly versus versus the building sales on continues and product and value of exciting the profit sales, the progressing heavily February continue The way added new react real resonating as our marketing We're back-to-school the be million marketing additional second season. The brands we old gone TV time behind become identifying Bottom during is schedule well deliver from gain last building products a synergies. us with announced weight are flexibility digital-first our the on shoot months they without to social during growth and X the of the capture to going of time delivered traditional year. our in in into back-to-school have on our that on to continue to are with but customer customers TV a engagement XXXX, of past integration the made immediately invest into net during gives Rogan's, being turned our responding we whatever very in see content approach QX me, acquisition. this when dollars integrating track the the sales QX, we acquired expertise discussed, digital-first The the customer forward. And of

weeks the share some sales commentary low-single-digit QX month growth, are So In quarter focus our the August comparable single-digit and back-to-school for achieved margin I'd mid-to-high weeks our largest growth investments. Day campaign in by fiscal on in before children's us to and athletics. solid like of August, led we where the back-to-school results. we and sales Labor color of The much of

range our X% store year, prior performance, During transaction year-to-date achieved traffic we versus year. if raise in I size customer side combined sales for year sales side comparable go. time shape our improvement the flat the increases most But encouraged is margins, of and a range key with guidance Implicit growth and the this for on comparable of performance sales QX the enhanced guidance higher full versus growth QX basis. is growth today guidance and down we this net to X% drivers QX range likely outcome. outcome as not are All the to full anticipate growth of the our sales at prior where that our look of comparable to versus range X% in sales year both of at the frame, to comparable in record-setting a plus but a X.X% also product I the and we then only stretch to year lower back-to-school and boot possible this range strong season decision are to we and Carnival stand currently have prior of banners, to year. Overall, up store Station and X%. is holiday,

pleased with representing quarter. Operating the from consecutive sales now record in marketable in profit highlights as to $X.XX to And $XX.X update with cash operating the XXth totaling quarter in expansion $X.XX million, ended year, achieved we strategies grow quarter of business the flow cash, the in net the growth and the over quarter sales back-to-school an basis, quarter QX again versus cash at our to On working. above the margin sales expanding profitably delivered to quarter XX.X%, quarter higher quarter. in profit We the the adjusted Moving that margin. demonstrating in margin the EPS XXXX. compared million, our $XX gross I'm sustained million on increased the quarter few quarter securities. a XX%, are and year gross with second performance and increased the XX% margin XX%. the high and in this same profit totaled EPS quarter performance last delivered we prior the $XX.X strong increased in income equivalents gross and versus to time, financial

vision be the of Our to footwear and retailer, activity. core on this family profitable vision leading is nation's executing the to one strategies is M&A

for which we integration mentioned business core synergy February in is with leveraging grow and fiscal XXXX, I existing line delivering by M&A, in analytics results the acquired advanced track delivery with another our with strategy expectations, As earlier, Rogan's, capabilities. and customer to on we're is XXXX. Along profitable our our

data focus on areas of in our characteristics, community purchasing store call assortment on mix trends, I evaluate this the strategy and mentioned As at one to level. last a product is primary quarter,

our that As outperform. markets valuable where and have have can analysis, Shoe about extensive Shoe gained Station we insights likely defined customer part of Station

of customer Specifically, Station. learn with on we Carnival test now, and in some characteristics markets our the early like are We've observations share where date I'd been the to have for results this growth estate existing opportunity. and aligned test the months and several exciting to and these identified real process Shoe locations from better Shoe

results an currently saying small-scale our is a by Let start in-market But to that it of results. test say to few early be only have outperformed me and objectives months a understatement. the would date only

so X% define test the which the in breakeven to new Station done is point our banner the the criteria close growth, we store switch roughly to annual X% market. store for existing investments open Shoe at the We Shoe success far? profit a sales for required and have what Carnival So markets

and in markets in-market Mississippi. Alabama from store first Shoe core Carnival the Station X Station of included to Our test Shoe switches

through. the X women's, high with The also These categories over Shoe of very XX% the prior year, than is with the X driving sales stores we expanding more performed XX% and solid differently, on They growth profit encouraging and and X versus Shoe X profit each more experience. Here, early each sales individually athletic Based compelling switch over to of stores the Station grew scope achieved for in from versus again, expected Even leverage profit exceptionally strong fall additional the would was and non-athletic our succeed Said widespread of stores across over brand switching year. the expanding these results, this gains stores. an store the growing growth gained XX%. we're Station and test flowing decades succeed total stores customer The though. awareness of and over XX%. prior well, is more to did with is each growing these here. X leverage financial productive and men's

this sure fall not but store you It in where the is the better these on the answer early in QX how live guide importantly, I'll be questions in-market round Southern say additional what if this progressing But or the update our Shoe known over call. is test to Station strategy or to a all map. the the South road earnings core Southern diligently share of core you for meets the over I'm most customer across our even to into is with this my Southern encouraging potential switching needs. data further strategy that learning expanding focus possibly second XXXX market and working into customer markets solely is further. the profit-accretive early markets, our on is today on interest ahead. to of is local years is strategic test in we're or states markets, too winner count validate We'll and leader. Our testing in present

Now, balance the this shifting thoughts of year. to on

raised that net will additional I for year-to-date, But year-to-date. the we're given As achieved year in earlier, the guidance sales, we remarks. profitability our details sales in with both quarter discussed performance comparable and solid growth Patrick the sales provide full his and today, EPS. and store encouraged we ranges

we we the holidays. season, buying up we're a As wrap the entering non-event period back-to-school get into until

we trends are It continue levels customer during caution purchasing non-event this customer continue the during improving seeing cycle yet accordingly. experienced into starts periods, customer head unclear periods. expansion holiday ahead. the not we months will so closely these have year we While election buying and far period remains and if during the season monitor as We'll behavior before upcoming non-event this improve to pivot to category

acquisition. Sales guidance. Before marketing the to quarter back-to-school share by our new our our encouraged results We're EPS than continued our improving to delivering to like in sharply performance, and Shoe I'd summary accelerated banner second record sales approach in led Station at Carnival Trends the was it Shoe growth trends, higher and category-level strength banner, started. with we quarter handing comments. Rogan's Carl in discuss digital-first a QX quarter, Shoe profit achieved Carnival once by operating few the

opportunities, term working, our over is going in currently the profitability additional Our and additional banner that new strategies to strategy growth switch to drive forward. have increase grow test including sales long we and are markets,

is vision very year long-term leading to continue toward to nation's Carl? family beyond. And And it now, clear: that and hand balance we footwear Carl. the advancing positioned I'll the well believe Our I to be of this over ambition retailer. for are

Carl Scibetta

Thank you, Mark.

August. From growth athletics. exceeded quarter. and level a As as fiscal in mid-to-high the sandals you discussed, of back-to-school in quarter, and month and a continued, perspective, in back-to-school fiscal record well performed women's the adult across single-digit the business the very our momentum children's the achieved that category expectations. Momentum in delivered boots, for August, accelerated continued which late as quarter, we the we started in season athletics sales And the

high transformation gross our performance. and profit margin XXth to to sustained remained the delivered margin CRM the While XX% above continue quarter, long-term profit and targeted intensity quarter, competitive during remain we gross delivering for strategies consecutive committed profit we

by a margin prior XX Our decreased On year. reflecting points competitive about year-to-date versus year, prior our the basis, quarter merchandise even the margin in intensity. merchandise is basis with

versus further optimize levels. the February quarter, Inventory acquisition the increase During million at million, second to year, reflecting $XXX.X end primarily prior we an quarter Rogan's of the of the XXXX. continued our impacts $XX.X inventory in totaled of

X% prior Excluding Rogan's, down approximately the on was prior lower our of by the merchandise on at QX basis, year. than inventory dollar And was approximately end from a impacts year. a versus merchandise inventory unit basis XX%

lower expect million $XX freshest impacts Rogan's inventory we the inventory, year-end, year-ending customers. for be than while fiscal to XXXX fiscal of to product assortment maintaining the XXXX Excluding our approximately continue or X%

sandals. mid-single sales women's down Now, to the sandals, combined quarter. digits decline a start sales in decreased for women's adult by and with in low-singles led casuals mid-single-digit moving sales to reflected in X.X%, digit. sales strong were and was walking. back-to-school in a the Comp the comp athletics categories comp court. with down boots and which the children's non-athletic down very performance very back-to-school sales comp season, Children's Total and primarily growth in comp accelerated non-athletic and Comp softness sales adult total athletics of category fiscal up in Children's down In athletic growth men's the were to a low-singles running, basketball with running, August, during and by were month digits in strength sales to perspective, offset quarter. due low-single mid-single adult were athletics. From partially basketball athletic athletics women's season.

Sandals boots down digit, comp strong high-teens quarter was the down digit. low-single Men's low-double ] mid-single content mid-teens. footwear Second delivered mid-single comp quarter. Coming growing the Dress sales delivered clean [ Casual and down boots Sport and were were in was non-athletic in down down strong was a Sandals inventory the down in high-teens digit quarter, and in mid-single position. our digit. performance, low-single Dress down out good were digit. women's was growing low-single were was digit, growth. quarter, down non-athletic sales of low-singles. digit. casual and is

XXXX, for balance call the over and to the We the product the will fresh to our providing review I and that, our stores with about in customers assortment, are financials. our Patrick? continue want. And are that products of coming a Patrick turn values we strong of a mix into excited for position new

Patrick Edwards

Thanks, Carl.

financial our million, top prior $XXX.X were growth, a QX our results, to starting in an quarter year second on and with were line versus increase of Moving sales for XX.X% net record us.

in combined from continued from were Shoe the our quarter stores performance. Rogan's e-commerce, drivers Continued approach of our line Station Carnival this were success with strengthening and strong with growth at trends Sales Shoe expectations. and in digital-first the go-to-market key to

Going into mid-teen sales stores store well at total Shoe and year, with very by increase. sales prior Shoe comparable versus from net Carnival increase performed detail net mid-single-digit versus fiscal store total first continued, a sale to a little top year on led comparable in increase a Carnival we driven growth from in as a line, with QX sales sales to August, more and increase the Station improving new our comparable weekend turning children's back-to-school by back-to-school athletics. sales quarter million. important and low-single the digits, sales sequentially store In prior started. $XX Rogan's saw came approximated Shoe as

will recall, with net completed year. sales we you consistent million. Rogan's for year to mid-February this expect previous As Rogan's And we of the XXXX $XX approximate in to guidance, continue full acquisition

sales sale accelerated in also X.X% up sales we This ranges improvement were expanded XXrd to sales second The and primarily our stores. in as associated prior quarter, I year. other in weeks overall occupancy leveraged comparable of XX.X%. gross guidance not digits. XXXX the distribution fully in to which sales leveraging costs an into total And a These each confidence trend costs higher shift, back-to-school, quarter store XXXX. August BD&O on in the will of other August full fiscal profit new approximately moment. QX with were Rogan's this a profit sales for gross that buying, XX comparable costs due will calendar the representing first and fiscal for fiscal As calendar strengthening XXXX certain store as points, net operating higher growth, versus the these for and excludes QX store company declined of quarter, impact us in to recur performance year, higher basis, XXXX store a week On basis quarter discussed previously. which Despite XXXX, result shift low-single have the which compared to with the to margin prior year, BD&O more new occupancy due XXXX, and versus primarily the to increase provides margin costs. discuss Rogan's increased compared quarter, comparable

our on For quarter, the down merchandise a year margins to compared and flat prior amount were the to quarter generally basis. year's prior second were a small year-to-date compared the

As $XX.X addition net was primarily XXXX, QX of XX quarter. SG&A an basis leverage the of a XX.X%, in our was sales, million, in percentage SG&A to versus higher related of the of million $X.X increase Rogan's. expense reflecting QX representing sales points on the

approximately in and of and sales expenses in cost was SG&A. income GAAP acquisition, Rogan's the We a of XX% basis. XX.X% percentage $XXX,XXX $XX.X was fiscal of year on continue prior we and expect integration basis, our XXXX, achieved. Operating quarter adjusted totaled an acquisition increase to to they the merger an and synergies On those $XXX,XXX a Rogan's as included sales are of GAAP a to on from basis synergies as related $XXX,XXX lower approximately which in SG&A million, the of expect in income versus operating

debt. basis, net non-GAAP not income rate prior to did for excluding cash primarily Cash XXXX million the equivalents adjusted had Our end $XX quarter a million and a $XX share the $X.XX recur $XX.X from the we quarter diluted income of cash GAAP total second impacted the the equivalents in was costs, prior to rate operating the cash, cash of basis, favorably the year of approximately investments and fiscal quarter per ended over the versus approximately a operations a flow year versus headwind discrete and tax for deferred share. At the marketable securities was increased second no and cash benefit $XX.X Rogan's debt. XX.X%, This our settled benefits quarter second fund with share. state million tax marked quarter from year-end million second or increased diluted quarter per approximately that versus year net million. the was XXXX, XXXX. On On year. XXXX or and $X.XX share $XX.X company without rate operations acquisition-related And growth the through awards year XXXX, per of resulting continued $X.XX income second reflected higher of flow and equity consecutive in we the prior in XXth and XX.X%. quarter from in have quarter, a EPS

$XXX of and marketable more securities end of As equivalents, the August, cash million. our cash and than were

quarter approximately we not acquired quarter, the under inventory repurchase of inventory, million, versus The reflected available share repurchase and $XX continued the from Carnival the Shoe Inventory of efficiencies an ongoing prior have Station our and $XXX.X our by at offset program. end optimization increase any partially current totaled Rogan's plan. During in did million million the shares $XX improvement Shoe year. increase

we our of discussed, continue be expect approximately business, end Carl inventory will year. on by lower by the Rogan's, $XX to excluding the million As

to $X.XX We growth X%. $X.XX to billion X.X% sales X% of a to And to results, for of August, a now comp EPS of and year year and store performance in up We year EPS range XXXX. in and inclusive increased today, $X.XX outlook. Based comparable Moving in a EPS. of and range strong comparable second guidance adjusted quarter $X.XX. range of reflecting expect our full sales on positive of back-to-school $X.XX a ranges store net XXXX expect we to GAAP net we year-to-date $X.XX in sales XXXX on in full fiscal full versus down a expect billion, range to sales, XXXX X% results now now

of year. comparable we includes increase. low-singles range means year it into store increased of fiscal To Going back sales ranges, more a half sales on a achieve guidance little estimate X%, back full and in comp of detail the for of half sales guidance the to fiscal these the up flat which the our revised year what our August

While a have see is a of season the boot to and to Mark the holiday we we we pointed increase, quarter the likely respect sales total $XXX million. approximate side as range achieving more unless, currently record X% close comp out the to lower high we fiscal expect end net sales path anticipate outcome out, XXXX. With to QX, for third the

for third of expectation quarter includes of the in into out the impact the quarter in quarter Our XXXX sales moving year. retail $XX second approximately the primarily compared third calendar sales of shift, resulted prior million which to and as the net

fourth In of an will $XX XX% with prior of rate XXXX, in loss respect prior combined ahead with growth currently the net the in QX of to and over outlook expect $X.XX growth this on the or of sales the of our shift just XXrd high the year. quarter. pretax expect the period. year year result in approximately income the growth sales sales the compared of to of versus week to EPS X-month sales million retail calendar the and total income. With XXXX X% side quarter We QX GAAP thoughts tax third at of in about approximately XXXX full on loss be perhaps QX We

outcome fourth EPS likely prior of the we week a result, in shift of will Further, a is XXrd growth loss and year of the earned year X% compared the the $X.XX. to than flat calendar headwind approximately quarter quarter prior be sales estimate when quarter to the As fourth to the $X.XX expected year. we up be EPS of to guidance less with the compared to a our in our range full

of $X.XX some of reflects XX% net growth deliver an to fiscal $X.XX sales until from well level be adjusted operating range the synergized in we and to sales headwind, our line Trends net nearly in Rogan's fourth this as increased continue as across XXXX. To the to Our and is as SG&A of XX.X% business prior were and quarter on income record expectations. EPS favorable, in thrilled basis. percent a growth our quarter, a XXXX in close, year second fiscal $X.XX guidance of Rogan's versus with of performing deleverage

seen the the that excited season. have midpoint. This base review. favorable at trends update back-to-school half concludes And our to include ranges into August we those are the back peak comp financial the for We positive year business accelerate of on guidance growth the

Operator

to like hand floor to Mr. back Alexander. now the I'd Steve

Steve Alexander

and CFO, to Thanks you, now, for unable in to audience call to the matter, today. an that due open again Edwards, to thanks up our operator, your session. joining Thank Q&A for participate will everyone today's the let us personal I to is know Patrick wanted the unforeseen understanding. And I for ask operator questions.

Operator

question [Operator from Instructions] Mitch first Mr. Our Research. Kummetz comes Seaport from

Mitchel Kummetz

a handful. maybe got I've

Let on second quarter. me start the

Your down same-store sales were [ X.X% ].

XQ? Can you said I think comp the June month in flat. give us you by maybe in the was press release,

Mark Worden

to year period The July the was them. last that have exact was the not in and that Mark. occur again didn't June, X numbers, going early mid-to-high see wild with We that like greatly. didn't months non-events were months last but seeing see slow, we We're we wild I'd out were vary What periods break non-event things. time. swings. did concerned talked the within not encouraging this were it's say Mitch, being didn't We about saw but the singles. time We swings down they that category are the them contracted, in

the message into Second, from -- ]. turned But differences there comp once end, turned wild between back-to-school the down towards the X% tail very months growth. to core away it in July, [ is, weren't the the kicked end, quarter at overall

Mitchel Kummetz

the start on with me August. -- Okay. guys you third quarter, actually, And then, let are well,

percent like or comp. low-single-digit positive assume a August? month has quarter August So the is it you quarter? I it's the half Can month. Is your of largest what the say third half --

Mark Worden

that half. in not It's not us, than have more front exact it's half. number but don't I of

So half. it's than less

Mitchel Kummetz

quarter? again, And your comp what's October And comp. in for sounds XQ? kind on what in you giving Can strong comp you to get September It do the talk XQ, your need you're like to sales and the the expectation about was expectations but of for range, August. not

Mark Worden

Right.

holiday my this between of with my that We're category back But said -- meaningfully anticipate of as said flat do however, up today, to mid-single a in up X%. guidance. But low-single-digit the be be the speech, been the fiscal for, have higher in range of right Thanksgiving, period and point. or it, I I into many period If, guiding improvement. would what a great stretchy increases, if we've nice now half year. guiding as things August. expect that at we're look holiday another for about positive. giving is a $XXX ambition So, now to starting the we see we to we're comp the and remarks, X% QX, from not baked said, as we Flattish the we really second of has ending the pivot do comp year month I the healthy the half achieved this that million of expecting the at which I should can where in shape already quarters We I of that season, to that would boot anticipate, in as as a we're mid-singles in sequential growth season for back year of the on see and end time has during and this implicit back-to-school expansion half

Mitchel Kummetz

are year. of remind a what with what so us are far back and I'm Can happened the you If were boots are the tough the boots on And that planning how is Carl, kind -- the of percentage remind last of kind for on category boots back you just kind last what note, half? what can And us of you mistaken, not year? reads business that in Okay. early maybe, half? boots category

Carl Scibetta

range Boots accelerates of -- the our that Mitch. it's quarter. business, in the year about XX%. in a this to the down is the Sure, towards which Boots in business, back XX% planning -- fourth We're of It XX%, quarter in women's needed to around our drive year half kids' to react with up it's fall, guidance. higher boots, roughly half, low-singles number non-athletic were last accelerates third non-athletic if in high-singles. about the position

Mitchel Kummetz

boots so early any but early, And what... it's reads far? I know on

Carl Scibetta

you second being mid The us, only ] reads delivered, third [ have, late get would of as slows and we performing well. they're we reads data really really Western early early that holiday, The very where is that and just boots and quarter. into into feel would third with Traditionally, is, ] be reads through a lot which down continue -- quarter [ not there. that the early quarter there's

Mitchel Kummetz

margin, rates or guide, mistaken, think kind the not And of any my changed? you're that think, I those year, still and last looking we for margins, then, previously on around for for XX.X%. the XX.X%; question, if guiding, gross I'm at of maybe SG&A, I Are has

Steve Alexander

is this Mitch, Steve. Yes,

would XX up -- [ thinking the about SG&A, got gross about on about in SG&A, the Last think spot that that last was margin year, year-to-date think margin see year, that's date QX expect guided to the guided in XX.X%. I'd first full so probably on low-XX% of we are the of SG&A deleverage year. we ] on You're -- year. part guide we on our flat where you'll this gross the you in principally we've leverage on fair year versus range. to number, to some year. What And I in as that to certainly -- bps percentage -- some built around for SG&A, was year last then,

Operator

Monness, Chartier from from Our next Jim comes question Crespi.

James Chartier

Should the outcome like towards EPS half that sales the you sounds trends of most likely infer the it of then guidance. end low So, for is guidance? also end second we low said

Mark Worden

a with is be Again, normalized through. the a great assumption the anticipate. I Jim, as that mid-to-high mid-to-low potential that's for we possible. should say to upside out, called I boot end good it's thinking what clear, with would is think holiday, season, Yes, I But and Mark. season side the

James Chartier

given to Okay. how your then performed And now for holiday, it guess, and then, and change I of back-to-school? the second season any half, kind well spend spring particularly marketing in

Mark Worden

out, we through year. no new than and trying delivered we We did of and out more our the sales money the gate, spent it first way pleased this last Yes. were very right worked with of approach, comp year it

approach speech, season products going I'm approach. half working. digital-first in is excited back said up so We're holiday the winning team bring the flexibility are amp driving. in as new So, do our I that year to efficiency about continued continue builds that the what the The my to his and through and of what and Carl message and

better on of same you anticipate the increased spend. efficiency In terms we're of level no, cost cost, shouldn't the specific getting as

James Chartier

existing Or strategy, driving us on new attracting the more little just what's it on then, improved give switch color you coming Okay. And can from you primarily customers? a are customers? Is sales? the store

Mark Worden

of probably the exciting is part most This it.

previously assortment and of specifically That's their what's $XX,XXX we fashion not showed a product We the Shoe a a the women's I've data them, north The coming shop at Carnival. we're they're before new is throughout at new running, And largely not like customer Shoe insights X were brands these which meeting Carnival in, household are capturing below variety needs, in skews of the $XX,XXX Station Shoe Shoe income And liking? that our never must-have and seen is capturing. customers income. Shoe better capturing variety did store. of there test that customers customers Station markets and has America. were high-end performance household Carnival, our

more couldn't stores us single For be above athletics, sales XX% I women's, all every in have of to of men's, delivered across and the growth X category test excited.

whole it's customer, a geared affluent, is shopping is our aesthetic great towards more that I'd doing is look, product But design, feel The in and this, whole and our our of it's So store different experience really is higher-end place. saying, the they're this wow, it. largely say that -- coming too.

James Chartier

customers, Great. too? And retaining are you existing

Mark Worden

We are back-to-school ensure been the children's his doing. example to kids' has pleased. really Carl Carnival are. Yes, in hard and still be working great Shoe business. been would we've decades. team really we're at, growing for our And an we're things

back-to-school It's and -- former right the learn, for the things kids' well. to these a stores capture coming back-to-school. categories Shoe we during this Carnival keep Station. business. back-to-school, same not the that the of kids and that's been very core kids' shopper test very in test out performed strong we've pleased of not were ensuring One And we But the throughout we've Shoe assortment this

James Chartier

guess, I Shoe then to some banners, of better without take these is some bring stores? and just, learnings opportunity of switching performing Carnival there the And to some an of assortment and that your changes

Mark Worden

I don't think so.

they in different banners communication product different aesthetics, product, women's different I different sell ], with, particularly X said, Shoe overall And different a than message. higher and very of I the business an we [ and at athletics different a as Shoe much ticket think in are Carnival. service price, completely non-athletics tier average Station

able to be or ] brand very think I Like to couple ton we're with next. on [ idea is as success the November a lot we're simple have my our Shoe months X of you continuing really update and in in stores don't folks excited criteria. expand Shoe it's in, said double-digit it's in few I -- brand wildly X the to exceeded to And X think growth. resonating, Station what a when in to We're going we'll the call this a our learn though. So strategic this the We Station of about, and that. going more, learn, next and I as is legs to and remarks, more it's talk we're we months. more test only

Operator

Our Poser Williams from from next Trading. comes Sam question

Samuel Poser

can I Hello, you handful have a questions. hear me? of

Mark Worden

Sam. Yes,

Samuel Poser

just guess, housekeeping. I Okay. some

losing quarter mentioned, amount SG&A you you -- similar in -- expected both the sorry, well? Why some QX on quarters. of digital pressure sales a you're but in in SG&A as than Steve, that headwind saw more You on of the feel third a won't QX, the

Steve Alexander

Sam, [ based on around moves in advertising business a the that is mind to have ] you bit the We except keep running. way the will,

some you'll some QX a at to as XX.X% principally on our that but sales, look deleverage, think again, pressure you where implies think see which the Back of as see in are full SG&A we year-to-date, in I in terms see won't as be QX, pressure you'll QX. we'll I I it in where guide, SG&A. it on percent the apparent, So is principally guide if year think, of

Samuel Poser

Got you.

what is deeper Okay. overall degree has assortments your that few How years? the they they last And are this Or evolved narrower then, than over were? year to and narrower? Carl,

Carl Scibetta

like we supply our I are assortments than I narrower chain in would us really into have items the The improvement would in to has they Sam, past. jump -- say enabled have been. big

and down able it owning addition, brands. we've been In tighten to based be a on bit, and more shed right, products meaningful tertiary the product

Samuel Poser

things And how also how tend about non-event and then, being digital to about talked But is non-event during working. you've off marketing the your the -- you talked Mark, that's drop periods periods. good

activating So periods do that going you non-event personalized how customers? marketing engage better how activate you targeted more during -- your digital, are about to the

Mark Worden

a you than got just got was of during we frame said, we that throughout that would as last It back-to-school. be -- I at -- good be we time. in into about early -- the point call, would ran transparent, June in well. example, towards less worked into could before lack vision the then as program, share did June July, our really And we where and that -- flattish social spoke and we July time and it digital before

QX take early getting them, has we trying most learnings, of we income going down particularly, going the Day, Labor ends. the there, drive engaging strong, and we're now the we're find to and message to significantly we're and and as apply to So November with digital get those September, Carnival, and which them small. ensure Shoe in. we're to season, past numbers that our customer end lower historically, is we're -- spent discretionary soon back-to-school once units are for But find volume those their go very to them as volumes October out We

Samuel Poser

could you're incremental any be and are that out that some work up same consumers. means with also And there competitors -- that But large. have that the exactly -- Right. you

other But early the the is -- both June July. how the until more with early and in So you confidence be long guess, customers predictability. periods? able to as you the retailers and during I this compete evolves, How and event success confident them the non-event how how into it -- some that turn Shoe from be of have able really of be question impact work? might customers take you take had You for -- in long moderate to will long some to you during those Carnival whom measuring

Mark Worden

Yes.

the share half QX why is confidence to that's and were throughout we're X%, Sam, pragmatic, Our plus share. is the back guidance half back achievable and the of of market and strength down plan, high, of up get balanced X% it the and year. think, of the Implicit end gathering also in we right? absolutely to the in product, X% We point time. But raising also of saying flat think upper absolutely the flat and from of probably the is that we year, taking at be strength now to to today we'll market this for that's comp It's our QX.

Samuel Poser

to from significantly QX, think -- QX? perspective, we you're that way could about to assume we better And about then comp accurate than when expecting it? lastly, think that an be a Is

Mark Worden

balance up X%. low-single say to X% fiscal or August, to is is No, digit Again, achieve the that. and QX I wouldn't then

side And so, a the the the ready likely to excited about to go. for year. the the way we're I'm lower at right business we're to of -- has, I the boot that. X.X% looking But think that about shape is, is I From way said, had half tough now that we about is organization the as to outcome. last the is, to I think the right most think it product back right Carl's year think would and midpoint flat of season really

So holiday with absolutely we the higher the is for season strong But our should side working about... boot possible. and season, campaigns think a

Samuel Poser

we let's X.X% QX? -- say is, and you would question like, question. that of did in my is. in as trying we a -- balance I'm in QX? X.X% number like up -- My understand wasn't flat what the Or just regardless might we say do of let's the it instance, Would and midpoint, expect X% what would is, QX look or That in more X.X%. to expect for regardless QX X.X%

Mark Worden

I'd you. assume clarification. Good the same QX, Sam. Got QX,

were midpoint, both simplicity to the for say if to in QX, than being quarters. that for downside simple a QX, point, equally in more likely the we For to use same going upside, with X.X%

Operator

comes from Kummetz Research. Mitch from question next Seaport Our

Mitchel Kummetz

Yes.

of What I couple a follow-ups for said you GAAP on guide, number. is that's the EPS One a adjusted think think Just an me. quick that -- on I it's XQ $X.XX, but basis?

Steve Alexander

Yes.

Steve. So, Mitch, it's

You And been of $X.XX. you each guide year can right? non-GAAP to the first has our quarters. see X It's sort of see what that adjustment GAAP can full was, what

being to about fair think same, $X.XX, about call differential that the So it, maybe $X.XXX.

Mitchel Kummetz

easier know, to All to but of as the how seems to it to balance kind give number, don't push not out. of you be would I be an going again, expect the of just sort like right. I it third clear quarter, just the And to adjusted us play quarter want again, I'm that. then, on

quarter. guys You on comp the giving aren't

to plus looking like October to You're running your you're it on of you quarter? you of that, of Are in September But comp giving flat non-event September it's it? kind sort August period. the sounds sales down and to dip to Mark, about October sales. get Is guide for low-singles. kind since thinking from expect and how is a that

Mark Worden

the to the very work balance $XXX for Close. this of is I'd out approximate. digit numbers say to get the quarter low-single flat how to million,

for a quarter. to slight flat the So, balance of increase this

Operator

any over to back As of the I'd for pending hand remarks. final like to management now don't now, have the we right questions.

Steve Alexander

day. available Thanks This joining for is us again We're all today. Steve.

have follow-up know. you Thank let us much. you questions, very If please any

Operator

attending Thank for today's you call.

day. Have You a may disconnect. now wonderful

Shoe Carnival (SCVL) 5 Sep 242025 Q2 Earnings call transcript