SCVL - Earnings call transcript Q3 2025

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Operator

Good morning, and welcome to Shoe Carnival's Third 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.

Steve Alexander

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

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

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

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

Mark Worden

good Steve, you, morning, and Thank everyone.

and thanking like dedication. for to tireless their the all work hard quarter, by Before discussing team members results for our today start I'd

of employees Helene our lives a our As the both dramatically and and were devastating hurricanes, the of Milton, customers impacted. result

did not and accounted team. our to suffer both team stores. we fortunate now meaningful for safe you, We're we're our that are members thank and grateful damage all for, Importantly, and outcomes,

previous our results. achieved in the proud year-to-date to On X.X% $X.XX, an year. the the was shared expectations EPS basis, quarter of earlier addition now third performance third so $X.XX, XXXX we growing included We quarter, begin our continued digital-first $XXX.X further achieved will third months store of also drivers very Rogan's corporate capture to delivering the for efficiencies synergies profitability more year-to-date of but our in a moments. increase our line which profit our perspective, Rogan's. the perspective, comparable of the with go while profit full had versus line quickly Moving of a sales identify I'm testing net Rogan's in And synergy a from deliver back-to-school top million, in our will integration synergies X.X% quarter. schedule. income profit primarily accelerate to and The X.X% of delivered XX%, in XXXX. ahead marketing of to million, in adjusted line synergies in top our discuss we quarter accelerated rapid ability approach, demonstrates a operating began We the our the for quarter consecutive rebanner capturing into to of savings prior sales progress delivery growth on capture profit EPS expectations February I of year-to-date margin Patrick year. year details line Gross versus capturing consolidate of the faster to the quarter. significant adjusted capture adjusted a totaled and was support, prior banners, $XX.X exceeding XX% Rogan's our this of sales. increase was and quarter than store functions fiscal across and The X his and an into expectation. where which XXth comments, capacity increase in team time the ability ahead XXXX schedule, was a and strong in these team's back-office which key few From in our an our of with in with the strategy, line profit

synergies marketing in leverage also In by strategies. addition digital-first on drove to the our SG&A led profit we our Rogan's,

strategically away forms invest year when just us and adjust are we gives began our and did of quarter. we during engagement to which maximize customers As quickly to digital-first ready discussed, in have traditional ago, media, a over the pivot spending previously transition the from purchase, as a and approach more to back-to-school ability to

is to a at enough inverse not digital aspect Helene Hurricanes level, Importantly, consumers engaging down to investments also and the surrounding of such strategy spending as ratchet our flexible advertising be profitable a Milton. key when are the weeks sufficiently with

quarter. real-time this expectations was delivering to customers' behavior flexibility our spending match Our essential the to profit

efficiencies meaningfully After reach as marketing engagement And less. also effective, October, driving increased in campaigns and I and while spending Turning growth increases slowed sales was X achieved to the delivered were in net all-around sales we our product customers up we In growth a customer in Station Labor sales of back-to-school achieved comparable result net Children's more the mentioned Carnival profit Athletics; leading weeks Labor continued by strong store Day, delivering comparable and digital-first sales able September and while year. were to as warm and both Back-to-school success margins, as customer hurricanes flexible we earlier, the transaction growth. an banners, led versus size prior store very weather. to persistently quarter. traffic solid Day,

of all in business of North or to nearly stores was the without customers' for very impacted boot the in as being stores While resulting into boot the performing digit over to drivers our half our combined the our goals affected major the not them. of delayed about with X, given shopping for of and by in point the the significantly will hurricanes, way customers' Understandably, were was as a we perspective, day October. season. Later down disruption or for to stores deliver into month during the shoes lives, our in start the from high-level in not to did simply remarks, Carolina a below which our our primary weather go stores back sales weather, boots sales the Carl in the lives up stores month winter were being November, assortment, to of continued October quarter, hurricanes, experience details more the our warm and $XX significantly degrees sandals but hurricanes double his ranging XX% varying million in quarter unseasonably a one disrupted, the All our quarter. remained warm of some to and From a about from Western of a these damage storms in, the priority of season a were from electricity our water. closed well. were half closed our lack reference, for the

the of we performance nonevent year given We behaviors to our the guidance of while weather, materially we decline is turn trends industry. customer anticipate Now I our quarter, the weather to to are the quarter. last But of full the when the the possible weather the periods, gets outcome. holidays, holiday most quarter we achieved, and balance results be shifting outcome holiday significant sales side boot during improve trends continue side will the across in warm we in winter the stand to boot to thoughts of cooler period. And mid- the are growth winter and today. now lower third a to until strong purchasing anticipate revised third expect the delayed turns likely cold considering if the sales we once the guidance range year. then event season in which on the enter Today, higher Consistent the where range due with out was is

as end believe As fourth has the warm quarter. lower continued into weather is we most likely persistent said, I early

profit guidance, the our for such guidance third in Patrick go I'm strong reiterated margins the details quarter of based and unexpected like profit strong support discuss would footwear but our year-to-date. our We to EPS team and fiscal will also vision delivering more few into the of the XXXX face on on proud delivery moments to family results range retailer. strategies the many now take to weather in be challenges. leading I a in nation's X that third core growth quarter

synergies full acquired One X activity. being as we which in February mining that in is profitable bottom Rogan's, With in our growth top the Shoe building Rogan months along which is earlier, to year-over-year data we acquisition, rolled since the we accretive XXXX, complete our stores, run profitable and largely years December expectation. program to the anticipated. which turning strong are the the And are rate XXXX, than line with synergies in continues for line just core integration captured, full we we opportunities achieved in continues our I customer results Station, in ahead. Shoe deliver out deliver to team acquired of sales and new line. discussed those quarter, faster strategies growth M&A CRM Perks out to with now results

growth key existing assortment being strategy, second make a component is business. to shopping addition product grow a in-store our Station brand, Station acquisition, a and Shoe the experience In core to profitable which Shoe of

the at of assortment primary mix to focus evaluate characteristics, on and data store areas purchasing level. One a is strategy trends, this in product community

Shoe we customer estate As defined Carnival part with locations where of aligned real and that analysis, existing Station. Shoe the characteristics better are have

surpassing were last stores early The the on markets do in the Station X continuing quarter our we As in encouraging, third results Carnival Alabama the quarter. discussed to during and expectations Mississippi. so station very of and I second to call, on rebannered core our from

by During testing number rebannered stores, the quarter, more the stores XX. rebannering to total the expanded of this X strategy third of bringing we

rebannering this where southern known, Station on in accretive or stores was testing and that additional markets round into expansion market validate to is test profit core is focus the not of present markets to Shoe but Our further leader.

rebannered these newly but multiple promising. and markets X X on of we state with still stores, Alabama days early these station are results of the stores, entered the along addition Tennessee. in the Florida, Mississippi, new With It's

stores, the growth. total the more with XX%. criteria have than we XX X% are Our fiscal history to based X% results. delivered And are profit profit of encouraged success a on first over stores very early month The rebannered sales sales and X with of operating stores increase for and plus

outperforming We prior will to as very stores continue holiday are clear Station Shoe these stores the period, but to compared that Shoe learn performance from important significantly their fourth the shopping during Carnival quarter banner and the as it rebannered is stores stores.

half first markets With further As from such, further where the Shoe possibly round fiscal testing to by into known. are to the XXXX. include Kentucky Tennessee, we Florida, planned expand this Station an testing, away the markets The additional brand success markets plan the and and and it Louisiana, in test of Georgia Alabama, in by XX of South new in of rebannering Shoe we markets plan stores Mississippi, Alabama the further expanding to this Carolinas. of is strategy Mississippi outside the Station currently and

planned meet earnings early testing providing needs. team stores total call of profit strategy first reimagining further XX and potential energizing stores of the This like delighting strategy potentially expectations We that to of a as innovation thoughts geographically been and days is early ahead. growth, and rebannered as and teams, Shoe ways the during XXXX on this new our next additional for in I'd on their accretive. see the XX source the and our of look testing. expanding of to our stores years our in update XX% will will are phase represent number for forward have very spirit better I an well Carnival impact long-term XXXX, as customers customers' rebannered approximately to thank our With

synergies top our approach. quarter, back-to-school, that quarter, strong a over line our profitable digital-first to in of by results line were that the Before we few and Rogan's ahead efficiencies with was led summarize successful I'll the delivered expectations with and quarter delivered We margins schedule. profit thoughts. for EPS and a handing integration very months accelerated line in continued Carl, expectation, our in full closing X it successful and marketing with the in delivered a

total our number of we testing additional to expanded rebanner XX. part the stores, X in the with quarter stores As bringing store strategy, of

to has we We early decided XXXX Carl years and to decade further stores continue valuable to friendship announced underway, fiscal successful retail time his to for plan process Carnival. to I'd by the during to Shoe over contributions currently successor in like The decade the the service information partnership of spring and XXXX. a October, Scibetta share last in leadership, is Shoe his industry rebannering well Carnival's Carl his the over And his many first the and the be as tenure. thank results in expand encouraged by to XXXX. as of XX Carl's strategy plan to at retire we growth further as appropriate half the over of in XX after select additional and during

We Carl and to I'll transition company Carl. to to smooth are the hand during a out it will XXXX. over XXXX fiscal grateful And that remain with facilitate fiscal close now

Carl Scibetta

the decade, out and very year with much I look Thank enjoyed and working team to last over the strong. forward you, Mark. appreciate and closing the I you words kind your have

declines season third discussed, growth and the you in in decline by customers. From partially and third to remained in delivering The in digits winter quarter, gross low quarter, month XXth has margin high growth children's, weather and continue margin sales slowed quarter, profit comparable over September a about performed entire growth over men's. led a business men's delivered which with season quarter gross by above our in October back-to-school athletics. in athletics As persistently to with our XX% we category XX% quarter warm delivered disrupted of offset children's October, as season, delayed impacted store X of performance. profit and of for the to X/X were and strong our remain women's third down single-digit the hurricanes represented we consecutive children's. well, the in quarter. XX% boot and historically a mid in our the with CRM single sales In a In again the October, we that growing boot strategies in resulting sustained Boots the women's, and the in committed was targeted out perspective, also

Rogan's XXXX. by an XX with margins Our basis, the year. approximately million increased on Inventory reflecting merchandise of acquisition versus prior year-to-date basis a year, were the $XX.X the end merchandise margins quarter in points even quarter in the versus of the at totaled And million, the of increase year. prior primarily prior our February $XXX.X impacts

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

single athletics and adult skate QX Children's court declines were X.X%, offset sales adult and partially The led Now the moving children's low in digit. a women's led single digit due by offset nonathletic walking. down in quarter. Total court boots by running softness to comp down sales athletics partially primarily and weakness sales which performance in strength high reflected category athletics, men's strong sales total comp the and sales decline low down low up was Comp back-to-school were in down XX% boots, perspective, were athletic were partially From was with sales digit athletics by singles, digit in skate. in over non-athletics were by by growth and adult down low by increased in driven which categories with Comp performance. comp in high offset basketball, Cord the up quarter. to a for in single in singles quarter. that single

Men's down in quarter. and down Men's single was inventory down comp the casual nonathletic non-athletic clean over Coming were down Dress and sales Sandals were down boots digit quarter, were was casual sport low digit. and out digit. women's digit. in sales double were single was down low down digit good single single both position. in mid-single and high digit. content comp mid-teens. footwear high Dress XX% quarter and high Third were down boots low the is teens down of were

Labor date, boot to with Despite and on our business being our And weather, team are inventory based after which we on relationships, year. to has and these finish the winter is quarter. sales persistently delivered with Day, athletics adjust in line slowed our In quarter customers warm in we and able the of the impacts prior boot we the quarter. led trends a lower a by strong season resulted very profitable vendor the the out to target Specifically, delayed due our XX% boot significant with receipts category than our our been to Patrick season positioned product and is back-to-school And achieved impacts the to hurricanes of Sales September turn a in the financials. the assortment, customers our strong and well our in inventory and that plan. on October and over closing, for providing performance with over margins, that, want. values strong to to of continue review mix inventory call I'll children's

Patrick Edwards

Thanks, Carl.

financial our the top grow to for were to results. EPS line line EPS quarter in deliver prior the pleased on year-to-date expectations and Moving with our and to We year. compared

As a in basis, compared XXXX recur now quarter these X XXXX. weeks benefited year-to-date $XX in year-to-date prior approximately prior totaled impacts $XXX.X increase incorporate a the million to This On calendar And retail as year elements sales million shift, reminder, which otherwise million. shift will decrease year. an last unfavorably In net QX to X.X% to million year. a $XXX.X compared the million, the retail quarter result, week the in the retail to each X.X% and material year. a This shift. due our third basis, approximately sales X.X%. second of in of of sales down the quarters. XXrd On shift sales quarter, not versus prior by totaled million, third now the shift net net was fiscal increased or impacted as quarter the material the calendar XXXX comparisons $XX fiscal compared prior net $XX million quarter, includes $XX or year between $X calendar In to the

impacted X.X% declined the which warm to that impact On in excludes other delayed and the and Now also line basis, strong boot led by of on in comparable we growth, by shift, the and X persistently of our in sales compared banners were operations August. quarter shopping half store impacted by Comparable moment. store that decline. Rogan quarter. calendar were in growth in weather activity Net in the sales August back-to-school and shopping start October. store sales third negatively in across of year's September little as meaningful growth acquired retail season and going Rogan's, sales quarter were about of this sale in top a and which the a more declines low and third the detail detail sales out quarter. the Net into back-to-school net boots comparable new impacted combined our Net mid-February many successes performance winter integration months a favorably significantly customer October, comp to last a Rogan's September disrupted year. discuss Net by September down the in the were with sales more high driving of were trends. singles store the X and I'll October in hurricanes sales singles store impacted weather-related also the by these sales sales

sales higher sales a declining prior year to year's entire offset deleverage margin BD&O of the gross and consistent the full points about boot On calendar as last the by primarily margin operating on costs more The was XXXX with to costs, the and to year, continued due half increased XX.X%, in in the occupancy from basis, drove our also profit even was decrease which year-to-date gross stores by impacted decline, compared XX gross store For third compared retail strength QX was X.X% quarter Athletics. basis comparable partially shift. guidance. with QX expectations slower the margin profit profit XX% quarter, quarter. of

flat gross were line merchandise quarter, merchandise profit basis, Carl up basis year, margins with on year-to-date XX expectations. For margins And in consistent as were margin with to overall a prior and our discussed. points, the

million net SG&A As a sales, Station primarily costs percentage was decrease million, Carnival point SG&A the reflecting and of decrease in representing Shoe XX%, a lower net even Shoe QX at a of lower with was quarter, the XX-basis versus stores. selling XXXX's sales. $X.X in shifted related third quarter, to $XX.X

advertising offset discussed, lower Mark costs operating these selling of selling strategy. driven optimized in the spend digital-first marketing reflect by cost lower Rogan's stores These the than As quarter. our more expenses

results Now detail going accelerated more line on integration. top into and Rogan's

Rogan's has performed are $XX.X full $XX.X with our with expectation. million net quarter the happy with in very and sales We approximating year line year-to-date, in acquisition how million the

deliver in We expect XXXX. Rogan's to sales continue to million over annual of net $XX fiscal

marketing, of platforms, participate store operations, customer can point-of-sale our Shoe program. back We integrated the loyalty Rogan's of and in customers quarter, respect into have systems, we And end With customer-facing office. Shoe Stations. completed integration Rogan's e-commerce now third technology, the to merchandising the e-commerce Perks, platform toward

provide access For changes expand Rogan's selection merchandise and other customers, new benefits. to these

portion As banked we X in ahead synergies expected of which a generate in in of $X profit previously currently months Mark capture of estimate schedule, XXXX, in captured significant significant fiscal We quarter. beginning total over Rogan's that to XXXX. was with fiscal the quarter, synergy savings million our the discussed, third

synergies total half in profit with be Our $X.X fiscal that of expected Rogan's to captured XXXX. million, approximately continues estimate approximately total now to for be

million Moving GAAP adjusted Year-to-date, basis SG&A. $X year. offset adjusted basis expenses acquisition, with year prior from $XXX,XXX well net approximately $X.X sales back Year-to-date, X.X% calendar approximately decrease cost $XXX,XXX as these of and synergies growth, a by shift, lower a merger was $XXX,XXX sales to the sales integration prior $X.X the and SG&A. $XXX,XXX results the was cost Rogan's operating totaled related increasing basis by in On from totaled of as principally and operating million, in in million as partially approximately impacted $XX.X of lower an million income Rogan's million, profit quarter, acquisition $XXX,XXX the the retail in versus to $XX.X income income in GAAP decrease quarter. totaled on and which Operating of a expenses versus SG&A. related of included of the a in and the on

of cash year of tax resulting third rate headwind and the per versus $X.XX rate year-to-date XX.X%, was This quarter line rate to basis, even to income operations On of the an in EPS our totaled in and versus net debt. of XXXX, even approximately basis, EPS year-to-date we in in million per $XX.X XXXX quarter with Our the October. experienced Rogan's versus with a XX.X%. flow in quarter million, quarter, or securities an of $X.XX basis, marked Cash the net a versus non-GAAP of million X.X% XXXX reflected discrete the Year-to-date, $XX.X this $XX.X was with in we a EPS On or benefits per and X.X%, that costs, conditions of without share acquisition-related GAAP third the income $X.XX. was continued growth did in $X.XX earlier year At year, adjusted end favorably adjusted cash, and basis, third acquisition third $XX the XXXX approximately year approximately all-cash in share the the investments of expectation. consecutive totaled diluted million XX% prior year-end operations XXth diluted September company of year-to-date through year-to-date year. quarter with headwind And XXXX. year marketable increased from XX.X% third line tax compared On a X.X% a the prior the market year, fiscal impacted prior total debt. and not increase from income cash $XX share no $X.XX, for challenging to primarily increase higher rate and fund million. GAAP and is with quarter net and and the Rogan's a income for fiscal prior quarter operating equivalents XXXX the year. respectively, excluding the have flow ended our XXXX, recur had EPS our to last have expectation. fiscal On

growth rebanner sheet internally history balance as emerging profitable strategy our steady and key repurchases. and share when fund to operating our flow to drivers deliver well cash and dividends desirable are as strong generating Our including of objectives, M&A

repurchase at we any $XXX.X and $XX primarily During our share current reflecting Rogan's not of inventory. the approximately the an available quarter, year, totaled did million quarter increase under end versus million, shares repurchase of $XX Inventory have prior million acquired program. the

As as Carl and stores with fiscal XXXX. stores, clean half the to market a Shoe mentioned, And the good XX earlier, QX, XXX boot in the for stores new quarter, Mark additional including of discussed into an the Rogan's Station Tennessee, we of first operated we store banner. our and Shoe in locations. entering is opened One expansion Including inventory Shoe XX new plan in end rebanner stores inventory. stores content the rebannered position, at newly QX, the in Carnival XX XXX Station

today, Based to was profitability on year-to-date in that net sales Moving that and range net reflecting full expectation, in $X.XX of growth outlook. lower billion, fiscal was with line of a the ranges. XXXX XXXX results, versus of expect X% our XXXX. expectation $X.XX billion to provided We X.X% we XXXX guidance on quarter inclusive to now third than following sales year fiscal

XX.X% We approximately points expect to sales SG&A expected We expense at points quarter basis our XX approximately We to be operating third expect rate by This continue fiscal expect be XX to approximately previous synergy be our XX%. compared profit capture gross XXXX. net fiscal higher. even with of a and tax driven than percent income previous management. is now to higher guidance lower improved guidance guidance XXXX to of as to margin than now basis our

tax of Our previous rate guidance XX%. was a

in adjusted We to a of EPS range $X.XX $X.XX continue $X.XX. range EPS in to a to of $X.XX expect GAAP and

guidance a what on Going the year. means little into it of the balance and revised our more detail for

We currently holidays. period in are we nonevent until get buying a to the

Mark be As in discussed, during industry. decline will customer nonevent purchasing we the continue periods behavior across expect that to

and season customer during continue buying closely We accordingly. and holiday before period the pivot will monitor this to behavior after

net consistent EPS side unless, While is achieving Mark higher we record close out we our higher XXXX. holiday with ranges, of side more guidance fiscal and anticipate lower side our see a both boot the the season of the of last likely as outcome and we to quarter, to a out, have guidance, path sales the pointed

led sales we fourth and last EPS line we shift when net compared of quarter quarter week the the our call. $X.XX. the a a year-to-date from comparable Our and To at and guidance that In the shift third close, earnings calendar was sales fourth our loss to consistent quarter stores, the comparable profitable guidance We EPS the and and EPS estimate in decline of Carnival be headwind in low of year quarter fourth retail set XXrd experienced delivered in mid-single-digit Shoe lower the growth Shoe loss side store of in $XX million year. store loss of $X.XX stores with quarter a will retail to result brick-and-mortar the decrease the earned Rogan's approximately the new will in prior Station assumes approximately sale of to the and the week in prior compared the XXrd XXXX, calendar the range. expectations QX with by to

affected achieve to We August by our X about market quarter. as the outlook and the excited SG&A changed sales of net XXXX, than guidance and warm about the conditions plans the that in than driven remainder September management. demand With that our slower-than-expected in lowered to And our anticipating expected. fiscal expense QX and decline of higher market tax of took synergy a back-to-school our October conditions. that to quarter. overcoming season. product our lower disasters and in shareholders. is and was last quarter will boot were year, very sales We subsequent and accelerated comparable our given respect now softness the by team sales to addition are October are half drive in and very for guidance. teamwork management and successful and given capture our weather capture about natural delayed spending, and it very expect consumer assortment caused proud our September stores traffic the store reiterated we for And profitability while holiday this for EPS half of be offset the expense Achievement lower of a Lower to our boot pivoted now rate the in We market it we fourth synergy sales we to originally are our percent landscape

Our drive strategy long-term growth unchanged. remains to

on great M&A and sheet balance opportunities to long-term including flow concludes to internal solid continued strong our position rebanner us execute growth, return. strategy and fund importantly, in deliver the put review. most shareholder cash to emerging Our our ability to desirable a continue financial This steady

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

Operator

from first question Our comes Kummetz line Mitch Seaport the of Partners. Instructions] [Operator with Research

Mitchel Kummetz

your to I'm here. and question a And luck congrats handful unfortunately, one and got going best follow-up. of rule you. to Carl, one break about maybe I've

I'm from replacement X curious, So late those start off the the question. on hurricanes? me in as That's impacted far buying you have first sales markets? to And impact just, any Mark, let there way my as kick those Is quantify seen hurricanes. any

Mark Worden

warm at the and that About our XX%, look thanks up losses, you came question. for of I When of well. boot boots the summed weather October. declined specifically with down the in loss think from it persistently month over Mitch, Patrick half

of half from the our Helene hurricane it, The other had the other would during Milton. the fleet of disruption half, but come we half Hurricane and about not most from all of

half roughly and half. So

Mitchel Kummetz

seeing Are how replacement then there? that? benefit from any you about And buying? Anything

Mark Worden

yet. lost not cold, during they the will some South. have product We still lost We rethinking that weather catastrophic people the boots, these of as suffered storms about in turns the be the believe

really next holiday week in to that as lost us, could profitable optimistic, can that remain of think our it to pivot things, to or gifting. We remain the people for go see which mode, and do, the optimistic together. and you we They'll they they in colder more quarter about need repurchasing recovery families they've been so of last once that starting and to special start So, ahead weeks whether think Thanksgiving about with from to a guidance us. they gets time dress ahead think joyful things X holiday, remains we is X, that a start to shoe

Mitchel Kummetz

see expectation business? start? the you boots, potentially And obviously, for And that pent-up start slow is lost the as in is do What you demand quarter, the slow Carl, fourth benefiting then on detailed. any your just you've just a quarter? fourth curious, given I'm Or

Carl Scibetta

Mitch, we believe there's some in way the our pent-up demand that's going to come quarter. fourth

managing we QX, did However, that we than still any in the business are less planning we we we our boot see in turning boots inventory and QX, are positive And recovery don't do down while much do see down we the any see but lost quarter. not QX planning boots nor recovery from guidance, in QX. in in

Mark Worden

is Mitch it of I to we're warm that a how on to out. the that now. persistent couple weeks I weather build continued so can't only going about, But in, play holiday share real spoke to quick,

have positive to that not turn started So, to place. boots

no we're not margin coming. do is But cold highly we weather then. We expect weather growth it all Winter accretive in was coming. know; is capture made And coming, while forecasters, the weeks. you these anticipate and early as

going record very And but will it's it's kicks the week make unlikely so by to in. season. it It before be a shorter that's strong, boot getting it

Mitchel Kummetz

shape. And to guessing as And in cooperated. able work coming out pretty in inventory I'm down it receipts early to been you've sounds as your continue is XQ we're of those like that boot weather hasn't XQ, the good

Carl Scibetta

in at the some top That receipts great boot position good Sure, We happen. QX And back advantage a partners holding now. what the Mitch. position the boot have going we're in great boot the get a believe on out, and out did our to take right team remaining be coming a on what's was going really of to helped of great table we're season they the that to planning glimpse The season so to can of quarter. us. fact in job come

handling the team managed did very the outstanding with an season They So way this. boot the this year. job pleased

Mitchel Kummetz

picture the the like in It guide. million, in than looks prior fourth would last that a $XX worse maybe to sales which quarter suggest the million big of expectations. $XX and that XQ $XX Maybe below about down range million ones. is is And couple on would about seem then of sort factor coming plan, low looking end the of

guess First to of you're of prior your want if in is my but versus all, outlook XQ seeing I that more boots? know expectations? quarter-to-date what so, I for of you don't terms with what's And confirm changed math, how much

Carl Scibetta

the of As mid accurately. We're side forecast persistently big today revenue said The building being weather characterized that speak. continued the has it speech, we the lower through in I we to likely. change, my of side guidance low you've into warm as anticipate

But the to the have built And side revenue when season in we impacts the of is starts and it so, hasn't the in week to turns, we but for guide delivery. next remains have if we holiday, reach. our it boot in impacts. holiday great our a want that if season confidence great to upper kick mid getting and yet. squarely in earnest, boots And profit sights really say that positive We've in shorter I shorter reiterate, turned have

Mitchel Kummetz

terms still moved is stores, anything non-Alabama? that of lastly, super Alabama maybe you've on performance I the the the But there the of that process. Mark, early versus then, outside Alabama rebannered seeing know And now in of you're rebannering. you're in

Mark Worden

Yes.

are this long-term excited very about We for growth strategy. a

test, far of a XX% results inclusive markets is we sales stronger and the it the known, Shoe Shoe stores, XX were us and profit. Carnival, operating showed explosive first brand in where plus than The Station

further with winner as in is opened we and and We're state further we're X% from as we're get plus and As still I we lot mothership strong We've is a that we is just now new into expectation XX% and X markets profit. new would criteria, our But sales in those rebannering all awareness, We're would very outperform we these closer Carnival to probably which seeing learn a as declines. stores to to and we're I the Shoe away states But still anticipate when than But far. we incredibly well. markets QX, in showing get in early results that excited. to starting earnest to, We're range rebannered significant range. success dramatically. we're get very brand likely X% leverage more in over like with X% of XX to so these set the We further still low a a learnings, one Tennessee now. Alabama, profit promising strong in Tennessee. core more enter further get new compared more it as They're Tennessee. further in progressing XXXX stage to the A building of mid-single sales to but say, the doing we and and comp big better of flipping anticipation. that closer mentioned, it. and state and the But rebanner X% away hope during things branch results the our profitable, is beat new

Operator

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

Samuel Poser

on say it you guidance I Or Did expected just the question. and wording one Rogan's earnings Rogan's you changed? $XX million. are to differently? verify another then want Has to was ask thing prior that calls

Mark Worden

expect change. XX. We It's that. over have no still We it said that. still There's deliver to

Samuel Poser

receipts and by or receipts quarter, to to about get of the within planned anticipated Rogan tariffs? for we your higher going the that account. are impacted forward then into end And going what's the like? levels want year, to the your potential you're taking are thinking I what mix into of than how inventory And it know also inventory look When going your tariffs going I have about thoughts into And XXXX? the any

Patrick Edwards

and to pass I'll then of about part off Patrick. tariffs. your it question inventory talk the take I'll about first our Carl to it's balances, Sam,

to we carry them inventory in see that a reductions to us Our X% the right get previously basis. strategy rebanner won't first a rebannering reduction on balance for bit time requires it's Station us We of do on -- requires now, about in little that hot year-end. a be end Shoe carry the we're as we currently the more that unit great investing it's more X% stores in that these This bit balance, XX little those the inventory basis, as sales excited at expect But down a dollar ready quarter disclosed. very by down inventory brands to and and having year.

Carl Scibetta

with of to vendor own we direct of ourselves it small a tariff our inventory. every watching seems Sam, We on front, percentage the very the appointment conversation We're have. topic be closely. import

else, So, made gets our to the we'll at are we'll where they the to indeed best if but being at it tariffs value customers. provide we deliver consumer very and value and at we carefully, point, and about across to, and importantly, pricing certainly that to vendors, be have how that at everybody come, the careful whatever like how to used see this how adjust most where But products need we will point. watching this affected are continue very we're we're our consumers our come can look to

Samuel Poser

sales, percent of you however or it, about have to want talk purchases What do your now? you to China exposure right

Patrick Edwards

imports China-- of The own our from percentage

Samuel Poser

I'm talking about total, from the brand. like

Patrick Edwards

China. the it it's is together, as put because be will all number. majority But And nonathletic of less that XX%. you have say Sam, the other would on say would product side, I probably XX-XX coming than athletic the than it it's out I I don't less China. of XX% than countries in

Operator

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

James Chartier

previously. it $X coming So, million like looks it it had SG&A is down about where from

of to addition other In Rogan what the some advertising that? components savings, are synergies the key and

Patrick Edwards

it's Patrick Jim, Edwards.

to our the really the to You're press expectations. bring spot on in X in with Those on management, to capture in were that EPS are that and variables and digital-first our strategy, do the flexibility on, marketing we you're on concepts synergy the brings. synergy only quarter that order spot line the able spot on it expense the

James Chartier

well? for quarter And as component SG&A components savings X would be that's in fourth quarter. those fourth Any the same

Patrick Edwards

Sure, range Jim. on believe. wide fourth obviously, In $XX million, a minus sales, there's or quarter, the plus I

levers And When quarter, demand spend. less our periods, market advertising did we'll the those in we manage especially this be X going well, So, able nonevent we with ramp we advertising. during there, to we're weak are up. is demand like if that reasonably the to see

James Chartier

profile Shoe the size of And stores the fit and then terms how rebanner many store in standpoint? from Station opportunity, a demographic

Mark Worden

going We just is opportunity what But yet. go and thing. opportunity we next limit see complete if going confident near those far. not these in of of be next don't give We potential is Carolinas, states and half go we able you core those rebannering new that with we're far it even that have it's stores answer the the know we and going one Kentucky, known. states. rapidly further excited We across further new don't to previously this and further learn places what XX early into We into but we'll stores Mark. to now how it's we're get year so Atlanta like legs is Alabama get wide Station ahead the very the to South, strategy term that year brand these objective. beyond we to beyond we're see into Shoe to are the delivering into XXXX help can accelerating We're know The profitably. further that have to that. the answers next And next markets us that first has significant. Mississippi disclosed thing Jim, expectation. explicit XXX we're I going push legs question. where is resonating to go as we The has as new over a and the And guidance to by yet, year, beyond be the more when

Operator

time, there no this At are questions. other

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

Steve Alexander

We're have to any all I'd day follow-up over hand to Thanks today. well. and like Mark it to quickly the call available joining questions, for as

Mark Worden

been joined Carnival Carnival, enjoyable up a call. to a As happy you, so you take from Best I XXXX, a person And to thank may Shoe just time with I on Shoe moment all a road your getting want have NDRs in we just hope of to all wish we of and your holiday. the we time spent you much to have us in you. It's wherever time or spending you. wishes wrap for families safe ahead. know

Operator

This all participation. your concludes today's conference for call. Thank you

You now disconnect. may

Shoe Carnival (SCVL) 21 Nov 242025 Q3 Earnings call transcript