Shoe Carnival reported first-quarter Fiscal 2025 net sales of $277.7 million, a 7.5% decrease compared to $300.4 million in Q1 Fiscal 2024. Comparable store net sales declined 8.1%, with approximately 1% attributed to lost sales from the rebanner strategy. Despite this, Q1 profits outperformed expectations by approximately 10%.
The Shoe Station banner continued its strong performance, contributing a 4.9% increase in net sales, driven by double-digit comparable store net sales growth from the rebanner strategy. In contrast, the Shoe Carnival banner saw a 10.0% net sales decline. Net income for Q1 2025 was $9.3 million, or $0.34 per diluted share, compared to $17.3 million, or $0.63 per diluted share, in Q1 2024. The company estimates a negative impact of approximately $0.15 per diluted share from rebanner strategy investments.
The company announced an ambitious acceleration of its Shoe Station rebanner strategy, now expecting over 80% of its store fleet to operate as Shoe Station by March 2027, up from the previous target of 51%. Approximately 120 stores (28% of the fleet) are expected to be Shoe Station by the end of Fiscal 2025. The company reaffirmed its full Fiscal 2025 outlook, projecting GAAP EPS between $1.60 and $2.10 and net sales between $1.15 billion and $1.23 billion.
Shoe Carnival ended Q1 2025 with no debt and approximately $93.0 million in cash, cash equivalents, and marketable securities, an increase of $23.5 million compared to Q1 2024. The company made strategic inventory purchases in advance of potential tariff increases, which, along with rebanner expenses, were the primary drivers of negative cash flow from operating activities in the quarter.
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