Rebannering Shoe Carnival stores to become Shoe Station locations has proven to be so successful the company is accelerating its expansion efforts.
Shoe Carnival began tests that replaced some of its namesake stores with its Shoe Station brand last fall. The company started the year with 42 Shoe Station locations and will end the fiscal year with around 120 stores, representing 28% of its fleet.
Shoe Station’s performance has been so outstanding that the company announced the banner will represent over 80% of its store fleet by March 2027, up from its previous target of about half. "It is crystal clear that Shoe Station is the future of our organic growth and future of our store base," Shoe Carnival CEO Mark Worden said on a call with analysts last week.
As a result, the company anticipates it will deliver total company comparable store growth starting in the third quarter of 2026. Additionally, as part of the Shoe Station growth strategy the company expects to enter new markets.
“The strength and scale of Shoe Station will more than offset the ongoing challenges we expect to face with the Shoe Carnival banner,” Worden said. “We can't wait.”
The footwear retailer has seen some success entering rural markets with Shoe Station, including locations in Tennessee and Alabama. Those accomplishments have the company eyeing additional places where it can grow in rural areas.
The company recently reported Q1 earnings, where it outperformed market expectations by over 10%. Net sales were down 7.5% year over year to $277.7 million. Net income was down 46% to $9.3 million, while comparable sales declined 8.1%.
However, for the quarter the Shoe Station banner contributed a 4.9% increase in net sales year over year, driven by double-digit comp growth from the rebanner strategy.
Unlike many other players in the footwear space, the company is also confident regarding changing policies around tariffs.
“I feel really optimistic about how this is playing out,” Worden said. “Thoughts for jobs coming to America is a good thing for our footwear in the long term. In the short term, near term, comparatively … we're not a wholesaler. So comparatively we're in a great position with what we do, with what we control.”
In Q1 the company purchased nearly $17 million in additional inventory compared to the previous year in advance of the tariff increases announced on April 2.
The Footwear Distributors and Retailers of America sent a letter to President Donald Trump in late April asking the White House to consider tariff exemptions for footwear. Seventy-six companies, including Nike and Under Armour, co-signed the letter, but Shoe Carnival did not.
In a separate announcement, Kerry Jackson was appointed the senior vice president of new business development — a new role for Shoe Carnival. Jackson is coming out of retirement for the position, where he will oversee merger and acquisition activities and integration of acquired businesses, among other tasks. He previously spent 35 years with the retailer, 27 of which he acted as its chief financial officer.
Kerry starts the new role on Monday and will report directly to Worden.
“Kerry's return is a tremendous asset for our growth strategy,” Worden said in a statement. “His deep institutional knowledge, combined with his proven financial acumen and strategic insight, makes him uniquely qualified to partner with me in driving our M&A initiatives. Kerry's passion for building business ultimately brought him back to us, and we're fortunate to have his continued leadership as we expand our national footprint.”
