Shoe Station Group Inc.SHOE
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Shoe Station missed Q2 expectations and cut its full-year guidance on declining sales and comps.
Impact on stocks 1
Consumer Discretionary
Shoe Station Group Inc.Shoe Station Group shares fell more than 5 percent Thursday morning after the footwear retailer missed quarterly expectations and lowered its full-year outlook. In its first earnings report since officially changing its name from Shoe Carnival, the Fort Mills, S.C.-based company reported second-quarter fiscal 2026 net income of $6.3 million, or 23 cents per diluted share, down from $19.2 million, or 70 cents per diluted share, a year earlier, on net sales of $284.3 million versus $306.4 million, with comparable store sales declining 7.1 percent. Both figures came in below analyst expectations of net sales between $300 million and $301.33 million and earnings per share between 48 cents and 51 cents. By banner, Shoe Carnival net sales were $178.5 million, or 63 percent of total net sales, down 6.5 percent with a comparable store decline of 6.3 percent, while Shoe Station net sales were $105.7 million, or 37 percent of total, down 8.4 percent with a comparable store decline of 8.5 percent. The company rebannered 20 Shoe Carnival stores into Shoe Station stores during the quarter, bringing fiscal 2026 year-to-date rebanners to 21, and said it does not expect further rebanners this year. Interim president and chief executive officer Cliff Sifford said the results reflected an increasingly promotional footwear marketplace, with competitive pricing and accelerated liquidation of aged inventory pressuring gross margin, though he noted a significant improvement in fiscal August back-to-school results, when net sales declined 3.3 percent and comparable store sales declined 2.7 percent through the four weeks ended Aug. 29. Shoe Station cut its fiscal 2026 guidance to net sales of $1.10 billion to $1.11 billion, a decline of approximately 2 to 3 percent versus fiscal 2025, down from its prior outlook of $1.13 billion to $1.15 billion, a range of down 1 percent to up 1 percent.
Shoe Station Group Inc.Shoe Station missed Q2 expectations and cut its full-year guidance on declining sales and comps.