The following is a summary of the Shoe Carnival, Inc. (SCVL) Q3 2025 Earnings Call Transcript:

Financial Performance:

• Shoe Carnival reported an adjusted EPS of $0.71 for Q3 2025, in line with expectations, reflecting a year-to-date increase of 3.8% compared to the previous year.

• Gross profit margin remained strong at 36%, maintaining a level above 35% for 15 consecutive quarters.

• Year-to-date net sales reached $939.9 million, up 4.9%, with adjusted operating income of $78.4 million, growing 6.6% faster than sales.

• Despite significant weather disruptions, the company achieved a profitable quarter driven by solid back-to-school sales and effective digital-first marketing.

• The negative impact of weather led to a $10 million shortfall in sales expectations for the latter part of Q3.

Business Progress:

• Shoe Carnival successfully integrated Rogan's acquisition, realizing full profit synergies six months ahead of schedule, contributing significantly to the quarter's profitability.

• Expanding the digital-first marketing strategy, the company optimized advertising spending, matching customer engagement which supported profitability during tough weather conditions.

• The company continues its rebanner strategy, transitioning more Shoe Carnival stores to Shoe Station, with promising early results and plans for further conversions in the first half of 2025.

Opportunities:

• The addition of Rogan's and the early and successful realization of synergies present significant growth and efficiency opportunities.

• The ongoing rebannering efforts from Shoe Carnival to Shoe Station stores are demonstrating positive early results with plans for expansion, indicating potential market growth and increased customer engagement over various geographic areas.

Risks:

• The persistently warm weather has had a negative impact, delaying winter boot sales and contributing to lower than expected sales figures.

• Potential economic impact due to customers' shifting priorities and reduced spending during natural disasters like hurricanes.

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