Shoe Carnival, Inc. (NASDAQ:SCVL) shares are trading lower on Thursday after the company reported mixed fourth-quarter results.

• Shoe Carnival shares are retreating from recent levels. What’s pressuring SCVL stock?

Earnings Snapshot

Sales of $254.1 million, beating the street view of $253.8 million. Comparable store sales declined 3.5% year over year.

Adjusted EPS of 33 cents came in line with the consensus.

Gross profit margin remained flat Y/Y at 34.9%, while merchandise margin expanded 30 basis points in the quarter.

As of the end of 2025, the company had no debt for the 21st consecutive year, with cash, cash equivalents and marketable securities of $130.7 million.

Shoe Station operates 144 stores, representing 34% of the total 426-store fleet, up from 10% at the start of 2025.

Segment Performance

Shoe Station net sales remained broadly flat Y/Y, with a low-single digit decline in comparable store sales.

Meanwhile, Shoe Carnival’s net sales fell 4.5 Y/Y and comparable store sales declined in the mid-single digits. This was owing to continued pressure on lower-income consumers and a drop in promotional marketing.

Rogan’s generated net sales of $15.5 million in the quarter. The business saw product margin expansion of over 500 basis points, as those operations were fully integrated into the Shoe Station operating model.

Dividend and Share Repurchases

In March 2026, the Board of Directors approved a quarterly dividend increase to 17 cents per share, payable on April 20, 2026, to shareholders of record on April 6, 2026.

As of March 26, 2026, the company had $50 million worth of shares remaining available under the share repurchase authorization.

Outlook

For 2026, the company expects net sales growth in the range of 1% decline to a 1% increase. This reflects weaker comparable store sales in the first half of the year, which is expected to be offset by improvements in the second half as the company completes 21 planned rebanners and continues to benefit from Shoe Station’s growth.

The company projects a gross profit margin of around 34%, representing a decline of approximately 260 basis points.

Shoe Carnival sees FY26 adjusted EPS of $1.40 to $1.60 versus the street view of $1.48.

Names New Interim CEO

In February, the company appointed Cliff Sifford as the Interim president and CEO, effective Feb. 24, 2026. He succeeds Mark Worden, who departed his role as president and CEO and resigned from the board on the same date.

SCVL Price Action: Shoe Carnival shares were trading lower by 7.55% to $16.52 at publication on Thursday.

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