Shoe Carnival is beginning to reap the benefits of its store modernisation and network expansion program, with net sales up in the second quarter, compared to the previous quarter.

This month, Shoe Carnival opened its 400th store and the company says it remains on track to surpass 500 stores and become a multi-billion dollar retailer in 2028, inclusive of organic and acquired growth. 

“Our second quarter results demonstrated the momentum of our strategy within the context of a challenging economic backdrop,” said Mark Worden, president and CEO.

“We delivered improvement on net sales, earnings per share and market share growth versus first quarter 2023, while also increasing investment in our branding, advertising and in-store experience,” he said. 

The company now boasts 373 Shoe Carnival stores and a further 27 trading under the Shoe Station banner, with more than half of them modernized to the new standard. It last had 400 stores in 2018 before spending four years culling unprofitable outlets and opening new locations. 

“The multi-year fleet productivity and rationalization improvement plan contributed to sales per door increasing more than 15 per cent and profit contribution per door increasing more than 40 per cent compared to 2018 levels,” the company said in a statement.

For the second quarter, ended July 29, net sales were $294.6 million, down 5.7 per cent year on year, with comparable store sales down 6.5 per cent. The launch of Shoestation.com in February and increased sales through Shoecarnival.com both boosted e-commerce revenue. 

Shoe Carnival’s gross profit margin was 35.8 per cent, down 40 basis points, with merchandise margin down 20 basis points. 

Second quarter net income was $19.4 million, down from $28.9 million a year earlier, but ahead of the prior quarter.