Footwear retailer Shoe Carnival’s net sales for the first quarter of the year were down 7.5 per cent to $277.7 million, as compared to $300.4 million during the same period last year. 

The company’s net income was $9.3 million, down from $17.3 million during the first quarter of last year, and its gross profit margin was 34.5 per cent, down from 35.6 per cent year-on-year. 

“Our first quarter results reflect the continued success of our strategic transformation, with profits outperforming expectations by approximately 10 per cent despite the challenging macroeconomic and retail environment,” said Mark Worden, president and CEO. 

Moving forward, Shoe Carnival expects its net sales to be between $1.15 billion and $1.23 billion over the current financial year, with a gross profit margin of between 35 per cent and 36 per cent.

“Today, we’re announcing an ambitious expansion of our rebanner strategy, with Shoe Station now expected to represent over 80 per cent of our store fleet by March 2027, up from our previous target of 51 per cent,” said Worden of the company’s strategy. 

“We’re making these investments from a position of financial strength, with growing cash reserves and no debt. 

“This is a pivotal moment for our company as we transform from a traditional family footwear retailer to a premium brand-focused national leader in footwear,” he added.