Shoe Carnival will change its corporate name to Shoe Station Group after its board of directors voted unanimously in favor of the move.

The change is subject to shareholder approval at the company’s annual meeting next June.

Over 90 per cent of Shoe Carnival stores are expected to operate as Shoe Station by the end of the fiscal year 2028, with the remaining stores being assessed for rebannering, repositioning, or closure.

“The board of directors’ decision to approve the corporate name change to Shoe Station Group reflects our confidence in this banner’s potential and establishes our foundation for becoming the nation’s leading family footwear retailer,” said Mark Worden, president and CEO.

The move follows the company’s preliminary third-quarter results for this fiscal year, showing strong performance in the Shoe Station segment.

Net sales were up 5.3 per cent, and margins expanded by 260 basis points, while Shoe Carnival sales fell by 5.2 per cent.

The company also reported total third-quarter net sales of $297.2 million, exceeding market consensus.

The consolidation of Shoe Carnival under the Shoe Station banner is expected to create cost savings of about $20 million per year by fiscal 2027, along with other operating efficiencies.

The company will also see a reduction in dual-brand operating issues, including merchandising, marketing, systems, supply chain, and in the back office.

The change is also projected to reduce inventory investment by 20 to 25 per cent by the end of fiscal 2027, with annual comparable sales growth expected to begin in fiscal 2027 after Shoe Station becomes the dominant banner.

“We are building a simpler, more efficient company with one team, one infrastructure, and one P&L that is expected to generate millions in annual cost savings, sharply reduce our inventory investment, and create a balance sheet built for both organic growth and strategic acquisitions,” said Worden.