Shoe Carnival, Inc. (SCVL) has authorized a new share‑repurchase program for up to $50 million, effective January 1, 2026 and running through December 31, 2026. The program will be funded from the company’s $107.7 million in cash, cash equivalents and marketable securities, representing roughly 46% of its liquid assets.
The authorization replaces an earlier program that expired on December 31, 2025. By committing to a fresh $50 million buyback, the board signals confidence in the company’s cash‑flow generation and its ability to return excess capital while maintaining a debt‑free balance sheet.
Shoe Carnival’s Q3 2025 results showed revenue of $297.2 million, a 3.2% year‑over‑year decline, and earnings per share of $0.53, in line with consensus estimates. The modest revenue dip was driven by a 6.22% decline in the last twelve months, largely due to pressure on lower‑income consumers and a challenging macro‑retail environment. The company’s disciplined cost management and pricing power helped keep EPS flat despite the revenue decline.
Segment performance highlights the strategic shift to the Shoe Station banner. Net sales for Shoe Station grew 5.3% in Q3 2025, accompanied by a 260‑basis‑point expansion in gross margin, while the legacy Shoe Carnival banner experienced a decline. The mix shift toward higher‑income customers has improved profitability and supports the company’s One Banner Strategy.
CEO Mark Worden emphasized the company’s commitment to shareholder returns: “Our 55th consecutive quarterly dividend and new share‑repurchase authorization reflect our continued confidence in our cash‑flow generation while maintaining a debt‑free balance sheet. This financial strength positions us well to execute our One Banner Strategy and grow Shoe Station to over half of our stores by Back‑to‑School 2026.”
Market reaction to the announcement was positive, with the stock trading above the 52‑week high in pre‑market sessions. Investors responded favorably to the capital return package and the company’s clear focus on returning excess cash to shareholders.
The share‑repurchase program and dividend underscore Shoe Carnival’s strategic priorities. The company is navigating headwinds such as lower‑income consumer pressure and macro‑retail challenges, but it benefits from a debt‑free balance sheet, margin expansion in the Shoe Station banner, and disciplined cost control. These factors suggest a resilient business model that can sustain shareholder returns while pursuing growth through the One Banner Strategy.
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