Shoe Carnival, Inc. (SCVL) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

in the company's SEC filings and today's earnings press release. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. The company disclaims any obligation to update any of the risk factors or to publicly announce any revisions to the forward-looking statements discussed on today's conference call or contained in today's press release to reflect future events or developments. I will now turn the conference over to Mr. Mark Worden President and CEO of Shoot Carnival, for opening remarks. Mr. Worden, you may begin. Good morning, everyone, and thank you for joining us today for Shoot Carnival's second quarter 2025 earnings conference call. Joining me on today's call are Patrick Edwards, Chief Financial Officer, and Tanya Gordon, Chief Merchandising Officer. Our second quarter results demonstrate meaningful progress on our corporate strategy. We beat earnings consensus by over 20%, and expanded gross margins 270 basis points to 38.8%, our strongest Q2 margin in years. Our rebounder strategy is exceeding targets. EPS declined year over year from our planned rebounder investments, as expected, but margins expanded faster than planned, driving our strong earnings beat for the quarter. Since our last call, we've completed our back-to-school season, the period that defines our year. Fiscal August represents less than 8% of our days, but drives approximately 25% of our annual profits. As we moved into back-to-school in August, we achieved a significant milestone. The company returned a positive comparable sales growth for this must-win period. Shoe Station grew sales high single digits and expanded margins. SHU Carnival delivered positive children's category comp sales growth and margin growth. Rogan's exp...