Shoe Carnival, Inc. (SCVL): Business Model Canvas [Dec-2025 Updated]

You're looking at Shoe Carnival, Inc. right now, and honestly, the big story isn't just selling shoes; it's a calculated, aggressive pivot away from pure value toward higher-margin growth. They are actively transforming their 428-store fleet, betting heavily on the premium Shoe Station banner to drive better returns, all while targeting a full-year 2025 Net Sales forecast between $1.12 billion and $1.15 billion. To see exactly how they plan to balance the value-driven family shopper with the premium brand seeker-and where the real financial risk lies in this rebannering-we need to dissect the nine essential building blocks of their current Business Model Canvas below.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Key Partnerships

Strategic vendor relationships with national name brands

• The Company emphasizes national name brands across its assortment.
• Merchandise margin improved by 190 basis points in Q3 2025, driven by disciplined pricing and a favorable mix shift toward higher income Shoe Station customers.
• Shoe Station net sales grew 5.3 percent in Q3 2025.

Real estate partners for their 428-store fleet locations

As of November 1, 2025, Shoe Carnival, Inc. operated a fleet of 428 stores.

• As of August 2, 2025, the fleet comprised 313 Shoe Carnival stores, 87 Shoe Station stores, and 28 Rogan's stores.
• The One Banner Strategy targets having well over 90 percent of the fleet operate as Shoe Station before the end of Fiscal 2028.
• The Company expects to have 145 Shoe Station stores by year-end Fiscal 2025, representing 34 percent of the fleet.
• Capital expenditures for rebannering in Fiscal 2025 were forecasted between $30 to $35 million.

M&A targets for geographic expansion (e.g., Rogan's Shoes integration)

The integration of Rogan's Shoes, acquired in February 2024, is a key partnership/integration example:

The One Banner Strategy is expected to unlock $20 million in annual cost savings.

Logistics and supply chain providers for inventory distribution

The Company utilizes third-party logistics (3PL) providers for fulfillment, such as Buske Logistics, to manage distribution to its store network and eCommerce platform.

• Fulfillment services include SKU-level receiving and retail-compliant packaging.
• EDI integration is used for purchase orders, ASNs, and invoices.
• The Company expects a $100 million reduction in inventory investment as Shoe Station becomes the dominant banner.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Key Activities

Executing the One Banner Strategy (rebannering stores to Shoe Station)

The core activity involves converting existing Shoe Carnival locations to the Shoe Station banner, reflecting a strategic shift toward a single, higher-performing brand. As of November 1, 2025, Shoe Station represented 144 stores, or 34 percent of the Company's 428-store fleet, up from 10 percent at the start of Fiscal 2025. The company completed 101 store rebanners during fiscal 2025. The Shoe Station banner delivered mid-single digit comparable store sales growth in the third quarter of 2025, while the Shoe Carnival banner saw comparable store sales decline by mid-single digits. This performance gap was significant, with Shoe Station outperforming Shoe Carnival by more than 10 percentage points in Q3 2025. The accelerated expansion plan targets over 80 percent of the current fleet operating as Shoe Station by March 2027. The company anticipates that more than half of its stores will operate under the Shoe Station name by the back-to-school season in 2026.

Merchandising and inventory management for a curated product mix

This activity focuses on curating a product mix that appeals to the higher-income customer base targeted by the Shoe Station banner, which drives margin improvement. In the second quarter of 2025, merchandise margin improved 390 basis points, driven by a favorable mix shift toward merchandise preferred by Shoe Station's higher-income customers. For the third quarter of 2025, Shoe Station product margins expanded 260 basis points. The overall Gross Profit Margin for the third quarter of 2025 was 37.6 percent, expanding 160 basis points compared to the prior year. The company expects that unifying under one banner will sharply reduce inventory investment by 20-25 percent.

The following table summarizes banner performance that informs merchandising focus:

Operating a multi-channel retail network (stores and e-commerce)

Shoe Carnival, Inc. operates a network across 35 states and Puerto Rico. As of August 2, 2025, the total physical fleet was 428 stores, comprising 313 Shoe Carnival stores, 87 Shoe Station stores, and 28 Rogan's stores. E-commerce operations run through www.shoecarnival.com and www.shoestation.com. The online store, shoecarnival.com, generated US$361 million in annual sales in 2024. For November 2025, revenues on shoecarnival.com were US$33 million. The conversion rate for the main online store reached 3.5-4.0 percent in 2024. The Fiscal 2025 outlook for total Net Sales is between US$1.12 billion and US$1.15 billion. Capital Expenditures for Fiscal 2025, inclusive of rebanner investments, are projected between US$45 million and US$55 million.

• Total stores operated as of May 3, 2025: 429.
• Total stores operated as of August 2, 2025: 428.
• Total stores operated as of November 1, 2025: 428.
• Fiscal 2025 Capital Expenditures allocated to rebanners: US$30 million to US$35 million.

Driving M&A and integration for acquired businesses

The company is actively managing the integration of previously acquired businesses, notably Rogan's, which was acquired on February 13, 2024. Rogan's net sales in the third quarter of 2025 exceeded US$21 million. The full integration of the Rogan's acquisition into the Shoe Station banner was completed in October 2025. The expected full synergy realization for Rogan's was increased to US$2.5 million, expected in fiscal 2025. To fortify future growth, Kerry Jackson was reinstated on June 9, 2025, to lead Mergers and Acquisitions (M&A) efforts and drive integration synergy. The unification under one banner is expected to unlock approximately US$20 million in annual cost savings by the end of fiscal 2027. The company maintains a debt-free balance sheet.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Key Resources

You're looking at the hard assets backing Shoe Carnival, Inc.'s strategy as of late 2025. The financial foundation is definitely strong, which is key when you're undertaking a major transformation like the One Banner Strategy.

The balance sheet is holding up well; as of the end of the third quarter of Fiscal 2025, Shoe Carnival, Inc. ended the period debt-free. This financial flexibility is supported by cash, cash equivalents, and marketable securities totaling $107.7 million at that same quarter end.

Physically, the resource base is a fleet of 428 stores operating across 35 states and Puerto Rico as of November 20, 2025. This physical footprint is currently undergoing a significant shift in branding, which brings us to the next set of assets.

Here's a quick snapshot of the core quantifiable resources:

The higher-margin Shoe Station brand and its operating model represent a critical differentiating resource. In the third quarter of Fiscal 2025, Shoe Station net sales grew by 5.3 percent, while its product margins expanded by 260 basis points compared to the prior year. As of November 20, 2025, Shoe Station comprised 144 stores, which is 34 percent of the total fleet, showing the active conversion underway.

Proprietary customer data and the loyalty program infrastructure, called SHOE PERKS, are vital for driving repeat business. The program has amassed over 37+ Million loyalty program members, calculated through the second quarter of fiscal 2025. Members earn 1 point for every dollar spent, and a $10 SHOE PERKS Reward Certificate is emailed upon earning 200 points. SHOE PERKS GOLD Tier status is achieved by spending $200 over a 12-month period, unlocking benefits like free standard shipping on online orders.

Finance: draft 13-week cash view by Friday.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Value Propositions

Shoe Station: Curated, premium brand assortment with elevated service

Shoe Station is positioned to capture the higher-income customer segment. This banner achieved net sales growth of 5.3 percent in the third quarter of fiscal 2025, compared to the Shoe Carnival banner's decline of 5.2 percent in the same period. Shoe Station product margins expanded by 260 basis points in Q3 2025, reflecting the favorable mix shift toward merchandise preferred by its customers. The company is accelerating this banner, projecting it to represent 120 stores, or 28 percent of the total fleet, by the end of fiscal 2025, up from 42 stores at the start of the year. The long-term goal is for Shoe Station to represent well over 90 percent of the fleet before the end of Fiscal 2028.

The value proposition is supported by clear performance metrics:

• Shoe Station comparable store sales showed a mid-single digit increase in Q3 2025.
• Shoe Station delivered 8 percent comparable sales growth year-to-date August 2025.
• The banner is expected to unlock an estimated $20 million in annual cost savings over time.

Legacy Shoe Carnival: Value-driven, promotional shopping experience for the family

The legacy Shoe Carnival banner serves the price-sensitive family footwear market. In the third quarter of fiscal 2025, Shoe Carnival net sales declined by 5.2 percent, with comparable store sales down mid-single digits. This banner's performance contrasts with the Shoe Station banner, which is growing. The overall company gross profit margin for Q3 2025 was 37.6 percent, expanding 160 basis points compared to the prior year, showing the impact of the mix shift away from the value-focused banner.

The core customer engagement for the value segment is driven by the loyalty program:

Broad selection of dress, casual, and athletic footwear

Shoe Carnival, Inc. offers a broad assortment across key footwear categories for men, women, and children. The company's total net sales guidance for the full fiscal year 2025 is between $1.12 billion and $1.15 billion. The company is maintaining inventory levels strategically; inventory increased 5 percent versus the prior year as of the end of the second quarter 2025 to ensure availability on key items during peak selling periods.

Convenience of multi-channel shopping (in-store and online)

The convenience proposition is delivered through a physical footprint and digital presence. As of August 2, 2025, the company operated 428 stores across 35 states and Puerto Rico under its various store fronts. The online channel, primarily shoecarnival.com, generated annual revenues of $361 million in 2024. For November 2025, revenues on the domain were reported at $33 million.

The multi-channel strategy includes:

• Total store fleet size as of Q3 2025: 428 stores.
• Projected working capital reduction from simplification: $100 million.
• Rebanner investment for fiscal 2025 capital expenditures: $30 to $35 million.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Customer Relationships

You're looking at how Shoe Carnival, Inc. manages its connection with customers right now, late in 2025. The relationship strategy is clearly bifurcated, heavily favoring the higher-income customer base found in the Shoe Station banner over the legacy Shoe Carnival banner.

Loyalty program for repeat purchases and data capture

The Shoe Perks loyalty program remains a core mechanism for data capture and driving repeat business, though the focus is shifting as the banner consolidation progresses. The program has seen significant scale in the past, with one year showing active buyers increasing by 138% and the email file growing by more than 270%. Members of Shoe Perks typically spend nearly 30% more than non-members. As of the end of the third quarter of Fiscal 2025, the Company had 428 stores in operation, and the success of these loyalty efforts directly informs the targeted marketing for the remaining Shoe Carnival banner locations.

Self-service model in legacy stores with in-store promotions

The traditional Shoe Carnival banner stores represent the self-service model, which is currently experiencing significant customer pressure. In the third quarter of Fiscal 2025, Shoe Carnival net sales declined 5.2%, with comparable store sales down a mid-single digit percentage. This banner's performance highlights continued pressure on lower-income consumers, those earning under $40,000 annually. The in-store promotion model, historically featuring the carnival wheel discount, is still present but is being de-emphasized as the company pivots its capital and focus. The performance gap between the two banners in Q3 2025 was more than 10.5 percentage points.

Elevated, service-focused experience in Shoe Station locations

The Shoe Station locations embody the elevated, service-focused experience, targeting a higher-income customer. This banner is the engine of current growth and margin improvement. For the third quarter of Fiscal 2025, Shoe Station net sales grew 5.3%, and its product margins expanded by 260 basis points. Through year-to-date August of Fiscal 2025, the Shoe Station rebanner strategy delivered 8% comparable sales growth. This success is attributed to a favorable mix shift toward merchandise preferred by Shoe Station's higher-income customers. The company has a clear goal to have well over 90% of its fleet operating as Shoe Station before the end of Fiscal 2028.

The divergent performance between the two banners dictates the customer relationship strategy moving forward:

Digital-first marketing to optimize ad spend and retention

The marketing approach is increasingly digital-first to optimize ad spend, which is intrinsically linked to the Shoe Perks loyalty base. The company uses platforms like Salesforce Customer 360 for Retail to personalize marketing across all channels. This includes driving engagement through digital promotions, such as a 'spin the virtual wheel' experience via SMS short code, which then drives traffic both online and back in-store. Confirmation emails now feature AI-powered, personalized recommendations based on the shopper's profile. The overall strategy is to use digital tools to enhance the seamless multi-channel experience, which is critical for retaining the high-value loyalty members.

• Rebanner investments in Fiscal 2025 were estimated to impact EPS by approximately $0.58 year-to-date Q3 2025.
• The company expects to free up $100 million in working capital through inventory reduction over the next two years as Shoe Station becomes dominant.
• The company completed 101 store rebanners to Shoe Station during Fiscal 2025 through the third quarter.
• The goal is for 51% of the fleet to operate as Shoe Station by the Back-to-School season in 2026.

Finance: draft inventory reduction impact analysis on Q4 margin by next Tuesday.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Channels

You're looking at how Shoe Carnival, Inc. gets its product to the customer, and right now, it's a story of physical footprint consolidation driving digital presence.

The primary channel remains the physical retail store network. As of November 20, 2025, Shoe Carnival, Inc. operated a total of 428 stores across 35 states and Puerto Rico. This network is actively being streamlined under the Shoe Station banner, which represented 144 stores as of that date. This means the legacy/other banners, primarily Shoe Carnival and the recently integrated Rogan's Shoes, account for the remaining 284 stores. The company is aggressively moving toward a majority Shoe Station fleet, expecting well over 90 percent of its fleet to operate under that banner before the end of Fiscal 2028.

The digital channel is critical, supporting the physical stores and capturing direct-to-consumer sales through two main e-commerce platforms:

• shoecarnival.com
• shoestation.com

The third quarter of Fiscal 2025 saw net sales of $297.2 million reported from these channels and stores combined. For the full Fiscal 2025 year, the company reconfirmed its revenue guidance at the midpoint of $1.14 billion.

The mobile presence is tied directly to customer relationship management. The company supports its loyalty program and promotions through a dedicated mobile app, which helps drive traffic to both the physical and digital touchpoints.

Supporting this entire 428-store network is the logistics backbone. Shoe Carnival, Inc. maintains significant distribution and support operations located in Evansville, IN. The company completed the integration of its 28-store Rogan's acquisition into the Shoe Station banner in October 2025, with results reported under Shoe Station starting in Q4 FY25.

Here's a snapshot of the store fleet composition as of late November 2025, reflecting the ongoing transformation:

The capital expenditure for the year-to-date period totaled $38.3 million, which was primarily supporting these rebannered stores.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Customer Segments

You're looking at the customer base as Shoe Carnival, Inc. actively pivots its fleet structure. The data from the third quarter of fiscal year 2025, ending November 1, 2025, shows a clear divergence in performance between the legacy and growth banners, which directly reflects the segments they are targeting.

Higher-income consumers (median HHI $60,000-$100,000) seeking premium brands

The Shoe Station banner is clearly winning with this group. Shoe Station's core customer base has a median household income (HHI) in the range of $60,000-$100,000. Shoe Station net sales grew 5.3% in the third quarter of fiscal 2025. This segment's preference for premium products is driving a merchandise margin improvement of 190 basis points across the company, largely due to a favorable mix shift toward these shoppers. The product margin expansion specifically for the Shoe Station banner was 260 basis points in Q3 2025.

Traditional, lower-income, price-sensitive family footwear shoppers

This segment is tied to the traditional Shoe Carnival banner, and the economic pressure is evident in the results. The Shoe Carnival banner saw its net sales decline by 5.2% in the third quarter of fiscal 2025. Comparable store sales for the Shoe Carnival banner were down mid-single digits during that same period. The company is intentionally moving away from chasing traffic from this segment to maintain pricing discipline.

The shift is stark when you compare the banners' recent performance. Here's the quick math on the banner split as of the third quarter of fiscal 2025:

Customers seeking athletic, casual, and work footwear (Rogan's integration)

The acquisition of Rogan's Shoes, which was for $45 million in cash, is being fully integrated into the Shoe Station banner. Rogan's generated over $21 million in net sales in the third quarter of fiscal 2025, which was in line with integration plans. This integration is designed to capture customers seeking work and family footwear, as Rogan's established a clear market leadership position in Wisconsin for that assortment. The Shoe Station banner, which now includes Rogan's as of October 2025, saw low-twenties growth in the adult athletics category during August 2025. The company expects to surpass 215 Shoe Station stores by Back-to-School 2026, which will represent 51% of the fleet.

Back-to-School shoppers, a critical seasonal segment

This period is vital, driving approximately 25% of Shoe Carnival, Inc.'s annual profits. The company achieved positive comparable store sales and margin expansion across all banners during the August 2025 Back-to-School period. This success accelerated the overall transformation timeline. The company's total store portfolio stood at 428 locations as of November 20, 2025. The strategic goal is to have more than 90% of stores operating under the Shoe Station brand before the end of fiscal year 2028.

The key customer groups and their recent performance metrics include:

• The Shoe Station banner delivered 8% comparable sales growth year-to-date August 2025.
• The company is targeting 145 Shoe Station locations by the end of fiscal 2025.
• The Q2 2024 Back-to-School season drove net sales to $332.7 million.
• The company expects to exceed 500 total stores by 2028.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Cost Structure

The Cost Structure for Shoe Carnival, Inc. centers heavily on inventory acquisition and the operational costs associated with its physical retail footprint, which is actively being transformed.

The company operated a fleet of 428 stores as of September 4, 2025, spanning Shoe Carnival, Shoe Station, and Rogan\'s banners.

Cost of Goods Sold (COGS) for inventory procurement is reflected in the Gross Profit Margin. The reaffirmed Fiscal 2025 outlook projected a Gross Profit Margin between 35 percent to 36 percent. For the third quarter of Fiscal 2025, the reported Gross Profit Margin was 37.6 percent.

Store operating expenses (rent, utilities, payroll) for 428 stores are captured within the broader Selling, General, and Administrative expenses, as specific breakdowns for rent, utilities, and payroll are not explicitly itemized separately from the total SG&A guidance.

The Fiscal 2025 outlook for Selling, General, and Administrative (SG&A) expenses was projected to be between $350 million to $360 million. As a point of comparison, SG&A in the fourth quarter of Fiscal 2024 was $77.6 million.

The aggressive Shoe Station strategic rebanner investment costs are a significant near-term cost factor. The first-year investment for rebanner strategy is forecasted to decrease Fiscal 2025 operating income by a range of $20 to $25 million. Through the end of the August fiscal month, the total investment year-to-date was $24.4 million.

Here's a look at the key financial figures impacting the Cost Structure for Fiscal 2025:

The rebanner investment costs include amortization of new store construction costs, store closing costs, customer acquisition costs, and sales reductions during the four-to-six-week closure period for each conversion.

Shoe Carnival, Inc. (SCVL) - Canvas Business Model: Revenue Streams

The revenue streams for Shoe Carnival, Inc. are primarily driven by the sale of footwear and accessories across its physical store fleet and digital channels, with a strategic shift favoring the higher-margin Shoe Station banner.

Net Sales from in-store purchases of footwear and accessories are best understood through the performance of the operating banners as of the third quarter of Fiscal 2025. The Shoe Station banner showed strength, with net sales growing 5.3 percent in the third quarter of 2025, inclusive of a mid-single digit comparable store increase. In contrast, the legacy Shoe Carnival banner net sales declined 5.2 percent, with comparable store sales down mid-single digits in the same period. The recently integrated Rogan's generated more than $21 million in net sales for the third quarter of 2025. For the nine months ended November 01, 2025, total company net sales reached $881.26 million. The overall comparable store sales for the company declined 2.7 percent in Q3 2025.

E-commerce sales via company websites represent a distinct revenue stream. For the full year 2024, sales on shoecarnival.com amounted to $361 million. The projection for the largest online store in 2025 indicated a change of <0% compared to 2024. In November 2025, revenues on shoecarnival.com were estimated at $33 million.

The Full-year 2025 Net Sales forecast was updated following Q2 results to be in a range of $1.12 billion to $1.15 billion. This compares to an earlier forecast range of $1.15 billion to $1.23 billion. The midpoint of the reaffirmed guidance is $1.14 billion.

Higher average ticket prices and accretive margins from Shoe Station sales are a key driver of profitability within the revenue structure. In the third quarter of 2025, Shoe Station product margins expanded 260 basis points. This favorable mix shift toward Shoe Station customers contributed to an overall merchandise margin improvement of 190 basis points for the company, even as the overall gross profit margin stood at 37.6 percent, expanding 160 basis points year-over-year. The company is accelerating the rebanner strategy, aiming for well over 90 percent of the fleet to operate as Shoe Station before the end of Fiscal 2028.

Here's a quick look at key Q3 2025 financial metrics related to revenue quality:

The strategic focus is clear, as shown by the banner performance:

• Shoe Station net sales grew 5.3 percent in Q3 2025.
• Shoe Carnival net sales declined 5.2 percent in Q3 2025.
• Merchandise margin improved 190 basis points overall.
• Shoe Station comparable store sales saw a mid-single digit increase.