Big Act to Follow Shoe Carnival is setting the stage to becoming a multi-billiondollar powerhouse over the next decade via expansion, acquisitions and market share conquests. By Greg Dutter “I see us in the middle of a long-term customer trend playing out right SHOE CARNIVAL RECENTLY wrapped up the best fiscal quarter in its now,” Worden says. “We’re still in the early days of it, but we see the customer 43-year history. And the family footwear chain didn’t just beat it, it crushed shifting away from footwear purchases in enclosed malls, in department it. Takes these stellar stats: Highest quarterly net sales ever of $356.3 million stores and away from lower-value chains like Payless Shoes. This customer and a 29.8 percent spike over Q3 2020. Record net income of $46.8 million. is rapidly migrating into open-air, value shopping centers Record gross profit of $144.1 million. Shoe Perks customer where we predominantly play.” Worden adds, “Our traffic loyalty program increase of more than 10 percent and and customer metrics are surging, and combine that with total membership now over 28.5 million. Store traffic up our strong financial position, we think we’re poised for 40 percent and all comparable stores generating a posivery big growth ahead.” tive cash flow year to date. A forecast for record Q4 sales. Did Shoe Carnival really expect 2021 to be the best in Last but not all, crossing the $1 billion sales mark for the the company’s history? Worden says it wasn’t a complete first time ever in three quarters fueled by sales growth of surprise. “We came into 2021 investing for growth,” he more than $300 million during that stretch. says, citing the company’s long-term growth strategy The figures would be impressive in normal times, but launched in 2018/19. While 2020 certainly disrupted this happened amid a pandemic that triggered massive that trajectory, the wheels were already in motion and disruption in the shoe industry and broader economy. Yet being driven by a modern store redesign and aggressive Shoe Carnival is thriving. The company has scored doublecustomer engagement efforts. In addition, Shoe Carnival digit sales growth since 2018. And the chain is aggressively Mark Worden, president essentially doubled down on the resiliency of American executing its plans to grow by leaps and billions over the next and CEO, Shoe Carnival shoppers. “We had confidence in the American consumer, decade. A pandemic on the heels of the retail apocalypse as well as confidence in our vendors and our merchants to buy the right goods,” hasn’t cast a shadow on Shoe Carnival. The future from where the 377-store Worden says. “And we invested in marketing and inventory, and we prepared Evansville, IN-based chain sits appears quite bright. It’s one Mark Worden, for those customers to get back to purchasing once our stores reopened.” president and CEO, believes will be led by brick-and-mortar formats, no less. The shoe business, in this regard, has an ace up its sleeve. Shoes wear out, (Its recent $67 million purchase and bullish expansion plans for the 21-store and kids’ feet grow fast, regardless of a pandemic. “We remained confident Shoe Station, a Southeastern-based comfort chain, serves as the most recent in the necessity nature of our category—it gets cold and snowy and you need evidence.) Indeed, Worden says Shoe Carnival’s act is only just getting started. 26 footwearplusmagazine.com • february 2022
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