SHOE STATION GROUP INC (SCVL) Form 10-Q — Sep 10, 2026

$SCVLForm 10-QFiled Sep 10, 2026, 4:05 PM ET0001193125-26-387855Original filing

Shoe Station Group's second quarter net sales fell 7.2% to $284.3 million as comparable store sales dropped 7.1%, and net income fell to $6.3 million, or $0.23 per diluted share, from $19.2 million, or $0.70, a year earlier. Gross margin compressed 690 basis points to 31.9% on heavier promotional activity, liquidation of aged inventory, and the lapping of prior-year pre-tariff price increases. First-half results were nearly breakeven at $0.6 million of net income versus $28.6 million last year, weighed down by $13.6 million of first-quarter charges tied to the CEO transition and strategic review after Mark Worden's February 2026 departure.

Key figures

Eps: $0.23 diluted Q2; $0.02 diluted YTD
Revenue: $284.3 million (Q2 FY2026); $555.0 million year-to-date
Net Income: $6.3 million Q2; $0.6 million YTD
Total Debt: None — no borrowings outstanding
Revenue Yoy: -7.2% Q2; -5.0% YTD
Total Assets: $1,167.6 million
Cash Position: $118.0 million cash and equivalents; $131.6 million including marketable securities
Shares Outstanding: 27183815
Store Count: 422
Gross Margin: 31.9% Q2, down 690 bps YoY; 32.6% YTD, down 410 bps
Banner Sales Q2: Shoe Carnival $178.5 million (-6.5%); Shoe Station $105.7 million (-8.4%)
Credit Facility: $100 million expiring March 23, 2027; $99.0 million available; renewal expected 2H FY2026
Dividends Paid Ytd: $9.6 million; $0.17 per share quarterly (57 consecutive quarterly dividends)
Planned New Stores: 3-5 in FY2027; 8-10 in FY2028
Severance Tax Impact: $1.6 million additional income tax expense from limited deductibility
Capex Guidance Fy2026: $17-20 million
Effective Tax Rate Ytd: 81.8% vs 26.6% prior year; ~37% expected for FY2026
Share Repurchases Ytd: $7.0 million (390,492 shares); $43.0 million remaining under $50.0 million authorization
Comparable Store Sales: -7.1% Q2 (Shoe Carnival -6.3%, Shoe Station -8.5%); -4.7% YTD
Operating Cash Flow Ytd: $34.1 million vs $3.6 million prior year
Planned Store Closures: 8-10 in 2H FY2026; 6-10 in FY2027
Expected Tariff Refunds: $1.2 million (IEEPA refund claims)
Merchandise Inventories: $426.6 million, down $22.4 million or 5.0% YoY
Inventory Reduction Target: ~$50 million decline by FY2026 year-end vs FY2025
Ecommerce Share Of Merchandise Sales: ~10% vs 8% in prior-year quarter
Ceo Transition And Strategic Review Charges: $13.6 million SG&A in Q1 FY2026 ($5.3 million CEO transition + $8.3 million impairments/write-offs)

Price after filing

1 day: 0.0%7 days: +2.4%30 days: -1.4%

Close on the filing date to close N calendar days later (from $12.93). Historical, not a forecast.

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