EVANSVILLE, Ind. - Shoe Carnival , Inc. (NASDAQ:SCVL), a leading U.S. family footwear retailer, has announced the acquisition of Rogan Shoes, Incorporated, a family footwear company with a 53-year history and 28 stores across Wisconsin, Minnesota, and Illinois. The deal, valued at $45 million and funded entirely by cash on hand, is expected to contribute approximately $84 million in sales and $10 million in operating income, excluding transaction and integration costs.
This strategic move is set to immediately enhance Shoe Carnival (NYSE:CCL)'s fiscal 2024 earnings and is part of an 18-month integration plan that anticipates $1.5 million in annual synergies, with half expected by fiscal 2025 and the full amount by fiscal 2026. The acquisition positions Shoe Carnival as the market leader in Wisconsin and establishes a store base in Minnesota, paving the way for further expansion.
Shoe Carnival's President & CEO, Mark Worden, emphasized the alignment of both companies' commitment to customer service and employee focus, which he expects to drive future growth and profitability. The acquisition raises Shoe Carnival's store count to a record 429, aligning with its goal of operating over 500 stores by 2028.
Preliminary results for fiscal 2023 show Shoe Carnival achieving net sales of $1.176 billion, meeting management's high-end sales expectations, with diluted earnings per share expected to be between $2.65 and $2.75. The company also reported an over $40 million reduction in inventory levels and ended the fiscal year with over $110 million in cash and marketable securities, marking its 19th consecutive year of debt-free operations.
For fiscal 2024, Shoe Carnival anticipates low mid-single digit sales growth, driven by the Rogan's acquisition, growth of its Shoe Station banner, e-commerce, and CRM expansion, despite a challenging economic environment and the absence of a 53rd week present in fiscal 2023.
The information in this article is based on a press release statement.
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