Shoe Carnival Acquires Rogan’s Shoes and Announces Full Year Fiscal 2023 Preliminary Results

Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”) announced today that it has acquired Rogan Shoes, Incorporated (“Rogan’s”), a 53-year-old work and family footwear company with 28 store locations in Wisconsin, Minnesota, and Illinois, for a purchase price of $45 million, subject to further adjustments, and funded entirely with cash on hand.

The acquisition is expected to be immediately accretive to the Company’s fiscal 2024 earnings and generate approximately $84 million in sales and approximately $10 million in operating income, excluding transaction and integration costs. The Company has an 18-month integration plan in place and expects to capture an additional $1.5 million in synergies annually and to realize half of the profit synergies by fiscal 2025 and the full amount by fiscal 2026. Strategic and cost synergies will be achieved by integrating Rogan’s into the Shoe Station growth banner and leveraging the Company’s existing systems and capabilities.

The Rogan’s acquisition advances the Company’s strategy to be the nation’s leading family footwear retailer. It immediately positions the Company as the market leader in Wisconsin, and it establishes a store base in Minnesota, creating additional expansion opportunities. Following the integration of the acquisition into the Company’s Shoe Station growth banner, the combined banner sales are expected to surpass $200 million by fiscal 2025. With the acquisition, the Company’s store count increases to an all-time high of 429, keeping the Company on track to achieve its target to operate over 500 stores in 2028.

Mark Worden, President & Chief Executive Officer of Shoe Carnival stated, “Our growth strategy is focused on becoming the nation’s leading family footwear retailer through a combination of organic growth initiatives and M&A activity that expands our geographic footprint and customer base. Over the past five decades the Rogan family has built a brand that is well known and trusted throughout the state of Wisconsin. As such, they have established a clear market leadership position in Wisconsin for work and family footwear, with a compelling assortment, great customer service, and a highly committed team of employees.”