v3.25.1
Segment Reporting
 3 Months Ended
May 03, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 8 – Segment Reporting

Shoe Carnival, Inc. has a single operating and reportable segment that sells footwear and related merchandise for the family across our retail banners and sales channels. With respect to our omnichannel strategy, our e-commerce sales channel is integrated with our Shoe Carnival, Shoe Station and Rogan’s physical store locations across 35 states and Puerto Rico and is fundamentally inseparable in how we serve our target customers.

Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. The CODM assesses performance and decides how to allocate resources based on Net Income that also is reported on the income statement as our consolidated Net Income. The CODM uses Net Income to evaluate performance in deciding whether to reinvest profits, facilitate acquisitions or return funds to shareholders through dividends or share repurchases. Net Income is used to monitor budget versus actual results and in competitive analysis by benchmarking to our peers and competitors. The benchmarking analysis and the monitoring of budgeted versus actual results are used in assessing our performance and in establishing management’s compensation.

We have concluded that, on the basis of the principles in FASB ASU 2023-07, Segment Reporting (Topic 280), the expenses below require disclosure under the significant expense principle. The CODM does not review assets in evaluating results. Therefore, such

information is not provided. Operating financial results of our segment for the thirteen weeks ended May 3, 2025 and May 4, 2024 were as follows:

(In thousands)

 

Thirteen
Weeks Ended
 May 3, 2025

 

 

Thirteen
Weeks Ended
 May 4, 2024

 

Net sales

 

$

277,715

 

 

$

300,365

 

 Less:

 

 

 

 

 

 

   Merchandise & delivery costs(1)

 

 

158,845

 

 

 

171,535

 

   Store occupancy costs

 

 

23,093

 

 

 

22,030

 

   Store expenses(2)

 

 

39,486

 

 

 

40,485

 

   E-commerce expenses(3)

 

 

4,357

 

 

 

4,771

 

   Advertising

 

 

11,100

 

 

 

11,925

 

   Store depreciation and other selling expenses(4)

 

 

10,645

 

 

 

9,547

 

   General and administrative expenses(5)

 

 

18,224

 

 

 

17,565

 

   Interest income

 

 

(1,103

)

 

 

(803

)

   Interest expense

 

 

78

 

 

 

136

 

   Income tax expense

 

 

3,647

 

 

 

5,888

 

Net income

 

$

9,343

 

 

$

17,286

 

 

(1)
Merchandise & delivery costs include the cost of merchandise and other buying and distribution costs.
(2)
Store expenses include selling expenses generally controlled operationally at the store level, such as store level payroll.
(3)
E-commerce expenses include primarily website maintenance costs and other selling expenses.
(4)
Other selling expenses include store-related health care, other insurance, licensing/tax costs and Property and Equipment write-offs.
(5)
General and administrative expenses include departmental and corporate expenses, including incentive and share-based compensation and merger and integration expenses.