v3.26.1
Segment Reporting
 6 Months Ended
Aug. 01, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 8 – Segment Reporting

Shoe Station Group, Inc. 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 and Shoe Station 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 Interim President and Chief Executive Officer. The CODM assesses the performance of our single reportable segment and decides how to allocate resources based on Net Income that is also 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 Topic 280 “Segment Reporting”, 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 and twenty-six weeks ended August 1, 2026 and August 2, 2025 were as follows:

(In thousands)

 

Thirteen
Weeks Ended
 August 1, 2026

 

 

Thirteen
Weeks Ended
 August 2, 2025

 

 

Twenty-six
Weeks Ended
 August 1, 2026

 

 

Twenty-six
Weeks Ended
 August 2, 2025

 

Net sales

 

$

284,309

 

 

$

306,388

 

 

$

555,039

 

 

$

584,103

 

 Less:

 

 

 

 

 

 

 

 

 

 

 

 

   Merchandise & delivery costs(1)

 

 

170,691

 

 

 

164,824

 

 

 

327,984

 

 

 

323,668

 

   Store occupancy costs

 

 

23,007

 

 

 

22,756

 

 

 

46,343

 

 

 

45,850

 

   Store expenses(2)

 

 

39,856

 

 

 

42,253

 

 

 

77,522

 

 

 

81,738

 

   E-commerce expenses(3)

 

 

3,926

 

 

 

3,751

 

 

 

7,824

 

 

 

8,108

 

   Advertising

 

 

14,756

 

 

 

18,427

 

 

 

26,225

 

 

 

29,527

 

   Store depreciation and other selling expenses(4)

 

 

11,483

 

 

 

10,925

 

 

 

22,669

 

 

 

21,571

 

   General and administrative expenses(5)

 

 

12,975

 

 

 

18,224

 

 

 

31,289

 

 

 

36,448

 

   CEO transition and strategic review(6)

 

 

0

 

 

 

0

 

 

 

13,605

 

 

 

0

 

   Interest income

 

 

(1,011

)

 

 

(782

)

 

 

(2,073

)

 

 

(1,885

)

   Interest expense

 

 

90

 

 

 

77

 

 

 

175

 

 

 

155

 

   Income tax expense

 

 

2,277

 

 

 

6,708

 

 

 

2,845

 

 

 

10,355

 

Net income

 

$

6,259

 

 

$

19,225

 

 

$

631

 

 

$

28,568

 

 

(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 and impairments.
(5)
General and administrative expenses include departmental and corporate expenses, including incentive and share-based compensation.
(6)
See Note 2 - “CEO Transition and Related Strategic Review”