The acquisition is part of Shoe Carnival’s strategy to “be the nation’s leading family footwear retailer”, after positioning the company as the market leader in Wisconsin and establishing a store base in Minnesota – Rogan’s Shoes operates 28 store locations in Wisconsin, Minnesota, and Illinois. The 53-year-old company will be integrated into the Shoe Station banner, and combined sales are expected to exceed 200 million US dollars by fiscal 2025. The acquisition also brings the company’s store count to an all-time high of 429, in line with its goal of operating more than 500 stores by 2028.

“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”, commented Mark Worden, President & Chief Executive Officer of Shoe Carnival.

From a financial viewpoint, the acquisition is expected to be immediately accretive to earnings in fiscal 2024, adding approximately 84 million US dollars in revenue and 10 million US dollars in operating income, excluding transaction and integration costs. The company has an 18-month integration plan in place and expects to realise an additional 1.5 million US dollars of synergies annually, with half of the earnings synergies realised by fiscal 2025 and the full amount by fiscal 2026.

Fiscal 2023 Preliminary Results

Shoe Carnival reported net sales of 1.18 billion US dollars for the fiscal year ended on the 3^rd of February, driven by strong sales growth during the holiday period. In line with previous guidance, diluted earnings per share are expected to be in the range of 2.65 US dollars to 2.75 US dollars, with preliminary results in the mid-range, excluding any transaction costs related to Rogan’s acquisition.