SHOE CARNIVAL INC Leases Disclosure
Note 11 – Leases
We lease all of our physical stores, our Evansville distribution center, which has a current lease term expiring in 2034, and other warehousing and office space. We also enter into leases of equipment and other assets. Substantially all of our leases are operating leases; however, as a result of the acquisition of Rogan’s, we also acquired certain assets subject to finance leases. The finance lease assets and related current liabilities and noncurrent liabilities were recorded in Other Noncurrent Assets, Accrued and Other Liabilities and Other long-term liabilities, respectively. Leases with terms of twelve months or less are immaterial and are expensed as incurred, and we did not have any leases with related parties or any sublease arrangements with any related party or third party as of January 31, 2026. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Our real estate leases typically include options to extend the lease or to terminate the lease at our sole discretion. Options to extend real estate leases typically include one or more options to renew, with renewal terms that typically extend the lease term for five years or more. Many of our leases also contain “co-tenancy” provisions, including the required presence and continued operation of certain anchor tenants in the adjoining retail space. If a co-tenancy violation occurs, we have the right to a reduction of rent for a defined period after which we have the option to terminate the lease if the violation is not cured. In addition to co-tenancy provisions, certain leases contain “go-dark” provisions that allow us to cease operations while continuing to pay rent through the end of the lease term. When determining the lease term, we include options that are reasonably certain to be exercised.
Our leases typically provide for fixed minimum rental payments, and certain leases provide for contingent rental payments based upon various specified percentages of sales above minimum levels. In addition to rental payments, we are required to pay certain non-lease components, such as real estate taxes, insurance and common area maintenance, on most of our real estate leases. Such non-lease components are typically variable in nature. Certain real estate leases also contain escalation clauses for increases in minimum rentals, operating costs and taxes.
Lease costs, including other related occupancy costs, reported in our Consolidated Statements of Income were as follows:
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
71,598 |
|
|
$ |
70,596 |
|
|
$ |
65,244 |
|
Variable lease cost |
|
|
|
|
|
|
|
|
|
|||
Occupancy costs |
|
|
22,470 |
|
|
|
23,046 |
|
|
|
21,243 |
|
Percentage rent and other variable lease costs |
|
|
829 |
|
|
|
448 |
|
|
|
1,257 |
|
Finance lease cost |
|
|
|
|
|
|
|
|
|
|||
Amortization of leased assets |
|
|
39 |
|
|
|
21 |
|
|
|
0 |
|
Interest on lease liabilities |
|
|
12 |
|
|
|
10 |
|
|
|
0 |
|
Total |
|
$ |
94,948 |
|
|
$ |
94,121 |
|
|
$ |
87,744 |
|
Other information related to leases, including supplemental cash flow information, consists of:
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for amounts included in the measurement of |
|
$ |
60,176 |
|
|
$ |
55,490 |
|
|
$ |
59,129 |
|
ROU assets obtained in exchange for operating lease |
|
$ |
64,212 |
|
|
$ |
53,113 |
|
|
$ |
72,772 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
As of |
|
|
As of |
|
|
As of |
|
|||
|
|
January 31, 2026 |
|
|
February 1, 2025 |
|
|
February 3, 2024 |
|
|||
Weighted-average remaining lease term for operating leases |
|
|
6.9 |
|
|
|
7.0 |
|
|
|
7.6 |
|
Weighted-average discount rate for operating leases |
|
|
5.1 |
% |
|
|
4.7 |
% |
|
|
4.2 |
% |
(1) Includes ROU assets added as part of the Rogan's acquisition described in Note 3 – “Acquisition of Rogan Shoes”
The following table reconciles the undiscounted cash flows for each of the next five years and the total of the remaining years to our operating lease liabilities as of January 31, 2026:
(In thousands) |
|
Operating Leases |
|
|
2026 |
|
$ |
75,748 |
|
2027 |
|
|
73,258 |
|
2028 |
|
|
72,387 |
|
2029 |
|
|
59,004 |
|
2030 |
|
|
50,445 |
|
Thereafter to 2041 |
|
|
120,171 |
|
Total undiscounted lease payments |
|
|
451,013 |
|
Less: Imputed interest |
|
|
79,588 |
|
Total operating lease liabilities |
|
|
371,425 |
|
Less: Current portion of operating lease liabilities |
|
|
58,057 |
|
Long-term portion of operating lease liabilities |
|
$ |
313,368 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 21, 2025 | |
| 2024 | Mar 22, 2024 | |
| 2023 | Mar 24, 2023 | |
| 2022 | Mar 25, 2022 | |
| 2021 | Mar 26, 2021 | |
| 2020 | Mar 31, 2020 | |
| 2019 | Apr 2, 2019 | |
| 2018 | Apr 2, 2018 | |
| 2017 | Mar 29, 2017 | |
| 2016 | Apr 4, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.