Note 6 – 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 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”) during Fiscal 2025 was our president and chief executive officer. The CODM assessed performance and decided how to allocate resources based on Net Income that also is reported on the

income statement as our consolidated Net Income. The CODM used 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 was 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 were 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 did not review assets in evaluating results. Therefore, such information is not provided. Operating financial results of our segment for fiscal years 2025, 2024 and 2023 are as follows:

 

(In thousands)

 

January 31,
2026

 

 

February 1,
2025

 

 

February 3,
2024

 

Net sales

 

$

1,135,324

 

 

$

1,202,885

 

 

$

1,175,882

 

Less:

 

 

 

 

 

 

 

 

 

   Merchandise & delivery costs (1)

 

 

628,916

 

 

 

683,816

 

 

 

669,629

 

   Store occupancy costs

 

 

91,258

 

 

 

90,275

 

 

 

84,863

 

   Store expenses (2)

 

 

160,127

 

 

 

163,398

 

 

 

157,581

 

   E-commerce expenses (3)

 

 

16,368

 

 

 

19,104

 

 

 

19,430

 

   Advertising

 

 

58,747

 

 

 

50,533

 

 

 

56,272

 

   Store depreciation and other selling expenses (4)

 

 

43,605

 

 

 

39,947

 

 

 

35,034

 

   General and administrative expenses (5)

 

 

69,545

 

 

 

64,660

 

 

 

59,568

 

   Other segment items (6)

 

 

0

 

 

 

(3,043

)

 

 

0

 

   Interest income

 

 

(4,002

)

 

 

(3,605

)

 

 

(2,917

)

   Interest expense

 

 

373

 

 

 

314

 

 

 

282

 

   Income tax expense

 

 

18,118

 

 

 

23,720

 

 

 

22,792

 

Net income

 

$

52,269

 

 

$

73,766

 

 

$

73,348

 

 

(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)
See Note 7 “Property and Equipment” for more information. 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.
(6)
Other segment items represent non-operating income resulting from pandemic-related tax credits associated with our acquisition of Rogan's in February 2024.

Historical Timeline

Fiscal YearFiled
2026Mar 26, 2026Showing above
2025Mar 21, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.