This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties, such as statements about the expected impact of the Shoe Station acquisition on our operations, financial results, markets and strategies, the integration of the business, our expected future store count and store growth, our ability to grow the Shoe Station brand, and our ability to achieve the strategic objectives, synergies, efficiencies, and other benefits expected to be realized from our acquisition of the Shoe Station business. The retail chain has community partnerships with United Way of Southwest Alabama, Distinguished Young Women, Alabama Public Radio (APR), and The University of South Alabama's Mitchell College of Business.Ĭautionary Statement Regarding Forward-Looking InformationĪs used herein, "we", "our" and "us" refer to Shoe Carnival, Inc. Shoe Station features a comprehensive e-commerce site, The retailer employs over 500 individuals. is one of the nation's largest independent shoe retailers, with 21 locations in five Southeastern states – Alabama, Florida, Georgia, Mississippi, and Louisiana. Shoe Carnival's press releases and annual report are available on the Company's website at About Shoe Station As of December 3, 2021, and prior to the acquisition of Shoe Station, the Company operated 377 stores in 35 states and Puerto Rico, and offers online shopping at Headquartered in Evansville, IN, Shoe Carnival trades on The Nasdaq Stock Market LLC under the symbol SCVL. is one of the nation's largest family footwear retailers, offering a broad assortment of dress, casual and athletic footwear for men, women and children with emphasis on national name brands. Jefferies, LLC served as financial advisor to Shoe Carnival, KPMG LLP served as the due diligence advisor to Shoe Carnival, and Faegre Drinker Biddle & Reath LLP served as its legal advisor in connection with the transaction. We look forward to building on our joint success as we continue our growth trajectory and driving significant long-term value for all of our stakeholders." "Together, we are ready to create a multi-billion dollar company, defined and driven by traits that made us industry leaders today. "Brent and his team share our values and vision for the future of family footwear retail," concluded Mr. With the addition of Shoe Station to the Shoe Carnival portfolio, the Company expects to surpass 400 stores by the end of 2022, on a path to double-digit new store growth in the years ahead. After the close of this acquisition, the Company will have more than $100 million in cash on hand, consistent with cash reserves from the same period in fiscal 2020. The transaction is expected to be immediately accretive to diluted net income per share in fiscal 2022, contributing approximately $100 million in incremental net sales, with operating income exceeding 10 percent on a normalized basis. Shoe Station has a strong track record of capitalizing on emerging footwear fashion trends and introducing new brands to its customers. The addition of a new brand and new retail locations to the Shoe Carnival portfolio creates a complementary retail platform to serve a broader customer base across both urban and suburban demographics. With this acquisition, the first in its history, the Company will own and operate Shoe Station's locations across the Southeast. "Coming on the heels of our best quarter of our best year in our 43-year history, this deal accelerates our journey toward becoming a multi-billion dollar retailer in the years ahead." "We are excited to welcome Shoe Station to the Shoe Carnival team," said Mark Worden, Shoe Carnival's President and Chief Executive Officer. The Shoe Station assets were acquired for $67 million, subject to customary adjustments, funded through cash on hand. SCVL (the "Company"), a leading retailer of footwear and accessories for the family, announced today that it has acquired substantially all of the assets of privately-held, family-owned Shoe Station, Inc., which operates stores in five Southeastern states. Immediately Accretive to Diluted EPS in Fiscal 2022 Accelerates Growth Strategy to Become a Multi-Billion Dollar RetailerĪdds a Complementary Retail Platform to Serve a Broader Customer Base
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