Shoe Carnival, Inc. (Nasdaq: SCVL), a leading family footwear retailer, announced today that it has acquired Rogan Shoes, Incorporated, a 53-year-old work and family footwear company with 28 stores in Wisconsin, Minnesota, and Illinois.
The deal, valued at $45 million and funded entirely with cash, is expected to boost Shoe Carnival’s earnings and sales in fiscal 2024 and beyond. The company plans to integrate Rogan’s into its Shoe Station growth banner, which will have combined sales of over $200 million by fiscal 2025.
Shoe Carnival also reported strong results for fiscal 2023, with net sales of $1.176 billion and diluted earnings per share in the mid-range of $2.65 – $2.75, excluding transaction costs. The company ended the year with no debt and over $110 million of cash, cash equivalents and marketable securities.
The company expects to grow its total net sales in the low mid-single digit range in fiscal 2024, driven by the Rogan’s acquisition, Shoe Station banner growth, e-commerce growth and CRM expansion.
The company will provide its guidance for fiscal 2024 in March when it reports final audited financial results for fiscal 2023.
Mark Worden, President & Chief Executive Officer of Shoe Carnival stated, “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.”
“I am excited about the new opportunities for Rogan’s as it becomes part of the Shoe Carnival family,” said Pat Rogan, Chief Executive Officer of Rogan’s. “We share a strong focus on customers and employees and this transaction provides the additional scale and expertise to drive future growth, create efficiencies and expand profitability with that shared focus as the foundation,” Mr. Rogan added.