Shoe Carnival acquires Rogan Shoes for 45 million dollars

Shoe Carnival has acquired Rogan Shoes, a 53-year-old work and family footwear company with 28 store locations in Wisconsin, Minnesota, and Illinois, for 45 million dollars.

The company expects this acquisition to generate approximately 84 million dollars in sales and approximately 10 million dollars in operating income in 2024.

Shoe Carnival also announced that for the fiscal year ended February 3, 2024, the company achieved the high end of management’s sales expectations.

Shoe Carnival acquires Rogan Shoes

The Rogan’s acquisition, Shoe Carnival added, positions the company as the market leader in Wisconsin, and it establishes a store base in Minnesota, creating additional expansion opportunities.

Commenting on the acquisition, Mark Worden, president & CEO of Shoe Carnival stated: “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.”

Following the integration of Rogan’s into the company’s Shoe Station banner, the combined banner sales are expected to surpass 200 million dollars by fiscal 2025. With the acquisition, the store count also increased to 429, keeping the company on track to achieve its target of having over 500 stores in 2028.

“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,” add Pat Rogan, CEO of Rogan’s.

Shoe Carnival meets full year sales and earnings expectations

For the full year, the company recorded net sales of 1.176 billion dollars, driven by strong sales growth during the December holiday period.

The company said that diluted earnings per share are in line with expected range of 2.65 dollars to 2.75 dollars, with preliminary results in the mid-range, excluding any transaction costs related to the Rogan’s acquisition.

On a preliminary basis, the company currently expects to grow fiscal 2024 total net sales in the low mid-single digit range, driven by the newly acquired Rogan’s business, Shoe Station banner growth, e-commerce growth and continued CRM expansion.