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Shoe Station Group Inc. (NASDAQ:SHOE) shares fell 13.07% in pre-market trading on Thursday after the footwear retailer issued fiscal 2026 guidance below analyst estimates and reported a second-quarter revenue decline.
Adjusted earnings per share were $0.45, above the analyst consensus of $0.34. Revenue fell 7.2% year on year to $284.3 million from $306.4 million, below the $297.63 million consensus estimate. Comparable store sales declined 7.1%.
Gross profit margin decreased to 31.9% from 38.8% a year earlier, a decline of 690 basis points. The company attributed the change to increased promotional activity, inventory liquidation and the absence of prior-year pricing benefits ahead of tariff-related cost increases.
"Our second quarter results reflect a footwear marketplace that became increasingly promotional as the quarter progressed. We priced competitively to protect our market position and accelerated the liquidation of aged and excess inventory, both of which pressured our gross profit margin," said Cliff Sifford, Interim President and Chief Executive Officer.
