Shoe Carnival buys Rogan's Shoes for $45 million

Shoe Carnival has acquired Rogan Shoes for $45m. The deal is expected to boost Shoe Carnival's fiscal year 2024 earnings, adding about $84 million in sales and $10 million in operating income, not including transaction and integration costs.

Transaction Details

  • Deal value: $45 million
  • Deal type: Acquisition
  • Revenue multiple: 0.54x
  • EBITDA multiple: 8.4x

Mark Worden, President & CEO, highlighted the shared focus on customer service and employee engagement. He anticipates these factors will drive growth and profitability. With this acquisition, Shoe Carnival's store count reaches 429, moving towards its goal of over 500 stores by 2028.

In fiscal year 2023, Shoe Carnival reported $1.176 billion in net sales, meeting its high-end sales goals. The company reduced inventory significantly and ended the year with over $110 million in cash, marking 19 years of debt-free operations.

For fiscal year 2024, Shoe Carnival expects sales growth in the low to mid-single digits. This growth will be driven by the Rogan's acquisition, expansion of its Shoe Station banner, Ecommerce growth, and CRM efforts.

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