With an eye on its goal of becoming the leading family footwear retailer in the U.S., Shoe Carnival has acquired the 53-year-old Rogan’s Shoes for $45 million in cash.
The addition of Rogan’s 28 stores throughout the Midwest makes Shoe Carnival the market leader in Wisconsin and establishes a store base for the company in Minnesota for the first time. Shoe Carnival’s total store count now sits at an all-time high of 429, keeping the company on track to achieve its target of having more than 500 stores by 2028.
“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,” said Mark Worden, President and CEO of Shoe Carnival in a statement. “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.”
Rogan’s will be integrated into Shoe Carnival’s growth banner, Shoe Station, which it bought back in December 2021. The acquisition is expected to be immediately accretive to the company’s fiscal 2024 earnings, generating approximately $84 million in sales and approximately $10 million in operating income, excluding transaction and integration costs. Following the Rogan’s integration into the Shoe Station banner, combined sales for that portion of the business are expected to surpass $200 million by fiscal 2025.
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“I am excited about the new opportunities for Rogan’s as it becomes part of the Shoe Carnival family,” said Pat Rogan, CEO of Rogan’s in a statement. “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.”
