First the Jacksonville Jaguars, Then Shoe Carnival?

First the Jacksonville Jaguars, Then Shoe
A Shoe Carnival store location.
FN Archives.

Could Shoe Carnival Inc. get a new majority shareholder soon?
 
After the firm’s chairman, Wayne Weaver, announced last Tuesday he had sold the Jacksonville Jaguars, where he served as chairman and CEO, industry insiders said Friday he also could seek to divest his stake in the Evansville, Ind.-based retail chain.
 
Speaking to Footwear News on condition of anonymity, one footwear analyst said, “This certainly doesn’t diminish that thought.”
 
Another analyst, noting Weaver is 76 years old, said, “Shoe Carnival is a good, well-run company. It’s not doing badly. But I imagine the Jaguars meant a lot more to him than the retailer, and he wouldn’t sell [the NFL team] just to concentrate on Shoe Carnival. From a shareholder’s perspective, this just signals he could be willing to sell his other assets.”
 
Weaver is Shoe Carnival’s largest shareholder. He and his son, Bradley Weaver, hold a collective 27 percent of the firm’s common stock.
 
A former Brown Shoe Co. and Nine West Group executive, Weaver has served as a director at Shoe Carnival since 1988, and his current three-year term will expire at the annual meeting of shareholders in 2014.
 
Shoe Carnival’s net income increased 15 percent to $10.5 million, or 78 cents a share, in the third quarter, in line with analysts’ estimates.
 
The firm expects full-year revenue to be between $767 million and $770 million, buoyed by a 1.2 percent to 1.7 percent increase in comparable-store sales. It ended the quarter with $53 million in cash and cash equivalents, and no debt.
 
According to Forbes, Weaver sold the Jaguars for $760 million to Pakistan-born, Illinois-based businessman Shahid Khan.

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