| [X]        |                    | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|------------|--------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|       |                                                                                                         | For the quarterly period ended   July 31, 2010                                 |
| or         |
| [   ] |                                                                                                         | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|       |                                                                                                         | For the transition period from __________________ to __________________                  |

| Commission File Number: |   |              0-21360 |
|-------------------------|--------|----------------------------------------------------------------------------------|

| Shoe Carnival, Inc.                                    |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Indiana                                  |      | 35-1736614                           |
|------------------------------------------|--------------------------|--------------------------------------|
| (State or other jurisdiction of          |                     | (IRS Employer Identification Number) |
| incorporation or organization)           |                     |                                 |
|                                     |                     |                                 |
| 7500 East Columbia Street                |                     |                                 |
| Evansville, IN                           |                     | 47715                                |
| (Address of principal executive offices) |                     | (Zip code)                           |

| (812) 867-6471                                                                     |
|------------------------------------------------------------------------------------|
| (Registrant's telephone number, including area code)                               |
|                                                                          |
| NOT APPLICABLE                                                                     |
| (Former name, former address and former fiscal year, if changed since last report) |

|                      | [X]Yes |                      | [   ]No |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------|-------------------|

|                      | [   ]Yes |                      | [   ]No |
|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|-------------------|

| [   ] Large accelerated filer | [X] Accelerated filer | [   ] Non-accelerated filer | [   ] Smaller reporting company |
|-----------------------------------------|-----------------------|---------------------------------------|-------------------------------------------|

|                      | [   ]Yes |                      | [X]No |
|--------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------------------------------------------------------------------------------------|-------|

----

|    |         |                                                                                          |                                 |                                                           | Page    |
|---------|--------------|-----------------------------------------------------------------------------------------------|--------------------------------------|----------------------------------------------------------------|---------|
| Part I  |    | Financial Information                                                                         |                                 |
|    |         | Item 1.                                                                                       |        | Financial Statements (Unaudited)                               |    |
|    |         |        Condensed Consolidated Balance Sheets                    | 3                                    |
|    |         |        Condensed Consolidated Statements of Income              | 4                                    |
|    |         |        Condensed Consolidated Statement of Shareholders' Equity | 5                                    |
|    |         |        Condensed Consolidated Statements of Cash Flows          | 6                                    |
|    |         |        Notes to Condensed Consolidated Financial Statements     | 7 - 13                               |
|    |         |                                                                                          |                                 |
|    |         | Item 2.                                                                                       |                                 | Management's Discussion and Analysis of Financial Condition    |    |
|    |         |                                                                                          |                                 |        and Results of Operations | 13 - 20 |
|    |         |                                                                                          |                                 |                                                           |    |
|    |         | Item 3.                                                                                       |                                 | Quantitative and Qualitative Disclosures About Market Risk     | 20      |
|    |         |                                                                                          |                                 |                                                           |    |
|    |         | Item 4.                                                                                       |                                 | Controls and Procedures                                        | 20      |
|    |         |                                                                                          |                                 |                                                           |    |
| Part II |         | Other Information                                                                             |                                 |
|    |         | Item 1A.                                                                                      |                                 | Risk Factors                                                   | 21      |
|    |         |                                                                                          |                                 |                                                           |    |
|    |         | Item 2.                                                                                       |                                 | Unregistered Sales of Equity Securities and Use of Proceeds    | 21      |
|    |         |                                                                                          |                                 |                                                           |    |
|    |         | Item 6.                                                                                       |                                 | Exhibits                                                       | 21 - 22 |
|    |         |                                                                                          |                                 |                                                           |
|    |         | Signature                                                                                     |                                 | 23                                                             |

----

|                                                                                                                                                                         | July 31,                              |        | January 30, |        | August 1,                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------|-------------|--------------------------------------|---------------------------------------|
| (In thousands, except per share data)                                                                                                                                        | 2010                                  |                                 | 2010        |                                 | 2009                                  |
| Assets                                                                                                                                                                       |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
| Current Assets:                                                                                                                                                              |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|        Cash and cash equivalents                                                                                                               | $       | 40,560                               |        |                                 | $       | 44,168 |   |   | $       | 17,673 |   |
|               Accounts receivable                                                                           |                                  | 1,684                                |        |                                 |                                  | 746 |   |   |   | 1,948 |   |
|               Merchandise inventories                                                                       |                                  | 238,147                              |        |                                 |                                  | 197,452 |   |   |   | 216,728 |   |
|               Deferred income tax benefit                                                                   |                                  | 3,342                                |        |                                 |                                  | 3,255 |   |   |   | 2,424 |   |
|               Other                                                                                         |                                  | 3,403                                |        |                                 |                                  | 2,480 |   |   |   | 7,540 |   |
|        Total Current Assets                                                                                                                    |                                  | 287,136                              |        |                                 |                                  | 248,101 |   |   |   | 246,313 |   |
|        Property and equipment-net                                                                                                              |                                  | 61,503                               |        |                                 |                                  | 62,162 |   |   |   | 66,054 |   |
|        Other                                                                                                                                   |                                  | 1,205                                |        |                                 |                                  | 1,378 |   |   |   | 1,627 |   |
|        Total Assets                                                                                                                            | $                                     | 349,844                              |        |                                 | $                                     | 311,641 |   |   | $ | 313,994 |   |
|                                                                                                                                                                         |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|        Liabilities and Shareholders' Equity                                                                                                    |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|        Current Liabilities:                                                                                                                    |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|               Accounts payable                                                                              | $                                     | 79,016                               |        |                                 | $                                     | 57,235 |   |   | $ | 73,475 |   |
|               Accrued and other liabilities                                                                 |                                  | 15,345                               |        |                                 |                                  | 14,353 |   |   |   | 13,712 |   |
|        Total Current Liabilities                                                                                                               |                                  | 94,361                               |        |                                 |                                  | 71,588 |   |   |   | 87,187 |   |
|        Deferred lease incentives                                                                                                               |                                  | 6,774                                |        |                                 |                                  | 6,501 |   |   |   | 5,791 |   |
|        Accrued rent                                                                                                                            |                                  | 5,164                                |        |                                 |                                  | 5,115 |   |   |   | 5,155 |   |
|        Deferred income taxes                                                                                                                   |                                  | 20                                   |        |                                 |                                  | 1,052 |   |   |   | 905 |   |
|        Deferred compensation                                                                                                                   |                                  | 4,156                                |        |                                 |                                  | 3,548 |   |   |   | 3,187 |   |
|        Other                                                                                                                                   |                                  | 1,374                                |        |                                 |                                  | 2,008 |   |   |   | 1,858 |   |
|        Total Liabilities                                                                                                                       |                                  | 111,849                              |        |                                 |                                  | 89,812 |   |   |   | 104,083 |   |
|                                                                                                                                                                         |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|        Shareholders' Equity:                                                                                                                   |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|               Common stock, $.01 par value, 50,000 shares                                                   |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|                      authorized, 13,655 shares issued at July 31, 2010,  |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|                      January 30, 2010 and August 1, 2009                 |                                  | 137                                  |        |                                 |                                  | 137 |   |   |   | 137 |   |
|               Additional paid-in capital                                                                    |                                  | 66,243                               |        |                                 |                                  | 66,851 |   |   |   | 67,428 |   |
|               Retained earnings                                                                             |                                  | 182,397                              |        |                                 |                                  | 169,032 |   |   |   | 158,980 |   |
|               Treasury stock, at cost, 472, 622 and 726 shares at                                           |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|                      July 31, 2010, January 30, 2010 and August 1, 2009, |                                  |                                 |        |                                 |                                  |   |   |   |   |   |   |
|                      respectively                                        |                                  | (10,782                              | )           |                                 |                                  | (14,191 | ) |   |   | (16,634 | ) |
|        Total Shareholders' Equity                                                                                                              |                                  | 237,995                              |        |                                 |                                  | 221,829 |   |   |   | 209,911 |   |
|        Total Liabilities and Shareholders' Equity                                                                                              | $                                     | 349,844                              |        |                                 | $                                     | 311,641 |   |   | $ | 313,994 |   |

----

|                                                                   |                                 | Thirteen                              |                                 | Thirteen    |                                 | Twenty-six                            |                                 | Twenty-six  |
|------------------------------------------------------------------------|--------------------------------------|---------------------------------------|--------------------------------------|-------------|--------------------------------------|---------------------------------------|--------------------------------------|-------------|
|                                                                   |                                 | Weeks Ended                           |                                 | Weeks Ended |                                 | Weeks Ended                           |                                 | Weeks Ended |
|                                                                   |                                 | July 31,                              |                                 | August 1,   |                                 | July 31,                              |                                 | August 1,   |
| (In thousands, except per share data)                                  |        | 2010                                  |        | 2009        |        | 2010                                  |        | 2009        |
| Net sales                                                              |                                 | $       | 165,394                              |        |                                 | $       | 152,840                              |        |   | $       | 354,851 |   |   | $       | 320,109 |   |
| Cost of sales (including buying,                                       |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
|        distribution and occupancy costs) |                                 |                                  |   118,647                  |        |                                 |                                  |   111,916                  |        |   |   |   248,832 |   |   |   |   232,545 |   |
| Gross profit                                                           |                                 |                                  | 46,747                               |        |                                 |                                  | 40,924                               |        |   |   | 106,019 |   |   |   | 87,564 |   |
| Selling, general and administrative                                    |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
|        expenses                          |                                 |                                  | 40,758                               |        |                                 |                                  | 39,020                               |        |   |   | 85,039 |   |   |   | 79,076 |   |
| Operating income                                                       |                                 |                                  | 5,989                                |        |                                 |                                  | 1,904                                |        |   |   | 20,980 |   |   |   | 8,488 |   |
| Interest income                                                        |                                 |                                  | (28                                  | )           |                                 |                                  | (1                                   | )           |   |   | (51 | ) |   |   | (4 | ) |
| Interest expense                                                       |                                 |                                  | 63                                   |        |                                 |                                  | 42                                   |        |   |   | 132 |   |   |   | 84 |   |
| Income before income taxes                                             |                                 |                                  | 5,954                                |        |                                 |                                  | 1,863                                |        |   |   | 20,899 |   |   |   | 8,408 |   |
| Income tax expense                                                     |                                 |                                  | 1,836                                |        |                                 |                                  | 881                                  |        |   |   | 7,534 |   |   |   | 3,294 |   |
| Net income                                                             |                                 | $                                     | 4,118                                |        |                                 | $                                     | 982                                  |        |   | $ | 13,365 |   |   | $ | 5,114 |   |
|                                                                   |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
| Net income per share:                                                  |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
|        Basic                             |                                 | $                                     | 0.32                                 |        |                                 | $                                     | .08                                  |        |   | $ | 1.05 |   |   | $ | .41 |   |
|        Diluted                           |                                 | $                                     | 0.32                                 |        |                                 | $                                     | .08                                  |        |   | $ | 1.04 |   |   | $ | .41 |   |
|                                                                   |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
| Average shares outstanding:                                            |                                 |                                  |                                 |        |                                 |                                  |                                 |        |   |   |   |   |   |   |   |   |
|        Basic                             |                                 |                                  | 12,720                               |        |                                 |                                  | 12,487                               |        |   |   | 12,704 |   |   |   | 12,483 |   |
|        Diluted                           |                                 |                                  | 12,898                               |        |                                 |                                  | 12,569                               |        |   |   | 12,887 |   |   |   | 12,543 |   |

----

|                                                    |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 | Additional                            |                                 |   |                                 |                                  |    |   |                                  |    |   |   |                                  |
|---------------------------------------------------------|--------------------------------------|---------------------------------------------|--------------------------------------|-------------------------------------------|--------------------------------------|----------|---------------------------------------|----------|--------------------------------------|---------------------------------------|--------------------------------------|--------|--------------------------------------|---------------------------------------|---------|--------|---------------------------------------|---------|--------|--------|---------------------------------------|
|                                                    |                                 | Common Stock                                |                                 | Paid-In                                   |                                 | Retained |                                  | Treasury |                                 |                                  |                                 |   |
| (In thousands)                                          |                                 | Issued                                      |                                 | Treasury                                  |        | Amount   |         | Capital  |        | Earnings                              |        | Stock  |        | Total                                 |
| Balance at January 30, 2010                             |        |        13,655 |        |        (622 | )                                    |     | $       | 137      |                                 | $       | 66,851                               |   |                                 | $       | 169,032 |   | $       | (14,191 | )      |   | $       | 221,829 |   |
| Stock option exercises                                  |                                 |                                        |                                 | 25                                        |                                 |     |                                  |     |                                 |                                  | (235                                 | )      |                                 |                                  |    |   |                                  | 560     |   |   |                                  | 325 |   |
| Stock-based compensation                                |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  |                                 |   |                                 |                                  |    |   |                                  |    |   |   |                                  |   |   |
|        income tax benefit |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  | 482                                  |   |                                 |                                  |    |   |                                  |    |   |   |                                  | 482 |   |
| Employee stock purchase plan                            |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  |                                 |   |                                 |                                  |    |   |                                  |    |   |   |                                  |   |   |
|        purchases          |                                 |                                        |                                 | 5                                         |                                 |     |                                  |     |                                 |                                  | (20                                  | )      |                                 |                                  |    |   |                                  | 110     |   |   |                                  | 90 |   |
| Restricted stock awards                                 |                                 |                                        |                                 | 132                                       |                                 |     |                                  |     |                                 |                                  | (3,018                               | )      |                                 |                                  |    |   |                                  | 3,018   |   |   |                                  | 0 |   |
| Common stock repurchased                                |                                 |                                        |                                 | (12                                       | )                                    |     |                                  |     |                                 |                                  |                                 |   |                                 |                                  |    |   |                                  | (279    | )      |   |                                  | (279 | ) |
| Stock-based compensation                                |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  |                                 |   |                                 |                                  |    |   |                                  |    |   |   |                                  |   |   |
|        expense            |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  | 2,183                                |   |                                 |                                  |    |   |                                  |    |   |   |                                  | 2,183 |   |
| Net income                                              |                                 |                                        |                                 |                                      |                                 |     |                                  |     |                                 |                                  |                                 |   |                                 |                                  | 13,365  |   |                                  |    |   |   |                                  | 13,365 |   |
| Balance at July 31, 2010                                |                                 | 13,655                                      |                                 | (472                                      | )                                    |     | $                                     | 137      |                                 | $                                     | 66,243                               |   |                                 | $                                     | 182,397 |   | $                                     | (10,782 | )      |   | $                                     | 237,995 |   |

----

|                                                                                                                                                              | Twenty-six                            |                                 | Twenty-six  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------------------------------------|-------------|
|                                                                                                                                                              | Weeks Ended                           |                                 | Weeks Ended |
|                                                                                                                                                              | July 31,                              |                                 | August 1,   |
| (In thousands)                                                                                                                                                    | 2010                                  |        | 2009        |
| Cash Flows From Operating Activities                                                                                                                              |                                  |                                 |        |   |   |   |   |
|        Net income                                                                                                                   | $       | 13,365                               |        |   | $       | 5,114 |   |
|        Adjustments to reconcile net income to net                                                                                   |                                  |                                 |        |   |   |   |   |
|               cash provided by (used in) operating activities:                                   |                                  |                                 |        |   |   |   |   |
|               Depreciation and amortization                                                      |                                  | 6,815                                |        |   |   | 7,590 |   |
|               Stock-based compensation                                                           |                                  | 2,398                                |        |   |   | 220 |   |
|               Loss on retirement and impairment of assets                                        |                                  | 1,223                                |        |   |   | 57 |   |
|               Deferred income taxes                                                              |                                  | (1,119                               | )           |   |   | (358 | ) |
|               Lease incentives                                                                   |                                  | 981                                  |        |   |   | 715 |   |
|               Other                                                                              |                                  | (899                                 | )           |   |   | (320 | ) |
|               Changes in operating assets and liabilities:                                       |                                  |                                 |        |   |   |   |   |
|                      Accounts receivable                      |                                  | (938                                 | )           |   |   | (241 | ) |
|                      Merchandise inventories                  |                                  | (40,695                              | )           |   |   | (27,234 | ) |
|                      Accounts payable and accrued liabilities |                                  | 22,196                               |        |   |   | 15,045 |   |
|                      Other                                    |                                  | (1,336                               | )           |   |   | (2,538 | ) |
| Net cash provided by (used in) operating activities                                                                                                               |                                  | 1,991                                |        |   |   | (1,950 | ) |
|                                                                                                                                                              |                                  |                                 |        |   |   |   |   |
| Cash Flows From Investing Activities                                                                                                                              |                                  |                                 |        |   |   |   |   |
|        Purchases of property and equipment                                                                                          |                                  | (6,565                               | )           |   |   | (5,474 | ) |
|        Proceeds from sale of property and equipment                                                                                 |                                  | 311                                  |        |   |   | 8 |   |
|        Proceeds from note receivable                                                                                                |                                  | 100                                  |        |   |   | 100 |   |
| Net cash used in investing activities                                                                                                                             |                                  | (6,154                               | )           |   |   | (5,366 | ) |
|                                                                                                                                                              |                                  |                                 |        |   |   |   |   |
| Cash Flows From Financing Activities                                                                                                                              |                                  |                                 |        |   |   |   |   |
|        Proceeds from issuance of stock                                                                                              |                                  | 415                                  |        |   |   | 106 |   |
|        Excess tax benefits from stock-based compensation                                                                            |                                  | 419                                  |        |   |   | 66 |   |
|        Purchase of treasury stock                                                                                                   |                                  | (279                                 | )           |   |   | 0 |   |
| Net cash provided by financing activities                                                                                                                         |                                  | 555                                  |        |   |   | 172 |   |
| Net decrease in cash and cash equivalents                                                                                                                         |                                  | (3,608                               | )           |   |   | (7,144 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                  |                                  | 44,168                               |        |   |   | 24,817 |   |
| Cash and Cash Equivalents at End of Period                                                                                                                        | $                                     | 40,560                               |        |   | $ | 17,673 |   |
|                                                                                                                                                              |                                  |                                 |        |   |   |   |   |
| Supplemental disclosures of cash flow information:                                                                                                                |                                  |                                 |        |   |   |   |   |
|        Cash paid during period for interest                                                                                         | $                                     | 125                                  |        |   | $ | 83 |   |
|        Cash paid during period for income taxes                                                                                     | $                                     | 9,826                                |        |   | $ | 180 |   |
|        Capital expenditures incurred but not yet paid                                                                               | $                                     | 1,387                                |        |   | $ | 912 |   |
|                                                                                                                                                              |                                  |                                 |        |   |   |   |   |
| Supplemental disclosures of non-cash operating and investing activities:                                                                                          |                                  |                                 |        |   |   |   |   |
|        Forgiveness of accounts payable from litigation settlement (1)                                                               | $                                     | 0                                    |        |   | $ | 1,160 |   |
|        Recording of note receivable from litigation settlement (1)                                                                  | $                                     | 0                                    |        |   | $ | 1,200 |   |
| (1) |        | On May 30, 2009 a settlement with SDI Industries, Inc. was reached. SDI agreed to forego the collection of the unpaid retainage and to pay $1.2 million towards remediation of the distribution center's material handling system. |
|-----|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  | Thirteen    |                                 | Thirteen    |                                 | Twenty-six  |                                 | Twenty-six  |
|---------------------------------------|-------------|--------------------------------------|-------------|--------------------------------------|-------------|--------------------------------------|-------------|
|                                  | Weeks Ended |                                 | Weeks Ended |                                 | Weeks Ended |                                 | Weeks Ended |
|                                  | July 31,    |                                 | August 1,   |                                 | July 31,    |                                 | August 1,   |
| (In thousands)                        | 2010        |        | 2009        |        | 2010        |        | 2009        |
| Basic shares                          | 12,720      |                                 | 12,487      |                                 | 12,704      |                                 | 12,483      |
| Dilutive effect of stock-based awards | 178         |                                 | 82          |                                 | 183         |                                 | 60          |
| Diluted shares                        | 12,898      |                                 | 12,569      |                                 | 12,887      |                                 | 12,543      |

----

- Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;  
- Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and  
- Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. 

|                                  | Quoted Prices     |                                 | Significant |                                 |         |                                 |             |   |   |
|---------------------------------------|-------------------|--------------------------------------|-------------|--------------------------------------|--------------|--------------------------------------|------------------|--------|--------|
|                                  | in Active Markets |                                 | Other       |                                 | Significant  |                                 |             |   |
|                                  | for               |                                 | Observable  |                                 | Unobservable |                                 |             |   |
|                                  | Identical Assets  |                                 | Inputs      |                                 | Inputs       |                                 |             |   |
| (In thousands)                        | (Level 1)         |        | (Level 2)   |        | (Level 3)    |        | Total Fair Value |
| As of July 31, 2010                   |              |                                 |        |                                 |         |                                 |             |   |   |   |   |
| Cash and short-term investments (1)   | $                 | 32,363                               |        | $                                    | 0            |                                 | $                | 0      |   | $ | 32,363 |
| Credit and debit card receivables (2) |              | 8,197                                |        |                                 | 0            |                                 |             | 0      |   |   | 8,197 |
|                                  | $                 | 40,560                               |        | $                                    | 0            |                                 | $                | 0      |   | $ | 40,560 |
|                                  |              |                                 |        |                                 |         |                                 |             |   |   |   |   |
| As of January 30, 2010                |              |                                 |        |                                 |         |                                 |             |   |   |   |   |
| Cash and short-term investments (1)   | $                 | 40,148                               |        | $                                    | 0            |                                 | $                | 0      |   | $ | 40,148 |
| Credit and debit card receivables (2) |              | 4,020                                |        |                                 | 0            |                                 |             | 0      |   |   | 4,020 |
|                                  | $                 | 44,168                               |        | $                                    | 0            |                                 | $                | 0      |   | $ | 44,168 |
|                                  |              |                                 |        |                                 |         |                                 |             |   |   |   |   |
| As of August 1, 2009                  |              |                                 |        |                                 |         |                                 |             |   |   |   |   |
| Cash (1)                              | $                 | 9,530                                |        | $                                    | 0            |                                 | $                | 0      |   | $ | 9,530 |
| Credit and debit card receivables (2) |              | 8,143                                |        |                                 | 0            |                                 |             | 0      |   |   | 8,143 |
|                                  | $                 | 17,673                               |        | $                                    | 0            |                                 | $                | 0      |   | $ | 17,673 |

| (1)    |        | Cash and short-term investments represent cash deposits and short-term investments held with financial institutions, such as commercial paper and money market funds. To date, we have experienced no loss or lack of access to either invested cash or cash held in our bank accounts. |
|--------|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |                                 | Our credit and debit card receivables are highly liquid financial assets that typically settle in less than three days.                                                                                                                                                                 |

----

|                                                              |      |                                 |           |                                  |         |                                 | Weighted-       |      |                                  |   |
|-------------------------------------------------------------------|-----------|--------------------------------------|----------------|---------------------------------------|--------------|--------------------------------------|-----------------|-----------|---------------------------------------|--------|
|                                                              |      |                                 |           |                                  |         |                                 | Average         |      |                                  |   |
|                                                              |      |                                 |           | Weighted-                             |         | Remaining                            |            | Aggregate |
|                                                              | Number of |                                 | Average        |                                  | Contractual  |                                 | Intrinsic Value |
|                                                              | Shares    |        | Exercise Price |         | Term (Years) |        | (in thousands)  |
| Outstanding at January 30, 2010                                   | 393,632   |                                 |           | $                                     | 14.29        |                                 |            |      |                                  |   |
|        Grants                       | 0         |                                 |           |                                  | 0.00         |                                 |            |      |                                  |   |
|        Forfeited or expired         | (750      | )                                    |           |                                  |         |                                 |            |      |                                  |   |
|        Exercised                    | (24,500   | )                                    |           |                                  |         |                                 |            |      |                                  |   |
|        Outstanding July 31, 2010    | 368,382   |                                 |           | $       | 14.36        |                                 | 2.79            |      | $       | 2,463  |
| Options outstanding at July 31, 2010,                             |      |                                 |           |                                  |         |                                 |            |      |                                  |   |
|        net of estimated forfeitures | 367,690   |                                 |           | $                                     | 14.37        |                                 | 2.78            |      | $                                     | 2,457  |
| Exercisable at July 31, 2010                                      | 350,047   |                                 |           | $                                     | 14.46        |                                 | 2.54            |      | $                                     | 2,308  |

|                                          | Thirteen                              |                                 | Thirteen    |                                  | Twenty-six  |                                 | Twenty-six                            |
|-----------------------------------------------|---------------------------------------|--------------------------------------|-------------|---------------------------------------|-------------|--------------------------------------|---------------------------------------|
|                                          | Weeks Ended                           |                                 | Weeks Ended |                                  | Weeks Ended |                                 | Weeks Ended                           |
|                                          | July 31,                              |                                 | August 1,   |                                  | July 31,    |                                 | August 1,                             |
| (In thousands)                                | 2010                                  |        | 2009        |         | 2010        |        | 2009                                  |
| Total intrinsic value (1)                     | $       | 32                                   |        | $       | 38          |                                 | $       | 230 |   | $       | 38 |
| Total cash received                           | $                                     | 12                                   |        | $                                     | 22          |                                 | $                                     | 325 |   | $ | 22 |
| Associated excess income tax benefits         |                                  |                                 |        |                                  |        |                                 |                                  |   |   |   |   |
|        recorded | $                                     | 12                                   |        | $                                     | 66          |                                 | $                                     | 79 |   | $ | 66 |

| (1) |        | Defined as the difference between the market value at exercise and the grant price of stock options exercised. |
|-----|--------------------------------------|----------------------------------------------------------------------------------------------------------------|

----

|                      |                           |        | Options Outstanding            |           | Options Exercisable            |
|---------------------------|--------------------------------|-------------|--------------------------------|----------------|--------------------------------|
|                      |                           |        | Number                         |           | Weighted                       |   | Weighted |   | Number |   | Weighted |
| Range of                  |                           | of Options  |                           | Average        |                           | Average |   | of Options |   | Average |
| Exercise Price            |       | Outstanding |       | Remaining Life |       | Exercise Price |       | Exercisable |       | Exercise Price |
| $     | 4.38 – 12.67             |        | 186,712                        |           | 3.20                           |   | $ | 12.05 |   | 175,044 |   | $ | 12.09 |
| $                         | 13.68 – 17.12            |        | 181,670                        |           | 2.37                           |   | $ | 16.74 |   | 175,003 |   | $ | 16.83 |

|                                                                   |                           | Thirteen    |                           | Thirteen    |                           | Twenty-six  |                           | Twenty-six  |
|------------------------------------------------------------------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|
|                                                                   |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |
|                                                                   |                           | July 31,    |                           | August 1,   |                           | July 31,    |                           | August 1,   |
| (In thousands)                                                         |       | 2010 (1)    |       | 2009        |       | 2010 (1)    |       | 2009        |
| Stock-based compensation expense before                                |                           |        |                           |        |                           |        |                           |        |   |   |   |   |
|        the recognized income tax benefit |                           | $           | 18                             |        | $                              | 19          |                           | $           | 39 |   | $ | 40 |
| Income tax benefit                                                     |                           | $           | 7                              |        | $                              | 9           |                           | $           | 15 |   | $ | 16 |

| (1) |         | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effect from a favorable resolution of a state tax position. |
|-----|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |                           |                                         |                           |      | Weighted-     |
|--------------------------------|--------------------------------|----------------------------------------------|--------------------------------|-----------|---------------|
|                           |                           |                                         |                           |      | Average Grant |
|                           |                           | Number of                                    |                           | Date Fair |
|                           |       | Shares                                       |       | Value     |
| Non-vested at January 30, 2010 |                           |        366,334 |                           |      | $             | 16.89 |
| Granted                        |                           | 132,181                                      |                           |      |          | 21.63 |
| Vested                         |                           | (38,922                                      | )                              |      |          | 12.50 |
| Forfeited                      |                           | 0                                            |                           |      |          | 0 |
| Non-vested at July 31, 2010    |                           | 459,593                                      |                           |      | $             | 18.63 |

----

|                                                                   |                           | Thirteen    |                           | Thirteen    |                           | Twenty-six  |                           | Twenty-six  |
|------------------------------------------------------------------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|
|                                                                   |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |
|                                                                   |                           | July 31,    |                           | August 1,   |                           | July 31,    |                           | August 1,   |
| (In thousands)                                                         |       | 2010 (1)    |       | 2009        |       | 2010 (1)    |       | 2009        |
| Stock-based compensation expense before                                |                           |        |                           |        |                           |        |                           |        |   |   |   |   |   |
|        the recognized income tax benefit |                           | $           | 1,054                          |        | $                              | 305         |                           | $           | 2,127 |   | $ | (57 | ) |
| Income tax benefit (expense)                                           |                           | $           | 407                            |        | $                              | 144         |                           | $           | 812 |   | $ | (22 | ) |

| (1) |         | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effect from a favorable resolution of a state tax position. |
|-----|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |                           |                                         |                           |           |                           |         |      | Weighted- |
|-----------------------------------------------------------|--------------------------------|----------------------------------------------|--------------------------------|----------------|--------------------------------|--------------|-----------|-----------|
|                                                      |                           |                                         |                           |           |                           |         |      | Average   |
|                                                      |                           |                                         |                           |           | Weighted-                      |         | Remaining |
|                                                      |                           | Number of                                    |                           | Average        |                           | Contractual  |
|                                                      |       | Shares                                       |       | Exercise Price |       | Term (Years) |
| Outstanding at January 30, 2010                           |                           | 103,364                                      |                           |           | $                              | 9.72         |      |      |
|        Granted              |                           | 0                                            |                           |           |                           | 0.00         |      |      |
|        Forfeited or expired |                           | (2,001                                       | )                              |           |                           | 9.72         |      |      |
|        Exercised            |                           | 0                                            |                           |           |                           | 0.00         |      |      |
| Outstanding at July 31, 2010                              |                           |        101,363 |                           |           | $                              | 9.72         |      | 3.38      |
| Exercisable at July 31, 2010                              |                           | 0                                            |                           |           | $                              | 0.00         |      | 0.00      |

----

|                                |       | July 31, 2010                                     |
|-------------------------------------|--------------------------------|---------------------------------------------------|
| Risk free interest rate yield curve |                           |        0.14% -1.60% |
| Expected dividend yield             |                           | 0.0%                                              |
| Expected volatility                 |                           | 60.68%                                            |
| Maximum life                        |                           | 3.38 Years                                        |
| Exercise multiple                   |                           | 1.71 – 1.74                                 |
| Maximum payout                      |                           | $9.72                                             |
| Employee exit rate                  |                           | 2.2% - 9.0%                                       |

|                                                                   |                           | Thirteen    |                           | Thirteen    |                           | Twenty-six  |                           | Twenty-six  |
|------------------------------------------------------------------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|
|                                                                   |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |
|                                                                   |                           | July 31,    |                           | August 1,   |                           | July 31,    |                           | August 1,   |
| (In thousands)                                                         |       | 2010 (1)    |       | 2009        |       | 2010 (1)    |       | 2009        |
| Stock-based compensation expense before                                |                           |        |                           |        |                           |        |                           |        |   |   |   |   |
|        the recognized income tax benefit |                           | $           | 36                             |        | $                              | 119         |                           | $           | 215 |   | $ | 222 |
| Income tax benefit                                                     |                           | $           | 14                             |        | $                              | 56          |                           | $           | 82 |   | $ | 87 |

| (1) |         | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effect from a favorable resolution of a state tax position. |
|-----|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                       |                           | Thirteen    |                           | Thirteen    |                           | Twenty-six  |                           | Twenty-six  |
|----------------------------------------------------------------------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|--------------------------------|-------------|
|                                                                       |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |                           | Weeks Ended |
|                                                                       |                           | July 31,    |                           | August 1,   |                           | July 31,    |                           | August 1,   |
| (In thousands)                                                             |       | 2010 (1)    |       | 2009        |       | 2010 (1)    |       | 2009        |
| Stock-based compensation expense before                                    |                           |        |                           |        |                           |        |                           |        |   |   |   |   |
|        the recognized income tax benefit (2) |                           | $           | 5                              |        | $                              | 6           |                           | $           | 16 |   | $ | 15 |
| Income tax benefit                                                         |                           | $           | 2                              |        | $                              | 3           |                           | $           | 6 |   | $ | 6 |

| (1)    |         | Income tax benefit was calculated using an adjusted effective tax rate. The adjusted rate removes the tax effect from a favorable resolution of a state tax position. |
|--------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
| (2)    |         | Amounts are representative of the 15% discount employees are provided for purchases under the employee stock purchase plan.                                           |

----

| ITEM 2.  | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------------|---------------------------------------------------------------------------------------|

----

----

|              |   | Number of Stores               |      | Store Square Footage           |   |                           |   |
|-------------------|--------|--------------------------------|-----------|--------------------------------|--------|--------------------------------|--------|
|              |   | Beginning                      |      |                           |   |                           |   | End of |   | Net |   | End |   | Comparable |
| Quarter Ended     |   |       | Of Period |       | Opened |       | Closed |       | Period |       | Change |       | of Period |       | Store Sales |
| May 1, 2010       |   | 311                            |      | 3                              |   | 3                              |   | 311 |   | 2,000 |   |      3,374,000 |   | 13.1 | % |
| July 31, 2010     |   | 311                            |      | 3                              |   | 1                              |   | 313 |   | 23,000 |   | 3,397,000 |   | 8.3 | % |
|              |   |                           |      |                           |   |                           |   |   |   |   |   |   |   |   |   |
| Year-to-date 2010 |   | 311                            |      | 6                              |   | 4                              |   | 313 |   | 25,000 |   | 3,397,000 |   | 10.8 | % |
|              |   |                           |      |                           |   |                           |   |   |   |   |   |   |   |   |   |
| May 2, 2009       |   | 304                            |      | 10                             |   | 1                              |   | 313 |   | 78,000 |   | 3,413,000 |   | (0.3 | )% |
| August 1, 2009    |   | 313                            |      | 2                              |   | 1                              |   | 314 |   | 6,000 |   | 3,419,000 |   | (6.4 | )% |
|              |   |                           |      |                           |   |                           |   |   |   |   |   |   |   |   |   |
| Year-to-date 2009 |   | 304                            |      | 12                             |   | 2                              |   | 314 |   | 84,000 |   | 3,419,000 |   | (3.3 | )% |

|                                                                   |                           | Thirteen      |                           | Thirteen       |                           | Twenty-six    |                           | Twenty-six     |
|------------------------------------------------------------------------|--------------------------------|---------------|--------------------------------|----------------|--------------------------------|---------------|--------------------------------|----------------|
|                                                                   |                           | Weeks Ended   |                           | Weeks Ended    |                           | Weeks Ended   |                           | Weeks Ended    |
|                                                                   |       | July 31, 2010 |       | August 1, 2009 |       | July 31, 2010 |       | August 1, 2009 |
| Net sales                                                              |                           | 100.0         | %                              |           | 100.0                          | %             |                           | 100.0          | % |   | 100.0 | % |
| Cost of sales (including buying,                                       |                           |          |                           |           |                           |          |                           |           |   |   |   |   |
|        distribution and occupancy costs) |                           | 71.7          |                           |           | 73.2                           |          |                           | 70.1           |   |   | 72.6 |   |
| Gross profit                                                           |                           | 28.3          |                           |           | 26.8                           |          |                           | 29.9           |   |   | 27.4 |   |
| Selling, general and                                                   |                           |          |                           |           |                           |          |                           |           |   |   |   |   |
|        administrative expenses           |                           | 24.7          |                           |           | 25.6                           |          |                           | 24.0           |   |   | 24.7 |   |
| Operating income                                                       |                           | 3.6           |                           |           | 1.2                            |          |                           | 5.9            |   |   | 2.7 |   |
|                                                                   |                           |          |                           |           |                           |          |                           |           |   |   |   |   |
| Interest income                                                        |                           | 0.0           |                           |           | 0.0                            |          |                           | 0.0            |   |   | 0.0 |   |
| Interest expense                                                       |                           | 0.0           |                           |           | 0.0                            |          |                           | 0.0            |   |   | 0.1 |   |
| Income before income taxes                                             |                           | 3.6           |                           |           | 1.2                            |          |                           | 5.9            |   |   | 2.6 |   |
| Income tax expense                                                     |                           | 1.1           |                           |           | 0.6                            |          |                           | 2.1            |   |   | 1.0 |   |
| Net income                                                             |                           | 2.5           | %                              |           | 0.6                            | %             |                           | 3.8            | % |   | 1.6 | % |

----

- Net sales increased $12.6 million to $165.4 million, an 8.2% increase over the prior year comparative period.  
- Our comparable store sales increased 8.3%. Our sales gains were largely driven by an increase in the number of footwear units sold as the consumer responded favorably to our assortment of footwear.  
- Our gross profit margin increased to 28.3% from 26.8% in the second quarter of fiscal 2009. The merchandise margin increased 1.0%. Buying, distribution and occupancy costs decreased 0.5%, as a percentage of sales, due to the leverage associated with comparable store sales increases.  
- Selling, general and administrative expenditures decreased 0.9% as a percentage of sales when compared to the second quarter of fiscal 2009.  
- We ended the quarter with $40.6 million in cash and cash equivalents and no interest bearing debt.  
- Inventories at July 31, 2010, when compared to levels at the end of the second quarter of fiscal 2009, were up 10.2% on a per store basis. This was in line with our plan to increase inventory in categories where we have an expectation of strong consumer demand. 

----

----

----

----

----

|                          |         |                           |       |                           |        | Total Number                   |         | Approximate  |
|-------------------------------|--------------|--------------------------------|------------|--------------------------------|-------------|--------------------------------|--------------|--------------|
|                          |         |                           |       |                           |        | Of Shares                      |         | Dollar Value |
|                          |         |                           |       |                           |        | Purchased                      |         | of Shares    |
|                          |         |                           |       |                           |        | as Part                        |         | that May Yet |
|                          | Total Number |                           | Average    |                           | of Publicly |                           | Be Purchased |
|                          | of Shares    |                           | Price Paid |                           | Announced   |                           | Under        |
| Period                        | Purchased1   |       | per Share  |       | Programs2   |       | Programs     |
| May 2, 2010 to May 29, 2010   | 0            |                           | $          | 0.00                           |        | 0                              |         | $            | 0 |
| May 30, 2010 to July 3, 2010  | 0            |                           | $          | 0.00                           |        | 0                              |         | $            | 0 |
| July 4, 2010 to July 31, 2010 | 220          |                           | $          | 18.18                          |        | 0                              |         | $            | 0 |
|                          | 220          |                           |       |                           |        | 0                              |         |         |   |

|        | 1 |                                 | Delivered to or withheld by us in connection with employee payroll tax withholding upon the vesting of certain restricted stock awards.                                                                                                                                          |
|--------------------------------------|---|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 | 2 |        | On August 23, 2010, our Board of Directors authorized a $25 million share repurchase program, which will terminate upon the earlier of the repurchase of the maximum amount or December 31, 2011. See Note 6 – "Stock Repurchase Program" for the details of this program. |

|    |                           |                                                                                                                                                                                       |                           | Incorporated by Reference To |                           |    |
|---------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|------------------------------|--------------------------------|---------|
| Exhibit |                           |                                                                                                                                                                                       |                           |                         |                           |    |   | Filing |   | Filed |
| No.     |                           | Description                                                                                                                                                                                |                           | Form                         |                           | Exhibit |   | Date |   | Herewith |
| 3-A     |       | Restated Articles of Incorporation of Registrant                                                                                                                                           |       | 10-K                         |       | 3-A     |       | 4/25/2002 |       |   |
|    |
| 3-B     |                           | By-laws of Registrant, as amended to date                                                                                                                                                  |                           | 8-K                          |                           | 3-B     |   | 6/12/2009 |   |   |
|    |
| 31.1    |                           | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |                           |                         |                           |    |   |   |   | X |

----

| EXHIBITS - Continued |
|----------------------|
|                 |
|                 |   |   |   | Incorporated by Reference To |   |   |
| Exhibit              |   |   |   |   |   |   |   | Filing |   | Filed |
| No.                  |       | Description |       | Form |       | Exhibit |       | Date |       | Herewith |
| 31.2                 |   | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |   |   |   |   |   |   |   | X |
|                 |
| 32.1                 |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   |   |   |   |   |   |   | X |
|                 |
| 32.2                 |   | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   |   |   |   |   |   |   | X |

----

| Date: September 9, 2010 |                                                      | SHOE CARNIVAL, INC. |
|-------------------------|-----------------------------------------------------------|---------------------|
|                    |                                                      | (Registrant)        |
|                    |
|                    | By: /s/ W. Kerry Jackson                                  |
|                    | W. Kerry Jackson                                          |
|                    | Executive Vice President and                              |
|                    | Chief Financial Officer                                   |
|                    | (Duly Authorized Officer and Principal Financial Officer) |

----