Companies

Back-to-school season drives growth for Shoe Carnival

Sep 6, 2024 United States

Boosted by the back-to-school season, the US-based footwear retailer posted record sales in the second quarter of its current fiscal year. As a result, it has raised its full year guidance

“Customer engagement continued to exceed our expectations and sales momentum accelerated rapidly during our most important shopping event of the year, the Back-to-School season. We achieved a net sales record this quarter, surpassing all previous second quarter sales in our company’s history. Gross profit margin expanded versus prior year, we gained significant market share, and we delivered earnings above our guidance in the quarter”, commented Mark Worden, President and Chief Executive Officer.

Second Quarter Results

In the second quarter of fiscal 2024, Shoe Carnival’s net sales reached 332.7 million US dollars, an increase of 12.9%, on a comparable basis to the same period of last year. This result exceeded the company’s expectations, which highlighted the “double-digit growth in Shoe Station, continued strengthening trends in Shoe Carnival and increases in e-commerce”.

The retailer added that sales accelerated during the peak back-to-school season and continued into August, resulting in low single-digit like-for-like sales growth last month, driven by growth in the children’s and sports categories.

Shoe Carnival’s gross profit margin widened by 30 basis points year-on-year to 36.1% in the second quarter of the current year, marking the 14^th consecutive quarter of gross profit margin above 35%.

In the three months ended on the 3^rd of August, the company’s operating income grew by 22% to 30.1 million US dollars, as compared to the same period last year, driven by higher net sales combined with gross profit margin expansion and including expenses related to the Rogan’s acquisition.

Shoe Carnival reported a second quarter net income of 22.6 million US dollars, or 0.82 US dollars per diluted share, on a comparable basis to a second quarter net income of 19.4 million US dollars, or 0.71 US dollars per diluted share, in 2023.

As of the 5^th of September, the US retailer operated 430 stores, including 368 Shoe Carnival stores, 34 Shoe Station stores and the 28 Rogan’s locations acquired in February 2024. The company aims to exceed 500 stores by 2028.

Full Year Outlook

“Based on year-to-date results and the comparable store sales growth achieved during Back-to-School”, Shoe Carnival has raised its guidance for fiscal 2024.

The company now expects net sales to be in the range of 1.23 billion to 1.25 billion US dollars, representing growth of 5% to 6%, as compared to the prior guidance of 1.21 billion to 1.25 billion US dollars. Full year earnings per share are expected to be in the range of 2.55 to 2.70 US dollars, as compared to the prior guidance of 2.50 to 2.70 US dollars.

Image Credits: jacogc.com

United States Companies Footwear Quarter Results Results Shoe Carnival