“Our strong fiscal third quarter results clearly demonstrated the strength and dedication of our team’s ability to execute on our strategic initiatives. We achieved same store sales growth and delivered the most profitable quarter in Shoe Carnival’s history, despite the extended back-to-school season. Our disciplined focus on financial flexibility and the strength of our business model continue to fuel our market leading performance notwithstanding the ongoing disruption caused by the global pandemic. We are excited about our market share gains in the quarter and believe our enduring competitive advantages position us for future growth”, commented Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer.

Third Quarter Results

Shoe Carnival reported net sales of 274.6 million US dollars for the third quarter, flat compared to the third quarter of fiscal 2019. Comparable store sales increased by 0.9%. E-commerce sales increased over 150% and represented more than 13% of total sales in the third quarter of fiscal 2020. Gross profit margin for the third quarter of fiscal 2020 increased to 32.0% compared to 30.9% in the third quarter of fiscal 2019. Net income for the third quarter of fiscal 2020 was 14.7 million US dollars, or 1.03 US dollars per diluted share (compares to net income of 13.7 million US dollars, or 0.94 US dollars per diluted share in similar period in 2019).

Nine Month Results

Net sales for the first nine months of fiscal 2020 totalled 722.9 million US dollars compared to 796.7 million US dollars in the first nine months of fiscal 2019. Comparable store sales decreased by 8.8% for the first nine months of fiscal 2020. The decrease in sales was due to temporary store closures in the first half of the year due to the global pandemic. Net income for the first nine months of fiscal 2020 was 8.5 million US dollars, or 0.60 US dollars per diluted share, compared to net income of 39.4 million US dollars, or 2.66 US dollars per diluted share, for the first nine months of fiscal 2019. The gross profit margin for the first nine months of fiscal 2020 was 27.9% compared to 30.4% in the same period last year.

Earnings Outlook

As considerable uncertainty exists surrounding the impact the pandemic may have on the company’s sales and operations for the remainder of the fiscal year, including during the peak holiday shopping period, Shoe Carnival is not providing guidance for fiscal year 2020.

Network of Stores

One new store was opened in the third quarter of fiscal 2020 and no stores were closed. For the first nine months of fiscal 2020, the company has opened three stores and closed 12 stores. The company expects a total of four store openings and 13 store closings during fiscal 2020 compared to one store opening and six store closings in fiscal 2019.