Cliff Sifford, President and CEO commented: “Our continued focus on store growth led to a first quarter net sales increase of 1.5%. However, severe weather and higher utility and health care costs adversely impacted our consumer contributing to our comparable store sales decline. Despite the difficult quarter, we were pleased with the initial response to our first-ever national television advertising campaign. While achieving brand recognition in new markets takes time, we did see an immediate increase in online traffic and sales in large markets such as New York City and Los Angeles where we do not currently have a store presence. Longer term, as we enter new markets we expect to benefit from enhanced brand awareness. In the second quarter we will have record store growth with the opening of 16 stores, including our first entry into Miami, Florida and upstate New York.”

Shoe Carnival announced net sales of 235.8 million USD for the first quarter, a 1.5% increase from 232.3 million USD posted in similar period last year. Net income declined 3.9% from 9.5 million USD in 2013 to 9.2 million USD this year. Gross profit margin for the first quarter remained flat at 29.5%.

This set of results follows the good performance in 2013 when the company posted the highest sales figures in its history: net sales increased 3.5% to 884.8 million USD as compared to net sales of 855.0 million USD in 2012. Share of sales by product category has been quite stable over the years: athletic is the main segment with a 37% quota in 2013; women followed with 26%; 18% children; 15% men and a residual 4% for accessories. Net earnings for fiscal 2013 were 26.9 million USD compared to net earnings of 29.3 million USD in the last fiscal year. The gross profit margin for fiscal 2013 was 29.3% compared to 30.1% previous year.

The United States based company expects second quarter net sales to be in the range of 223 to 228 million USD. The company is forecasting to open sixteen stores in the second quarter this year compared with opening eight stores in the second quarter of last year. For the entire year of 2014 the expectation is around 30-35 new stores (and to close one store).

Shoe Carnival shares were last traded at 18.55 USD on the 5th June at NASDAQ GS.

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of women’s, men’s, and children’s non-athletic footwear in various categories, and also athletic shoes and accessories, with emphasis on national and regional name brands. The company, with headquarters in Indiana, operates more than 380 stores in the US and Puerto Rico.
 
For more information about Shoe Carnival, Inc please visit their website.