Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer commented: “After a difficult February due to the later tax refund season as well as inclement weather, we experienced a positive change in sales for the Easter time period of March and April. Comparable store sales for the combined months of March and April increased by 3.6%. Our merchants once again did a great job of controlling inventories while maintaining margin. As we look ahead, we believe we have identified a strong assortment of key items and a great product mix and we remain on-track to achieve our outlook for the fiscal year.”

First Quarter Results

The company reported net sales of 253.8 million US dollars for the first quarter of fiscal 2019, a 1.4% decrease compared to net sales of 257.4 million Us dollars for the first quarter of fiscal 2018. Comparable store sales decreased by 0.2% in the first quarter of fiscal 2019.

Gross profit margin for the first quarter of fiscal 2019 decreased by 0.4% to 29.6% compared to 30.0% in the first quarter of fiscal 2018.

Net income for the first quarter of fiscal 2019 was 13.9 million US dollars, or 0.91 US dollars per diluted share. Included in the first quarter of 2019 was a tax benefit in connection with the vesting of equity-based compensation of approximately 1.9 million US dollars, or 0.13 US dollars per diluted share. For the first quarter of fiscal 2018, the company reported net income of 13.0 million US dollars, or 0.83 Us dollars per diluted share.

Store Openings and Closings

Shoe Carnival expects to open one store and close seven to ten stores during fiscal 2019 compared to opening three stores and closing 14 stores during fiscal 2018.

Fiscal 2019 Outlook

The company is reiterating its net sales and raising its earnings per diluted share outlook to reflect the tax benefit recognized in first quarter of fiscal 2019 as follows:

- Net sales in the range of 1.035 billion US dollars to 1.043 billion US dollars, with comparable store sales up low single digits;
- Earnings per diluted share in the range of 2.73 US dollars to 2.83 US dollars compared to its previous range of 2.60 US dollars to 2.70 US dollars. In fiscal 2018 earnings per diluted share were 2.45 US dollars.