Companies

Shoe Carnival reports sales growth

May 30, 2024 United States

The US-based footwear retail has reported a solid start to the fiscal year 2024, with a net sales growth of 6.8% in the first quarter as compared to the same period of last year

“We are encouraged by the strong results delivered this quarter, with net sales growth above our expectation, gross profit margin expansion versus prior year, and earnings at the high end of our expectation. We gained significant market share, with accelerating sales momentum across our business as the quarter progressed, including double-digit growth in sandals that continued in the quarter after the Easter holiday period”, commented Mark Worden, President and Chief Executive Officer.

First Quarter Results

In the quarter that ended on the 4^thof May, the company’s net sales reached 300.4 million US dollars, an increase of 6.8% on a comparable basis to the same period of last year.

Shoe Carnival pointed out that the acquisition of Rogan Shoes, in February 2024 performed as expected, and Shoe Station and e-commerce continued to grow. However, comparable store sales declined by 3.4% year-over-year, although “trends significantly improved as the quarter progressed”.

For the thirteenth consecutive quarter, the company’s gross margin exceeded 35%, reaching a new high of 35.6% in the first quarter of 2024. This improvement over the 35.0% achieved in a similar period a year ago was attributed to “higher merchandise margins and leverage in buying, distribution and occupancy on the higher sales”.

In the first quarter of the current fiscal year, Shoe Carnival reported a net income of 17.3 million US dollars, or 0.63 US dollars per diluted share, as compared to a net income of 16.5 million US dollars, or 0.60 US dollars per diluted share, in the same period of fiscal 2023. Excluding 0.5 million US dollars of expenses in the quarter related to Rogan’s acquisition, adjusted earnings per share were 0.64 US dollars in the first quarter.

As of 4^thof May, the company operated 430 stores, including 351 Shoe Carnival stores, 31 Shoe Station stores and the 28 Rogan’s stores acquired in February 2024.

Fiscal 2024 Outlook

For fiscal 2024, Shoe Carnival expects to achieve a net sales growth in the range of 4% to 6% over the prior year, earnings per share in the range of 2.50 US dollars to 2.70 US dollars and adjusted earnings per share in the range of 2.55 US dollars to 275 US dollars.

Image Credits: sgbonline.com

United States Footwear Quarter Results Results Shoe Carnival Shoes