"Our strategies to double our operating profit compared to the levels before the pandemic has worked. Our first quarter results demonstrate the structural profit transformation and increased scale our plans have achieved compared to pre-pandemic results. With gross profit margins in the mid-thirties, double-digit operating profit margin and store productivity above 300 US dollars per square foot, we are incredibly optimistic about our future growth and long-term profit potential", said Mark Worden, President and Chief Executive Officer.

First Quarter Results

The Company highlighted that first quarter results during 2020 and 2021 were impacted by the COVID-19 pandemic. On one hand, in 2020, Shoe Carnival’s retail stores were closed for over half the first quarter due to the COVID-19 lockdown. On the other hand, in the first quarter of 2021, net sales grew by 122.7% because retail stores were open for the full period. In addition, the Government distributed over 400 billion US dollars in consumer stimulus.

In the first quarter of fiscal 2022, Shoe Carnival’s net sales totalled 317.5 million US dollars, reflecting a decline of 3.3%, as compared to the same period last year, but growth of 25.1%, as compared to the same quarter in 2019.

Gross profit margin for the period was 35.5%, which indicates a nearly 600 basis point rise, on a comparable basis to the pre-pandemic first quarter. The company noted that the increase in the merchandise margin was partially offset by higher distribution costs, thanks to the impact of inflation on transportation and fuel.

As of the 30^th of April 2022, net income amounted to 26.9 million US dollars, or 0.95 US dollars per diluted share, as compared to 13.9 million US dollars, or 0.46 US dollars per diluted share, in the first quarter of 2019, and 43.2 million US dollars, or 1.51 US dollars per diluted share, in the first quarter of 2021.

Fiscal 2022 Outlook

"Both of our store banners exceeded expectations despite the quarter's economic headwinds and global uncertainties. Based on the strong start versus our plans, we are raising our annual EPS guidance and reiterating our sales growth guidance for 2022", added Mark Worden.

For the full year 2022, Shoe Carnival is expecting net sales to increase between 4% to 7%, as compared to the prior year, on top of a 36% growth in fiscal 2021. Earnings per share should now be in the range of 3.95 US dollars to 4.15 US dollars, as compared to the previous guidance of 3.80 US dollars to 4.10 US dollars.