"The second quarter proved challenging as store traffic remained soft and consumers shopped closer to need. As a result, our comparable store sales turned positive in July as customers shopped Shoe Carnival’s broad selection of brand-name athletic and casual shoes at exceptional values for back-to-school”, commented Cliff Sifford, President and CEO of the company. “As we navigate through this choppy sales environment, we will continue to make investments that we believe will benefit our long-term sales and earnings growth. Two initiatives we are excited about are the conversion from third-party fulfilment of our e-commerce orders to fulfilling those orders from our stores and distribution center and the addition of our first-ever mobile app. With these two initiatives set to launch in the third quarter, we are aggressively moving forward in the evolution of the omni-channel shopping experience for our customer.”

The company reported net sales of 222.1 million US dollars for the second quarter of fiscal 2014, a 2.6% increase, as compared to net sales of 216.4 million US dollars for the second quarter of fiscal 2013. Comparable store sales decreased 2.1% in the second quarter of fiscal 2014.

The gross profit margin for the second quarter of fiscal 2014 decreased to 28.0% compared to 28.9% in the second quarter of fiscal 2013.

Net income was down to less than half of the amount reached last year (-55.7%) standing at 2.6 million US dollars, or 0.13 US dollars per diluted share (in 2013 the company reported net earnings of 5.8 million US dollars, or 0.29 US dollars per diluted share).

Net sales for the semester stood at 457.8 million US dollars, up by 2% from similar period in 2013. Net earnings for the first six months of fiscal 2014 were 11.7 million US dollars, or 0.58 US dollars per diluted share, compared to net earnings of 15.4 million US dollars, or 0.76 US dollars per diluted share, in the first six months of last year. The gross profit margin for the first six months of fiscal 2014 was 28.8% compared to 29.2% last year.

The company opened 23 stores during the first six months of fiscal 2014 as compared to opening 21 stores during the first six months of last year.

Carnival Shoes, Inc. announced it is expecting third quarter net sales to be in the range of 247 US dollars to 252 million US dollars. For the second half of fiscal 2014, company expects net sales in the range of 462 million US dollars to 471 million US dollars.

Looking ahead, Mr. Sifford stated: “Given our customers’ recent purchasing habits, we believe it is prudent to have a conservative outlook for the third quarter. We are incrementally more positive on the fourth quarter based on the anticipation of a strong boot season and we are well positioned with the right product assortment to take every advantage of improved consumer demand.”

As for the distribution network, the company expects to open 32 new stores and close 3 stores in fiscal 2014.

Shoe Carnival shares were traded at 22.16 US dollars on the 3rd of September at the NASDAQ.

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 370 stores in the US and Puerto Rico.

For more information about Shoe Carnival, Inc. please visit their website.