Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer commented: “We are pleased with our start to the year. Our comparable store sales increase reflects the continuation of a strong athletic and athleisure trend as well as solid sales results from our spring footwear categories, particularly as the weather became warmer later in the first quarter. These sales results, along with our favorable inventory position and our team’s ability to manage expenses, helped us generate a 31% increase in operating income. Based on these results, we are raising both the low and high end of our diluted earnings per share guidance for fiscal year 2018. We believe we are well-positioned as we move through the year with a compelling assortment of on-trend family footwear at the right price.”

In the first quarter of the fiscal year (ended on the 5th of May), net sales increased by 1.6% totaling of 257.4 million US dollars (compares to 253.4 million US dollars for the first quarter ended on the 29th of April 2017). Comparable store sales for the thirteen-week period increased by 1.3% compared to simialr thirteen-week period in 2017. Gross profit margin for the first quarter of fiscal 2018 increased 150 basis points to 30.0& compared to 28.5% in the first quarter of fiscal 2017. Merchandise margin increased by 0.7% and buying, distribution and occupancy expenses decreased by 0.8% as a percentage of net sales compared to the first quarter of fiscal 2017.

Net income for the period reached 13.0 million US dollars, or 0.83 US dollars per diluted share. For the first quarter of fiscal 2017, Shoe Carnival reported net income of 8.2 million US dollars, or 0.48 US dollars per diluted share.

Store openings and closings

Shoe Carnival expects to open approximately three stores and close approximately 20 to 25 stores during fiscal 2018 compared to opening 19 stores and closing 26 stores during fiscal 2017.

Fiscal 2018 outlook

The company is updating its fiscal 2018 outlook, with net sales to be in the range of 1.013 billion US dollars to 1.020 billion US dollars, with comparable store sales up low single digits. Earnings per diluted share in the range of 1.90 US dollars to 2.05 US dollars (fiscal 2017 earnings per diluted share were 1.15 US dollars and adjusted earnings per diluted share were 1.49 US dollars).