Shoe Carnival raises outlook following positive Q2 results

Shoe Carnival, Inc. reported net sales increased 14.2 percent to 268.4 million dollars, with approximately 19.7 million dollars of this increase attributable to the one-week shift in the calendar due to fiscal 2017 being a 53-week year and comparable store sales increased 6.7 percent. Gross profit margin increased to 31.2 percent compared to 29 percent in the second quarter of fiscal 2017. Net income for the quarter, the company said, was 11.8 million dollars or 0.76 dollar per diluted share compared to 3.9 million dollars or 0.24 dollars per diluted share, same quarter last year.

“We are pleased with our strong financial results for the second quarter which exceeded our expectations. Our mid-single digit comparable store sales increase was primarily driven by a double-digit increase in women’s non-athletic footwear with most of our other major footwear categories up mid-single digits. We believe we remain well positioned for future growth and based on these strong operational and financial results, as well as our outlook for the remainder of the year, we are raising our annual earnings guidance.”

For the six month period, the company’s net sales increased 37.4 million dollars to 525.8 million dollars , while comparable store sales increased 4 percent. Net earnings for the first six months were 24.7 million dollars or 1.59 dollars per diluted share compared to 12.1 million dollars or 0.73 dollar per diluted share, in the first six months of fiscal 2017. The gross profit margin was 30.6 percent compared to 28.7 percent in the same period last year.

The company closed six stores during the first six months of fiscal 2018 compared to 12 store openings and nine store closings in the first six months of fiscal 2017. Shoe Carnival expects to open approximately three stores and close approximately 15 to 17 stores during fiscal 2018 compared to opening 19 stores and closing 26 stores during fiscal 2017.

The Company is raising its fiscal 2018 outlook and now expects net sales in the range of 1.016 billion dollars to 1.020 billion dollars, with comparable store sales up low single digits; earnings per diluted share in the range of 2.07 dollars to 2.15 dollars. Fiscal 2017 earnings per diluted share were 1.15 dollars and adjusted earnings per diluted share were 1.49 dollars.

Picture:Facebook/Shoe Carnival