US: Adverse weather weighs on Shoe Carnival Q1
- Q1 net earnings down 3.9% to $9.2m
- Sales up 1.5% to $235.8m
- Comparable store sales drop 1.7%
Value footwear retailer Shoe Carnival has reported a decline in first-quarter profit, after harsh weather kept shoppers away from its stores.
Net earnings reached US$9.2m during the 13 weeks to 3 May, compared to $9.5m in the same period of the prior year.
Sales edged up 1.5% to $235.8m from $232.3m last year. But comparable store sales dropped 1.7% after severe weather and higher utility and health care costs adversely impacted consumer spend.
Gross margin remained flat at 29.5%. Selling, general and administrative expenses rose 1.9% to $54.4m during the period.
"Despite the difficult quarter, we were pleased with the initial response to our first-ever national television advertising campaign," said president and CEO Cliff Sifford.
"While achieving brand recognition in new markets takes time, we did see an immediate increase in online traffic and sales in large markets such as New York City and Los Angeles where we do not currently have a store presence."
Shoe Carnival expects second-quarter net sales to be $223-228m, with comparable store sales in the range of flat to a decline of 3%. Earnings per diluted share are expected to range from $0.12 to $0.16.
In addition, the company expects to open 30-35 new stores in fiscal 2014, with 16 of these set for the second quarter.
Shoe Carnival Reports First Quarter 2014 Results
EVANSVILLE, Ind.--(BUSINESS WIRE)--Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of value-priced footwear and accessories, today reported results for the first quarter ended May 3, 2014.
First Quarter Financial Results
The Company reported net sales of $235.8 million for the first quarter of fiscal 2014, a 1.5 percent increase, as compared to net sales of $232.3 million for the first quarter of fiscal 2013. Comparable store sales decreased 1.7 percent in the first quarter of fiscal 2014.
The gross profit margin for the first quarter of fiscal 2014 remained flat at 29.5 percent. The merchandise margin increased 0.5 percent while buying, distribution and occupancy expenses increased 0.5 percent as a percentage of sales.
Selling, general and administrative expenses for the first quarter of fiscal 2014 increased $1.0 million to $54.4 million. As a percentage of sales, these expenses increased to 23.0 percent compared to 22.9 percent in the first quarter of fiscal 2013.
The Company opened seven new stores during the first quarter of fiscal 2014 as compared to 13 stores in the first quarter of fiscal 2013.
Net earnings for the first quarter of fiscal 2014 were $9.2 million, or $0.45 per diluted share. For the first quarter of fiscal 2013, the Company reported net earnings of $9.5 million, or $0.47 per diluted share.
Cliff Sifford, President and CEO, stated, “Our continued focus on store growth led to a first quarter net sales increase of 1.5 percent. However, severe weather and higher utility and health care costs adversely impacted our consumer contributing to our comparable store sales decline. Despite the difficult quarter, we were pleased with the initial response to our first-ever national television advertising campaign. While achieving brand recognition in new markets takes time, we did see an immediate increase in online traffic and sales in large markets such as New York City and Los Angeles where we do not currently have a store presence. Longer term, as we enter new markets we expect to benefit from enhanced brand awareness. In the second quarter we will have record store growth with the opening of 16 stores, including our first entry into Miami, Florida and upstate New York.”
Second Quarter Fiscal 2014 Earnings Outlook
The Company expects second quarter net sales to be in the range of $223 to $228 million with comparable store sales in the range of flat to a decline of 3.0 percent. Earnings per diluted share in the second quarter of fiscal 2014 are expected to be in the range of $0.12 to $0.16. Included in the earnings estimate is an increase in store pre-opening costs of approximately $0.05 due to the expectation of opening 16 stores in the second quarter this year compared with opening eight stores in the second quarter of last year. In the second quarter of fiscal 2013, comparable store sales increased 2.6 percent and the Company earned $0.29 per diluted share.
The Company expects to open 30 to 35 new stores and close one store in fiscal 2014. Store openings and closings by quarter for the fiscal year are as follows:
|New Stores||Store Closings|
|1st quarter 2014||7||1|
|2nd quarter 2014||16||0|
|3rd quarter 2014||0||0|
|4th quarter 2014||7 - 12||0|
|Fiscal year 2014||30 - 35||1|
The seven new stores opened during the first quarter include locations in:
|Total Stores in|
|Grandville, MI||Grand Rapids||5|
|Michigan City, IN||Chicago||23|
|Vernon Hills, IL||Chicago||23|
Today, at 4:30 p.m. Eastern Time, the Company will host a conference call to discuss the first quarter results. Participants can listen to the live webcast of the call by visiting Shoe Carnival’s Investors webpage at www.shoecarnival.com. While the question-and-answer session will be available to all listeners, questions from the audience will be limited to institutional analysts and investors. A replay of the webcast will be available on the Company’s website beginning approximately two hours after the conclusion of the conference call and will be archived for one year.
Date of Annual Shareholder Meeting
As previously announced, the Company will hold its Annual Meeting of Shareholders on June 12, 2014.
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of value priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. As of May 22, 2014, the Company operates 382 stores in 32 states and Puerto Rico, and offers online shopping at www.shoecarnival.com. Headquartered in Evansville, IN, Shoe Carnival trades on The NASDAQ Stock Market LLC under the symbol SCVL. Shoe Carnival’s press releases and annual report are available on the Company’s website at www.shoecarnival.com.
Original source: http://www.businesswire.com/news/home/20140522006335/en#.U38or9JdWSp
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