Value-priced footwear and accessories retailer Shoe Carnival Inc today said earnings and sales for the second quarter ended 3 August 2002 reached "record levels" as reduced inventory in women's non-athletic products led to substantially higher gross profit margins.

 

Net income for the second quarter was up 42 per cent to $3.6 million compared with net income of $2.5 million in the second quarter of fiscal 2001. Diluted earnings per share increased 35 percent to $.27 per share from $.20 per share last year.

 

Net sales for the second quarter increased 9 per cent to a company record of $124.6 million from $114.0 million last year. Gross profit margin for the second quarter increased to 28.7 per cent from 28.3 per cent last year.

 

Comparable store sales decreased by 0.5 per cent for the 13-week period.

 

Mark Lemond, president and chief executive officer said the company planned "to accelerate our store expansion in the back half of this year and into next year."

 

Net income for the first half of 2002 was $9.2 million, an increase of 36 per cent over the $6.8 million reported last year. Net sales increased 10 per cent to $254.0 million for the first six months from sales of $231.2 million last year. Comparable store sales increased 0.4 per cent for the six-month period. Gross profit margin for the first six months of 2002 increased to 29.5 per cent from 29.1 per cent last year.

 

During the first half of 2002, 15 new stores were opened. An additional 10 stores will be opened in the second half of 2002 bringing the total new stores to 25 for the year. Currently, the company plans to open approximately 40 new stores in 2003.