EVANSVILLE, Ind.--()--Shoe Carnival, Inc. (NASDAQ: SCVL), a leading retailer of value-priced footwear and accessories, today reported unaudited sales results and updated earnings expectations for the fourth quarter and fiscal year ended February 2, 2013. The fourth quarter of fiscal 2012 included 14 weeks compared to 13 weeks in the fourth quarter of fiscal 2011 and the full fiscal year of 2012 included 53 weeks compared with 52 weeks in the full fiscal year of 2011.
Net sales for the 14-week fourth quarter ended February 2, 2013 increased 13.1 percent to $205.7 million compared to net sales of $181.9 million in the 13-week fourth quarter ended January 28, 2012. Sales of approximately $10.7 million were recorded in the extra week of fiscal 2012. Comparable store sales for the 13-week period ended January 26, 2013 increased 0.5 percent compared to the 13-week period ended January 28, 2012.
Net sales for fiscal 2012 increased 12.1 percent to $855.0 million, compared to net sales of $762.5 million for fiscal 2011. Comparable store sales for the fiscal 52-week period ended January 26, 2013 increased 4.5 percent compared to the 52-week period ended January 28, 2012.
Although the year-end audit is not complete, the Company expects to report net earnings for the fourth quarter of fiscal 2012 of $3.2 million, or $0.16 in adjusted earnings per diluted share, as compared to net earnings of $3.3 million, or $0.16 per diluted share for the fourth quarter of fiscal 2011. Earnings per diluted share for the fourth quarter of fiscal 2012, computed in accordance with GAAP, are anticipated to be $0.13.
Net earnings for fiscal 2012 are expected to be $29.3 million, or $1.43 per diluted share, compared to net earnings of $26.4 million, or $1.31 per diluted share reported in fiscal 2011.
While the Company’s payment of a $20.4 million special cash dividend in December 2012 had no effect on fourth quarter or annual net income or annual diluted earnings per share, the expected results for the fourth quarter of fiscal 2012 include a $0.03 reduction in earnings per diluted share due to the application of the two-class method of computing earnings per share in connection with this dividend (see GAAP to Non-GAAP Reconciliation Table below).
Cliff Sifford, President and CEO, stated, “We are pleased to report that our unaudited sales and earnings for fiscal 2012 are the highest in the Company’s history. Our 4.5 percent comparable store sales increase for the year was driven by athletic footwear along with men’s and children’s dress and casual footwear. In addition, we accelerated our store growth by opening 31 stores including market entries into Dallas, Texas with 7 stores and Puerto Rico with 4 stores.”
“While we achieved record results for the fiscal year, our fourth quarter sales and earnings fell short of our previous guidance. At the low-end of our guidance issued in mid-January, we anticipated a mid-single digit decline in comparable store sales during the last two weeks of the quarter. Actual results for those two weeks included a decline in comparable store sales of 27 percent for a loss of approximately $7 million in sales against our expectations. This sales decline accounted for the entire shortfall in our earnings guidance for the fourth quarter.”
Mr. Sifford continued, “The decline was primarily in athletic sales, which we believe was a result of colder weather and, more importantly, the delay in income tax refunds. For the past several years, we have brought in our spring athletic receipts earlier to take advantage of the strong demand for athletic footwear in late January and throughout February. Our weakness in sales continued into the early part of February, but rebounded sharply, particularly in athletic footwear, when the income tax refunds started reaching our customers. For the month of February 2013, our comparable store sales increased low single digits.”
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. As of March 6, 2013, the Company operates 358 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.