US: Shoe Carnival profit slumps in “challenging” Q2
- Q2 profit slumps 55.2% to $222.1m
- Sales increase 2.6% to $222.1m
- Comparable store sales down 2.1%
Value footwear retailer Shoe Carnival more than halved its net profit during the second quarter, after store traffic remained soft in a "choppy" sales environment.
Net earnings amounted to US$2.6m for the 13 weeks to 2 August, compared to $5.8m in the same period of the prior year.
Net sales, however, increased 2.6% to $222.1m from $216.4 last year, while comparable store sales fell 2.1% year-on-year.
Selling, general and administrative expenses for the second quarter of fiscal 2014 grew 9.4% to $58m from $53m.
"The second quarter proved challenging as store traffic remained soft and consumers shopped closer to need," said president and CEO Cliff Sifford.
"As we navigate through this choppy sales environment, we will continue to make investments that we believe will benefit our long-term sales and earnings growth.
The company said it expects third-quarter and second-half earnings per share to range from $0.45-0.51 and $0.53-0.64 respectively. Third-quarter net sales are forecast to be between $247 and $252m, and second-half net sales to range from $462-471m.
"We are incrementally more positive on the fourth quarter based on the anticipation of a strong boot season and we are well positioned with the right product assortment to take every advantage of improved consumer demand," Sifford added.
Footwear retailer Shoe Carnival has developed a small-market concept that it says will allow the company to expand into new, and fill-in, existing markets....
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