Footwear retailer Shoe Carnival Inc on Thursday reported a 0.9 per cent dip in August same-store sales and said it sees third-quarter earnings at the low end of its forecast.

The operator of nearly 200 stores said weak back-to-school results mean it expects earnings per share of 40 cents and added total sales for the month rose eight per cent to $59.9 million from $55.4m in the year-ago period.

CEO Mark Lemond said in a statement inventories are in good condition, with gross profit margins slightly ahead of 2001 and it plans to boost the receipt of new women's non-athletic shoes for the fall season.