• Q3 profit increased 16.9% to $12.2m
  • Sales up 13.4% to $244.4m 
  • Company believes it is "well positioned" for holiday season

Shoe Carnival said it is "well positioned" to capitalise on holiday sales after the value-priced footwear retailer posted a 16.9% rise in third-quarter net profit on the back of improved margins and increased sales.

Net income reached US$12.2m for the 13 weeks to 27 October, compared to $10.5m the prior year.

Net sales were up 13.4% to $244.4m, while comparable store sales climbed 6.2%. Gross profit margin increased to 31.3% compared to 30.2% the same period last year. Merchandise margin edged up 0.6%, while buying, distribution and occupancy costs dropped 0.5% as a percentage of sales.

President and CEO Cliff Sifford said: "Our team did a great job in positioning us for a highly successful back-to-school season. We achieved comparable store sales at the high end of our guidance and record earnings.

"Our strong financial performance was the result of a marketing effort that resonated with our core consumer. We showcased the fashion trends currently driving footwear demand and reached additional customers through the opening of stores in new and existing markets."

The company expects full-year earnings diluted per share to range from $1.47 to $1.51, while net sales are forecast to be between $864m and $869m.

"As we enter the fourth quarter, we believe Shoe Carnival is well positioned to capitalise on holiday sales, starting with Black Friday," Sifford added.