Shoe Carnival net sales up 3 percent, confirms positive outlook

Shoe Carnival reported net sales of 260.5 million dollars for the first quarter of fiscal 2016, a 3 percent increase compared to net sales of 252.8 million dollars for the first quarter of fiscal 2015. Comparable store sales increased 2.7 percent during the quarter.

“We are pleased with our start to fiscal 2016 as we continue to benefit from our multi-channel sales initiative,” stated Cliff Sifford, Shoe Carnival’s President and CEO, adding, “Our record first quarter sales and diluted earnings per share were driven by continued strength in athletic footwear for the entire family and tight expense control.”

Reports rise in Q1 earnings

The gross profit margin for the first quarter decreased to 29 percent compared to 29.5 percent in the first quarter of fiscal 2015. The merchandise margin decreased 0.9 percent. The company opened three new stores compared to seven new stores in the first quarter of fiscal 2015.

Net earnings for the quarter were 10.7 million dollars, or 0.56 dollar per diluted share compared to 10.4 million dollars, or 0.52 dollars per diluted share reported in the same quarter, last year.

Fiscal 2016 earnings outlook

The company has reiterated its fiscal 2016 outlook for net sales to be in the range of 1.007 billion dollars to 1.027 billion dollars, with a comparable store sales increase in the range of 1 percent to 3 percent. Earnings per diluted share are expected to be in the range of 1.58 dollars to 1.65 dollars. This represents an increase of 9 percent to 14 percent over fiscal 2015 earnings per diluted share of 1.45 dollars.

The company expects to open approximately 20 stores, including six small-market stores, and close approximately ten stores in fiscal 2016.

picture:shoecarnival.com