Shoe Carnival posts marginal rise in Q2 sales

Shoe Carnival net sales increased 4.1 million dollars or 1.8 percent to 231.9 million dollars compared to 227.8 million dollars in the second quarter of fiscal 2015 with comparable store sales increase of 0.5 percent.

“Our non-athletic footwear categories, particularly sandals, performed well in the second quarter. Shoe Perks, our loyalty program, continued to be a valuable tool for us as we increased shopping frequency and average order value across our most loyal customers to report an eighth consecutive quarterly increase in comparable store sales,” stated Cliff Sifford, Shoe Carnival’s President and CEO.

Second quarter highlights

The gross profit margin decreased to 29 percent compared to 29.1 percent in the second quarter of fiscal 2015. The company opened nine new stores in the second quarter compared to five new stores in the second quarter of fiscal 2015. Net earnings were 4.1 million dollars or 0.22 dollars per diluted share compared to 4.8 million dollars or 0.24 dollar per diluted share, same quarter last year.

Net sales during the first six months of fiscal 2016 increased 11.8 million dollars to 492.4 million dollars and comparable store sales increased 1.6 percent. Net earnings were 14.8 million dollars or 0.78 dollar per diluted share, compared to net earnings of 15.2 million dollars or 0.76 dollar per diluted share, in the first six months of fiscal 2015. The company opened 12 stores and closed four stores during the first six months compared to 12 store openings and 12 store closings in the first six months of fiscal 2015.

Fiscal 2016 earnings outlook

The company is updating its annual fiscal 2016 sales outlook and is maintaining its diluted earnings per share outlook due to the positive benefit from the shares repurchased during the first half of the year. Fiscal 2016 net sales are now expected to be in the range of 1.012 billion dollars to 1.016 billion dollars, with a comparable store sales increase in the range of 1.5 percent to 2 percent.

Earnings per diluted share for the fiscal year 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 seven small-market stores, and close approximately ten stores in fiscal 2016.

Picture:Facebook/Shoe Carnival