Shoe Carnival Q1 earnings up, reaffirms full year outlook

Shoe Carnival, Inc. reported increase in first quarter earnings per diluted share of 9.6 percent to 91 cents. The company is reiterating its net sales and raising its earnings per diluted share outlook to reflect the tax benefit recognized in first quarter of fiscal 2019. Net sales are expected to be in the range of 1.035 billion dollars to 1.043 billion dollars, with comparable store sales up low single digits and earnings per diluted share to be in the range of 2.73 dollars to 2.83 dollars compared to its previous range of 2.60 dollars to 2.70 dollars.

Commenting on the company’s first quarter, Cliff Sifford, Shoe Carnival’s President and Chief Executive Officer said in a statement: “After a difficult February due to the later tax refund season as well as inclement weather, we experienced a positive change in sales for the Easter time period of March and April. Comparable store sales for the combined months of March and April increased 3.6 percent.”

Highlights of Shoe Carnival’s first quarter results

Shoe Carnival reported net sales of 253.8 million dollars, a 1.4 percent decrease, while comparable store sales decreased 0.2 percent in the first quarter of fiscal 2019.

Gross profit margin for the quarter decreased 0.4 percent to 29.6 percent compared to 30 percent in the first quarter of fiscal 2018. Net income was 13.9 million dollars or 91 cents per diluted share. The company said, included in the first quarter was a tax benefit in connection with the vesting of equity-based compensation of approximately 1.9 million dollars or 13 cents per diluted share.

The company expects to open one store and close seven to ten stores during fiscal 2019 compared to opening three stores and closing 14 stores during fiscal 2018.