Shoe Carnival's Q1 sales drop 42 percent, net loss widens

Shoe Carnival, Inc. reported net sales of 147.5 million dollars for the first quarter of fiscal 2020, a 41.9 percent decrease resulting from substantially all stores being closed for approximately 50 percent of the quarter, offset by increased e-commerce sales. The company said in a statement that gross profit margin for the quarter decreased to 21.3 percent, while net loss was 16.2 million dollars or a loss of 1.16 dollars per diluted share compared to net income of 13.9 million dollars or 91 cents per diluted share.

“Our customers and the entire organization were challenged during the first fiscal quarter of 2020 as, together, we navigated uncharted waters as the Covid-19 virus engulfed the country in mid-March,” said Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief Executive Officer, adding, “We are thrilled that, as of late-April, we are once again serving our customers in-person at our stores. As of today, we have successfully re-opened over 80 percent of our stores, which are delivering sales above our expectations.”

The company added that the impacts of the Covid-19 pandemic are expected to continue as its operations and supply chains, economic conditions and consumer spending adapt to the impacts of Covid-19 being present where the company operates, procures merchandise and raises capital. No new stores were opened in the first quarter, while two stores were closed. The company expects to open four stores and close seven to ten stores during fiscal 2020 compared to one store opening and six store closings in fiscal 2019.