Shoe Carnival Q2 net sales up 2.6 percent

Shoe Carnival reported net sales of 227.8 million dollars for the second quarter of fiscal 2015, a 2.6 percent increase, as compared to net sales of 222.1 million dollars for the same quarter of fiscal 2014. Comparable store sales increased 0.5 percent during the quarter.

“Our strong quarterly earnings were driven by a combination of higher merchandise margins and lower advertising expenses. Comparable store sales were in-line with our expectations as the solid start to the quarter was muted by an anticipated shift in tax-free holidays to the third quarter of this year from the second quarter of fiscal 2014,” said Cliff Sifford, President and CEO of the company.

Second quarter highlights

The gross profit margin increased to 29.1 percent compared to 28 percent in the second quarter of fiscal 2014. The merchandise margin increased 1.1 percent while buying, distribution and occupancy expenses remained flat as a percentage of sales.

Net earnings were 4.8 million dollars, or 0.24 dollar per diluted share. For the second quarter of fiscal 2014, the company had reported net earnings of 2.6 million dollars, or 0.13 dollar per diluted share.

Net sales and earnings up in H1

Net sales during the first six months of fiscal 2015 increased 22.8 million dollars to 480.6 million dollars as compared to the same period last year. Comparable store sales increased 1.8 percent. Net earnings for the first six months were 15.2 million dollars, or 0.76 dollar per diluted share, compared to net earnings of 11.7 million dollars, or 0.58 dollar per diluted share, in the first six months of fiscal 2014.

The gross profit margin was 29.3 percent compared to 28.8 percent in the same period last year. The company opened 12 stores and closed 12 stores during the first six months as compared to opening 23 stores and closing 1 store in the first six months of fiscal 2014.

Fiscal 2015 earnings outlook

The company continues to expect fiscal 2015 net sales to be in the range of 977 million dollars to 991 million dollars, with a comparable store sales increase in the range of 1.5 percent to 3 percent. Earnings per diluted share for the fiscal year are expected to be in the range of 1.42 dollars to 1.48 dollars. This represents an increase of 12 percent to 17 percent over fiscal 2014 earnings per diluted share of 1.27 dollars.

The company expects to open 21 new stores and close 15 stores in fiscal 2015.