Highest Quarterly Comparable Store Sales Increase in the Company`s History of
13.1%
Highest Quarterly Earnings Per Diluted Share in the Company’s History of $0.72
EVANSVILLE, Ind.–(Business Wire)–
Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of value-priced footwear
and accessories, today announced sales and earnings for the first quarter ended
May 1, 2010.
Net sales for the first quarter of fiscal 2010 increased 13.3 percent to $189.5
million compared to net sales of $167.3 million in the first quarter of fiscal
2009. Comparable store sales increased 13.1 percent.
Net earnings for the thirteen-week first quarter increased 124 percent to $9.2
million compared to $4.1 million in the thirteen-week first quarter ended May 2,
2009. Diluted earnings per share for the quarter increased to $0.72 from $0.33
in the prior year first quarter.
The gross profit margin for the first quarter of fiscal 2010 increased to 31.3
percent compared to 27.9 percent for the first quarter of fiscal 2009. The
merchandise margin increased 2.2 percent due to significantly reduced
promotional activity combined with strong sales of athletic and toning footwear
compared to the prior year. The Company`s buying, distribution and occupancy
costs decreased 1.2 percent, as a percentage of sales, due to the strong sales
results.
Selling, general and administrative expenses for the first quarter of fiscal
2010 increased $4.2 million to $44.3 million, primarily as a result of increases
in incentive compensation associated with the Company`s improved financial
performance. As a percentage of sales, these expenses decreased to 23.4 percent
compared to 24.0 percent in the first quarter of fiscal 2009.
Speaking on the results, Mark Lemond, president and chief executive officer
said, “I am pleased to report we were able to take advantage of consumer demand
resulting in a sales increase in each broad merchandise category. While toning
and athletic footwear were key drivers of our sales in the quarter, our
non-athletic footwear contributed approximately half of our comparable store
sales increase. The record quarterly comparable store sales increase, combined
with a higher gross profit margin and controlled expenses enabled us to report
the strongest quarterly earnings in the Company`s history.”
Mr. Lemond continued, “Our continued strong financial performance gives us the
confidence to remain optimistic about our outlook for the summer and
back-to-school season. We will continue to manage the controllable aspects of
our business for long-term growth and free cash flow generation.”
Second Quarter Fiscal 2010 Earnings Outlook
The Company expects second quarter net sales to be in the range of $165 to $168
million and comparable store sales to increase in the range of 8 to 10 percent.
Earnings per diluted share in the second quarter of fiscal 2010 are expected to
be in the range of $0.23 to $0.27. Earnings per diluted share in the second
quarter of fiscal 2009 were $0.08.
Store Growth
The Company expects to open 10 new stores and close seven stores in fiscal 2010.
Three new stores were opened during the first quarter of 2010 and three stores
were closed.
New Stores Stores Closings
1st Quarter 2010 3 3
2nd Quarter 2010 3 1
3rd Quarter 2010 1 1
4th Quarter 2010 3 2
Fiscal 2010 10 7
The three stores opened during the first quarter included locations in:
City Market/Total Stores in Market
Valdosta, GA Tallahassee/2
Beavercreek, OH
Dayton/2
Butler, PA
Pittsburgh/4
Conference Call
Today, at 2:00 p.m. Eastern time, the Company will host a conference call to
discuss the first quarter results. The public can listen to the live webcast of
the call by visiting Shoe Carnival’s Investor Relations page at
www.shoecarnival.com. While the question-and-answer session will be available to
all listeners, questions from the audience will be limited to institutional
analysts and investors. A replay of the webcast will be available on our website
beginning approximately two hours after the conclusion of the conference call
and will be archived for one year.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, that involve a number of
risks and uncertainties. A number of factors could cause our actual results,
performance, achievements or industry results to be materially different from
any future results, performance or achievements expressed or implied by these
forward-looking statements. These factors include, but are not limited to:
general economic conditions in the areas of the United States in which our
stores are located; the effects and duration of the current economic downturn
and unemployment rates; changes in the overall retail environment and more
specifically in the apparel and footwear retail sectors; our ability to generate
increased sales at our stores; the potential impact of national and
international security concerns on the retail environment; changes in our
relationships with key suppliers; the impact of competition and pricing; changes
in weather patterns, consumer buying trends and our ability to identify and
respond to emerging fashion trends; the impact of disruptions in our
distribution or information technology operations; the effectiveness of our
inventory management; the impact of hurricanes or other natural disasters on our
stores, as well as on consumer confidence and purchasing in general; risks
associated with the seasonality of the retail industry; our ability to
successfully execute our growth strategy, including the availability of
desirable store locations at acceptable lease terms, our ability to open new
stores in a timely and profitable manner and the availability of sufficient
funds to implement our growth plans; higher than anticipated costs associated
with the closing of underperforming stores; the inability of manufacturers to
deliver products in a timely manner; changes in the political and economic
environments in the People`s Republic of China, Brazil, Spain and East Asia,
where the primary manufacturers of footwear are located; the impact of
regulatory changes in the United States and the countries where our
manufacturers are located; and the continued favorable trade relations between
the United States and China and the other countries which are the major
manufacturers of footwear.
In addition, these forward-looking statements necessarily depend upon
assumptions, estimates and dates that may be incorrect or imprecise and involve
known and unknown risks, uncertainties and other factors. Accordingly, any
forward-looking statements included in this press release do not purport to be
predictions of future events or circumstances and may not be realized.
Forward-looking statements can be identified by, among other things, the use of
forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,”
“seeks,” “pro forma,” “anticipates,” “intends” or the negative of any of these
terms, or comparable terminology, or by discussions of strategy or intentions.
Given these uncertainties, we caution investors not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. We
disclaim any obligation to update any of these factors or to publicly announce
any revisions to the forward-looking statements contained in this press release
to reflect future events or developments.
Shoe Carnival is a chain of 311 footwear stores located in the Midwest, South
and Southeast. Combining value pricing with an entertaining store format, Shoe
Carnival is a leading retailer of name brand and private label footwear for the
entire family. Headquartered in Evansville, IN, Shoe Carnival trades on The
NASDAQ Stock Market LLC under the symbol SCVL. Shoe Carnival’s press releases
and annual report are available on the Company’s website at
www.shoecarnival.com.
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share)
Thirteen Thirteen
Weeks Ended Weeks Ended
May 1, 2010 May 2, 2009
Net sales $ 189,457 $ 167,269
Cost of sales (including buying,
distribution and occupancy costs) 130,185 120,629
Gross profit 59,272 46,640
Selling, general and administrative
expenses 44,281 40,056
Operating income 14,991 6,584
Interest income (23 ) (3 )
Interest expense 69 42
Income before income taxes 14,945 6,545
Income tax expense 5,698 2,413
Net income $ 9,247 $ 4,132
Net income per share:
Basic $ .73 $ .33
Diluted $ .72 $ .33
Average shares outstanding:
Basic 12,687 12,480
Diluted 12,874 12,520
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
May 1, January 30, May 2,
2010 2010 2009
ASSETS
Current Assets:
Cash and cash equivalents $ 51,760 $ 44,168 $ 20,231
Accounts receivable 1,376 746 1,055
Merchandise inventories 200,157 197,452 188,234
Deferred income tax benefit 3,453 3,255 2,376
Other 7,727 2,480 7,326
Total Current Assets 264,473 248,101 219,222
Property and equipment-net 60,879 62,162 69,445
Other 1,270 1,378 635
Total Assets $ 326,622 $ 311,641 $ 289,302
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $ 53,722 $ 57,235 $ 48,520
Accrued and other liabilities 21,633 14,353 15,775
Total Current Liabilities 75,355 71,588 64,295
Deferred lease incentives 6,766 6,501 5,621
Accrued rent 5,115 5,115 5,221
Deferred income taxes 542 1,052 1,104
Deferred compensation 4,087 3,548 2,865
Other 2,262 2,008 1,681
Total Liabilities 94,127 89,812 80,787
Total Shareholders’ Equity 232,495 221,829 208,515
Total Liabilities and Shareholders’ Equity $ 326,622 $ 311,641 $ 289,302
SHOE CARNIVAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Thirteen Thirteen
Weeks Ended Weeks Ended
May 1, 2010 May 2, 2009
Cash flows from operating activities:
Net income $ 9,247 $ 4,132
Adjustments to reconcile net income to net
Cash provided by (used in) operating activities:
Depreciation and amortization 3,509 3,883
Stock-based compensation 1,285 (230 )
Loss on retirement of assets and impairments 1,171 32
Deferred income taxes (708 ) (111 )
Lease incentives 652 119
Other 228 (206 )
Changes in operating assets and liabilities:
Accounts receivable (630 ) 552
Merchandise inventories (2,705 ) 1,260
Accounts payable and accrued liabilities (1,807 ) (7,721 )
Other 77 (3,211 )
Net cash provided by (used in) operating activities 10,319 (1,501 )
Cash flows from investing activities:
Purchases of property and equipment (3,280 ) (3,173 )
Proceeds from sale of property and equipment 300 0
Net cash used in investing activities (2,980 ) (3,173 )
Cash flows from financing activities:
Proceeds from issuance of stock 372 48
Excess tax benefits from stock-based compensation 156 40
Purchase of treasury stock (275 ) 0
Net cash provided by financing activities 253 88
Net increase (decrease) in cash and cash equivalents 7,592 (4,586 )
Cash and cash equivalents at beginning of period 44,168 24,817
Cash and Cash Equivalents at End of Period $ 51,760 $ 20,231
Shoe Carnival, Inc.
Mark L. Lemond
President and Chief Executive Officer
or
W. Kerry Jackson
Executive Vice President, Chief Financial Officer
and Treasurer
(812) 867-6471
www.shoecarnival.com
Copyright Business Wire 2010
