May 19, 2011
EVANSVILLE, Ind.–Shoe Carnival, Inc. a leading retailer of value-priced footwear and accessories, today announced sales and earnings for the first quarter ended April 30, 2011.
Net sales for the first quarter of fiscal 2011 increased 4.7 percent to $198.5 million compared to net sales of $189.5 million in the first quarter of fiscal 2010. Comparable store sales increased 3.4 percent for the first quarter of fiscal 2011. This increase follows a record 13.1 percent increase in comparable store sales achieved in the first quarter of fiscal 2010.
Net earnings for the first quarter increased to $9.9 million, or $0.75 per diluted share, from net earnings of $9.2 million, or $0.72 per diluted share in the first quarter of last year.
The gross profit margin for the first quarter of fiscal 2011 decreased to 31.1 percent compared to 31.3 percent for the first quarter of fiscal 2010. The merchandise margin decreased 0.4 percent, while buying, distribution and occupancy costs decreased 0.2 percent.
Selling, general and administrative expenses for the first quarter increased $1.3 million to $45.6 million; however, as a percentage of sales, these expenses decreased to 23.0 percent compared to 23.4 percent in the first quarter of 2010 due to the leverage associated with comparable store sales increases.
Speaking on the results, Mark Lemond, president and chief executive officer said, “Athletic footwear, especially certain running styles, along with women’s sport styled sandals contributed significantly to our first quarter comparable store sales increase of 3.4 percent. This increase in comparable stores sales, combined with a solid gross profit margin and controlled expenses enabled us to report the highest quarterly earnings in the Company’s history.”
Mr. Lemond continued, “Our implementation team is making significant progress towards our goal of launching an e-commerce platform in the second half of this year. We are excited about the introduction of this new platform for sales growth and the national branding opportunity it will enable. We believe we can continue to capitalize on the strength of our business model and deliver year-over-year gains in sales and earnings for the current fiscal year.”
Second Quarter Fiscal 2011 Earnings Outlook
The Company expects second quarter net sales to be in the range of $169 to $172 million with comparable store sales in the range of flat to an increase of 2 percent. Earnings per diluted share in the second quarter of fiscal 2011 are expected to be in the range of $0.27 to $0.31.