Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading
retailer of moderately priced footwear and accessories, today
announced it would be extending its store closures until further
notice. The Company will be evaluating the length of its store
closures in-line with guidance from federal, state, and local
governments, as well as the safety of its employees. At this time,
the Company will continue to pay its associates as scheduled, but
will further evaluate as the length of the closures becomes
clearer.
“Above all else, the well-being of our employees, customers and
the communities we serve during this difficult period is our
priority. We also know that the economic uncertainty that comes
with government-mandated shelter-in-place orders has made many of
our team members face financial hardships and our continued support
during this period is critical,” stated Cliff Sifford, Shoe
Carnival’s Vice Chairman and Chief Executive Officer.
Sifford continued, “At the same time, we are taking decisive
actions to manage costs across the Company, which includes salary
and discretionary expense reductions. While these are tough
decisions, we believe they are necessary for the long-term success
of Shoe Carnival. We would like to thank our team and customers for
the strength and patience they have shown throughout this process,
and we are looking forward to the day we are able to safely re-open
our stores to the Shoe Carnival community.”
Maintaining Financial Strength and Flexibility
Shoe Carnival has taken a number of actions to preserve cash and
liquidity. Effective immediately, the Company’s Senior Executives
and Board of Directors will substantially reduce their base
salaries and cash retainer fees, respectively. These reductions for
the Senior Executives and Board will continue until such time as at
least 50% of the Company’s store locations have re-opened. In
addition, Shoe Carnival is working with its supply chain partners
to reduce inventories and extend credit terms, deferring any
non-essential capital projects, postponing marketing activities
aligned with its brick and mortar stores, and evaluating its
promotional activities.
As of today, the Company continues to maintain liquidity with
on-hand cash and cash equivalents and no cash borrowings against
its current $50 million credit facility.
E-Commerce Operations and Activity
Shoe Carnival will continue to serve its customers through its
website, www.shoecarnival.com, and mobile app. As discussed on its
fiscal fourth quarter and year end 2019 conference call in March,
the Company’s e-commerce business has grown triple digits since the
closure of its brick and mortar stores, and that growth has further
accelerated in the last week. While Shoe Carnival is prudently
managing its marketing initiatives, it has largely focused on
driving further traffic to this area of the business.
Updates regarding the Company’s store operations will be
available on the Company’s website www.shoecarnival.com.
About Shoe Carnival
Shoe Carnival, Inc. is one of the nation’s largest family
footwear retailers, offering a broad assortment of moderately
priced dress, casual and athletic footwear for men, women and
children with emphasis on national name brands. As of April 2,
2020, the Company operates 392 stores in 35 states and Puerto Rico,
and offers online shopping at www.shoecarnival.com. 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.
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, including,
but not limited to, statements regarding the timing of the
temporary closure of our stores, actions being taken to manage
costs and other statements regarding the impact of COVID-19 on our
operations. 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: the duration and spread of
the COVID-19 outbreak, mitigating efforts deployed by government
agencies and the public at large, and the overall impact from such
outbreak on economic conditions, financial market volatility,
consumer spending and our supply chain and distribution processes;
general economic conditions in the areas of the continental United
States in which our stores are located and the impact of the
ongoing economic crisis in Puerto Rico on sales at, and cash flows
of, our stores located in Puerto Rico; the effects and duration of
economic downturns 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; our ability to successfully navigate the increasing use
of online retailers for fashion purchases and the impact on traffic
and transactions in our physical stores; the success of the
open-air shopping centers where our stores are located and its
impact on our ability to attract customers to our stores; our
ability to attract customers to our e-commerce website and to
successfully grow our e-commerce sales; the potential impact of
national and international security concerns on the retail
environment; changes in our relationships with key suppliers; our
ability to control costs and meet our labor needs in a rising wage
environment; changes in the political and economic environments in,
the status of trade relations with, and the impact of changes in
trade policies and tariffs impacting, China and other countries
which are the major manufacturers of footwear; the impact of
competition and pricing; our ability to successfully manage and
execute our marketing initiatives and maintain positive brand
perception and recognition; our ability to successfully manage our
current real estate portfolio and leasing obligations; changes in
weather, including patterns impacted by climate change; changes in
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 natural
disasters, other public health crises, political crises and other
catastrophic events on our stores and our suppliers, as well as on
consumer confidence and purchasing in general; risks associated
with the seasonality of the retail industry; the impact of
unauthorized disclosure or misuse of personal and confidential
information about our customers, vendors and employees, including
as a result of a cyber-security breach; our ability to manage our
third-party vendor relationships; our ability to successfully
execute our business strategy, including the availability of
desirable store locations at acceptable lease terms, our ability to
open new stores in a timely and profitable manner, including our
entry into major new markets, and the availability of sufficient
funds to implement our business plans; higher than anticipated
costs associated with the closing of underperforming stores; the
inability of manufacturers to deliver products in a timely manner;
the impact of regulatory changes in the United States and the
countries where our manufacturers are located; the resolution of
litigation or regulatory proceedings in which we are or may become
involved; continued volatility and disruption in the capital and
credit markets; and future stock repurchases under our stock
repurchase program and future dividend payments; and other factors
described in the Company’s SEC filings, including the Company’s
latest Annual Report on Form 10-K.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005875/en/
Cliff Sifford Vice Chairman and Chief Executive Officer, or
W. Kerry Jackson Senior Executive Vice President, Chief
Financial and Administrative Officer and Treasurer
7500 East Columbia Street Evansville, IN 47715
www.shoecarnival.com (812) 867-6471
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