Shoe Carnival Further Enhances Financial Liquidity
April 16 2020 - 5:15PM
Business Wire
Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading
retailer of moderately priced footwear and accessories, today
announced it has exercised the accordion feature of its credit
agreement with Wells Fargo Bank, N.A. and Fifth Third Bank,
National Association to further enhance its financial liquidity
position. The exercise, which closed on April 16, 2020, resulted in
an increase of the Company’s line of credit from $50 million to
$100 million. The Company currently has no cash borrowings under
the facility.
“As we have communicated, our strong financial position has been
a key competitive advantage for us through various cycles. However,
out of an abundance of caution in light of the prolonged
uncertainty in the macro-economic environment driven by the
COVID-19 pandemic, we expanded our line of credit to ensure greater
flexibility as we navigate current market conditions. We would like
to thank Wells Fargo and Fifth Third Bank for their continued
support of Shoe Carnival and our business operations,” said Cliff
Sifford, Shoe Carnival’s Vice Chairman and Chief Executive
Officer.
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 16,
2020, the Company operates 390 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 our financial liquidity
position 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 the operations of our stores, 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/20200416005965/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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