First Quarter Net Sales Increased 7.2% to
$252.8 Million and EPS Increased 15.6% to $0.52
Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of
value-priced footwear and accessories, today reported results for
the first quarter ended May 2, 2015.
First Quarter Highlights
- Net sales increased $17.0 million to a
first quarter record of $252.8 million, as compared to net sales
for the first quarter of fiscal 2014
- Comparable store sales increased 3.0
percent in the first quarter of fiscal 2015
- Earnings per diluted share for the
first quarter increased 15.6 percent to $0.52
- Per-store inventories were down 2.9
percent at the end of the quarter, as compared to the first quarter
of fiscal 2014
- Company raises the low end of its full
year fiscal 2015 earnings per diluted share guidance to $1.42 to
$1.48, up from $1.40 to $1.48
Cliff Sifford, President and CEO, stated, “We are pleased with
our comparable store sales growth and our ability to deliver strong
first quarter earnings. While the quarter started off very
challenging due to adverse weather, with over 400 days of store
closures, the consumer responded favorably to our family footwear
assortment, which resulted in a comparable store sales increase
across all footwear departments and in each of our geographic
regions. In addition, our initiative launched in fiscal 2014 to
bring fulfillment of our e-commerce orders in-house has continued
to pay dividends as our customers continued to take advantage of
the increase in both selection and depth of sizes available to them
online.”
First Quarter Financial Results
The Company reported net sales of $252.8 million for the first
quarter of fiscal 2015, a 7.2 percent increase, as compared to net
sales of $235.8 million for the first quarter of fiscal 2014.
Comparable store sales increased 3.0 percent in the first quarter
of fiscal 2015.
The gross profit margin for the first quarter of fiscal 2015
remained flat at 29.5 percent. The merchandise margin increased 0.1
percent while buying, distribution and occupancy expenses increased
0.1 percent as a percentage of sales.
Selling, general and administrative expenses for the first
quarter of fiscal 2015 increased $3.3 million to $57.7 million. As
a percentage of sales, these expenses decreased to 22.8 percent
compared to 23.0 percent in the first quarter of fiscal 2014.
The Company opened seven new stores in the first quarters of
both fiscal 2015 and fiscal 2014.
Net earnings for the first quarter of fiscal 2015 were $10.4
million, or $0.52 per diluted share. For the first quarter of
fiscal 2014, the Company reported net earnings of $9.2 million, or
$0.45 per diluted share. First quarter earnings for fiscal 2015
includes approximately $0.01 of additional expense within cost of
sales attributable to the west coast port congestion.
Fiscal 2015 Earnings Outlook
The Company expects fiscal 2015 net sales to be in the range of
$977 million to $991 million, with a comparable store sales
increase in the range of 1.5 percent to 3.0 percent. Earnings per
diluted share for the fiscal year are expected to be in the range
of $1.42 to $1.48. This represents an increase of 12 percent to 17
percent over fiscal 2014 earnings per diluted share of $1.27.
Store Growth
The Company expects to open 18 to 19 new stores and close 10 to
14 stores in fiscal 2015. Store openings and closings by quarter
for the fiscal year are as follows:
New Stores Store Closings 1st quarter 2015 7 6 2nd
quarter 2015 5 3
3rd quarter 2015
6 to 7 0 4th quarter 2015 0 1 Fiscal year 2015 18 to 19 10
The seven new stores opened during the first quarter include
locations in:
Total Stores in City Market the Market Bristol, TN
Tri-Cities 3 Columbus, GA Columbus 1 Denham Springs, LA Baton Rouge
3 Largo, FL Tampa 7 New Orleans, LA New Orleans 5 Troy, OH Dayton 3
Upper Darby, PA Philadelphia 3
Conference Call
Today, at 4:30 p.m. Eastern Time, the Company will host a
conference call to discuss the first quarter results. Participants
can listen to the live webcast of the call by visiting Shoe
Carnival's Investors webpage 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 the Company’s website beginning approximately two hours after
the conclusion of the conference call and will be archived for one
year.
Date of Annual Shareholder Meeting
As previously announced, the Company will hold its Annual
Meeting of Shareholders on June 11, 2015.
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 and regional name brands. As of
May 20, 2015, the Company operates 401 stores in 34 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. 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
continental United States and Puerto Rico in which our stores are
located; 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; 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; our ability to
successfully manage and execute our marketing initiatives and
maintain positive brand perception and recognition; 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; the impact
of unauthorized disclosure or misuse of personal and confidential
information about our customers, vendors and employees; our ability
to manage our third-party vendor relationships; 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, including our entry into major new markets, and the
availability of sufficient funds to implement our growth plans;
higher than anticipated costs associated with the closing of
underperforming stores; our ability to successfully grow our
e-commerce business; the inability of manufacturers to deliver
products in a timely manner; changes in the political and economic
environments in China, Brazil, Europe 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; the continued favorable trade relations
between the United States and China and the other countries which
are the major manufacturers of footwear; the resolution of
litigation or regulatory proceedings in which we are or may become
involved; and our ability to meet our labor needs while controlling
costs; 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.
Financial Tables Follow
SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per share)
(Unaudited)
Thirteen Thirteen Weeks Ended Weeks Ended May
2, May 3, 2015 2014 Net sales $
252,767 $ 235,770
Cost of sales (including buying,
distribution and occupancy costs)
178,078 166,188 Gross profit 74,689
69,582
Selling, general and administrative
expenses
57,659 54,373 Operating income 17,030
15,209 Interest income (3 ) (6 ) Interest expense 42
42 Income before income taxes 16,991 15,173 Income
tax expense 6,595 6,022 Net income $
10,396 $ 9,151 Net income per share: Basic $
0.52 $ 0.45 Diluted $ 0.52 $ 0.45
Weighted average shares: Basic 19,588
19,960 Diluted 19,601 19,978
Cash dividends declared per share $ 0.06 $ 0.06
SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS
(In thousands)
(Unaudited)
May 2, January 31, May 3, 2015 2015
2014
ASSETS Current Assets: Cash and cash equivalents
$ 69,754 $ 61,376 $ 41,254 Accounts receivable 2,441 2,928 2,848
Merchandise inventories 295,248 287,877 289,644 Deferred income
taxes 1,016 957 1,029 Other 12,915 5,991
11,403 Total Current Assets 381,374 359,129 346,178 Property and
equipment - net 103,107 101,294 93,524 Deferred income taxes 5,781
4,227 5,287 Other noncurrent assets 366 366
683 Total Assets $ 490,628 $ 465,016 $ 445,672
LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities:
Accounts payable $ 76,375 $ 67,999 $ 54,231 Accrued and other
liabilities 21,190 15,123 22,085 Total Current
Liabilities 97,565 83,122 76,316 Deferred lease incentives 30,095
29,908 25,072 Accrued rent 10,888 10,505 9,618 Deferred
compensation 10,605 9,901 8,759 Other 212 382
223 Total Liabilities 149,365 133,818 119,988 Total Shareholders'
Equity 341,263 331,198 325,684 Total
Liabilities and Shareholders' Equity $ 490,628 $ 465,016 $ 445,672
SHOE CARNIVAL, INC. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Thirteen Thirteen Weeks Ended Weeks Ended May
2, 2015 May 3, 2014 Cash Flows From Operating Activities Net
income $ 10,396 $ 9,151
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 5,574 4,646 Stock-based compensation
892 786 Loss on retirement and impairment of assets 139 71 Deferred
income taxes (1,613 ) (1,682 ) Lease incentives 1,105 1,104 Other
(250 ) 26 Changes in operating assets and liabilities: Accounts
receivable 488 1,489 Merchandise inventories (7,371 ) (4,843 )
Accounts payable and accrued liabilities 8,109 (7,730 ) Other
(618 ) (136 ) Net cash provided by operating
activities 16,851 2,882 Cash
Flows From Investing Activities Purchases of property and equipment
(7,342 ) (8,794 ) Net cash used in investing
activities (7,342 ) (8,794 ) Cash Flows From
Financing Activities Proceeds from issuance of stock 56 96
Dividends paid (1,199 ) (1,219 ) Excess tax benefits from
stock-based compensation 25 42 Shares surrendered by employees to
pay taxes on restricted stock (13 ) (6 ) Net cash
used in financing activities (1,131 ) (1,087 ) Net
increase (decrease) in cash and cash equivalents 8,378 (6,999 )
Cash and cash equivalents at beginning of period 61,376
48,253 Cash and Cash Equivalents at End of
Period $ 69,754 $ 41,254
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150520006346/en/
Shoe Carnival, Inc.Cliff SiffordPresident,
Chief Executive Officer and Chief Merchandising
OfficerorW. Kerry JacksonSenior Executive Vice
President, Chief Operating and Financial Officer and
Treasurer(812) 867-6471
Shoe Carnival (NASDAQ:SCVL)
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