Shoe Carnival Provides Business Update Following Stores Re-opening
June 22 2020 - 5:34PM
Business Wire
Shoe Carnival, Inc. (Nasdaq: SCVL) (the “Company”), a leading
retailer of moderately priced footwear and accessories, today
provided a business update following the re-opening of its stores
amid the global COVID-19 pandemic.
As of June 22, 2020, the Company has re-opened all but one of
its 390 stores across the U.S. and Puerto Rico. For the fiscal
second quarter-to-date, Shoe Carnival has experienced stronger than
expected sales with comparable store sales up 28.1% compared to the
prior year, with brick and mortar comparable sales up 4.0% and
e-commerce comparable sales increasing nearly 470%.
While the Company is encouraged by the strong sales performance
quarter-to-date, it does anticipate gross margin headwinds for the
fiscal second quarter 2020 as a result of mix and increased
shipping charges associated with higher e-commerce sales.
“The first half of fiscal 2020 ushered in an unprecedented
operating landscape for our business. We pivoted quickly to protect
the health and safety of our employees and customers, which has
supported the successful, gradual re-opening of our stores since
late-April. As we have slowly re-emerged with heightened safety
procedures, we have welcomed back our customers to stores, and as a
result, fiscal second quarter-to-date sales have exceeded our
expectations. While there are still many unknowns, we are
encouraged by these more than positive sales trends and remain
committed to meeting our customers’ footwear needs and positioning
Shoe Carnival as a leader in the family footwear segment,”
commented Cliff Sifford, Shoe Carnival’s Vice Chairman and Chief
Executive Officer.
Shoe Carnival does not plan to provide preliminary financial
results in the future other than in unique circumstances, or in the
event of material event that requires disclosure. Members of
management will be having virtual meetings with the investment
community over the next several weeks. Shoe Carnival will provide
more details on its fiscal second quarter 2020 financial
performance during its earnings call in August 2020.
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 June 22,
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 the re-opening of our
stores, expected sales trends, and other statements regarding
uncertainties involving COVID-19. 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 and Quarterly Reports on Form
10-Q.
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/20200622005719/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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