Shoe Carnival Q4 Profit Sinks as Sales Slow

shoe carnivalEvansville, IN—Shoe Carnival Inc. reported last week that its fourth quarter profit fell 81% hit by a sales decrease and lower comparable store sales.

For the quarter ended Feb. 1, the footwear and accessories retailer reported a profit of $598,000, or 3 cents a share, down from $3.2 million, or 13 cents a share, a year earlier. (The prior-year quarter included one additional week) That just missed analysts’ average estimate for 4 cents share.

‘Unfavorable Weather’

Net revenue was down 2.6% to $200.3 million, just missing analysts’ estimate for $203.8 million. Comparable store sales were down 2.5%. Gross margin contracted 80 basis points to 28.5%, while selling and general expenses, as a percentage of sales, increased to 28% from 26.7% last year.

“Unfavorable weather in the fourth quarter negatively impacted our customer traffic, and consequently, our sales and earnings results,” said Cliff Sifford, president/ceo. “In particular, robust traffic and sales in November were followed by significant declines in traffic and sales in December and January. Despite this tough sales environment, we ended fiscal 2013 with inventories in excellent shape and believe we are well positioned with the right assortment of family footwear at the right price to capitalize on the Easter selling season.”

Looking ahead, Shoe Carnival forecast earnings of 45 cents to 52 cents a share in the first quarter on sales between $232 million and $241 million.

Analysts’ average estimate expects 49 cents a share on sales of $252.3 million for the quarter.

 

 

 

 

 

Like this? Share it!


Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com