For the quarter ended July 30, net income dropped to $2.7 million, 20 cents a share, as compared with $4.1 million, 32 cents per share, during the same period a year ago.
Net sales edged up 0.8% to $166.7 million, as comparable store sales fell 1.1%.
“Our performance in the second quarter of 2011 quite simply fell short of our expectations,” Mark Lemond, president/ceo, said.
Shopping traffic was slower in part due to inclement weather in the early and late parts of the quarter, the retailer said. And, sales of higher-price “toning” footwear which helped it earn record profits last year have dropped by 50%
But the retailer, which operates 321 stores, added that back-to-school traffic trends have improved and third quarter same-store sales are now expected to rise by up to 4.4%. Net sales in the same quarter are likely to be in the range of $217 million to $219 million. Analysts’ average estimate forecast 77 cents a share on revenue of $216 million.
The company also expects sales to improve as it begins selling online at shoecarnival.com within the next two weeks.