Shoe Carnival Q2 Profit Falls 34% as Bad Weather Hurts Sales

In Industry News, Reports, What's New by Accessories StaffLeave a Comment

Evansville, IN–Shoe Carnival Inc. said Thursday inclement weather in the second quarter led to a lower foot traffic in its stores and pushed earnings down by 34%.

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 within the next two weeks.

It's only fair to share...
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInPrint this pageEmail this to someone