Shoe Carnival, Inc. reported sales for the first quarter ended May 5, 2007 decreased 1.7% to $165.7 million from sales of $168.5 million for the first quarter ended April 29, 2006. Comparable store sales for the thirteen-week period decreased 3.7% compared to the same thirteen-week period last year ending May 6, 2006.
Commenting on sales, Mark Lemond, president and chief executive officer, stated, “While our Easter season sales were below our original expectations, our merchants have done a commendable job controlling inventory. As we entered the second quarter, inventories on a per store basis were approximately flat with last year.”
The company expects diluted earnings per share for the first quarter of fiscal 2007 to be even with or slightly below earnings per share of 54 cents for the same period last year. Included in fiscal 2007 first quarter earnings is approximately $900,000, or four cents per diluted share, in distribution center costs in excess of last year. These costs are primarily related to the conversion to the new distribution center. Additionally, first quarter earnings include a reduction in income tax expense of seven cents per diluted share for state incentives related to the investment in the new distribution center.
SCVL also announced the opening of seven stores during the first quarter of fiscal 2007
