Although Shoe Carnival didn’t meet analysts’ (or its own) expectations for comp store sales for the third quarter, the retailer controlled expenses and saw improvement in gross margin through better inventory management to deliver results in line with the Street and internal forecasts. But some of that improvement may be given back in the fourth quarter as the company gets promotional early to liquidate inventories in the boot category.

The small same-store sales gain was at the lower end of the company’s Q3 guidance. August comps were up 5.0%, September inched up 1.8% and October, which was up against a strong month last year “driven by promotional selling and near perfect weather conditions for selling fall product”, was down 9.0% on a same-store basis after a 13.7% gain in the year-ago period.

Women's non-athletic comps were down “mid single digits”, due in large part to weakness in boots. Management said they will “be very aggressive with boot liquidation in December and January” and anticipate a “very promotional fourth quarter”. The men's non-athletic business was down “high single digits” on a comp store basis and the children's department comped up in the “mid single digits” for the quarter.

Adult athletic had a “mid single-digit comp” gain in the quarter, driven by white Classics, running and men’s basketball. The retailer sees a bigger push in brown Classics as well. Girls' and infants' athletic had “double-digit increases”. Basketball drove a turnaround in the boy’s area, “showing high double-digit gains”.

Inventory per store was down about 3.0% on a per store basis at the end of the quarter.

Shoe Carnival reiterated its Q4 EPS forecast in the 15 cents to 18 cents range, while same-store sales are expected to range from flat to up 2%. Gross margins are expected to be “flat to up slightly”.

On another note, EVP of Merchandising Cliff Sifford announced that Andy Chandler will move over to run the Women’s business leaving a gap for now in Athletics. CEO Mark Lemond said he will handle the duties there until a new hire is made in “the next several weeks”.