Shoe Carnival, Inc. reported sales for the five-week period ended January 3, 2004 increased 6.1% to $60.5 million from sales of $57.0 million for the five-week period ended January 4, 2003. Comparable store sales decreased 3.8% for the five-week period.
The company said sales prior to Christmas week were very challenging due to a substantial reduction in customer traffic compared with last year. SCVL said customer traffic returned to prior year levels beginning Christmas week and sales increased correspondingly.
The late surge in sales was not enough to offset the sales declines of the first three weeks of December. Despite the sales declines, SCVL siad they controlled inventories and expect to end the season with inventories in good shape and well positioned for spring.
Based on the decline in sales for the first two months of the quarter, and the expectation of flat comparable store sales in January, management now expects earnings in the fourth quarter to range from a loss of $0.01 to earnings of $0.02 per diluted share. Included in the quarterly earnings estimate is a pre-tax charge of approximately $315,000 for asset impairment and store relocation and closings.
Sales for the first eleven months of 2003 increased 7.4 percent to $527.5 million from sales of $491.1 million for the first eleven months of 2002. Comparable store sales decreased 3.0 percent for the 48-week period.
