Shoe Carnival Inc. lowered its guidance for the year after a weak start to selling in the first quarter.
Cliff Sifford, Shoe Carnival’s president and chief executive officer, commented, “Our sales results improved as we progressed through the first quarter, but it was not enough to offset the soft start we experienced at the beginning of the year with comparable store sales down mid-teens in February. We primarily attribute the decline in our February sales to the delay in tax refund checks. Most recently, we have generated improved sales and we are optimistic that our financial performance will improve as we progress through fiscal 2017. We continue to believe the strength of our balance sheet and cash flow will enable us to enhance value for shareholders through our existing dividend and share repurchase programs.”
Comparable store sales in the first quarter of fiscal 2017 decreased 3.9 percent as a result of a slower start to the fiscal year.
The company now expects fiscal year 2017 net sales to be in the range of $1.002 billion to $1.018 billion, with comparable store sales flat to down low single digits, and earnings per diluted share in the range of $1.30 to $1.45. This compares to the company’s prior outlook for net sales of $1.028 billion to $1.040 billion, with comparable store sales flat to up low single digits and earnings per diluted share of $1.45 to $1.54.
Fiscal 2016 earnings per diluted share were $1.28 and adjusted earnings per diluted share were $1.40.
The company does not plan to release preliminary financial results in the future other than in unique circumstances, or in the event of a material event that requires disclosure.
The company expects to report first quarter fiscal year 2017 financial results on Thursday, May 25, 2017, after the market close.
Shoe Carnival operates 417 stores in 35 states and Puerto Rico, and offers online shopping at www.shoecarnival.com.
Photo courtesy Shoe Carnival
