Shoe Carnival said poor boot sales, largely due to warm weather so far this winter season, led to a fourth-quarter EPS shortfall. The family shoe chain expects EPS in the fourth quarter to be in the range of 20 cents to 23 cents a share, down from an earlier projection of 33 cents to 36 cents. Comparable store sales are expected to decline in the range of
3.0 to 3.5 percent.
In releasing third-quarter results on Nov. 17, Shoe Carnival expected comps to grow 4.6
percent. Total sales are now expected to be in the range of $181
to $182 million versus a previous target of
sales in the range of $186 to $190 million.
In the
fourth quarter of fiscal 2010, comparable store sales increased 4.6
percent and earnings per diluted share were $0.33.
For fiscal 2011, the company expects net sales to be in the range of $761 to $762 million and comparable store sales to increase approximately 0.7 percent. Earnings per diluted share for fiscal 2011 are expected to be in the range of $1.92 to $1.95. For fiscal 2010, comparable store sales increased 8.2 percent and earnings per diluted share were $2.05.
Shoe Carnival had expected fiscal 2011 EPS between $2.05 and $2.08 with sales ranging from $767 to $770 million and comps up in the range
of 1.2 to 1.7 percent.
Speaking on the results for the quarter, Mark Lemond, president and chief executive officer, said, “Our fourth quarter sales and earnings results have been significantly affected by a decline in the sale of boots, particularly women's boots. Our boot sales in the first two months of the fourth quarter last year increased 20 percent on a comparable basis, whereas this year boot sales have declined 15 percent in our comparable stores. We attribute this decline in large part to unseasonably warm weather. Additionally, due to increased promotional activity focused on boot sales, we expect the gross profit margin for the fourth quarter to decline by approximately 170 basis points.”
Lemond continued, “Our expected annual earnings will still represent the second highest in the company's history despite lower than anticipated fourth quarter results. Going forward, we remain intently focused on accelerating our store growth and the potential that new stores represent for long-term growth in sales and earnings. In fiscal 2012, we expect to open 30 stores, including investments in two major new markets — Dallas, TX, and Puerto Rico.”
The company will release full fourth quarter financial results on Wednesday, Mar. 21, 2012, after market close.
Shoe Carnival is a chain of 328 footwear stores located in the Midwest, South and Southeast.
